Private Media Group Intends to File Emergency Writ to Set Aside Appointment of Receiver

Private Media Group

intends to file an application for an emergency writ with the Nevada Supreme Court to stay the Order of the Court, and to set aside the appointment of a receiver. The Company believes that the Court's appointment of a Receiver violates state law, as the statutory and other legal requirements for appointment of a receiver have not been met, and that Judge Gonzalez's decision was improperly motivated by personal bias. Whether or not the Order is stayed or set aside, the Company intends to continue to conduct its business in the ordinary course. In a related matter in the Nevada Action, the Nevada Supreme Court has ordered that oral arguments be held before all seven Nevada Supreme Court justices on September 8, 2011, to determine the validity of the lower court's Order entered in October 2010 that Consipio Holding bv, an unsecured creditor of the Company, has the right to vote 5.6 million shares pledged by Slingsby Enterprises Ltd. in 2001 to secure a $4 million loan from Commerzbank to the Company, which shares have been claimed to be beneficially owned by Berth Milton, the owner of Slingsby Enterprises Ltd.