Advanced Television

Liberty spin off Entertainment

September 4, 2008

Liberty Media Corporation announced that it has authorised its management to proceed with development of a plan to distribute to the holders of Liberty Entertainment The transaction would be effected as the redemption of all outstanding shares of Liberty Entertainment tracking stock in exchange for shares of the subsidiary. The subsidiary, which would become a separate public company, would be called Liberty Entertainment, Inc.

“We believe converting the Liberty Entertainment tracking stock to an asset-backed security will create a stronger currency and allow greater flexibility to pursue our strategic objectives,” said Greg Maffei, president and CEO of Liberty.

If the transaction is completed as currently contemplated, Entertainment will be comprised of approximately 50% of The DIRECTV Group, Inc., 100% of Starz Entertainment, FUN Technologies, and Liberty Sports Holdings, LLC, 50% of GSN, LLC and 37% of WildBlue Communications, Inc. The company would assume $2bn of debt mostly associated with the acquisition of DirecTV in April.

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