Moscow Cablecom (MM) (MOCC) News

Moscow CableCom Corp. Announces $21.6 Million Private Placement of
Equity Securities

New York, NY – September 25, 2006 – Moscow CableCom Corp. (NASDAQ: MOCC) today announced that, on September 21, 2006, it had entered into agreements providing for the sale of 2,341,760 units of its equity securities at $9.2325 per unit, for total gross proceeds of $21,620,299. Each unit is comprised of one share of the Company’s common stock and one half warrant. Each whole warrant entitles the holder to acquire one share of the Company’s common stock at a purchase price of $11.004 per share until September 21, 2008. The price per unit was based on the closing bid price for the Company’s common stock, as quoted on the Nasdaq Global Market on September 20, 2006, which was $9.17, plus $0.0625 attributable to the one half warrant included in each unit. The Company expects that the private placement will close by September 29, 2006.
Renova Media Enterprises Ltd has committed to purchase 2,166,260 units, or 92.5% of this private placement. Unaffiliated investors, each of whom also invested in the Company’s May 2006 private placement, have committed to acquire the remaining 175,500 units. After the closing of this private placement, Renova Media, which before this private placement owned approximately 35.9% of the Company’s outstanding voting securities and had held warrants to increase its ownership percentage to 57.5%, will own 43.2% of the Company’s outstanding voting securities and will hold warrants to increase its ownership percentage to 61.7%. This ownership level excludes the 23.1% held by Moscow Telecommunications Corp. (“COMCOR”), of which Renova Media acquired majority control earlier this year.
Mikhail Smirnov, the Company’s Chief Executive Officer stated, “The funds we will receive from this private placement allow us to continue the pace of our homes passed network expansion and support the activities that have resulted in the strong subscriber growth reported through August. Further, we expect subscriber growth to continue to accelerate, now that the seasonally slow summer months have passed.”