Statement re Secretariat of Domestic Trade

09 March 2010

GRUPO CLARIN S.A.

Argentine Secretariat of Domestic Trade issues Resolution No. 50/2010

On 5 March 2010, Grupo Clarín S.A. (the "Company") informed the Argentine Securities Commission ("CNV") that on 4 March 2010, the Argentine Official Gazette published Resolution No. 50/2010 of the Argentine Secretariat of Domestic Trade, relating to the setting of standards for the operations of commercialization of pay-television services.

Attached hereto is a free translation of the relevant sections of Resolution No. 50/2010. 

Enquiries:

In Buenos Aires:

Alfredo Marín/

M. Julia Díaz Ardaya/Romina Vázquez

Grupo Clarín

Email: [email protected]

In London:

Alex Money/Lorna Ellen

Temple Bar Advisory

Tel: +44 20 7002 1080

Email: [email protected]

In New York:

Melanie Carpenter/Peter Majeski

I-advize Corporate Communications

Tel: +1 212 406 3692

Email: [email protected]

FREE TRANSLATION

SECRETARIAT OF DOMESTIC TRADE

RESOLUTION NO. 50/2010

Setting standards for the operations of commercialization of pay-television services

Buenos Aires, 3/3/2010

[Recitals intentionally omitted]

"THE SECRETARY OF DOMESTIC TRADE HEREBY DECIDES:

ARTICLE 1º.- The operations of commercialization of pay-television services shall be carried out in accordance with the standards set forth herein.

ARTICLE 2º - The subscription price payable each month by pay-television subscribers shall be determined by applying the formulas set forth in the Annex, which constitutes an integral part of this Resolution. The amounts that result from the application of the abovementioned formulas shall be reported to the Commercial Loyalty Direction between 8 March and 22 March 2010. Pay-television operators shall adjust such amount semi-annually and report the result of such adjustment to such Direction.

ARTICLE 3º - The information that all pay-television operators must provide, shall be submitted to the Commercial Loyalty Direction, a dependency of the SECRETARIAT OF DOMESTIC TRADE OF THE MINISTRY OF ECONOMY AND PUBLIC FINANCE, located on Avenida Julio Argentino Roca No. 651, 4th Floor, Sector No. 32, Autonomous City of Buenos Aires, between NINE THIRTY (9:30) and THIRTEEN (13:00) hours and between THIRTEEN THIRTY (13:30) and (17:00) hours.

ARTICLE 4º - This Resolution is binding on all pay-television operators within the national territory, as from the day following its publication in the Official Gazette of the Republic of Argentina.

ARTICLE 5º - All procedures, recourse and statutes of limitations applicable hereto shall be those set forth under Law No. 20,680

ARTICLE 6º - Let this Resolution be communicated, published, sent to the National Direction of Official Registry and filed. Mario G. Moreno.

ANNEX

The service rendered by a pay-television operator is the transportation of content. As such, its costs include only a component of investment and installation of the network and one relating to its operation and maintenance.

The rigidity of the relationship between the consumer and the network provider allows the latter to discriminate among clients based on the value such clients assign to the content independently of their cost.

Additionally, the pure analysis of marginal revenues with available technology may lead to certain regions remaining without service or under-serviced when the social interest requires a more equitable treatment.

These practices, which are contrary to equity and economic efficiency, arise from the unrestricted application of principles of profit maximization within a context of high market power of the operator.

Allowing such practices would not only be discriminatory to the user population but would also burden the content production industry with artificial and arbitrary over-costs, leading to a lower level of activity and employment in that industry.

Consequently, it is necessary for the pay-television operators to establish their subscription price by adding to the cost of acquisition of content, the cost of installation and operation of the network in order to ensure the supply of the entire user community, in accordance with the provisions that follow:

In order to comply with this premise:

Pay-television operators shall calculate, from time to time:

a) The network investment expenses (GI): Expenses in materials, layout and local installation of the network. This value shall be annualized by dividing it by the expected useful life (in years) of such network. The costs shall be measured taking into account the best available technology to produce such service from today onwards. Therefore, if a strong technological change has occurred, it is incorrect to take into account, for its calculation, any investments made by companies that operated the network in the past, and the inefficiencies relating to the use of technologies that have already been surpassed

b) The annual maintenance expenses for the network (GM): Expenses in controls and repairs necessary to maintain the network in satisfactory condition.

c) Network operating expenses (GO): The equipment, infrastructure and personnel required to operate the network.

d) Content expenses (GCi), which shall arise from the price charged by content providers for the specific package "i" chosen by the subscriber.

e) Total Applied Capital (CTE): CTE is the immobilised asset (including working capital) needed to maintain the operations (including immobilised capital derived from content provider contracts).

f) Other revenues derived from the exploitation of the network (OI): All revenues obtained by the company in addition to the monthly fees charged to users and derived from the exploitation of the network.

In summary: the commercial operation shall be equivalent to the users contracting their services directly to the content producer and paying compensation to the pay-television operator for the service of making such content available (or transportation), discounting other revenues of such company.

Consequently, the monthly subscription fee charged to users shall be the result of the following formula:

Where:

If as a result of applying the formula, Pi < 0, the monthly charge to the user shall be zero (0).

It must be noted that the only price discrimination possible shall the the one arising from the cost differencial of the various contents that compose the package chosen by the consumer (GCi).

The general rate shall be obtained from calculating a weighted average of the cost of indebtedness and the retribution to proprietary capital, according to the following formula:

Where