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Canal Plus subtracts Dutch pay TV

Deal expected to close in second quarter of 2005

AMSTERDAM — Canal Plus Netherlands has sold its three Dutch pay TV channels to UnitedGlobalCom’s pay TV outfit and broadband services outfit Chellomedia.

The Dutch branch of the Canal Plus holdings was bought up earlier this year by Dutch investors Airbridge Investments and Greenfield Capital Partners.

Canal Plus’ three thematic channels, offering sports, special events and films, were the main competition to Chellomedia’s thematic pay TV channels in Holland, as well as a legal thorn in its side.

The deal is expected to close in the second quarter of 2005. Airbridge and Greenfield will remain owners of CanalDigitaal, a sister company of Canal Plus Netherlands, which offers a DTH satellite platform.

A separate deal has dissolved long-running legal proceedings over carriage fees between Canal Plus Netherlands and UPC Netherlands, the Dutch subsid of UnitedGlobalCom. Under the deal, UPC Netherlands will continue to carry Canal Plus on its networks.

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