CHARLOTTE, N.C.--(BUSINESS WIRE)--Jan. 5, 2005--
Metromedia International Group, Inc. (the "Company" or
"MIG") (OTCBB: MTRM) - Common Stock and (PINK SHEETS: MTRMP)-
Preferred Stock, the owner of interests in various communications and
media businesses in Russia and the Republic of Georgia, today
announced the following with respect to the previously announced
proposed merger of the Company:

-- The investor group (the "Investor Group") comprised of
Emergent Telecom Ventures S.A., First National Holdings S.A.
and Baring Vostok Capital Partners (Cyprus) Limited ("Baring
Vostok") has confirmed to the Company that it has completed in
all material respects its due diligence investigation of the
Company's core telephony businesses in Russia and Georgia.
Remaining due diligence work will focus principally on MIG
itself.

-- The Company has granted the Investor Group an extension of the
exclusivity period to complete its due diligence review of MIG
from January 17, 2005 to February 14, 2005.

-- The Investor Group has further confirmed that, following its
due diligence with respect to the Company's core businesses,
it continues to assign an aggregate enterprise value to the
Company of $300 million in respect of the proposed merger.

-- Capital International Private Equity Fund IV, L.P. ("Capital
International") has notified the Company that it is no longer
part of the Investor Group. Baring Vostok has informed the
Company that it expects to fund the entire portion of the
purchase price that was previously expected to be funded by
Capital International.

-- Should a definitive merger agreement be executed with the
Investor Group, the Company anticipates that a meeting of its
common shareholders to vote on the approval of the transaction
would occur during the second quarter of 2005.

As previously announced, the Investor Group's preliminary proposal
contains a number of conditions, including without limitation, the
Investor Group's successful completion of due diligence, the Investor
Group obtaining commitments for all financing contemplated in its
acquisition proposal, MIG meeting currently projected corporate cash
balance and liability levels. There can be no assurances that any
transaction with the Investor Group or any other party will take place
nor can any assurance be given with respect to the timing or terms of
any such transaction. Details of the terms of a final agreement, if
any, reached between the parties will be disclosed upon signing of
definitive agreements. The preliminary proposal made by the Investor
Group is non-binding and MIG has agreed, under certain circumstances,
to reimburse the Investor Group for a limited amount of its
out-of-pocket expenses incurred in connection with its due diligence
review and negotiation of definitive agreements.

About Metromedia International Group

Through its wholly owned subsidiaries, the Company owns interests
in communications businesses in Russia and the Republic of Georgia.
Since the first quarter of 2003, the Company has focused its principal
attentions on the continued development of its core telephony
businesses, and has substantially completed a program of gradual
divestiture of its non-core cable television and radio broadcast
businesses. The Company's core telephony businesses include PeterStar,
the leading competitive local exchange carrier in St. Petersburg,
Russia, and Magticom, the leading mobile telephony operator in the
Republic of Georgia.
This news release contains certain forward-looking statements that
involve risks and uncertainties, including in particular those
regarding the likelihood that any strategic transaction will take
place or the value that might be realized by MIG's stakeholders upon
the consummation of any such transaction. Various other factors beyond
the Company's control could cause or contribute to such risks and
uncertainties. This also includes such factors as are described from
time to time in the SEC reports filed by the Company, including the
Current Annual Report on Form 10-K for the year ended December 31,
2003, the Company's Form 10-Q for the fiscal quarters ended March 31,
2004, June 30, 2004 and September 30, 2004 and its most recently filed
Form 8-K reports (dated April 5, 2004, April 26, 2004, May 7, 2004,
May 18, 2004, June 25, 2004, July 9, 2004, July 14, 2004, July 26,
2004, August 4, 2004, October 19, 2004, November 4, 2004, November 16,
2004, November 22, 2004 and December 9, 2004). The Company is not
under, and expressly disclaims any, obligation to update the
information in this news release for any future events, including
changes in its cash balances or other events affecting liquidity.

Please visit our website at www.metromedia-group.com.

KEYWORD: EUROPE ASIA PACIFIC NORTH AMERICA NORTH CAROLINA UNITED STATES RUSSIA GEORGIA
INDUSTRY KEYWORD: ENTERTAINMENT TV AND RADIO TECHNOLOGY CONSUMER ELECTRONICS TELECOMMUNICATIONS MERGER/ACQUISITION
SOURCE: Metromedia International Group, Inc.