ESPN and National Cable Television Cooperative Sign Multiple Distribution Agreements; ESPN Extends Brand with Long-term Carriage of Networks and Services.

Business Editors

BRISTOL, Conn. & LENEXA, Kan.--(BUSINESS WIRE)--March 3, 2004

ESPN, Inc., and the National Cable Television Cooperative (NCTC), a purchasing cooperative for over 6500 independent cable systems, announced today that the two organizations have signed multiple, long-term distribution agreements for ESPN networks and services, including ESPN, ESPN2, ESPNEWS, ESPN Classic, ESPN HD and ESPN Deportes.

"This is yet another agreement that supports ESPN's strategy to offer moderating rate adjustments, built on the solid rate base already established, in exchange for long-term commitments and the distribution of new growth networks," said George Bodenheimer, President, ESPN, Inc. and ABC Sports. "Smaller cable operators have been very successful in bringing new products to market, and by rolling out services such as ESPN HD and ESPN Deportes, their businesses and subscribers will benefit."

Michael Pandzik, NCTC President and CEO agreed, "The Cooperative is pleased to offer our members ESPN master agreements that lower the annual increases we have seen in recent years. We expect these contracts will receive broad participation from our membership. I am pleased our negotiations have once again resulted in wholesale rates and terms commensurate to our combined size. Pandzik added, "The new agreements were endorsed by NCTC's Board of Directors, who acknowledged ESPN for their recognition of, and responsiveness to, the needs of the small operator. We see this as a favorable step forward by ESPN in their affiliate relations."

"We are very pleased to have negotiated agreements with the NCTC, that represent approximately eight million subscribers, and bridge our already strong relationship well into the next decade," said Sean Bratches, ESPN's Executive Vice President, Affiliate Sales and Marketing. "We are confident that our portfolio of branded services will continue to provide extraordinary value to the NCTC and its member companies."

Additional terms of the agreements were not disclosed.

In January, ESPN ranked number one in perceived value by cable operators for the fourth consecutive year in Beta Research Corp.'s independent annual survey. In December, ESPN was also ranked as the number one favorite network among all major cable network viewers and number one in perceived value in a Beta study.

A member-operated programming and hardware buying cooperative, NCTC represents more than 1,200 independent cable operators in all 50 states and every U.S. territory. As a group, their 6,500 individual systems provide cable service to more than 15 million subscribers nationwide.

Michael Pandzik has served as the Co-op's founding President and CEO since NCTC's inception in 1984. The Cooperative is headquartered in Lenexa, KS., a southwestern suburb of Kansas City.

ESPN, Inc. is the world's leading multinational, multimedia sports entertainment company featuring a portfolio of over 40 multimedia sports assets. The company is comprised of seven domestic television networks (ESPN, ESPN2, ESPN Classic, ESPNEWS, ESPN Deportes, ESPN Now, ESPN Today), ESPN HD, ESPN Regional Television, ESPN International (networks and syndication), ESPN Radio, ESPN.com, ESPN The Magazine, SportsTicker, ESPN Enterprises, ESPN Zones (sports-themed restaurants). Other growing new businesses include ESPN Broadband, ESPN Wireless, ESPN Video-on-Demand, ESPN Interactive and ESPN PPV. Based in Bristol, Ct., ESPN is 80 percent owned by ABC, Inc., which is an indirect subsidiary of The Walt Disney Company. The Hearst Corporation holds a 20 percent interest in ESPN.