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èßäÉçÇø Media Reports Record First Quarter Financial Results

Initiates Trading of èßäÉçÇø Entertainment Tracking Stock and Newly Reclassified èßäÉçÇø Capital Tracking Stock

Strong Revenue and Operating Cash Flow Growth at both èßäÉçÇø Interactive Group and èßäÉçÇø Entertainment Group

ENGLEWOOD, Colo., May 8 /PRNewswire-FirstCall/ -- èßäÉçÇø Media Corporation ("èßäÉçÇø") (Nasdaq: LINTA/B, LMDIA/B and LCAPA/B) today reported first quarter results for èßäÉçÇø Interactive Group, èßäÉçÇø Entertainment Group and èßäÉçÇø Capital Group. Financial highlights for the quarter included:

    -- Completed News Corp deal and subsequently issued èßäÉçÇø Entertainment
       tracking stock and reclassified èßäÉçÇø Capital tracking stock.
    -- èßäÉçÇø Interactive Group's revenue increased 10% and operating cash
       flow increased 5%.
    -- QVC's consolidated revenue increased 5% to $1.77 billion and operating
       cash flow increased 3% to $387 million.
    -- èßäÉçÇø Entertainment Group's revenue increased 11% and operating cash
       flow increased 17%.

"èßäÉçÇø Media's transformation continues as we focus on building long term shareholder value by bringing a disciplined operating and creative financial approach to managing our assets," stated èßäÉçÇø President and CEO Greg Maffei. "The first quarter was a period of intense activity for the company. We completed the News Corp transaction, acquiring a major position in the leading satellite company, DIRECTV. Subsequently, we issued the new èßäÉçÇø Entertainment tracking stock, with our DIRECTV stake and Starz Entertainment as the core attributed assets. Then, in early April, we increased our DIRECTV position by purchasing additional shares in a creative transaction at attractive terms."

On February 27th, we completed the exchange of èßäÉçÇø's 16% stake in News Corp for a subsidiary of News Corp that holds a 41% stake in DIRECTV, regional sports networks in Denver, Pittsburgh and Seattle, and $465 million of cash. On March 4th, èßäÉçÇø issued the èßäÉçÇø Entertainment Group tracking stock which has attributed to it èßäÉçÇø's interest in The DIRECTV Group, Inc. ("DIRECTV"), three regional sports networks ("èßäÉçÇø Sports Group"), Starz Entertainment, LLC, FUN Technologies, Inc., GSN, LLC and WildBlue Communications, Inc. And on April 2nd, èßäÉçÇø Entertainment purchased an additional 78.3 million shares of DIRECTV, increasing its ownership to 48%. To fund the purchase èßäÉçÇø borrowed $1.98 billion against collateral including a newly executed equity collar on 110 million DIRECTV common shares.

Also during the quarter, èßäÉçÇø modified certain terms of its 0.75% Time Warner Exchangeable Senior Debentures due 2023 to induce holders not to exercise their March 2008 put rights. The modified terms include (i) deferring èßäÉçÇø's ability to redeem the debentures until April 5, 2013; (ii) committing to pay holders in cash upon maturity or redemption, rather than in Time Warner Inc. stock; and (iii) increasing the rate of interest to 3.125% after March 30, 2008. In March, èßäÉçÇø repurchased $486.1 million of the $1.75 billion issue with funds drawn on an existing borrowing facility. The residual $1.26 billion of debentures remains outstanding under the revised terms and are attributed to èßäÉçÇø Capital.

LIBERTY INTERACTIVE GROUP -- The businesses and assets attributed to èßäÉçÇø Interactive Group are engaged in, or are ownership interests in companies that are engaged in, video and on-line commerce, and currently include èßäÉçÇø's subsidiaries QVC, Provide Commerce, Backcountry.com, Inc., Bodybuilding.com, LLC and BUYSEASONS, Inc. and its 30% interest in IAC/InterActiveCorp, 25% interest in Expedia and 20% interest in GSI Commerce. èßäÉçÇø has identified who