Solid Revenue and Adjusted OIBDA Growth at both Liberty Interactive Group and Liberty Entertainment Group

Repurchases 18.1 million Liberty Capital Group Shares

ENGLEWOOD, Colo., Aug. 11 /PRNewswire-FirstCall/ -- Liberty Media Corporation ('Liberty') (Nasdaq: LCAPA/B, LINTA/B and LMDIA/B) today reported second quarter results for Liberty Capital group, Liberty Interactive group and Liberty Entertainment group. Financial highlights for the quarter included:

    -- Liberty Interactive group's revenue increased 9% and adjusted OIBDA
       increased 4%.
    -- QVC's consolidated revenue increased 4% to $1.76 billion and adjusted
       OIBDA increased 1% to $387 million.
    -- Starz Entertainment's revenue increased 8% and adjusted OIBDA increased
       24%.
    -- Repurchased 18.1 million Liberty Capital shares through July 31st, or
       14% of shares outstanding.
    -- Through the DIRECTV share buyback, Liberty's economic ownership of
       DIRECTV increased to over 49%, voting control remains at 48% per a
       standstill agreement.

'Liberty continued its solid operating and financial performance in a difficult environment. Several businesses, including DIRECTV, Starz, and our e-commerce companies, delivered excellent results,' stated Liberty president and CEO Greg Maffei. 'We also continued our focus on balance sheet management, taking advantage of market weakness to repurchase 18.1 million shares of Liberty Capital, reducing outstanding shares by 14%. DIRECTV also continued its buyback increasing our economic ownership to over 49%.'

During the quarter, Liberty announced the purchase of two e-commerce companies. The assets of Red Envelope, an online gift retailer, were purchased out of bankruptcy in June and will become part of the Provide Commerce portfolio which includes ProFlowers, Secret Spoon, Cherry Moon Farms and Shari's Berries. Further, Liberty signed a definitive agreement to purchase Celebrate Express, a leading online and catalog retailer of party supplies and costumes marketed under the brands Birthday Express, 1st Wishes and Costume Express. Celebrate Express' products and brand are complementary to BUYSEASONS, Inc., the Internet costume and party retailer acquired by Liberty Media in 2006, and creates the stand-out leader in the online party, costume and Halloween industry. This transaction is expected to close in September.

LIBERTY INTERACTIVE GROUP -- The businesses and assets attributed to Liberty Interactive group are engaged in, or are ownership interests in companies that are engaged in, video and on-line commerce, and currently include Liberty's subsidiaries QVC, Provide Commerce, Backcountry.com, Inc., Bodybuilding.com, LLC and BUYSEASONS, Inc. and its 30% interest in IAC/InterActiveCorp, 24% interest in Expedia and 20% interest in GSI Commerce. Liberty has identified wholly-owned QVC, Inc. as the principal operating segment of Liberty Interactive group.

Liberty Interactive group's revenue increased 9% and adjusted OIBDA increased 4% for the quarter. The increases are primarily driven by growth at QVC and Provide Commerce and the impact of the Backcountry.com, Inc. and Bodybuilding.com, LLC acquisitions in June 2007 and December 2007, respectively.

QVC

QVC's consolidated revenue increased 4% in the second quarter to $1.76 billion and adjusted OIBDA increased 1% to $387 million.

'The challenging economic environment continues, however we are pleased with our disciplined approach to margin, expense and capital management,' stated Mike George, QVC President and CEO. 'We are excited about several product, programming and distribution initiatives planned for the second half of the year to offer our customers a compelling shopping experience which will further differentiate us from other retailers. Internationally, Japan has been a bright spot as sales momentum continues to increase.'

QVC's domestic revenue decreased slightly in the second quarter to $1.181 billion. Adjusted OIBDA decreased 2% to $286 million in the quarter. For the quarter, the mix of product sold shifted to the accessories area from the home and jewelry categories. The average selling price increased 6% from $44.83 to $47.39 while the total number of units shipped declined 4% to 27.6 million from 28.8 million. Returns as a percent of gross product revenue increased due to product mix shifts and higher average selling prices. QVC.com sales as a percentage of domestic sales grew from 23% in the second quarter of 2007 to 25% in the second quarter of 2008. The domestic adjusted OIBDA margin decreased 50 basis points primarily due to the lower gross margin percentage as a result of lower initial product margins in the home and apparel product areas and higher freight and warehousing costs related to customer shipments.

QVC's international revenue increased 14% in the second quarter to $580 million due to favorable foreign currency exchange rates and subscriber growth in the U.K. and Japan. Excluding the effect of exchange rates, international revenue increased in the UK by 3% and Japan by 10% and 3% overall. International adjusted OIBDA increased 11% in the second quarter from $91 million to $101 million. International adjusted OIBDA margins decreased 50 basis points primarily due to lower gross margins as a result of lower initial product margins and higher commissions expense as a percentage of net revenue due to new fixed-rate agreements in the U.K. and Japan. Excluding the effect of exchange rates, QVC's international adjusted OIBDA increased 1% in the second quarter.

QVC U.K. revenue grew 3% in local currency in the second quarter. The UK experienced a slowdown in promotional category sales and softness in the home category. Units shipped increased 4% in the second quarter while average selling price declined 1%. QVC Japan's net revenue in local currency increased 10% for the second quarter, the first double digit quarter sales increase since the fourth quarter of 2006. Beginning in March 2007, QVC Japan faced a heightened regulatory focus on health and beauty product presentations. QVC Japan's results were favorably impacted as it anniversaries the impact of this to the business and it has shown productivity gains in the home, jewelry and fashion areas as it continues to successfully shift product away from health and beauty and into these categories. The German business experienced softness in the jewelry and apparel product categories resulting in a 3% decrease in net revenue in local currency for the second quarter. QVC Germany's average selling price increased slightly in local currency but units shipped decreased in the period by 2%. QVC Germany experienced a lower gross margin percentage primarily due to a higher inventory obsolescence provision.

QVC's outstanding bank debt was $4.49 billion at June 30, 2008.

E-commerce Businesses

Liberty Interactive's e-commerce businesses, which include Backcountry.com, Provide Commerce, Bodybuilding.com and BUYSEASONS, had strong financial results in the second quarter and continue to grow at a rapid pace. In the aggregate, the e-commerce businesses experienced revenue and adjusted OIBDA growth of 97% and 108%, respectively, primarily due to strong growth at Provide and the previously mentioned acquisitions. Assuming the businesses were all consolidated on January 1, 2007, revenue and adjusted OIBDA growth of these businesses would have been 41% and 75%, respectively, for the quarter. However, no assurance can be given that had the companies been consolidated from January 1, 2007, the results would not have been different.

Share Repurchases

There were no share repurchases of Liberty Interactive stock during the second quarter of 2008. Currently, Liberty has approximately $740 million remaining under its Liberty Interactive stock repurchase authorization.

LIBERTY ENTERTAINMENT GROUP -- The businesses and assets attributed to Liberty Entertainment group are engaged in, or are ownership interests in companies that are engaged in, television and internet distribution and programming, and currently include Liberty's subsidiaries Starz Entertainment, LLC ('Starz Entertainment'), FUN Technologies, Inc. ('FUN'), and the Liberty Sports Group, its equity affiliates GSN LLC and WildBlue Communications, Inc. and its interest in DIRECTV. Liberty has identified Starz Entertainment, LLC, a consolidated, wholly-owned subsidiary, as the principal operating segment of Liberty Entertainment group. As previously noted, Liberty issued the Liberty Entertainment group tracking stock on March 4, 2008. The assets and businesses attributed to the Liberty Entertainment group were previously attributed to the Capital group. The presentation below treats the assets and businesses attributed to the Liberty Entertainment group as though they had been attributed to the Group since January 1, 2007.

Liberty Entertainment group's revenue increased 32% and adjusted OIBDA increased 13% for the quarter. The increases are primarily due to growth at Starz Entertainment and the addition of the Liberty Sports Group which was acquired in February 2008. Liberty Entertainment group's results are comprised of Starz Entertainment, FUN and the Liberty Sports Group.

Starz Entertainment, LLC

Starz Entertainment revenue increased 8% to $275 million and adjusted OIBDA increased 24% to $68 million.

The increase in revenue was primarily due to higher effective rates for Starz Entertainment's services and to a lesser extent, increases in the weighted average number of subscription units.