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1. Activity

GESTEVISION TELECINCO, S.A. (hereinafter “the Company”) was incorporated in Madrid on 10 March 1989. Its registered address is Carretera de Fuencarral a Alcobendas, nº 4, 28049 Madrid.

The company engages in the indirect management of a public television service, as well as all natural operations related to and as a consequence of that management.

The Company is the commercial operator of four TV channels (Telecinco, Siete, Factoría de Ficción and Boing). The licenses to operate these channels were granted as follows:

Under the terms of the State concession granted by the General Secretariat of Communications’ Resolution of 28 August 1989 and the concession agreement contained in the public deed of 3 October 1989.

This agreement was renewed for ten years from3 April 2000 under a Council of Ministers’ agreement dated 10 March 2000. A Council of Ministers’ agreement of 26 March 2010 renewed this concession for an additional ten years. The Company has made all the investments required to start digital transmissions pursuant to Royal Decree 2169/1998, of 9 October, which approved the Spanish National Technical Plan for Digital Terrestrial TV. Without prejudice to the above and in conformity with Transitional Provision Two of the Audiovisual Law, on 3 May 2010 the Company requested that the concession be changed to a license to ofer an audiovisual communication service. Under the Council of Ministers’ resolution of 11 June 2010 the concession became a 15-year license to ofer an audiovisual communication service. This license is automatically renewable for the same period provided the Company meets the requirements of Article 28 of the Audiovisual Law 7/2010, of 31 March.

A Council of Ministers’ resolution of 25 November 2005 extended this concession agreement as well as those of other national concessionaires to include three DTT (digital terrestrial television) channels. The Company has made all the investments required to start digital transmissions pursuant to Royal Decree 2169/1998, of 9 October, which approved the Spanish National Technical Plan for Digital Terrestrial TV.

Since the analogical blackout on 3 April 2010 (when analogical broadcasts ended), and by virtue of Additional Provision Three of Royal Decree 944/2005 on 4 May 2010, the Company has access to a multiple digital license with national coverage, which increases the channels it manages to four.

Per Article 4 of its bylaws, the Company was incorporated for an indefnite period.

The Company became exchange-listed on 24 June 2004, when it was listed on the stock exchanges of Madrid, Barcelona, Bilbao and Valencia and became an IBEX-35 company on 3 January 2005.

Notes to the fnancial statements for the year ended 31 December 2010

(Thousands of euros)

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Financial Statements, Management and Corporate Governance Report. 2010