Metromedia International gets notice of non-compliance from trustee

By Carlise Newman

Chicago, May 23 - Metromedia International Group Inc. has received notification from the trustee for its series A and B 10½% senior discount notes due 2007 that it has not complied with covenants under the indenture of the notes, including filing form 10-K and form 10-Q for periods ending Dec. 31, 2002 and March 31, 2003 with the Securities and Exchange Commission.

The company must resolve the compliance item within 60 days of receipt of the trustee's letter, or the trustee will be able to declare an event of default. If the default were declared, the trustee or holders of at least 25% principal value of senior notes outstanding could accelerate payment on the notes.

"The company anticipates completing its 2002 annual audit and associated SEC reporting for fiscal year 2002 and first quarter 2003 within weeks. Work on these items is well underway and is a significant corporate priority. We do not expect that there will be any compliance items outstanding with respect to the indenture by the end of the 60 day time period set out by the trustee," said Ernie Pyle, senior vice president of finance and chief financial officer of Metromedia International.

Metromedia International is a New York-based wireless communications company.

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