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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Filed by Liberty Media Corporation</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to Rule&nbsp;425 under the Securities Act of 1933</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and deemed filed pursuant to Rule&nbsp;14a-6 of the Securities Exchange
Act of 1934</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject Company:&nbsp; Liberty Media Corporation</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Commission File No.:&nbsp; 000 - 51990</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Excerpts from the Transcript of the</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Liberty Media Corporation 2008 Investors&#153; Meeting</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">held on September&nbsp;26, 2008</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:#6B9915;font-weight:bold;letter-spacing:2.0pt;margin:0in 0in .0001pt;text-transform:uppercase;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;letter-spacing:0pt;text-transform:none;">PRESENTATION</font></b></p>

<p style="color:#6B9915;font-weight:bold;letter-spacing:2.0pt;margin:0in 0in .0001pt;text-transform:uppercase;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;letter-spacing:0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unidentified Speaker</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The
appendix will be available on our website, www.libertymedia.com throughout this
conference. Nothing in this presentation shall constitute a solicitation to buy
or an offer to sell shares of Liberty Media stock, or stock in new Liberty
Entertainment Incorporated. The offer and sale of shares of Liberty
Entertainment in the proposed split off will only be made pursuant to an
effective registration statement.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Liberty
Media stockholders and other investors are urged to read the registration
statement to be filed with the SEC including the proxy statement prospectus to
be contained therein because it will contain important information about the
transaction. A copy of the registration statement and the proxy statement
prospectus, once filed, will be available free of charge at the SEC&#146;s website,
www.sec.gov.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Copies
of the proxy statement prospectus and the filings with the SEC that will be
incorporated by reference in the proxy statement prospectus can be obtained
without charge by directing a request to Liberty Media&#146;s Investor Relations,
telephone 720-875-5408.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The
directors and executive officers of Liberty Media, and other persons, may be
deemed to be participants in the solicitation of proxies in respect of
proposals to approve the split off of Liberty Entertainment. Information
regarding the directors and executive officers of Liberty Media, those expected
to serve as directors and executive officers of Liberty Entertainment and other
participants in the proxy solicitation, together with a description of their
respective direct and indirect interests by security holdings or otherwise,
will be available in the proxy materials to be filed with the SEC.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Courtnee Ulrich <i>&#160;</i>-<i> Liberty Media Corporation - Director of Investor
Relations</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;The agenda is as follows, Greg Maffei is going
to discuss Liberty Media Corporation, then we&#146;ll launch into Liberty
Entertainment, our newest tracking stock. Chase Carey will discuss DirecTV
followed by Mark Shuken, CEO of Liberty Sports Group. Then we&#146;ll have Bob
Clasen finish up our Liberty Entertainment discussion and launch into Liberty
Capital with a review of Starz Media and Overture Films.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Greg Maffei <i>&#160;</i>-<i>
Liberty Media Corporation - President and CEO</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">As
you may recall we bought another 7% of that News Corp&#146;s or rather that DirecTV
stock back in &#151; via a complicated hedge transaction in the spring. We
introduced the Liberty Entertainment tracking stock and we announced the split
off and the conversion into an asset-backed company of Liberty Entertainment.
And we repurchased about 14% of the Liberty Capital shares as of the last time
we publicly reported.....</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And I
think we&#146;ve been helpful in encouraging DirecTV to accelerate its buyback in
part by completing a voting standstill, where we agreed we would hold our vote
percentage flat even as they increased effectively our economic ownership in
the company because they continued to buy back stock. We understood they had
sensitivities around us going over 50% in voting through their actions so we
agreed to, I think, be helpful there......</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">1</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

</div>
<!-- SEQ.=1,FOLIO='1',FILE='C:\JMS\105451\08-24471-2\task3154445\24471-2-be-01.htm',USER='105451',CD='Oct  2 01:10 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The
last one of our &#151; I&#146;d like to think our strengths is our ability to hopefully
empower our managers. Part&nbsp;of the appeal, I think if you talk to Jim
Holland or Ryan DeLuca or other folks, maybe hopefully Chase as well, is that
we&#146;re not generally micro-managing their businesses. I think we give them
relative autonomy. One investor last night asked me, what do you do for DirecTV?
Well, I&#146;m not sure we need to do much for DirecTV, but we&#146;d like to think that
we stay out of their way and in a few cases, we actually try and provide a
little value....</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So,
what are we hoping to do over the next year, so when you come back here maybe
it will all not be completed by next September. But some of the things we
obviously want to do is complete the split off. Continue to focus on reducing
the discount to the sum of the parts value of Liberty Entertainment pieces to
the market price. Continue to explore DirecTV options &#151; we&#146;ve talked I think
reasonably candidly about some of the ideas that have been discussed. We&#146;ll see
how those proceed, and hopefully there&#146;ll be more clarity in a year.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And,
continue to look at content and distribution investments and opportunities. I
think until we absolutely resolve on where we are and what we&#146;re doing with
DirecTV those will probably be small scale. But I think the teams that we have
at Liberty who work in the content space, spend quite a lot of time working
with the DirecTV folks and their content opportunities, and their content ideas
and seeing how we can get the best of that together. And we&#146;ll continue to look
at those, and hopefully perhaps execute on some attractive ones over the next
year.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So
with that, let me move on to the next slide there. Okay, let me introduce Chase
Carey, President and CEO of DirecTV.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Chase Carey <i>&#160;</i>-<i> DirecTV Group Inc. - President and CEO</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Thanks, Greg. Good morning. Thanks for being
here. I think I&#146;ll spend a minute &#151; I wasn&#146;t &#151; it wasn&#146;t part of what I planned
to talk about, but just as Greg touched on it before I came up, the Liberty
relationship it&#146;s obviously recently new for us. We just closed February. It is
a good one at this point. And, I actually think Greg touched on a lot of things
that are very much true to how our relationship operates today.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I
think we do get an appropriate level of autonomy to run the business, to make
decisions that we should. I don&#146;t think any autonomy should be completely
unfettered - obviously, respect the board and the like. I&#146;ve always believed in
sort of an open book.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And I
think you do what you &#151; you believe in what you do and you do it right, you
should be open to providing a window to the decisions you made, the results.
And, I think that&#146;s an important, positive part of running business. And I
think they&#146;ve played a really good role in terms of letting us run the
business, yet an appropriate role of being a partner to provide important
perspectives.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
clearly, there is a real level of expertise that comes from it. I mean, John,
has a reputation, experiences you&#146;d know well, Greg&#146;s as well. Certainly John
understands aspects of our business better than I do from his years of building
it. And Greg, certainly in a world where technology becomes more front and
center, every day in what we do.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
really the whole Liberty organization, I mean we&#146;re in a fluid, very fast,
evolving business with a lot of opportunity everywhere and they&#146;re smart
people. And, I think to the degree we have people that can reach out and look
and provide ideas and provide thoughts, is a real positive. So, I do think it&#146;s
a &#151; really it&#146;s a pretty good mix letting us run the business, and yet being
important not just resources, but partners in trying to figure how we go
forward. So, I do &#151; and I would second a lot of what he said. I&#146;m not going to
comment on the CEO [conversation] part of it.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Turning
to DirecTV. It&#146;s such a great opportunity to speak to you today. I do think
during the last &#151; actually I think I&#146;ve got to get past this slide. I don&#146;t
know why we had this &#151; that was the longest sort of opening qualifying
statement I&#146;ve heard. So we have our own &#151; not that we&#146;d fight about those
things day in, day out who has what qualifiers. DirecTV has had a really strong
last year and a half &#151; really since, I think, the beginning of 2007 we have hit
our stride in many ways, certainly our content, our brand has probably never
been stronger. I think from an operational perspective we are really stronger
in almost every area.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We&#146;re
clearly not where we want to be in a lot of areas, but I would say we&#146;re
stronger in every area we compete in. I think we&#146;re executing better and I do
think our results are really beginning to show the benefit &#151; to show what we&#146;re
gaining and what we&#146;re achieving out of some of those initiatives. I think
probably the most positive thing is while the results have clearly improved I
think the real story lies ahead of us. And I think as you look at us over the
next couple of years, I think we really will be able to take this business to
another level.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
that&#146;s said with full respect too that we&#146;re in an increasingly competitive
environment, and I expect it to become more competitive as we go forward. There
are obviously the cable entrants there, new entrants like FiOS, debates about
what does content over broadband or the Internet mean to us. So, it&#146;s with a
full recognition that we have a ray of competitive pressures that will only get
more complicated as we go.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">2</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

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</font></b></div>

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<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">But,
I think we&#146;re really well-positioned to take this on. I mean, I think one of
our core benefits &#151; and in many ways it&#146;s almost been &#151; a question people have
asked is, our focus on video, I think it&#146;s an enormous strength for us.
Everybody knows that &#151; that&#146;s competing with the bundle. And I think our
ability to focus on video has really been an enormous strength.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I
mean, [video at] the end of the business you want to be in. It is the value end
of the business. It&#146;s the end of the business where you&#146;re going to add a lot
of features, dimensions. You can really differentiate yourself on something
other than price. People care deeply about video, and I think our ability to
really build a position of leadership there is tremendously important to us.
Our competitors are focused on building these other businesses. Many of those
businesses, which are much more commoditized, and have unique challenges in
terms of competing in them that we don&#146;t have.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
our customers are finding solutions, which is always the $10,000 question for
broadband and telephony that are compatible with DirecTV. So, it has enabled us
to go and really develop a stronger and stronger position in the arena we want
to lead. And work with our customers to help them find ways to satisfy their
needs for broadband and telephony.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Clearly,
a big part of how we have to operate in this environment is to be able to make
the right decisions, to be agile, nimble, in terms of operating the businesses.
We&#146;ve got to decide what&#146;s the right amounts in [West] and SAC to get the right
customers or optimize revenue. How much do you spend on driving churn down
without chasing the wrong customers or spending too much?</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Those
are the decisions day in, day out that we have to continue to make in this
environment. We talk a lot about the core metrics that we drive the business
around, and I think those metrics still today provide a pretty good framework
for our goals, and a pretty good picture of where we&#146;re going.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Though,
when I speak at a place like today I always want to qualify and say those
metrics are really ones that we have to continue to judge in the context of the
marketplace, in the context of opportunities. And make sure that we are &#151; that
we shouldn&#146;t be going a little bit this way or a little bit that way, to make
sure we&#146;re taking advantage of all the opportunities in front of us. What we
don&#146;t want to be doing is managing the business to hit a particular metric.
What we want to be doing is managing the business to ultimately maximize the
value of DirecTV and the opportunities for DirecTV.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And,
I do think we&#146;ve doing a pretty good job of making those decisions, although
clearly there are a lot of areas where we have real room for improvement. The
service area, probably would be top of the list of one where we&#146;re not today
doing either inefficiency or quality. We&#146;re not where we should be. They&#146;re
segments where we really haven&#146;t begun to take advantage &#151; we haven&#146;t begun to
compete in the way we should, probably the MDU segment, which is somewhere
close to or around 20% of U.S. households, is not one we compete in in any way,
shape or form as we should.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I
guess the positives in terms of opportunities, I do think in all those places
we&#146;ve at least got it going in the right direction. And in some ways, the
promise or the exciting part is that&#146;s some of the upside of how we take this
business forward is really capitalizing on the things we haven&#146;t capitalized on
yet or fixing the things that we need to fix.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">But
to take it down a level I guess you start with, how do we define DirecTV? It is
about the best television experience. It is about content technology, and
service is the tent poles. What does that translate into from a financial
perspective? We look to continue to drive solid top-line growth, increasing
margins, and strong cash flow.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And I
think if you look at the results over the last again &#151; the last 18 months, I
think it&#146;s pretty clear in almost everyone of those levels we have been making
real progress, and again start &#151; move this business to where it should be.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">What
are the factors that drive the business? I&#146;m going to spend a minute on each of
them starting with subscriber growth. That &#151; clearly one of the driving forces
in terms of top-line growth is subscribers, particularly for us high value
subscribers. We&#146;re not looking to just get any subscribers. We are looking to
focus on high quality subscribers. And as you see here we&#146;ve been doing a very
good job competitively driving that subscriber growth. We believe it will
continue.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
expect the second half of &#145;08 net subscriber growth to be about equal to the
first half of &#145;08. What drives this &#151; what do we look to, to drive the growth?
I think it starts with marketing. I think our brand as I said, I think it&#146;s
never been stronger. I think our marketing group has done a really good job of
having messages that rise above the clutter and the fragmentation that exist
out there using vehicles like the blimp that give us something differentiated,
not just another 30-second spot.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">3</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

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</font></b></div>

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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Our
direct sales force is clearly another vehicle, is very important for us in
terms of driving sales. You can see the growth. It is the role &#151; increasingly
important role. The direct sales force, not only has efficiencies in terms of
how we operate the business, but really clearly has agility and speed, and the
ability to capitalize on opportunities, the ability to give us really direct
insights into what&#146;s going on in the marketplace. We&#146;re not trying to work
through intermediaries that have their own agendas in terms of profit and the
like. So it gives us great insights, and it clearly does let us go after the
right opportunities.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">In
many ways it lets us target what you&#146;re thinking a more &#151; in a market that&#146;s
getting increasingly competitive, certainly is mature, largely in terms of
subscriber penetration, there are probably a few subs added each year. But a
lot of your objectives have to become getting smarter and more agile about
jumping in opportunities.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
whether that&#146;s a weak cable operator in a particular market where you think you
can take share, market disruptions in the last year the Adelphia switch in LA
and Dallas. We think we did a good job of jumping on those. Going forward you&#146;re
going to have a lot of cable guys doing some sort of analog/digital
conversions. Those conversions are things we can focus on.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Clearly
content where we&#146;ve got it, HD. They&#146;re local markets today we have it. DISH
doesn&#146;t. We&#146;ve got to make sure we really use that to create a real position of
leadership. We&#146;re adding another close to 40 HD markets between now and
year-end. Sports, there are &#151; clearly sports beyond just Sunday ticket, where
we have advantages, the MountainWest networks.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">If
you&#146;re a BYU fan in Salt Lake, we ought to be taking advantage of that. The NFL
network, we will again, clearly for those eight games be something we have that
others don&#146;t. When we have those sort of advantages we do have to make sure we
are taking advantage of it.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
we also have an array of niches that are really opportunities for us, that we
capitalized on to varying degrees. The commercial business, I think we&#146;ve made
some headway this year, but still clearly a lot of room. The ethnic we&#146;ve also.
The MDU, as I said, is one we really have not come close to doing what we
should do. Rural America we recapture some of what we lost when we were in the
Pegasus era, but again we&#146;re still not back to anywhere near where we should
be.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We do
go after these customers. I do want to be clear. We are competing for these
customers in an arena where the offers and the marketing spend by our
competitors are increasing. It certainly creates challenges. We&#146;re going to
make judgments. We&#146;re not going to chase subs open-endedly. We could obviously
add more subs than you see here if we wanted to just spend open-endedly, or end
up saying drop our quality standards and let customers come in that we probably
shouldn&#146;t have.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We&#146;re
not going to do that. We&#146;re going to spend what we think makes sense. We are
going to spend more because that&#146;s the environment we&#146;re in. But we&#146;re going to
spend what makes sense, and we&#146;re going to go after the customers that make
sense for us. And, we think within that we&#146;ve got enough inherent strengths in
our business to achieve our goals.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Obviously,
the other half of net subscriber growth is managing churn. This is an area we&#146;ve
spent significant time attacking over the last few years. Clearly, the best way
to manage churn is ultimately provide a great experience in hand. You provide a
great experience, nobody has a reason to leave and that&#146;s our ultimate goal.
But clearly, you want to do things underneath that to manage the business.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Probably
our first focus a few years ago in this was really to go after the lower
quality subscribers, the credit [risky] subscribers that we had probably too
many of and really introduce an array of initiatives to tighten up here. Credit
checks, credit card requirements, other tools that really let us really tighten
up on what we call the involuntary side of churn.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
in hand with that, we put in for all our customers tighter agreement terms that
again help us throughout the board, longer commitments. We do a much better job
of enforcing early termination fees. Those sorts of tools all truly have been
an important part of managing &#151; managing churn.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We&#146;ve
also gotten very good in a very sophisticated level of customer segmentation.
This sort of just illustrates our ability to say not every customer is the
same. We clearly have segments of customers where a large portion of our value
is disproportionately represented. The flip side is, obviously, we have
segments that clearly are not representative of the type of customers we&#146;d like
to be the heart of DirecTV. When we&#146;re going to try and save a customer and a
competing offer we&#146;re obviously looking to spend more on the customers you
really want to keep, less or none on the customers that aren&#146;t worth keeping.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">4</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

</div>
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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
probably as a foundation to all this &#151; and this is really all part of creating
a great overall experience, we have spent a lot of time really the last six
months really overhauling and improving the communication to our customers,
really making DirecTV easier to use, easier to understand, and easier to learn
and know what&#146;s going on in our business.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We&#146;ve
also, most recently just in August&nbsp;launched a loyalty program that&#146;s
really a way &#151; we&#146;re going to start rewarding our longer term customers, really
a way to say thank you. And, I think it is &#151; I think it goes a long way &#151; we&#146;re
obviously giving something more than a thank you, but it goes a long way to
sort of helping us deepen that experience to develop a rapport, a friendship
and let those customers know we care about them.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The
third aspect of really driving top-line growth is ARPU. And as you see here our
ARPU growth has been increasingly strong. When you look at &#145;07 versus &#145;08 it
looks a little misleading on that top comparison because it&#146;s a full year and
it&#146;s a Sunday ticket, in the &#145;07 numbers, so it&#146;s not actually going to &#151; and
when we get a full &#145;08 it won&#146;t be going down it will be going up.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The
foundation or the baseline factor in driving ARPU is our price increases. We
have put through each of the last few years a 3% to 4% price increase. Actually
believe we are still in an environment where we&#146;ll be able to continue to. We
and our competitors, beginning of &#145;09 will put through an annual price increase
and expect it to be about what you&#146;ve seen in the past.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">To
some degree [what] really helps, as I said before, you&#146;ve got our competitors &#151;
competition is always going to be a part of figuring out where your pricing is.
Really have intense price competition of broadband and telephony. I think it
makes video in many ways they&#146;re cash calves. I don&#146;t really see their price
competitions in a traditional form coming to that segment.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Again,
we always have to be sensitive to what happens. So, I do anticipate we&#146;ll be
able to maintain the type of pricing. That doesn&#146;t mean there aren&#146;t pressures.
I mean, the competition today really is mostly in offers that does travel
through as you have richer offers and richer [states]. So there is an offset to
the price increases that is there, but I think in terms of base price increases
we expect that to continue.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Certainly
another factor really probably the biggest single factor if you&#146;re going to say
what&#146;s added that extra dimension to ARPU in the last year has been advanced
product HD and DVRs, and clearly that penetration has grown significantly. The
positive is, I think these products are ones that are going to move to the
majority of the U.S. households. So that&#146;s 70%, 75% maybe sort of the VCR, DVD
type penetration.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We&#146;re
not even halfway there. I mean, the 41% is a combination of DVRs and HD. So, I
mean if you actually took those two and [saying] each are getting to that level
we&#146;ve got &#151; we&#146;re not halfway there. So when we look at growth over the next
few years, I think there&#146;s a lot left to come from this arena.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Clearly,
we&#146;ve also benefited from the focus on quality subscribers. The quality
subscribers value video more, they buy more video whether it&#146;s advanced
products or sporting packages or what have you. As we look a little bit beyond
the sort of short-term future, I think some of the drivers that will begin to
emerge, VOD will clearly be one of them. VOD is not a big factor competitively
or otherwise for the business today, but I do think it will emerge &#151; it will
grow, not over quarters but over years.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
launched our VOD product in the middle of this year. We&#146;re very proud of it. It&#146;s
got great reception, small and a building market, and we really think we&#146;ve
differentiated ourselves with sort of ease of use, the customer-friendly
version of VOD. And, we think this will become an increasingly traffic part of
our business driven through satellite downloads, combined with broadband
connectivity.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Advertising
is another area that as we look out over time &#151; again, this is looking beyond
the next year or two. We think really opens up some new avenues for us. We&#146;ve
grown this nicely. We&#146;ve grown within its traditional four walls we&#146;ve grown
our ad business quite healthily. We&#146;ve added local demand, some local sales
most recently.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">But
the real opportunities become as you get this sort of inner activity and ad
insertions using disks in the home and some of the &#151; and the broadband
connectivity is really what will open up in a way to sort of compete in an
array of the advertising formats that are emerging. Clearly, as we drive the business
nothing is more important than content. It is what people ultimately buy
DirecTV for and what they watch. And when you talk about content certainly last
year it probably got a start with HD.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I
think we did a very good job of creating a leadership position in HD. I think
that&#146;s a leadership position we can continue to drive. I mean, the fact of the
matter is first we could need or have a leadership position. I think our
competitors try to do a pretty good job of muddying the waters and making an
array of claims whether it&#146;s calling channel shows, or I think Comcast at one
point was claiming 10,000 HD shows and nobody knew what it meant.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">5</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I
think there&#146;s a lot of confusion out there. I think we&#146;ve risen above the
confusion. And, I think while everybody just jockeys underneath, gives us a
great place. I think our lead is real. We&#146;re going to continue to add to that
lead. We&#146;re adding more national channels, more local HD markets. We&#146;re adding
dimensions to our sports packages, so I think we&#146;ll continue to refresh that.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And I
just think there&#146;s staying power. I mean, one of the great things about
building a real position of leadership and a brand behind it is, as long as you
pay attention to it, I think you could continue to drive that. So, we do think
there&#146;s real legs in this HD leadership position. Clearly, in content sports &#151; enormously
important for us. Sports aren&#146;t for everybody, but it is the most powerful
programming out there, the NFL Sunday Ticket has been our signature, but we&#146;ve
added NASCAR.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We&#146;ve
added March&nbsp;Madness. We&#146;ve added golf events like the Master&#146;s, tennis. We&#146;ve
added new dimensions to all those packages. So, we will clearly continue to
drive our sports leadership and we are determined to continue to stay at a
place where essentially what we want people to say is if you&#146;re a sports fan,
you&#146;ve got to have DirecTV. And we actually do think the sports ties great into
the HD leadership.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I do
think it&#146;s a one plus one, is three. When people talk about HD they talk about
sports. But &#151; the sort of combination really creates, I think, a unique power
strength for us. Beyond sports we&#146;ve added &#151; we continue to look for other ways
beyond, to distinguish DirecTV. Next week, I think, it is we will premier
Friday Night Lights without ads about four months before NBC has it. And, I
think it&#146;s really a special event. I mean, it&#146;s clearly a show that has a
segment of fans out there, gets a lot of buzz.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
the fact that you can see the whole sequence &#151; we&#146;re actually going to have
some original footage with it, I think are the types of things that make us
different from others. Clearly, it&#146;s more than that. We do things and events
and music and in a faith-based category and elsewhere. We&#146;ve also continued to
build on &#151; enhanced and interactive versions of our content experience.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">A lot
of it again, sports. Sports is probably the most conducive to the interactive
arena, but it is again more the sports. Actually the next week or two we&#146;ll
launch with the Weather Channel a localized version of Weather on the Eights.
So you hit a red button, then you can get a really good version of your local
weather for all of you that are DirecTV subscribers.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Finally,
area and content user interface. As you get more content there&#146;s more stuff for
consumers to try to find their way around. I think the user interface becomes
an increasingly important tool. We are continuing to enhance and add features.
We added one recently, so that when you &#151; if you have HD because we give you
both the FD and the HD, if you&#146;ve got an HD box it knows to automatically go to
the HD version.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
added a game &#151; a game feature, that helps you if a game is blacked out on one
channel that you go to, it will automatically take you to another channel that
may have that game on. Really, a long list of things that we&#146;ve added to the
UI. On a separate parallel track we are really looking &#151; we are in the process
of developing really what I&#146;d call a next generation user interface that will
really add personalization and search capabilities that take this whole thing
to another level.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">If
content is what you see &#151; I guess sort of what enables this is our technology.
In many ways I guess technology [sonars] with set-top boxes. Clearly, it&#146;s more
than that. It&#146;s the software in it and what we put in place to get it there.
But we went through a process over the last couple of years where we really
launched an array of new set-top boxes.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Clearly
had some bumps in doing it. We expected them. We&#146;re largely past them, so now
we&#146;re able to really focus on how do we improve the reliability and the
performance of that? We&#146;ve made great strides. We still have a ways to go, but
we really do feel that we&#146;re getting those set-top boxes where we want them to
be.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We&#146;re
also now looking to make those boxes upgradable, so that, for example, we
launched the VOD we just did, all we&#146;ve got to do is download software to the
box and it&#146;s enabled. This fall we are going to move to a place where when
somebody orders a DVR we&#146;re going to put a DVR in place that again with the
software download can be converted to a HD-DVR when somebody wants to add that.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">It
cost us something to put that in, but we think it&#146;s a worthwhile investment,
probably about $25 incremental investment to give us that flexibility. But we
think it is an important &#151; it is important flexibility. We&#146;re adding
functionality. One of the more popular ones we&#146;ve added this year is remote
bookings. The ability with your cell phone or PC when you&#146;re away from home to
interact and have your DVR program something you forgot to put in when you were
home.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
really as we go forward probably the largest in the next year plus, the largest
initiative will really be the whole home experience and sort of that next
generation of tying the whole home together, the TVs as well as the PCs having
one disk, one hard disk in the home that you can pull </font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">6</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

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</font></b></div>

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<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">up,
you can save something on and pull it up in whatever set you want. We really do
think that, and probably as you go beyond tying into the mobile and out of the
home capabilities are going to be defining events that we&#146;re clearly spending a
great deal, amount of time on.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">All
those things are important and we know how important, but at the end of the day
service, the customer experience through service, is probably second to none.
People want it to work. If they an issue they want the question answered. If
they have a problem, they want it fixed. It is an area, that as I said, probably
of all is the one that is the most of a work in progress. We&#146;ve made some
headway and we are taking critical steps. We&#146;re certainly &#151; I think, one of the
things that&#146;s important as we end up in a more complicated world with more
features, we are working to offset that by simplifying and standardizing the
process.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
used to have multiples &#151; installers used to have to pick between cables and
connectors and a whole array of equipment. Sometimes they&#146;d install it wrong.
We&#146;ve now got one cable, one connector. We&#146;ve simplified that whole in-home
process, call centers, more customers with more stuff. We&#146;ve built a new IP
system that enables a call center agent to pull up on a screen when a customer
calls. The relevant information that lets them have a much more constructive
and faster and better conversation with those customers.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So,
clearly looking for ways to continue to simplify and standardize those
experiences. Technology is the big tool in this. We have a new installation
technology called single wire multiswitch. We nickname it SWM. That really will
give us real flexibility and ease the installation process, and greatly enhance
the upgrade process.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We&#146;ve
given all our &#151; just this summer, given all our field people handhelds that
improve communication, coordination with them, as well as their effectiveness
in the home. New diagnostic tools, so when a guy&#146;s on the roof, points the
dish, tools to make sure the dish is pointed properly. If there&#146;s a problem,
tools that when you go in the house enable that guy to much more accurately
troubleshoot what the problem is, so we don&#146;t end up with three and four truck
rolls trying to find a problem.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
then sort of adding tools for the consumer. I think the Web is probably the
most important of those. We&#146;ve done, I think, really good job of overhauling
the Web so customers can learn more, can understand more, can get their billing
information. Can get content information, can make choices on the Web, is
really an important part of adding choices. Obviously, efficiencies &#151; I mean,
one of the great things about all these initiatives are the improved
experience, but at the same time they improve our efficiency. So, it really is
a win-win for both of us.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Another
big initiative for us has been moving to more owned and operated networks. We&#146;ve
added call centers, probably more importantly this summer we took the first
steps to own a segment of our field services. We now own about 35% and really
what I expect that to give us is first, a much more direct ability to establish
best practices.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">How
long should it take you in a home to do something? What are the right standards
that should be met? Should the installation be done 98%, 99% of the time
correctly? How often should you have to go back? What should be the right
targets and the right &#151;? Look, obviously you want everything to be done right
100%.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">But
we want to make sure we can set the right targets, troubleshoot the right
problems, not try to work through multiple parties to get at them. It enables
us also to be much more agile and much more flexible. With third parties you
have to use sort of computation structures to try and manipulate and move
things here. It gives us a much more agile and much quicker ability to react to
things and there should be efficiencies inside this.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So, I
do think the owned and operated move &#151; I mean, obviously not naive to the fact
there are challenges &#151; a lot of large companies, and we&#146;re a large company, say
we can do this stuff and then they become bureaucratic and fat and all they do
is spend more money and don&#146;t perform better. Obviously, we are not planning to
do that. We are planning to run this right, run it efficiently and deliver a
better service.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Subscriber
acquisition costs, clearly a big, a key cost for us. And as we said before, we
continue to face an array of upward pressure on this, demand for advanced
products, new technologies. The SWM I mentioned. That has an incremental cost
of a few bucks to put in a home. Other things that we have pressure. And we&#146;re
spending more money in sales vehicles that let us go after the right types of
customers.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We do
continue to look for ways to offset those costs, certainly box costs, re-used
boxes, we are finding ways to offset it. That being said, I think we have found
&#151; we used to talk about 650 to 700 being a target for SAC, it&#146;s now &#151; that SAC
is now above 700. The decision to go there, the way we looked at it, that was
the right place to be. The incremental amounts we were spending on hardware &#151; it&#146;s
mostly hardware. Putting more HD/DVRs was obviously a value creation event for
us.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">7</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
the money we were spending incrementally to target the right high-end customers
was again creating value. I actually think on those tradeoffs we&#146;ll probably find
it creeps up a little bit. I think we will look to find those balancing acts,
but there are opportunities where investment makes sense. But we want to make
sure we&#146;re investing for the right reasons to really create and build value in
the business.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">From
a CapEx perspective, we&#146;ve been for a few years in a period where we were
investing incrementally to add HD capacity most particularly. We sort of
finished that off in the next 12 months with the launch of a satellite in &#145;09
and, really, we&#146;ll bring that out-of-home CapEx down to what we view as more of
a maintenance level around the $500 million level.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I
talked earlier in the year at an event about where do we think we&#146;re headed.
And we feel very much on track and it&#146;s only six, seven months since then, but
very much on track for a business that at the end of 2010 we&#146;ll have revenues
of 20 billion, operating margin approaching 30% and cash flow in the
neighborhood of &#151; before interest and tax, is in the neighborhood of 4 billion.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I&#146;m
going to spend just a minute on Latin America. I said to a few people last
night, it was our hidden jewel. We&#146;re trying to make not quite so hidden. We
had to get through mergers and an array of things that we really only competed
last year. We always believed this business had great potential, I think this
business has really started to prove that potential.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We&#146;re
in most major countries really through three entities, you see them here, 5.5
million subs in the market. Very excited by the Latin American market, clearly
a market that &#151; it&#146;s interesting, the U.S. is mature in terms of pay-home
penetration, Latin America clearly nowhere close to it. A lot of our
competitors have been through a period where they had an array of struggles.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Cable
is our main competitor, they are moving digital but it&#146;s mostly into big
markets. And clearly competition, just as here, will increase. You see Telmex
and Telefonica becoming more active forces with the bundle and an array of
initiatives. Another big opportunity in this market, HD and DVRs are really in
their infancy. HD is largely non-existent yet and DVRs are in their infancy.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">As we
go forward, what&#146;s going to drive the Latin American market for us? First,
really take advantage and piggy back on the back of the U.S. We should take
advantage of the scale in terms of hardware costs, and probably equally
importantly, take advantage of the technological advancement. And clearly, the
U.S. is going to be way ahead in all these technologies, whether it&#146;s HD or DVR
or VOD or what have you.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Local
competitors try to struggle and figure in that how do they learn how to deploy
those things. We should be able to, and we are going to be able to take
advantage and drive those things into the market, drive them in at a really
cost advantage level, advantages in terms of content, advantages in terms of
marketing. It is a great opportunity and a great ability for Latin America to
piggy back on the U.S.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Content
and technology has been important to us. We exclusively have events, things
like the Spanish League Soccer, local soccer, other types of events that are
beyond sports. Customer service, we have local customer service. We really do
believe it is something that has distinguished us there. We continue to add an
array of tools to it to strengthen that experience. We really continue to &#151; we
are the premium player in Latin America. And that is a big part of continuing
to build that level of leadership.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
gone most recently to move to multi-box putting &#151; historically, we probably had
a lot of homes in the market with more simply one set-top box per home. We
created offers that enable &#151; as more customers move to more than one TV, to
enable them to have DirecTV on more than one TV.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">DVR
is something we launched in the last year and we are moving forward with DVR
penetration. So it is becoming a reality in the market. HD is something we&#146;ll
move forward within the coming quarters. So HD, we&#146;re going to start another
arena that we&#146;re going to use to strengthen our leadership position.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
one of the offers that we&#146;re using to expand the business is what&#146;s called
Pre-Paid. It&#146;s a business where a customer pays &#151; we have very little SAC up
front net. We launched it in Venezuela very successfully. We&#146;re now deploying
it elsewhere. The customer pays for something up front that brings our SAC down
to a very modest amount and then buys for limited periods.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So
they can buy for three months, not buy for a month, buy again for two months.
It&#146;s really a great business model because we get so much of our upfront back,
that really all the incremental monthly buys are really profitable to us. And
it&#146;s very &#151; there&#146;s no cost in turning on or turning off, they buy cards at
various retail outlets to turn it on or off. So, it&#146;s an opportunity for us to
add a real dimension to that business.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">8</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

</div>
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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">As I
said, the Latin American business has really started to hit its stride. I think
all you&#146;ve got to do is look at the results. And we think this business
actually has a real window to &#151; as the competitors try to get their feet
underneath them and go forward, for us to really build and even bigger gap
between us as the leader and those we compete with.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So
all in all, I really am excited about where we can take this business to. I do
think, from a U.S. perspective, we are hitting our targets. We&#146;re continuing to
drive cash flow to where it should be. And, I think we&#146;re tackling the problems
that we should be tackling.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">From
a Latin American perspective, we are building momentum almost across the board
in the business, and again, taking the steps like adding DVRs and HD that will
strengthen that position. At a time of economic troubles, we are probably as
well suited as anybody out there. We have a tremendously underleveraged balance
sheet. We have been using our cash to pursue buy backs. We&#146;ve bought back about
6.5 billion of our stock over the last two and a half years. We&#146;re about
halfway through a $3 billion buyback now.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Clearly,
all these things really just represent opportunities for us to use our strength
in the business or our opportunities to the balance sheet to figure out, how do
we create incremental value for our shareholders. And, I think really it&#146;s
simply &#151; it&#146;s up to us to execute and deliver on that and that&#146;s certainly our
plan.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Thank
you for the opportunity to talk to you this morning, and look forward to seeing
you as we go forward.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Courtnee Ulrich <i>&#160;</i>-<i> Liberty Media Corporation - Director of Investor
Relations</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Thanks, Chase. Now, we&#146;ll continue our
discussion of Liberty Entertainment with Mark Shuken, President and CEO of
Liberty Sports Group.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Mark Shuken <i>&#160;</i>-<i> Liberty Media Corporation - President and CEO,
Liberty Sports Group</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Thank you, and good morning. It&#146;s certainly a
common theme as you listen to Greg and Chase talk about the business. And in my
20 years of running regional sports networks and groups of regional sports
networks, I&#146;ve never experienced a more exciting time. And it may sound a
little funny in the context of today&#146;s economics, but frankly, one of the primary
reasons for the excitement and the opportunity we have is the acquisition of
our business by Liberty Media.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
the reason for that is Liberty &#151; and all the things that Greg alluded to about
how we operate our business, there&#146;s a common theme as you listen to Chase and
Greg, the sports content lever, before DirecTV, before acquisition and
retention and in the community at large. And so, there&#146;s a really a good and
opportune time for us to continue to grow the business. But it&#146;s an honor here
for me to introduce our business to you. We were part of the acquisition &#151; the
business that was acquired as part of the DirecTV transaction from News Corp.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
are, Liberty Sports Group, is three regional sports networks. Regional sports
networks thrive on and depend on the passion and the connection of the consumer
in that community. Think for a minute about what means something to you in
terms of sports and that passion and that emotion. And whether you&#146;re a sports
fan and a real deep sports fan or have a tangential connection, that passion
and connection remains the same. It&#146;s a very valuable opportunity in exploiting
that.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The
keys to our business are fairly clear and simple and the opportunity is
terrific. We have exclusive media rights. We have affiliate distribution fees
that are certain. And so, if you think about the volatility of today&#146;s economic
market, there are very few businesses out there that have revenue certainty,
virtual cost certainty and your downside risk is much less than your upside
opportunity. And I&#146;ll show that to you today.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">But
it&#146;s just a huge opportunity and a time for us, particularly because, as I
said, the Liberty synergies, the growth strategies, the way that Greg is asking
us to run our business, they all really speak to real growth and economics and
in value.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The
three regional sports networks today that we comprise, we have exclusive
relationships. And what that means, simply, is product and content you cannot
get anywhere else. In our three regions, we have exclusive relationships with
the Seattle Mariners, the Colorado Rockies, the Pittsburgh Pirates, the Utah
Jazz in the NBA. We have exclusive promotional and programming relationships
with the Seattle Seahawks, Denver Broncos and Pittsburgh Steelers. And in the
NHL, we are the only carrier of Pittsburgh Penguins&#146; games in that market
place.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">In
collegiate, we have relationships with the universities of Washington,
Washington State, Oregon State, Colorado, Pittsburgh and Gonzaga, among many
others. And we have national and broad conference relationships with the
Pac-10, the Big 12, the ACC and the SEC. So exclusive </font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">9</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">content,
passion and connection, and a reach that affects subscriber and customer
acquisition and retention, and an opportunity to solidify your business for the
long term.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So
these businesses have become &#151; they&#146;re sort of mature businesses with an
entrepreneurial and start up spirit, very few chances in the business and
economics of today that allow that. Right? How many of you have the opportunity
to grow dramatically, without downside risk and an equal risk reward ratio? And
I&#146;ll show you why that is so.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
have 900 live events per year across the three regional sports networks. I
think the regional sports networks find us perfect if it has a live event every
night, a live regionally relevant event every night. There&#146;s a point of
diminishing return in there somewhere in terms of acquisition and delivery,
roughly 250, 300 events is about core in that.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
produce 500 of those games in high definition, as you heard from Chase and
Greg. That&#146;s a very relevant and meaningful tool moving forward. We are full
time distributed high definition by many of our cable operators and by DirecTV.
We launched that last winter. By next winter, we&#146;ll be fully distributed in HD
and that number of 500 events will grow to ultimately all of our events
produced in high definition.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
serve 8 million satellite and cable subscribers in our regions. But what&#146;s
probably more exciting and opportune and relevant is we&#146;re virtually 100%
penetrated. We reach all of the customers in those communities on expanded
basic or either base level services. So virtually everybody gets our product.
Everybody demands our product. And it&#146;s a perfect lever for distributors like
DirecTV.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
are delivered across 17 states in our footprint. And our primary affiliates are
Comcast, DirecTV, Dish Network, Time Warner, but covers the gamut again, every
cable and satellite operator out there, Verizon, AT&amp;T, all the new entries,
they all wish to or carry us and our product.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So
what, why do the regional sports networks add accretive value and real leverage
to the rest of the Liberty portfolio? Why are we in this business? Well, must
carry TV, must see TV. If you think about your array of channels and networks
and the content, how many of them must you have? And frankly, how many of them
must you have in order to keep your current provider? Regional sports networks
fall into that very small category.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">If
you have a choice of distributor in terms of your video content in your home,
and you&#146;re a fan or you know someone who&#146;s a fan or you&#146;re related or married
to someone who&#146;s a fan, and they don&#146;t have that network, that&#146;s a lever. That&#146;s
a subscriber acquisition or loss risk. So absolutely must carry the content.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Again,
long term strategic revenue and cost certainty. So our fundamental benchmarks
in these businesses are those exclusive rights agreements. They are multi-year,
our exclusive distribution relationships with DirecTV, DISH and our cable
operators, multi-year. All the different product, acquisition and creation
opportunities are multi-year. All the distribution multiples, metrics and
agreements are long term.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So
you don&#146;t have the volatility of a marketplace right now that you see in many
other sectors. They&#146;re wonderful planning and strategic opportunity, and again,
very little downside. I think the big ticket here for us, and this is why it&#146;s
so exciting to be unlocked and really to realize the value that Liberty will
bring us is we have to think not like an old media company in a television
business, but like a content acquisition creation business.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
it&#146;s become cliched recently. Well, this is a real opportunity to blow the
doors off for us. We are about to converge and grow based on all new forms of
media and distribution. If you have children, I have three, they look for their
content in very different ways than I do and my parents did. Well, it&#146;s a
common theme across all forms of media. Certainly, sports drive that. And we
will drive that along with our partners in distribution.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Interactive
media, Chase showed you. We can bring different elements and ways to transmit,
distribute sports experience, sports VOD, interactive media, streaming video,
all forms of rights. Our exclusive rights agreements extend beyond television.
It&#146;s important that you understand that.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We&#146;re
not in the TV business. And as TV converges to other forms of distribution, we&#146;re
out of that space. That&#146;s inaccurate. All of our agreements protect ourselves
against, and are actually part of the growth of new distribution forms. So one
of the things we learned at News Corp. was that some television experiences are
DVR&#146;d and TiVo&#146;d in very extreme ways now. Sports &#151; live sports television is
not subject to that to any degree.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;line-height:11.0pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;line-height:11.0pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">10</font></b></p>

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</font></b></div>

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<div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So if
you think from an advertising and sponsorship perspective and an experiential
perspective, what&#146;s cool in the moment? What&#146;s relevant in the moment? It is
live sports, plain and simple. There aren&#146;t too many others. So very, very
serious lever in terms of opportunity for our sponsors and advertisers.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
also have operational agility, innovation and flexibility. So again, the danger
of being a mature business is you get comfortable. You get complacent. You
start to think about incremental year-on-year growth, single digits, don&#146;t
screw it up. As you can see from what Greg and John and everyone are demanding
of us, it is quite the opposite. And the good news is we can take wonderfully
strategic risks without harming any of the downside. We can grow. We can be
agile, innovative, try new things, respond to the customer in a way that most
businesses can&#146;t, especially in today&#146;s climate.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Also
we have an infrastructure, sales infrastructure, technological and technology
and production infrastructure, negotiation and legal infrastructure, business
infrastructure. That means one of our primary mandates which is growth,
acquisition, partnership, merger, all the opportunities that are out there to
grow. Those acquisitions are immediately accretive.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The
one-off businesses that are out there as isolated businesses are not so. We can
bring to bear operational synergies, reduce cost and elevate revenues.
Obviously, when we discussed distribution deals with our partners and our
distributors, there&#146;s leverage to bear there and we do that very well.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The
financial metric. This is the piece &#151; again I&#146;m reiterating because I think it&#146;s
very important. When I talk to people and I say I&#146;m in the regional sports
network business and the television business and the media business, they say
wow, advertising must be down. It must be in real trouble.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Well,
if you look at this slide, you&#146;ll see our revenue mix &#151; right now a little
north of 80% of our revenues are fees that distributors pay us for the
opportunity to carry our networks. That means the volatility of our business,
the absolute downside volatility is south of 20% year-on-year. That&#146;s before
contemplating any other expense controls or anything else that you have to
implement.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Most
people are very surprised at that. They believe that we&#146;re advertising and
sponsorship driven. Well, there&#146;s a reason why pay television exists for
sports. By the way, all the &#151; and why all these games and leagues and teams are
on pay television, because they can&#146;t be sustainable based on pure economics of
advertising and sponsorship.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Our
EBITDA target margin will be 15% this year. We&#146;ll do a little better than that.
That number is &#151; we will achieve that this year. That number will go up in the
years to come under Liberty. I can tell you that with certainty. Again with
certainty because we know what our cost bases will be for the short, mid and
sometimes long term, and our revenues as well, but also because this is a
transition year for us.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
have gone from being under the umbrella of News Corp., we&#146;re still pulling away
from some of the service agreements that they have provided us in the
transition. We get to go to new vendors, new suppliers, new providers, new
opportunities to run our business. And every one of them &#151; it&#146;s a very
competitive space. We have terrific opportunities there. Every one of those
will offer cost savings and revenue upside. So even in a year of transition,
our EBITDA margins are sustainable, secure and will grow in the future.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">This
slide, growth opportunities, when I was asked to speak here, this slide comes
directly from the slide that we&#146;ve given to every one of our employees across
these 8 million subscriber served businesses. In other words, these are the
same goals and objectives that my management team has, and were given six or
seven months ago when we were acquired, verbatim. So this is how we run our
business.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Number
one, increase earnings and asset value, [these RSN], plain and simple. Make
more money for the shareholders, stakeholders. Number two, expand our portfolio
vertically and horizontally. Now let me explain what that means to us. Vertical
expansion means getting deeper and stronger in our markets that we currently
serve today. So we&#146;re the driving regional sports network. We are the dominant
regional sports network, and in most cases, the only in our markets.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So,
what else can we do to leverage that? Radio rights, multimedia rights,
screening, digital rights, community orientation, community events, sales
infrastructure, partnerships with cable and satellite. So, how do you get
deeper and stronger and more connected? Equity partnerships with your teams and
their new initiatives, so let&#146;s deepen and strengthen those relationships, that&#146;s
our vertical growth.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Horizontal
growth is where else can we, and again they&#146;re accretive, look at other
businesses in the media space to acquire, with whom to partner and develop and
launch new businesses. And they are out there. And we&#146;ll do it judiciously, but
we&#146;ll be aggressive in that space. Also broaden </font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">11</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

</div>
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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">that
to national and international multimedia businesses. Again one of our drivers
here and one of our senior executives that we&#146;ve just brought on, is an expert
in the sports and media Internet and streaming video space.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Well,
not a coincidence. We&#146;re going to go after those businesses. And we&#146;ll go top
down. We&#146;ll find strong sports multimedia businesses to look at, to acquire, to
partner with, merge or learn from. Conversely, we&#146;ll leverage our regional strengths
to elevate multimedia and digital distribution in our current markets. So it&#146;s
a perfect model going both ways for us.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">If
you listen to what Greg presented earlier and you look at what Liberty brings
to the table, obvious opportunities for us to leverage those and make those
benefits. The synergies with DirecTV are fundamental and huge. Chase and I have
talked a lot &#151; he and his team and I have talked a lot.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
will leverage and grow that combination and those synergies, absolutely. But
there&#146;s much more. The Liberty Interactive Media, the other television
businesses that we have, the financial expertise, all those things are obvious
and huge and the mutual benefits are going to be clear.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">What
Chase said earlier hits me the hardest. And I think is the coolest part of
being a part of Liberty. They demand and let us run our &#151; they demand that we
and let us run our businesses. They&#146;re there to help us, but they don&#146;t hold us
down. And that&#146;s a wonderfully &#151; ask yourselves if how many of you have that
opportunity in your job. You get to do your job. That&#146;s all you want. You want
the tools, the resources and the expertise in the areas that you need support,
but you take your strategic vision and you execute.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And I
can tell you regional sports networks that are run by cable companies or that
are run by entertainment companies, sometimes get bogged down in those &#151; in the
morass of that. We&#146;re asked to elevate our shareholder value. We&#146;re going to
blow the doors off the interactive, multimedia space. We&#146;re going to strengthen
the businesses in the markets. And Liberty will help us and we have new
investment opportunities. It&#146;s a perfect mix for us, very exciting time.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Talked
about the multimedia, interactive and digital strategies, the DirecTV brand
content and value, Chase, mentioned it. I think the term he used was the most
important or most valuable content is sports content, enough said there. But,
how do we work together with DirecTV to really exploit and create that value,
so there&#146;s subscriber retention, subscriber acquisition and new ways to watch
DirecTV sports?</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">If
you&#146;ve seen the Masters or NASCAR or the NFL package certainly, it&#146;s not just
more stuff. It&#146;s better produced and presented stuff by DirecTV. That is also
our core expertise. And we&#146;ll work together with them.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
then finally, RSN synergies and best practices. When you&#146;ve got a massive
portfolio of regional networks, you sort of lose the opportunity to figure out
what&#146;s best and how to synergize those. And in some cases, they run sort of
autonomously and forget each other. And if you&#146;re a one-off regional sports
network, sometimes your economics are challenged. You&#146;ve got a whole
infrastructure and cost bases for one business.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We&#146;re
in the sweet spot. We can find out how to run them best. We can aggregate our
resources and look to take the three regional networks, make sure we&#146;re savings
costs where we can and elevating revenues where we must. And also look at
evaluating &#151; look at and evaluate new acquisitions and opportunities.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So
perfect mix in terms of the way we can operate these businesses with a level of
controls, but with the same freedom and autonomy to grow and be agile that &#151; we
must to compete in today&#146;s market. So to sort of close here, and again, I want
to reiterate that this is a business we&#146;re in, Liberty is in. They&#146;re committed
to staying in and growing. The three regional sports networks become the
fundamental tool to elevate the sports content and delivery that Liberty is
driving.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So
number one, the mandates I&#146;ve gotten from Greg and Mark Carlton and Dave
Flowers, the committee to which I report, is grow, grow, grow. Acquisition,
merge, develop, launch, be strategic but get after it. And those mandates &#151; those
words happen a lot in our business, but we see real action in that.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We&#146;re
already in &#151; fairly soon we&#146;ll be announcing some new opportunities, as they
come about and where we talk about them every day. There are many opportunities
that have come across our desks. And now that we&#146;ve got our operational feet
under us, after six months we&#146;ll be looking at those opportunities in the near
future. But those mandates are real, they&#146;re consistent, and we will deliver on
those.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">There&#146;s
a creative acquisition and deal structure. In other words, if we talk with our
team partners, or league partners, or distribution partners, we&#146;re not
encumbered by some of the, again, cable owned or media entertainment company
owned obstruction, structural or otherwise. So there&#146;s a lot more flexibility
in deal making that we can make.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">12</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

</div>
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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Again,
DirecTV, let&#146;s not lose this. Sports is a driver. And under this current
ownership, we can elevate that. The Liberty Entertainment relationship, that&#146;s
unique, obviously under this acquisition and we&#146;ll continue to drive that.
Liberty has team, league and international sports relationships. Liberty
themselves, they own the Atlanta Braves for example. They are connected to all
the teams, leagues and governing bodies, as are we. So there&#146;s a mutual connection
there and a benefit in terms of driving new sports content.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
again what Greg spoke to, first and foremost, and the area that they&#146;ll bring
greatest value to us operationally is that Liberty has tremendous financial
expertise and partnerships. So we&#146;re &#151; as excited as I&#146;ve been in my 20 years
or so of doing this. The Liberty acquisition is the reason for that. The
DirecTV synergy is the primary driver. And the flexibility and the mandates for
growth are very, very exciting for us.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
again in a world that is a little bit &#151; it&#146;s not a stretch to say a world that&#146;s
a little volatile financially right now, we&#146;re proud to present the Liberty
Sports Group of one that has &#151; one that is secure in terms of protecting it&#146;s
revenues, it&#146;s earnings and it&#146;s downside with tremendous upside growth in the
near future. And we look forward to elevating that and delivering it for you.
So thank you very much for the opportunity.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Courtnee Ulrich <i>&#160;</i>-<i> Liberty Media Corporation - Director of Investor
Relations</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Thanks, Mark. So now we&#146;re going to finish up
our discussion of Liberty Entertainment and launch into Liberty Capital. And
that will be led by Bob Clasen, CEO, of Starz.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Bob Clasen <i>&#160;</i>-<i> Liberty Media Corporation - CEO, Starz</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Good morning. Last year I outlined for you, in
broad terms, the new Starz, the combination of the Starz and the Encore
channels with the assets Liberty had acquired from IDT with the founding
Overture Films in late 2006.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
created a company that&#146;s able to produce content &#151; entertainment content in all
its forms, from short form to major theatrical films. And our objective is
really distribution; to be able to distribute this on as many platforms as we
can and take advantage of reaching audiences as they fragment. In this world of
more places to go and find content, audiences have obviously been fragmenting.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So
our view is, well let&#146;s aggregate the audiences and do it across all of these
platforms. Part&nbsp;of this, as we said last year, was to control our own
destiny. We had spent most of our history simply licensing content and putting
it on the channels. And this has really given us an opportunity to step back
and begin to create content. And begin to create a library and be in a position
to have much more control over what we&#146;re doing and where we&#146;re going.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So
this year, I want to talk to you about how well we&#146;re executing on the plan.
The company now operates on all major distribution platforms, theatrical, home
video, television, the Internet. And a lot of our content is sold overseas. We&#146;ve
really gone from one business to seven different businesses, and introduced a
whole array of new brands and products.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">But
even though we are now in two separate tracking stocks at the moment, we&#146;ve
integrated the management. So that we&#146;re running the company with a television
unit, run by Bill Myers, who&#146;s here today, a theatrical unit run by Chris
McGurk, who&#146;s here, and then our animation group, run by Kent Rice. So it is an
integrated business that is attempting to work through all the synergies of being
an integrated media company.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I
want to start by talking about Starz Entertainment. Five years ago, we only did
linear channels. And now we&#146;ve added a whole array of new products that add
quite a bit of value to that core business. We&#146;ve introduced products each of
the last three years. We&#146;ve even launched new linear channels when another
programmer left the space of movies in the &#145;50s, &#145;60s and &#145;70s and introduced
RetroPlex, and introduced IndiePlex, which are now getting very broad
distribution, and helped cement our contact into the marketplace.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So
from linear channels to HD to On Demand to HD On Demand and now of course, to
IP with Starz Play, we want our affiliates to see us as the innovator, that as
they develop new platforms and a way to distribute content, we are right there
with them. And as many of them are now talking about mobility for next year, we
are working on products in that space as well.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Also
there&#146;s a sense of renaissance in the premium category. For 20 years, it was
the pay TV categories that drove the cable business. And then as digital came
on and tiers moved to the forefront and then high-speed and then telephony, the
premiums kind of got moved to the back burner.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">13</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

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<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Well,
that&#146;s over. Premium is now back in the spotlight because it&#146;s really at the
center of the marketing battle going on among cable, satellite and the telcos,
and this rush to have new products, new high definition products, new On Demand
products and new IP products. And I&#146;m going to show you how effectively we play
in those marketplaces.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
think we&#146;re the best positioned to the programmers to take advantage of those,
because we have been a product innovator going back to the summer of 2004 when
we introduced Starz! Ticket as an IP product. So today we&#146;re talking to our
affiliates much more about products than about rates. And let&#146;s take a look at
why.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">There
are more than 300 networks that offer On Demand programming to that array of
cable, telco and satellite affiliates out there. Starz has three products,
MoviePlex On Demand, which is typically in a low digital tier. Encore On Demand
which is typically in the most popular digital tier. And then, of course, Starz
which is a premium service, but it&#146;s typically packaged at $60 or $70 or $80.
Month after month, those who carry this wide array of On Demand product, we
have three of the top five. Movies are very important in terms of the On Demand
business.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">On
Demand HD, another new product innovation where we&#146;ve been at the forefront of
taking our content and creating mini packages of On Demand for our affiliates.
And here again, we lead the marketplace. Starz On Demand, Encore On Demand and
HD On Demand are month after month, the most widely viewed, in terms of hours of
use, of any of the products in this space. There are 40 networks. We&#146;re the
market leader.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The
number of Starz customers continues to grow. Ours, in fact of Starz and Encore
are the two fastest growing. If you look at the growth of the Starz channels over
the last three years, we have grown at four times the rate of HBO. Encore has
been at a faster growth rate than even the Starz channels.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
as more customers now over the next year convert to digital, that grows the
marketplace to which we can sell into because remember, the Starz and Encore
channels have always ever been available only in a digital environment. And now
as Starz Entertainment and the channels moves into the original space.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
started in January&nbsp;with two comedies and by October&nbsp;17, we will
launch Crash, based on the Academy Award winning motion picture of the same
name in a series, starring Dennis Hopper. This opportunity is the showcase of
what our direction is. We think that doing high quality programming of a
premium network and keeping our core movie business is the right mix.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Our
simple goal is to stay with our Saturday night premiers, which have very high
Nielsen&#146;s where we premier new movies every Saturday. Find one other night
where we have a strong line up of originals to create some destination view
because we know already, we play so well in On Demand. And we think that&#146;s an
opportunity for us.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Also
brand identity. The Starz channels and Starz flagship, for example, has
tremendously stronger Nielsen&#146;s than AMC. The people identify with AMC because
of Mad Men. Even Showtime, we have quite a bit more viewership than Showtime.
But Dexter has a niche, Weeds has a niche, we think that adding high quality
content to our line up with originals will make a big difference.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">But
just as importantly, owning the content let&#146;s us put it through distribution
channels that we already own as in home video, sell it into syndication with
our television sales group, be in a position to monetize it in digital and sell
it overseas. So we think that, that starts to work now with all the
distribution that we&#146;ve put together.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">People
are watching. I love this slide. Of all the premium channels, 11 of the first
26 weeks of this year, 2008, Starz ranked first or tied for first. We had never
been first until this year. People are watching. People are getting the message
of consistently strong prime time viewing. Not just viewing scheduling to build
CUME and develop a PR story, but really people tuning in.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
we are making significant progress in this area. And Encore, frankly, has a
tremendous value to our affiliates. Two examples, it&#146;s carried, it&#146;s &#151; the
Encore, and it&#146;s &#151; the westerns and action and mystery and so on are carried on
DISH in its top 250 tier. And there&#146;s about 30 or 40 channels in that tier.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The
Encore group represents a whopping 63% of all the viewership on that tier. In
Comcast, on their classic direct tier, that Encore group exists with 20 other
channels. It represents 27% of all the viewing on that tier. So our &#151; day in
and day out, the Nielsen&#146;s, in homes that Starz and Encore show up in, continue
to be very strong, and revenue grows.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">14</font></b></p>

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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">As we
gain more subscribers and also sell more of these services to our affiliates,
in particular the phone company where our penetrations are very high even
relative to satellite and relative to cable, our revenue has begun to grow. And
our programming costs are down. The amount of money that we are spending for
content, even with our new initiatives in Originals, is flattening out.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
if you step back and look in the marketplace, the movement of Paramount, MGM,
Lionsgate away from Showtime to try to find another way to generate revenue
because of the pressure on their fees. HBO striking deals with Universal and
with Fox to 2018 is tipping to, I think, all of us, that the pay TV fees paid
to the studios are in decline.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And I
talked about this last year with regard to what we&#146;re able to do in the spot
market in order to go and buy content, high quality content for our channels.
So we are optimistic that we&#146;re going to be able to more carefully control our
costs going forward.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
this improves OIBDA. We can all go to Wikipedia to see what that means. It&#146;s a
Liberty term that was defined at the call last year. And there&#146;s actually on
the website, an appendix that will describe exactly what that means. It&#146;s kind
of operating income with some adjustments.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We
don&#146;t talk about the future, but let me make two observations about us that you
might find of interest. First of all, we are all subscription based, no ads.
And I think that means two things. First is, it&#146;s much easier for us then to
move to other platforms because we&#146;re not necessarily in the early stages of
our content ratings driven. We can create niches and create spaces because we
are only subscription based.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
secondly as this was pointed out, the advertising sales go through good times
and bad times. We&#146;re unaffected by that. More importantly, as the world changes
and as advertising moves with more platforms such as the Internet, we are
typically unaffected. Secondly, the analysts are looking out five years and
looking at television in its broadest definition. And saying, well gee it&#146;s
still going to be about 90 to 95 hours per household per week. It&#146;s a pretty
big number.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">But
there&#146;s going to be one fundamental change according to all the third-parties
we&#146;ve looked at. The time shifted piece is going to go from just a couple of
percentage points to over 20 points. And as you just saw, that&#146;s the place that
we play in so well because of the popularity of our content. So we&#146;re feeling
as though these are both very good signs for us, putting us in a good position
going forward.....</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So
you&#146;ve got in the television group, the Starz channels. You have the television
production and sales &#151; and syndication sales. You have the digital team. And
then in theatrical, it&#146;s Overture Films and Anchor Bay. And then the animation
group is the Burbank facility with Film Roman, a very high prestige 2-D
animation product developer. And then our Toronto studio, which is &#151; does the
latest CG animation.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">There
have been multiple benefits. Joint acquisitions let us buy for all platforms at
once. Getting leverage, getting cost savings, makes it easier for producers to
go to one place and sell their content and hit all of the platforms. We&#146;re
coordinating marketing and promotion opportunities and doing promotions among
all of the Starz assets. And now with the number of the Liberty assets as well,
we had a big trader promotion with the Atlanta Braves.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Unified
television production, let&#146;s us use a single team to develop content that can
be used on our own channels for direct to video and also for products for
third-parties. We&#146;re doing films right now for SCI FI. We&#146;re doing them for
Lifetime. And we&#146;re doing a series right now actually for IFC. And finally, we
get some savings by consolidating some back office functions.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Well,
the strategy behind all of this is audience aggregation. Here&#146;s a first example
with Mad Money. Premiered in the theaters in January, 6 million to acquire the
domestic rights, about 27 million in P&amp;A behind it, it did $22 million
gross at the box office. But our Anchor Bay company just knocked the socks off
of it with a tremendous launch this summer. And will be generating over its
ultimate $50 million from gross home video sales.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Other
revenue streams. Pay-Per-View where we sell to our Starz affiliate sales group
who have relationships with the satellite people and the telcos and the cable
operators. Pay TV fees, where Starz will buy it effectively from ourselves and
pay Overture. Revenue from syndication handled by our own in-house sales team,
and we&#146;ve already made a first sale in that syndication window of this film.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
digital distribution through Starz Play which is another venue for us to
continue to look for revenue opportunities using our own in-house sales teams.
So again, it&#146;s controlling the distribution, taking content and pushing it
through this system.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
finally this past spring, we began the most comprehensive branding effort in
our history covering the channels and all of our other business units. We want
to be the place where people can go and see that Starz brand and know they&#146;ll
find great quality content and great entertainment.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">15</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

</div>
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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We&#146;ve
created a strong new word mark, turned into that logo you&#146;re seeing on the
screen. It&#146;s a new look, a new feel. As audiences fragmented, we need to move
Starz from just a brand to a super brand that is every where the consumer goes
to find content.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">There
will continue to be fragmentation. But we need to be in the position to let
people say, ah ha, Overture, the Starz Company, Anchor Bay, Encore, Starz
networks. And let people recognize, well this is the place I ought to go and
find my content. We think that will be very important in the new media world in
front of us.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Enough
talk, let&#146;s go to the video tape. Thank you.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">(VIDEO
PLAYS AND RESUMPTION OF SESSION)</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="color:#6B9915;font-weight:bold;letter-spacing:2.0pt;margin:0in 0in .0001pt;text-transform:uppercase;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;letter-spacing:0pt;">&#160;</font></b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;letter-spacing:0pt;text-transform:none;">QUESTION AND ANSWER</font></p>

<p style="color:#6B9915;font-weight:bold;letter-spacing:2.0pt;margin:0in 0in .0001pt;text-transform:uppercase;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;letter-spacing:0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Chase Carey <i>&#160;</i>-<i> DirecTV Group Inc. - President and CEO</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;I think probably the first time I&#146;ve heard
[Jody], it really is more financial and in terms of cash flow. And I think we&#146;ve
talked, when I came in, about the cash flow potential of the business and what
we thought it should generate. And so, I think there is a &#151; simply, a level of
saying and I guess I did talk about where I think we move the U.S. cash flow in
2010. And I think from where it was a year ago, and we&#146;ve obviously taken a big
step forward this year, it is.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">There
are obviously other ways there operationally too. And I think a whole-home
solution. And the UI that sort of starts to tie things together in the home is
an aspect of taking that customer experience and adding real dimensions to it,
not incremental dimensions to it. To some degree, time frames of those things,
there&#146;s a lot of the technologies are different, and it&#146;s not sort of one point
in time, but the whole home experience certainly in the next 12 months becomes
something we start to push more front and center.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The
UI, the sort of next generation that Greg talked about, that experience could
really add a new dimension that that. It&#146;s probably more in 2010. So somewhere
in that 12 to 24 months in terms of adding &#151; well actually doing an array of
things in between now and then. But certainly from a customer perspective, we
are going to have, what I think, is a leap to a different type of experience
and in an exciting way and I think we&#146;ll tie together.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We&#146;ve
obviously started to tie things together like mobile capabilities and at-home
capabilities into it. But really pull all that together as you go out into that
kind of 12 to 24 month timeframe. So I think there&#146;s both financial and
operational aspects to it that probably is in different places [was] referring
to.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Greg Maffei <i>&#160;</i>-<i> Liberty Media Corporation - President and CEO</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Can I add one thing to &#151; what I&#146;d say is to
[Chase]. One of the things, I think, that Direct has done a tremendous job of
is finding a virtuous cycle between increased large screen TVs in the market,
high-def sports, high-def and sports and that kind of positive cycle of
customer base. And that&#146;s sort of the current wave, which is not the only thing
driving its large success, in my mind, but probably the biggest piece.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">But I
also think they&#146;re investing in the future. And Chase talked a bunch about
those. One of the ones that I think is most compelling, which can be a
sustainable advantage is the TV experience. Or, that&#146;s what I call it which is
some combination of UI and search and how it&#146;s VOD product and how those things
are linked.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I
think not only what is currently in the marketplace, but Direct has a lead over
the other three large distributors. But if you look at the futures and where
they&#146;re investing, I think they&#146;ve got a really &#151; an ability to build a
sustainable advantage. And I think that&#146;s quite interesting and compelling for
people who appreciate video.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The
other thing I&#146;d say is he&#146;s driving that top line, but obviously there&#146;s an
enormous fixed cost component to what is going on at DirecTV. And in a way, the
payoff, in terms of cash flow, is just beginning. Because the dramatic
acceleration is going to happen, having invested in the HD product, having
invested in getting those customers who really are looking to be more stable,
lower churn, the most valuable video customer in the market. That pay off in
terms of cash is really just beginning, it&#146;s going to dramatically accelerate
over the next couple of years.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">16</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

</div>
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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unidentified Company Representative</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;And I do think &#151; I mean, I do think as we &#151; one
of the &#151; and I still think it&#146;s under-appreciated and I think it&#146;s a huge
strength we have when you talk about new features, that is an advantage we have
(inaudible) had the same one, but purchase cable and the wired guys is a
national footprint and the ability to launch.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">When
we launch a produce, we launch it into every home. And everybody says, well,
where&#146;s cable? And the reality is, cable, depending on the market, it&#146;s about
100 different places. The HD capability, what they&#146;ve launched, where they&#146;ve
launched it, when they&#146;re launching. But it&#146;s very tough to come out with sort
of &#151; we launch an ability to &#151; I don&#146;t if these are incremental steps, but to
have your cell phone or your PC remotely program your DVR.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">[Be
able to let] every person &#151; the day we launch the next day, everybody can do
it. You&#146;re not relying on sort of a different market at different times and
different places and their own sequences to getting out there. I think it
enables you to brand those things, to push those things, to really establish a
leadership. And I do think it&#146;s one of the structural advantages we had that we
introduce, new features and given [financial] content because we can be a
platform for everybody, for those who want to premier their preview platform
[for content].</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Unidentified Audience Member</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Thanks, I have one question for Chase. I
wanted to ask about your broadband overlap to your subscriber base. I think you
talked recently about how more and more of your customers are using cable,
cable modem as the data service rather than DSL. With [Doc 30] coming, that
probably continues to be the case. What does that do to your business at all,
if anything? Is that a positive, negative? How do you address that? And so what
are your conversations with Verizon and your other telco partners about trying
to take some of that share back?</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Chase Carey <i>&#160;</i>-<i> DirecTV Group Inc. - President and CEO</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Well first I guess, probably describe it a
little differently. But certainly, DSL is our largest, that would be broadband
service, that the largest percentage of our customers take. So I think when I
talked about it on the earning call, what I said is that cable segment grew
more than the others. So I think we found the percentage &#151; and it&#146;s a
meaningful percentage but certainly DSL would be significantly larger than the
cable segment &#151; taking it.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I
guess with the &#151; I&#146;m not sure there are any magic bullets here. I think to some
degree you have the whole question is, as this bundle matures, and clearly it&#146;s
maturing on a perspective, to what degree these things starting to be offered
in different shapes and different forms. I mean, obviously you&#146;ve got the cable
guys now talking about two plays instead of three plays.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And I
think &#151; and I guess, I think we continue to believe, which is why we like the
position we have, that it&#146;s not going to be simply a one size fits all market.
That the market will evolve in a way that people will have choices from
existing players or emerging players. We can be helpful. And we certainly have
tried to push and be constructive.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">More
than just push the telcos to &#151; who I think &#151; let me just go back to between &#145;04
and &#145;05, I think were pretty asleep and let cable sort of take the broadband
business. Came back pretty well aggressively in &#145;06 and &#145;07, and push back and
I think took a little bit of their foot off the pedal or eye off the ball.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And I
think for them probably kind of really, [on] broadband unfortunately price
probably is something. It got used, and Verizon can help with a much more
aggressive DSL offer just in the last couple of weeks. So we&#146;re going to try to
be helpful with that, and bundling we&#146;re trying to come up &#151; with Verizon, with
some packages.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I
think I&#146;d actually also love to see the phone guys and I&#146;m going to &#151; today it&#146;s
really separate, to start to drag in the wireless business. Sort of in a
separate leg of the stool, and it really to me, benefits them if they could
figure out a way of &#151; probably therefore benefits us, drag that into the mix.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I
mean, clearly there you put cable on the defensive. They don&#146;t really have any
answer to that. And I don&#146;t think clear wire&#146;s their answer. So, I think you
have a &#151; I think they turned it a little bit. And whether that&#146;s content or
whether that&#146;s packaging or whether that&#146;s pricing or whether </font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">17</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">that&#146;s
integration of services, I think it&#146;s worth them trying to figure out how do
you start to put the cable guys on a little bit of the defensive by using the
strength you have that they don&#146;t. But there&#146;s no magic bullet. It&#146;s really
working at it from every direction we can.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unidentified Audience Member</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Thank you, and just quick, Greg and John, on
Liberty Entertainment Group. Any comments on that discount? Why maybe since the
tracker since the [hardship] was announced and any update in terms of timing? I
think you had initially said sort of four to six months. Is that still the
thought process?</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Dr.&nbsp;John Malone <i>&#160;</i>-<i> Liberty Media Corporation - Chairman</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Well timing-wise, I think if everything breaks
right, we might get it done by the end of the year, which is three and a half
months.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unidentified Company Representative</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Four months from when we announced it.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Dr.&nbsp;John Malone <i>&#160;</i>-<i> Liberty Media Corporation - Chairman</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;It has to have a shareholder vote, which is
probably the long [pole]. Once we finalize and file with the SEC. These things
are always also a function of how fast it can get through the SEC. They may be
pretty preoccupied these days, I don&#146;t know.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">In
terms of the discount, we&#146;ve seen it broaden and narrow, and broaden and
narrow. I don&#146;t read very much into that other than just supply and demand
market issues. I would like to address a little bit of the prior question
though which is kind of an interesting one. In that, to the degree that the
telcos can come to the conclusion that DSLs not a great video engine, and
decide to use their twisted pair for data rather than video.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">They
can achieve substantially higher data rates if they focus. And then that makes
the hybrid satellite for video, DSL for data and IP telephony even a stronger
play. So to the degree that cable wants to take the speeds up, the telcos would
increasingly need to look at DSL as a data engine, unless there&#146;s a video
transport. That&#146;s kind of my take on it.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Greg Maffei <i>&#160;</i>-<i> Liberty Media Corporation - President and CEO</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Great, another question. Right there, Laurie
again.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unidentified Audience Member</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;I guess it&#146;s hard to know the numbers with
precision. But roughly, it seems like there&#146;s a $30 billion or $35 billion call
option related to DirecTV merging with EchoStar, assuming 100% probability. And
so, my question is as it relates to your stake in DirecTV, does that potential
call option enter into your calculus at all?</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Greg Maffei <i>&#160;</i>-<i>
Liberty Media Corporation - President and CEO</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;I think that&#146;s actually a put, not a call. In
terms of [Charlie&#146;s] being &#151; unlikely to be a seller rather than Charlie more
likely to be &#151; anyway.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Dr.&nbsp;John Malone <i>&#160;</i>-<i> Liberty Media Corporation - Chairman</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Well, I think that it&#146;s an infinite value that
would be created and a diminishingly small probability that it could happen. So
if you multiply those two together, I think you still get pretty much a null
set, to use the mathematical terms. Pardon?</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">18</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dr.&nbsp;John Malone <i>&#160;</i>-<i>
Liberty Media Corporation - Chairman</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Oh, in ten years, I mean look in a year
anything crazy can happen. But as it sits right now, in this regulatory
environment, I just don&#146;t think it would be worth either company&#146;s energy or
effort to approach the regulatory agencies with that kind of a proposal. I&#146;ve
always believed that cooperation between the two companies could save both companies
substantial operating expense and capital expenses naturally.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Whether
that level of organization trust could be arrived at and those savings realized
is &#151; would take some time. But I think that&#146;s very real as a potential to shoot
for without prejudicing either company&#146;s competitive posture relative to the
other. They do it in some degree in the back hall, you know bringing distance
signal to any and collaborate on that. And you know, as you know, we look
pretty hard together at terrestrial broadband. And look pretty hard together at
&#151;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Dr.&nbsp;John Malone <i>&#160;</i>-<i> Liberty Media Corporation - Chairman</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Indosat as a potential. So, I think the
opportunity is there for cooperatively exploring jointly developing channels or
a broad range, a broad agenda of value creating or cost reducing efforts. But I
think a straight up merger, I think Chase would say, been there, done that,
didn&#146;t like it. And don&#146;t want to do it again.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unidentified Audience Member</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;I&#146;m not saying now. I&#146;m just saying that
there, I mean that option seems to &#151; the value of that goes up over time. It
seems the telco part of it gets bigger. And my question is that doesn&#146;t factor
into your calculus, when you think what to do about with your stake?</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Dr.&nbsp;John Malone <i>&#160;</i>-<i> Liberty Media Corporation - Chairman</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Yes, I mean it really &#151; we&#146;ve always felt that
the probability of putting those two companies together was a function of the
success of the telcos in entering the video business. Because if you had a
robust telco-based video distributor competing with the two satellites and the
cable, you could make the case that there was adequate competition. But at the
moment, I don&#146;t regard the numbers you saw earlier of telco video success as
being a demonstration of success or robustness. So I think that&#146;s very
speculative how that will evolve over time.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Chase Carey <i>&#160;</i>-<i> DirecTV Group Inc. - President and CEO</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;So that&#146;s why I sometimes describe it as [two
soft-puts] for the market. And they&#146;re somewhat countervailing to the degree
that there&#146;s enormous success among cable or potentially at a satellite player
and the telcos have less success. They probably are more desirous of a
satellite asset to complete their video portfolio, particularly on a national
basis but the national wireless don&#146;t do that.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">On
the opposite end, they agree, so that&#146;s a point you can give to them, higher
the business. The opposite is there&#146;s a greater enormously successful &#151; suggest
perhaps less success on the other satellite guy. More credibility, that you can
imagine some combination of the two. That&#146;s why I describe them sometimes as
two soft-puts.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Another
question. Over here, no. In the middle, how about right there. [Dan?]</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unidentified Audience Member</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Thanks. You talk about the trade offs, both
operationally from a tax point of view of having the Starz assets split between
[L media and L Capa] - particularly after the hard spin?</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Dr.&nbsp;John Malone <i>&#160;</i>-<i> Liberty Media Corporation - Chairman</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Well, you said the magic word, tax. And that&#146;s
really the reason they&#146;re structured as they are at this time. The tax
considerations were more powerful in that decision than operational
efficiencies in the short run.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">19</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

</div>
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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Chase Carey <i>&#160;</i>-<i> DirecTV Group Inc. - President and CEO</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;So I think it&#146;s some amount of overhead for
our accounting departments. Probably some amount of mental overhead and
descriptive overhead for Bob Clasen and his team. But I don&#146;t think at the end
of the day, it&#146;s an unmanageable situation. Quite possibly some day, they&#146;ll be
reunited. We&#146;ll see. Yes, [Andy?]</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unidentified Audience Member</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Thanks, I guess once the hard spin of the
Entertainment is done, next order of business is combining DTV and Liberty,
delivering entertainment together in some way shape or form. I was wondering if
you can talk to us about what some of the hurdles here are other than obviously
price?</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
maybe Chase can talk to us a little bit about what the independent members of
the DTV Boards view as stumbling blocks, particularly if DTV is the acquirer?
And how does the Board feel about super voting shares, going back for the B
shares?</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Greg Maffei <i>&#160;</i>-<i> Liberty Media Corporation - President and CEO</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;So &#151; if I could just say, I first want to say
I think there are benefits imaginable to every side in putting Liberty
Entertainment and DirecTV together. For one thing you won&#146;t have to come to
this event to talk about why they&#146;re not together again. But it&#146;s also not the
case that if they don&#146;t get together that it&#146;s a long-term detriment or it&#146;s a
problem.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And I
think we can try to be realistic about the fact that it creates instant
opportunities and benefits to Liberty Entertainment shareholders just with the
split-off. It doesn&#146;t necessarily suggest that you have to or will get done
some combination with DirecTV.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I
think the three issues that we&#146;ve talked about in the past as being, needing to
be worked through is value. We believe that the sum of the parts of Liberty
Entertainment is worth more than the current market price and it&#146;s likely that
even post the spin, if the discount narrows, it will still be worth more on a
sum-of-the-parts basis than the market indicates.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">That
probably puts some amount of tension or issues for the DirecTV independents in
figuring some combination, are they paying market or sum of the parts, tension.
Not necessarily irresolvable tension but something that needs to be worked
through.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Second
issue is probably governance, if you imagine Board representation from both
sides, how many and who, on each side. And the third is probably votes. We have
a capital structure which is different than DirecTV&#146;s and whether it&#146;s DirecTV
putting together buying LMDIA or LMDIA buying DirecTV it&#146;s effectively the same
thing, it&#146;s just a technique in how you get there. You have to decide are the B
shares at Liberty Capital recognized and to what degree.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
then I&#146;ll let John comment on his concerns or what is important to him as the
holder of the vast majority of those B shares, but I think those are framed as
the corporate issues between the two companies.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Dr.&nbsp;John Malone <i>&#160;</i>-<i> Liberty Media Corporation - Chairman</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;No, I would say the decision the Board made to
pursue the spin-off of the entertainment unit was made not focused on the role
out for a combination with DirecTV, that becomes an option, one of many, that
that spin-off enables. But there are quite a list of other structural
alternatives which having it as an asset-backed entity creates.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And
so whether it ultimately &#151; the gap closes and a deal could be made, or not,
really wasn&#146;t paramount in the mind of our Board when we decided to pursue
this. It has more to do with a list of optional outcomes which is greatly
expanded by having it as a separate and not attractive stock entity.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I
understand the issues around control, I understand the issues around sum of the
parts. I understand the issues about controlled premiums, these are all
difficult in the current structure. And it will continue to be difficult in the
spin-off structure. And I&#146;m not sure that in the short run those could be
addressed. In fact, I would be quite surprised if the spin-off alone solves
those issues.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">20</font></b></p>

<div align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

</div>
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<div>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So
just because we&#146;re spinning this unit to our shareholders don&#146;t expect some
quick shotgun marriage between Direct and the entertainment unit. I would be
very surprised if that happened.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Greg Maffei <i>&#160;</i>-<i> Liberty Media Corporation - President and CEO</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Chase, do you want to add anything?</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Chase Carey <i>&#160;</i>-<i> DirecTV Group Inc. - President and CEO</i></font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">&#160;Yes, I mean I probably don&#146;t have a lot &#151; but
I think the issues are, well [Greg] lumped the second two together, value and
governance. And &#151; because there are issues there. I guess you look at sort of
what are the rational benefits in doing this? And is it probably a more
rational structure that the public company ends up being all of one and a large
majority of the other, probably not optimum, but realistically is it affecting
anything we&#146;re doing today?</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Can
we do everything we&#146;re doing? Yes, so it&#146;s not like there&#146;s a compelling reason
that drives you to say, oh, I&#146;ve got to make some significant compromise to get
there because we&#146;re okay, we can do what we do. There are probably issues
longer term, not today, does it provide essentially a better structure for
things that you don&#146;t &#151; you don&#146;t know what&#146;s coming down the road but again,
they&#146;re far enough down the road and they&#146;re not here.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So, I
think part of the problem of wrestling with these issues is we&#146;re fine doing
what we&#146;re doing the way it is. And therefore you try to be constructive, the
discussions are constructive but there&#146;s not sort of a compelling reason or
benefit that would say you&#146;re going to do on the DirecTV side, on the
independent Direct side anything more than what you think makes sense for
DirecTV. And again, we&#146;re fine. I think our results kind of prove it, we&#146;re
fine doing what we do.</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="color:#003399;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:normal;">21</font></b></p>

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