An exact heterotic string theory on an AdS2xS2 background supported by an electromagnetic flux is found as a marginal deformation of an SL(2,R)xSU(2) WZW model. Based on a talk given at NATO Advanced Study Institute and EC Summer School on String Theory: from Gauge Interactions to Cosmology, Cargese, Corsica, France, 7 Jun - 19 Jun 2004.