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QVC REPORTS SECOND QUARTER RESULTS

 WEST CHESTER, Pa., Aug. 19 /PRNewswire/ -- QVC Network, Inc. (NASDAQ: QVCN) today reported an 18.6 percent increase in net revenue and a 52.9 percent increase in earnings for the second quarter ended July 31, 1993, compared to the same period in the prior year.
 Second quarter net revenue was $262.4 million, compared to $221.3 million last year. QVC's net revenue is net of returns and also excludes shipping and handling charges.
 Net income for the second quarter was $13.3 million, or $.26 per share, compared to $8.7 million, or $.22 per share, for the year-earlier period. The average number of common and common equivalent shares outstanding was 50.9 million compared to 43.3 million for the same period last year.
 Operating income for the quarter increased 29.5 percent to $23.9 million from $18.4 million in the prior year's second quarter. Operating expenses in the current quarter included a $3.8 million provision for the company's costs of the settlement of the Shop Television Network, Inc. litigation.
 For the first six months of this fiscal year, net revenue totaled $535.7 million compared to $454.4 million in the same period a year earlier. First half net income was $34.9 million, or $.70 per share, compared to $19.9 million, or $.50 per share, in last year's first half. Net income in the first six months of 1993 included income of $4.0 million, or $.08 per share, from the cumulative effect of change in accounting for income taxes. Last year's six month results included a $.3 million extraordinary charge, or $.01 per share, from the accelerated write-off of debt placement fees.
 QVC, the nation's largest cable shopping channel, is transmitted live, 24 hours a day, seven days a week and currently reaches more than 45 million cable homes and 3 million homes with satellite dishes.
 QVC NETWORK, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (Unaudited; in thousands, except per-share data)
 Periods ended Three months Six months
 July 31 1993 1992 1993 1992
 Net revenue $262,438 $221,253 $535,670 $454,421
 Cost of goods sold 154,500 126,994 313,959 259,808
 Gross profit 107,938 94,259 221,711 194,613
 Operating expenses:
 Variable costs 37,171 34,753 77,301 70,834
 General and
 administrative 36,270 28,998 66,840 55,151
 Depreciation 4,137 4,687 8,103 8,626
 Amortization of
 intangible assets 6,476 7,377 13,156 14,845
 Total 84,054 75,815 165,400 149,456
 Operating income 23,884 18,444 56,311 45,157
 Interest income
 (expense), net 2,253 (2,539) 4,372 (6,335)
 Income before income
 taxes, extraordinary
 item and cumulative
 effect of change in
 accounting principle 26,137 15,905 60,683 38,822
 Income tax provision (12,810) (7,190) (29,735) (18,615)
 Income before
 extraordinary item
 and cumulative effect
 of change in
 accounting principle 13,327 8,715 30,948 20,207
 Extraordinary item --
 loss on extinguishment
 of debt, net of
 tax benefit --- --- --- (348)
 Cumulative effect of
 change in accounting
 for income taxes --- --- 3,990 ---
 Net income 13,327 8,715 34,938 19,859
 Income per share:
 Income before
 extraordinary item
 and cumulative effect
 of change in
 accounting principle $.26 $.22 $.62 $.51
 Extraordinary item,
 net of tax benefit --- --- --- (.01)
 Cumulative effect of
 change in accounting
 for income taxes --- --- .08 ---
 Net income .26 .22 .70 .50
 Weighted average number
 of common and common
 equivalent shares 50,885 43,287 50,219 43,236
 QVC NETWORK, INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 (Unaudited; in thousands)
 July 31 1993 1992
 Assets:
 Current assets $288,984 $211,874
 Property, plant and equipment, net 78,038 75,512
 Intangibles and other assets, net 383,015 412,282
 Total assets 750,037 699,668
 Liabilities and shareholders' equity:
 Current liabilities 214,761 219,949
 Long-term debt 7,322 114,141
 Shareholders' equity 527,954 365,578
 Total liabilities and
 shareholders' equity 750,037 699,668
 /delval/
 -0- 8/19/93
 /CONTACT: William F. Costello of QVC, 215-430-8938/
 (QVCN)


CO: QVC Network, Inc. ST: Pennsylvania IN: ENT SU: ERN

MK-MP -- PH003 -- 4196 08/19/93 09:00 EDT
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Date:Aug 19, 1993
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