Discovery Communications Completes Purchase of CBS Eye On People.

NEW YORK--(BUSINESS WIRE)--Dec. 29, 1998--Discovery Communications, Inc. and CBS Corporation have completed an agreement for Discovery's purchase of CBS Eye On People, a cable channel focused on people and personalities with 11 million cable and satellite subscribers.

According to the terms of the cash deal, Discovery owns 100% of the network, effective today. The new network will be called Discovery People and will be managed out of Discovery's offices in Bethesda. The new Discovery People name and logo are scheduled to debut on air January 11.

Under the network's new ownership, Discovery plans to continue its focus on reality-based programming about people and personalities, produced by CBS News, Discovery and outside producers.

"We've decided to sell our entire stake in the channel and realize a financial gain. We believe this provides us with a good reward for starting the channel as well as gives Eye On People the focus and resources of a single owner," said Donald Mitzner, President, CBS Cable.

"The network's high quality, reality-based programming is a logical extension of Discovery's non-fiction networks," said Discovery Networks U.S. President Johnathan Rodgers. "While we expect the programming lineup to change over time, we still intend to air on Discovery People programs produced by CBS News, as well as Discovery's extensive library of people-oriented programs plus programs from other non-fiction producers."

Although the original concept was to operate the network as a joint venture of the two companies, both parties concluded over the past five months of negotiations that Discovery's strategic objectives warranted its sole ownership. "Given the realities of the dynamic, ever-evolving cable programming marketplace, we did not think it made sense to co-manage a network," said Rodgers.

Discovery expects the distribution of the network to be a hybrid of analog and digital carriage.

"As with our other networks we intend to work with our cable and satellite distributors to ensure that the network provides maximum value for them and their subscribers," Rodgers said.

Discovery Communications, Inc. (DCI) is a privately held, diversified media company headquartered in Bethesda, MD. Fueled by the world's largest original, non-fiction production engine, DCI operates four distinct business units including:

-- Discovery Networks, U.S., consisting of Discovery Channel (75.4

million subscribers), TLC (67.7 million subscribers), Animal

Planet (44.8 million subscribers), Travel Channel (owned jointly

[70%] with Paxson Communications [30%] - 21.3 million

subscribers), Discovery Kids Channel, Discovery Science Channel,

Discovery Home & Leisure Channel, Discovery Civilization Channel,

Discovery Wings Channel, Discovery Health Channel and Discovery

en Espanol. The unit also markets and distributes BBC America,

which launched on March 29, 1998.

-- Discovery Networks, International, consisting of 32 different

feeds of five distinctive channels transmitted worldwide over 15

satellites in 24 languages (not including the U.S.).

-- Discovery Enterprises Worldwide, consisting of Discovery Channel

Interactive Media, Discovery Channel Online, Discovery Channel

Video, Discovery Channel Publishing, Discovery Channel Education

and Discovery Channel Retail.

-- Discovery Themed Entertainment, consisting of Discovery Channel

Pictures, Discovery Channel Eco-Challenge and out of home

entertainment ventures.

DCI's ownership consists of four shareholders-Liberty Media Corporation, a division of TeleCommunications, Inc. (Nasdaq: LBTYA/LBTYB), Cox Communications (NYSE: COX), Advance/Newhouse Communications and John S. Hendricks, the company's founder, chairman and CEO.