Stephen Chao to Resign as President of USA Cable.

Business Editors

NEW YORK--(BUSINESS WIRE)--October 31, 2001

USA's Cable Networks Directly Integrated Into The USA Entertainment Group, Joining the Company's Television and Film Production Divisions

Stephen Chao is to resign as President of USA Cable, it was announced today. Mr. Chao, who joined the Company in 1998, currently oversees all aspects of USA Network, SCI FI Channel, and the newly formed emerging networks division, which is comprised of Trio, Newsworld and Crime. USA's cable networks will now be directly integrated into the USA Entertainment Group, joining the Company's television and film production divisions, Studios USA and USA Films.

As announced in July, Michael Jackson, formerly Chief Executive of Channel Four Television, assumes the role of President and CEO of USA Entertainment on November 5, a new position overseeing all three divisions of the Entertainment Group. Within the Cable division, Doug Herzog, President of USA Network, Bonnie Hammer, President of SCI FI Channel and Patrick Vien, President of USA's Emerging Networks, will now report to Mr. Jackson. No replacement will be named for Mr. Chao.

"This is an important moment for our entertainment businesses, and particularly for our cable networks," said Michael Jackson. "During Stephen Chao's tenure, the networks have grown and prospered. Under the continuing leadership of Doug Herzog, Bonnie Hammer and Patrick Vien our networks will further strengthen their positions, but it is the collective opportunities of the new organization about which I am particularly excited. I also anticipate our television and film businesses will draw upon USA's unparalleled interactive capabilities in innovative ways," he continued. "The end goal of the integrated Group is an entertainment offering whose summed power exceeds its parts. Bringing it all together is the challenge."

"I believe that USA, SCI FI and our Emerging Networks will benefit from this new structure in two ways: one, from creative and business integration with the Company's television and film production divisions, and two, from the direct input of Michael Jackson," said Stephen Chao. "I have known Michael for some time and he is simply a first rate media executive. I look forward to working with him to facilitate a smooth transition for the cable networks into the Group."

In addition to the cable networks, the USA Entertainment Group includes network development and production, as well as first-run production and distribution division through Studios USA, led by David Kissinger and Steve Rosenberg, as well as the Group's motion picture production, marketing and distribution company through USA Films, led by Scott Greenstein. All will report to Mr. Jackson.

Also reporting to Mr. Jackson, USA Entertainment named Adrienne Becker, Vice President of Corporate Communications for USA Networks, Inc. as Vice President of Operations for the Group, and Michael Bonner, formerly Vice President, Business Development for Studios USA, as Vice President of Strategic Planning for the Group.

Bios

Since March 23, 2000, Stephen Chao has served as President of USA Cable, overseeing all cable services, including advertising sales, finance, administration, programming, marketing and the strategic growth of new services and digital offerings for the division. From April 1998 to March 2000, he served as President, Programming and Marketing for both USA Network and SCI FI Channel. During Mr. Chao's tenure, USA Network aired the second most watched original mini-series in basic cable history, "Attila" (5.8 rating/4,693,000), and the hit original movies "All-American Girl: The Mary Kay LeTourneau Story" (5.6 rating/4,335,000 homes) and "Cabin by the Lake" (5.4 rating/4,145,000 homes). Mr. Chao also brought Mark Burnett's (Survivor) expedition race, "Eco-Challenge", to the Network. The April 2001 broadcast of "Eco-Challenge: Borneo" nearly doubled the ratings of any previous Eco-Challenge. He solidified the Network's relationship with Mr. Burnett whose next USA project, "Combat Missions", premieres January 16, 2002. Also under Mr. Chao, SCI FI Channel emerged as the largest provider of original scripted series in primetime on cable, launched the record-breaking six hour mini series, Frank Herbert's "Dune", and the Channel's first original five day a week strip show, "Crossing Over with John Edward", whose success has led to its current syndication by Studios USA.

Prior to joining USA, Mr. Chao founded Stephen Chao Incorporated (SCI) in 1993, through which he created and produced programs for ABC, CBS, NBC, Columbia TriStar Television, Universal Television and Nickelodeon. SCI was also responsible for the launching of Locomotion, a 24-hour animation channel, and the launch of Playboy TV in Latin America in conjunction with Cisneros Television Group. From 1983 to 1992, Mr. Chao served in numerous executive positions at News Corporation, including President of Fox Television Stations, President of Fox News, Executive Vice President of Fox Television Stations Productions and Vice President of Acquisitions. During his tenure at Fox, he produced and launched America's Most Wanted, Cops and Studs. Mr. Chao received his B.A. from Harvard University in 1977 and his MBA from Harvard Business School in 1981.

Adrienne Becker joined USA in 1999 as Director of Corporate Communications. Prior to USA, she served as Director of Communications for the CBS Television Stations and the CBS New Media group. In 1996 Ms. Becker served as a Press Secretary for the Clinton/Gore campaign and in 1993 as a Special Assistant to Secretary of Labor Robert Reich. Ms. Becker received her B.A. from Washington University in 1991 and her M.A. from the Annenberg School, University of Pennsylvania in 1994.

Michael Bonner has been with USA since 1998. Prior to joining Studios USA, Michael was VP of Business Development for USA Broadcasting. In 1993 Mr. Bonner began his entertainment career at Savoy Pictures where he served as Director of Finance. In 1996 he moved into the company's television division where he managed SF Broadcasting, a Savoy/Fox Joint Venture comprised of four Fox affiliate TV stations. Mr. Bonner received his B.S. degree in Finance from Villanova University in 1992.

USA Entertainment Group

Among USA's cable networks, the flagship USA Network is just behind Lifetime as primetime's highest rated basic cable network for 2001 to date (January-October) and among the top three networks in basic cable in terms of adults 24-54 prime viewing. Among those networks with the most 25-54 viewers, none is more gender balanced than USA. Excluding wrestling from USA's 2000 results, double-digit primetime delivery increases have been seen this year among such key demographics as adults 18-34, men 18-49 and men 25-54. The Network's airing of "The Waterboy" achieved a 5.1 rating, becoming the highest-rated network window movie premiere in USA's history. USA delivered six of the top 10 network window premieres year to date. SCI FI continues to have among the very highest concentrations of adult viewers 25-54 of any network on television and often ranks in the top 10 among basic cable networks in its delivery of adults, women and men 25-54. The Channel, which just earned two Emmy(R) Awards for its record-breaking mini-series Frank Herbert's "Dune", is also the largest provider of original scripted series in primetime on cable. Additionally, the division is in the process of launching Trio, Newsworld and Crime.

The Entertainment Group's production and distribution division is Studios USA, one of the top producers of primetime network and first-run syndicated programming, with hit primetime dramas, daytime talk shows and the highest-rated new first-run strip of the 2001-02 season. Studios USA continues to garner success with a variety of productions. Now in its 12th season, "Law & Order" is one of television's premiere dramas, consistently ranking in the top 10. "Law & Order: Special Victims Unit," now in its third season, is enjoying its highest ratings to date, and is the highest-rated program on all networks on Fridays. In its freshman year, "Law & Order: Criminal Intent," is NBC's highest-rated program on Sunday night, and has been renewed for a full season. Additionally, sophomore drama "The District" is the #1 series on Saturday night and new drama "The Agency" has been making consistent ratings gains weekly on CBS. The studio produces and distributes two of the top-four talk shows on daytime television (with "Jerry Springer" and "Maury"), and "Crossing Over with John Edward'" leads the freshman class of new syndicated series.

USA Films, the Group's motion picture production, marketing, and distribution company, is comprised of Gramercy Pictures, October Films, USA Home Entertainment, and certain domestic PolyGram Filmed Entertainment assets. USA Films' first in-house-supervised production to be released was Steven Soderbergh's "Traffic," which opened in late December 2000 and won four Academy Awards, including Best Director and Best Supporting Actor (for Benicio Del Toro's performance); and two Golden Globe Awards. Other significant grossers for USA have included David Twohy's "Pitch Black" (over $39 million domestically), Neil LaBute's "Nurse Betty" ($25 million domestically), and Spike Jonze's "Being John Malkovich" ($23 million domestically), which received three Academy Award nominations. Current and upcoming USA Films releases include Joel and Ethan Coen's "The Man Who Wasn't There," Robert Altman's "Gosford Park," Mira Nair's "Monsoon Wedding," Neil LaBute's "Possession," Eric Schaeffer's "Never Again," and Todd Haynes' "Far From Heaven."

About USA Networks, Inc.

USA (NASDAQ: USAI) is focused on the new convergence of entertainment, information and direct selling. The Company is organized within two groups, the Entertainment Group and the Interactive Group, comprised of interrelated business divisions which include the following assets: USA Entertainment's USA Network, SCI FI Channel, TRIO, NWI, Crime, Studios USA, and USA Films; and USA Interactive's HSN, HSN International, HSN Interactive, Ticketmaster (NASDAQ: TMCS), which operates Citysearch and Match.com, Hotel Reservations Network (NASDAQ: ROOM), Electronic Commerce Solutions, Styleclick (NASDAQ: IBUY) and Precision Response Corporation.