BARCELONA, Spain — Private Media Group, Inc.(Nasdaq: PRVT) announced today that on October 29 it finalized the acquisition of Sureflix Digital Distribution (“Sureflix”), the world leader in digital distribution of premium gay content and owners of maleflixxx .tv, splashshots.com. The acquisition provides Private with a leadership position in the
lucrative gay market.

Commenting on the Company’s decision to make this acquisition, Ilan
Bunimovitz, Chief Executive Officer of Private explained: “With Sureflix, we extend our platform into yet another new market and broaden our leading
position in the adult industry into the gay space. Together, we offer the most comprehensive catalog to affiliates and consumers. This is an accretive acquisition and it will act as a strategic accelerator for both parties, enabling growth into new markets and territories while opening up new business relationships.”

Speaking about the synergies between Sureflix and Private, Eric Jonson,
President of Sureflix, said: “It is hard to imagine a better fit. As part of Private, we will be able to offer members of the industry the best
distribution network. This deal opens many revenue channels and allows us to deliver the distribution muscle of a storied international brand to our
premium catalog.”

The acquisition agreement was signed on October 9, 2009 and the agreement
provides for the issuance of 3,900,000 unregistered shares, or 6% of total
shares outstanding following issuance, of Private common stock to the owners of Sureflix and related companies upon completion of the acquisition, and up to an additional 2,100,000 shares of Private common stock based on earnout targets.

The combined pro-forma revenue of the two entities for the six months ending June 30, 2009 was USD 19.3 million compared to USD 16.0 million in revenue for the same period for Private alone, a 21% difference.