Fox Reports Third Quarter Results.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 9, 2001

(NYSE: FOX)

QUARTER HIGHLIGHTS

- Strong video and DVD sales from both new and library titles more than offset
new release losses and marketing spending, generating Filmed Entertainment
EBITDA of $63 million.

- Fox Broadcasting Company viewership among adults 18-49 up more than seven
percent season to date. EBITDA for the network up year over year despite
difficult advertising environment.

- Television Stations increase market share versus a year ago; financial
results decline reflecting the current weak advertising environment.

- Fox News Channel posts its second consecutive quarter of positive EBITDA
driving Cable Network Programming EBITDA up 25 percent over prior year;
consistently topping CNN in both primetime and 24-hour ratings; subscribers now
exceed 64 million.

The Fox Entertainment Group (NYSE: FOX) today reported third quarter operating income before depreciation and amortization (EBITDA) of $218 million on revenues of $2.0 billion, as compared to prior year third quarter EBITDA of $262 million and revenues of $1.9 billion. Overall EBITDA reflects higher contributions from the Company's Cable Network Programming and Television Broadcast Network segments which were more than offset by a disappointing quarter at the domestic box office and a soft advertising environment.

Equity in losses of affiliates increased $15 million in the third quarter compared to a year ago due to higher losses at Fox Family Worldwide and at Fox Sports Cable Networks affiliates, as well as the launch of the National Geographic channels.

During the quarter the Company sold its interest in Home Team Sports, a regional sports network, to Comcast. This transaction resulted in a gain of approximately $40 million, which is reflected within Other income.

The decline in operating income in conjunction with higher equity in losses of affiliates resulted in a net loss of $9 million ($0.01 loss per share) for the quarter as compared to the prior year's net income of $19 million ($0.03 per share).

Consolidated EBITDA               3 Months Ended      9 Months Ended
                                     March 31,           March 31,
                                  2001     2000       2001     2000
                                 ------   ------     ------   ------
                                   US $ Millions       US $ Millions
Filmed Entertainment             $   63   $  111     $  333   $  217
Television Stations                 122      133        523      552
Television Broadcast Network          1       (5)       (90)      (1)
Other Television Businesses          (3)      (5)        (5)      (5)
Cable Network Programming            35       28        141       98
                                 ------   ------     ------   ------
Consolidated EBITDA              $  218   $  262     $  902   $  861
                                 ======   ======     ======   ======

Commenting on the results, Chairman and Chief Executive Officer Rupert Murdoch said:

"The Fox Entertainment Group achieved several notable successes during its third fiscal quarter. Fox News Channel, now the number one all-news channel in the country, enjoyed its second straight quarter of profitability; our owned and operated television stations continued to grow market share; and the FOX Network continued is dramatic turnaround from a year ago, maintaining sharp ratings gains over last year and over its competitors this season. We are greatly encouraged by our businesses' ability to withstand the soft domestic advertising market, and we are as confident as ever that our strong brands, compelling products and distribution network ideally position us for sustained growth."

FILMED ENTERTAINMENT

The Filmed Entertainment segment reported third quarter EBITDA of $63 million, compared to $111 million in the same period a year ago. Current quarter results primarily reflect the continued strength of worldwide library sales, incremental DVD contributions and the solid international video and DVD performances of X-Men and Me, Myself & Irene. In addition, operating results included significant contributions from Cast Away, which continued its successful run at the box office, generating worldwide theatrical receipts to date of over $420 million. These contributions were partially offset by losses from the disappointing box office performances of Monkeybone and Say It Isn't So and new release marketing spending.

Twentieth Century Fox Television (TCFTV) solidified its leadership position as the top supplier of primetime shows to the networks with strong ratings from both new and established shows. TCFTV has begun to capitalize on this success as evidenced by the significant license fee increases recently negotiated with ABC for The Practice and Dharma & Greg and with UPN for Buffy the Vampire Slayer. In addition, the Company is positioned to reap the rewards from the syndication pipeline which will begin adding substantial contributions in fiscal 2002.

TELEVISION

The television businesses, which include Television Stations, the Television Broadcast Network and Other Television Businesses, reported aggregate EBITDA of $120 million, which is in line with the same period a year ago. Current year results reflect improved results at the Fox Broadcasting Company (FBC) offset by a decline in television station contributions.

At FBC, lower series programming costs combined with a seven percent increase in season-to-date ratings among adults 18-49 improved operating results compared to a year ago. Reduced programming costs were the result of replacing older, more expensive shows such as Party of Five and Beverly Hills 90210 with less expensive, first year programming. In addition, FBC had a much higher success rate in the current year with its new series such as Boston Public, Dark Angel and Grounded For Life compared to last year, when a number of new series were cancelled. These improvements were partially offset by a weak advertising environment and higher sports programming and marketing costs related to broadcasting NASCAR races.

EBITDA at the Fox Television Stations (FTS) declined eight percent compared to a year ago as a result of decreased advertising in nearly every major category, partially offset by cost savings including lower promotional spending. Despite this softness, FTS gained nearly one percentage point in overall market share due to the strong performance of NASCAR telecasts and improved prime time ratings at the FOX network.

CABLE NETWORK PROGRAMMING

Cable Network Programming, comprising the Fox News Channel (FNC), Fox Sports Networks (including the Regional Sports Networks (RSNs) and the FX Channel (FX)), the Los Angeles Dodgers and other cable-related businesses, reported third quarter EBITDA of $35 million. This 25 percent increase from a year ago primarily reflects the improved earnings results at the Fox News Channel and FX partially offset by reduced contributions at the RSNs.

Fox News Channel generated positive EBITDA in the third quarter as compared to an EBITDA loss in the same period a year ago. These gains were the result of higher ratings, which drove advertising sales, as well as additional affiliate revenue from a subscriber base increase of 17 million versus last year. FNC's primetime and 24-hour ratings both grew by over 120 percent, compared to the same quarter a year ago - by far the largest ratings increase among all news networks. In addition, FNC beat CNN by 49 percent in primetime and 33 percent in total day ratings during the quarter in homes where the two news networks competed directly.

Fox Sports Networks' EBITDA declined during the quarter, primarily as a result of higher programming costs as well as the impact of the soft advertising market. An increase in cable and DTH subscribers as well as higher RSN affiliate rates, negotiated with MSOs in the past year, partially offset increased rights fees and production expenses associated with a greater number of NBA and NHL telecasts. FX reported significant affiliate revenue gains as its subscriber base increased 13 million from a year ago to 60 million. These gains were partially offset by higher programming costs associated with the first season of telecasting NASCAR, which has delivered strong ratings and is poised to contribute significant advertising revenues.