News Corporation Reports Record Full Year Operating Income of $5.4 Billion; Growth...

News Corporation Reports Record Full Year Operating Income of $5.4 Billion; Growth of 21% over Fiscal 2007

Full Year Earnings Per Share Increases 68% to $1.81;

Fourth Quarter Operating Income Grows 21% to $1.5 Billion on
Revenue Growth of 17%
NEW YORK--(Business Wire)--
FULL YEAR FINANCIAL HIGHLIGHTS

-- 21% operating income growth driven by record results at the
Direct Broadcast Satellite, Cable Network Programming,
Television and Filmed Entertainment segments.

-- SKY Italia generates operating income of $419 million, an
improvement of $198 million versus a year ago, reflecting net
subscriber additions of 366,000 over the past 12 months as the
subscriber base expands to 4.56 million.

-- Cable Network Programming operating income up 16% despite
losses associated with the launch of the Fox Business Network
and the Big Ten Network. Operating performance improvement was
driven by earnings growth at the Fox News Channel, the
Regional Sports Networks and the Fox International Channels.

-- Television segment operating income increases 17% on strength
of FOX broadcast season and lower programming costs associated
with the writers' strike partially offset by decline in local
TV advertising revenue.

-- Filmed Entertainment delivers seventh consecutive record year
of operating income growth, reaching $1.25 billion on strong
theatrical release slate and continued success of film and
television home entertainment titles.

-- Print businesses aggregate operating income increases 12% on
strength of the Australian newspaper business and inclusion of
Dow Jones & Company.

-- Fox Interactive Media grows revenues 57% and increases
operating profits five-fold on strength of advertising and
search revenue growth at MySpace.

FULL YEAR STRATEGIC HIGHLIGHTS

-- Completed a $10.1 billion stock buyback through the exchange
of the Company's entire interest in The DIRECTV Group, three
Regional Sports Networks and approximately $625 million in
cash for an approximately 16 percent interest in the Company's
common stock.

-- Continued purchasing stock under the Company's stock
repurchase program. Total re-purchases to date of
approximately $4.2 billion.

-- Completed acquisition of Dow Jones & Company, divestiture of
equity interest in Gemstar-TV Guide and the sale of real
estate in the U.K.

-- Following year-end, completed the previously announced sale of
eight television stations for approximately $1.1 billion in
cash.

News Corporation (NYSE: NWS, NWSA; ASX: NWS, NWSLV) today reported
fourth quarter net income of $1.1 billion ($0.43 per share), an
increase of $239 million, or 27%, from the $890 million ($0.28 per
share on a diluted combined basis(1)) reported in the fourth quarter a
year ago. The year-on-year growth in the quarter primarily reflects
increased consolidated operating income and gains from the sale of the
Company's interests in Fox Sports Bay Area and Gemstar-TV Guide
International, as well as a gain from the unrealized change in fair
value of certain outstanding exchangeable debt securities. Partially
offsetting these gains was a decrease in earnings from affiliates,
primarily from the absence of DIRECTV earnings and a further writedown
of BSkyB's ITV investment.

For the full year, net income was $5.4 billion ($1.81 per share),
an increase of $2 billion from the $3.4 billion ($1.08 per share on a
diluted combined basis(1)) reported in fiscal 2007. This represents a
68% increase in earnings per share. The full year results primarily
reflect increased consolidated operating income, lower equity earnings
of affiliates and an increase in Other income, which mainly includes a
$1.7 billion tax-free gain on the asset and stock exchange with
Liberty Media Corporation, as well as gains from the sales of Fox
Sports Bay Area and Gemstar-TV Guide International.

Fourth quarter consolidated operating income of $1.5 billion
increased 21% over the $1.2 billion reported a year ago on revenues of
$8.6 billion, up 17% from the $7.4 billion reported in the fourth
quarter of fiscal 2007. The year-on-year operating income growth for
the quarter was primarily driven by double-digit percentage increases
at all operating segments with the exception of the Television
segment. The Other segment includes a $126 million gain in the quarter
from the completion of a planned land sale in the U.K.

Record full year operating income of $5.4 billion increased 21%
over the $4.45 billion reported a year ago on revenues of $33 billion,
up 15% from the $28.7 billion reported in fiscal 2007. The full year
operating income growth was primarily led by record contributions from
the Filmed Entertainment, Television, Cable Network Programming and
Direct Broadcast Satellite segments.

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

"We are extremely pleased with the continued growth we achieved
during fiscal 2008 -- our sixth consecutive year of record profits.
All of our business segments generated year over year gains, with
record profits reported at our satellite broadcasting, cable
programming, film and television businesses. Although we clearly face
more challenging macro-economic conditions in fiscal '09, we're well
positioned to deliver continued, if somewhat less robust growth. Our
balance sheet is strong, we have solid operating momentum in many of
our key businesses, and most importantly, our assets are diversified,
both geographically and along business lines, enabling us to better
respond to the economic challenges we may face this year."

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Consolidated Operating Income 3 Months Ended 12 Months Ended
June 30, June 30,
2008 2007 2008 2007
------- -------- ------- --------
US $ Millions

Filmed Entertainment $ 220 $ 106 $ 1,246 $ 1,225
Television 279 385 1,126 962
Cable Network Programming 313 284 1,269 1,090
Direct Broadcast Satellite
Television 212 155 419 221
Magazines and Inserts 95 81 352 335
Newspapers and Information Services 262 203 767 653
Book Publishing 28 21 160 159
Other 69 (17) 42 (193)
------- -------- ------- --------
Total Consolidated Operating Income $ 1,478 $ 1,218 $ 5,381 $ 4,452
------- -------- ------- --------
*T

REVIEW OF OPERATING RESULTS

FILMED ENTERTAINMENT

The Filmed Entertainment segment reported fourth quarter operating
income of $220 million versus $106 million in the same period a year
ago. Fourth quarter film results were driven by the home entertainment
contributions of the successful theatrical releases Alvin and the
Chipmunks, Juno, AVP: Requiem and 27 Dresses. The strong performance
of the home entertainment releases was partially offset by costs
associated with worldwide theatrical launches of The Happening and
What Happens in Vegas.

For the full year, operating profit increased to $1.25 billion,
representing the seventh consecutive record year. The current year
included the worldwide theatrical and home entertainment performances
of The Simpsons Movie, Live Free or Die Hard, Alvin and the Chipmunks,
Fantastic Four: Rise of the Silver Surfer and Juno. Also contributing
to this year's success were the home entertainment performances and
pay-tv contributions from Night at the Museum, Borat and Eragon.

Twentieth Century Fox Television fourth quarter and full year
operating results increased as compared to a year ago, primarily
reflecting higher contributions from home entertainment and domestic
syndication, particularly from Family Guy, as well as reduced
development and pilot spending due to the writers' strike.

TELEVISION

The Television segment reported fourth quarter operating income of
$279 million, a decrease of $106 million versus the same period a year
ago. The 28% decline reflects lower contributions from the Fox
Television Stations, STAR and FOX Broadcasting Company. For the full
year, segment operating income increased 17% due to improved FOX
Broadcasting Company results and reduced losses from MyNetworkTV
partially offset by lower station and STAR contributions.

At the Fox Television Stations (FTS) fourth quarter operating
income decreased 26% from the same period a year ago on market related
revenue declines at the FOX-affiliated stations. For the full year,
operating income decreased 11% versus fiscal 2007 as lower advertising
revenues were partially offset by improved operating results from the
MyNetworkTV affiliated stations.

FOX Broadcasting Company (FBC), fourth quarter operating results
were lower than a year ago as primetime advertising revenue declined
due to lower ratings. The revenue decline was partially offset by
lower programming costs resulting from the acquisition of fewer pilots
due to the writers' strike.

Record full year operating profits at FBC were driven by lower
prime-time programming costs as a result of the writers' strike. Also
contributing to the record results were increased profits from sports
programming driven by higher advertising revenues from higher pricing
and post-season ratings for the National Football League broadcasts,
as well as lower programming costs due to the reduced coverage of
Major League Baseball's post-season. FOX's broadcast of the Super Bowl
and the continued success of American Idol, contributed to FBC
finishing as the top-rated network among Adults 18-49 this past
broadcast season. Additionally, FOX ranked #1 among total viewers for
the first time in its history.

STAR's fourth quarter and full year operating income decreased
versus the comparable periods a year ago, as growth in advertising
revenues was more than offset by higher programming costs.

CABLE NETWORK PROGRAMMING

Cable Network Programming reported fourth quarter operating income
of $313 million, an increase of $29 million over the fourth quarter a
year ago, and record full year operating income of $1.3 billion, an
increase of $179 million over fiscal 2007. The 10% fourth quarter and
the 16% full year growth reflects higher contributions from the Fox
News Channel, the Regional Sports Networks (RSNs) and the Fox
International Channels. Also included in current year results are
first year losses associated with the Fox Business Network and Big Ten
Network launches.

The Fox News Channel (FNC) reported operating income growth of 14%
for the fourth quarter and 35% for the full year, primarily from
increased affiliate rates driving affiliate revenue and advertising
revenue gains resulting from increased pricing. For the full year,
FNC's viewership was 59% higher than its nearest competitor in
primetime and nearly 54% higher on a 24-hour basis.

At our other cable channels operating profit increased 8% from
last year's fourth quarter results and 10% versus fiscal 2007. Higher
contributions at the RSNs for both the fourth quarter and full year
were primarily the result of increased affiliate rates. The RSNs' full
year advertising revenue decreased 3% due to the absence of three RSNs
that were divested as part of the Liberty Media transaction. The
increased contribution from the Fox International Channels was driven
by continued advertising and affiliate growth in Latin America and
Europe, as well as the full year consolidation of the National
Geographic channels. At FX, lower operating income in the fourth
quarter and full year were the result of higher programming expenses
versus the prior year, which more than offset revenue growth from
increased affiliate rates, higher advertising and additional
subscribers. The increased programming expenses were primarily due to
higher costs of acquired movies and original and syndicated
programming.

DIRECT BROADCAST SATELLITE TELEVISION

SKY Italia reported fourth quarter operating income of $212
million, an increase of $57 million, or 37%, compared to a year ago,
and full year operating income of $419 million, growth of $198 million
over the $221 million reported in fiscal 2007. These improvements
reflect subscriber additions, with more than 366,000 net subscribers
added over the past 12 months, bringing SKY Italia's subscriber base
to 4.56 million at quarter end, as well as a favorable impact from
foreign currency fluctuations. The subscriber revenue growth was
partially offset by increased programming spending primarily
associated with the larger subscriber base and the launch of 13 new
channels.

MAGAZINES AND INSERTS

The Magazines and Inserts segment reported fourth quarter
operating income of $95 million, an increase of $14 million versus the
$81 million reported in the quarter a year ago, and full year
operating income of $352 million, an increase of $17 million over the
$335 million reported in fiscal 2007. Earnings growth of 17% in the
fourth quarter and 5% for the full year was primarily the result of
increased demand for in-store marketing products.

NEWSPAPERS AND INFORMATION SERVICES

The Newspapers and Information Services segment reported fourth
quarter operating income of $262 million, an increase of $59 million
compared with the same period a year ago, and full year operating
income of $767 million, a $114 million increase versus fiscal 2007.
The 17% full year earnings growth primarily reflects advertising
revenue growth in Australia and the inclusion of the results of Dow
Jones & Company, which was acquired in December 2007. Dow Jones
contributed operating income of $24 million in the fourth quarter and
$45 million for the full year, net of $24 million and $47 million in
acquisition related amortization, respectively.

The U.K. newspaper group reported slightly higher fourth quarter
operating income contributions in local currency terms as lower
advertising revenues were more than offset by reduced depreciation
expense on printing presses that were decommissioned during the prior
quarter as the Company transitioned to new color printing operations.
For the full year, operating income contributions were below a year
ago primarily due to higher depreciation expense related to the
printing presses that have now been replaced.

The Australian newspaper group reported fourth quarter and full
year operating income growth in local currency terms as advertising
and circulation revenue growth was partially offset by increased
production costs. Advertising revenue gains were primarily driven by
the strength of retail and real estate advertising.

BOOK PUBLISHING

HarperCollins reported fourth quarter operating income of $28
million and full year operating income of $160 million, an improvement
of $7 million and $1 million as compared to the prior year periods,
respectively. Current quarter results were led by strong sales of
Bright Shiny Morning by James Frey, Stolen Innocence by Elissa Wall
and an updated edition of YOU:The Owner's Manual by Michael F. Roizen
and Mehmet Oz. During the fourth quarter, HarperCollins had 62 books
on The New York Times bestseller list, including Read All About It! by
Laura and Jenna Bush which reached number one. For the full year,
HarperCollins had 165 books on The New York Times bestseller list,
including 14 titles reaching the number one spot.

OTHER

The Other segment reported fourth quarter operating income of $69
million, an improvement of $86 million over year ago results. The
current quarter results include a $126 million gain on the sale of
land in the United Kingdom. Operating income contributions from Fox
Interactive Media decreased for the quarter as strong search and
advertising revenue growth was more than offset by increased
development and technical costs related to the addition of new
features and costs associated with the startup of new ventures.

Full year operating income of $42 million improved $235 million
over last year's result. This improvement was largely due to the
inclusion of a gain from the U.K. land sale as well as higher
contributions from Fox Interactive Media. The higher contribution from
Fox Interactive Media was driven by a 57% revenue increase due to
larger search and advertising revenues which were partially offset by
increased costs associated with domestic and international expansion,
new features and costs associated with the startup of new ventures.

OTHER ITEMS

A dividend of $0.06 per Class A and Class B share has been
declared and is payable on October 15, 2008. The record date for
determining dividend entitlements is September 10, 2008.

In June 2008, the Company and two newly incorporated companies
formed by funds advised by Permira Advisers LLP (Permira Newcos)
announced that they proposed a transaction to an independent committee
of the board of directors of NDS Group plc, a majority-owned public
subsidiary of News Corporation, which would result in NDS ceasing to
be a public company, and the Permira Newcos and the Company owning 51%
and 49% of NDS' outstanding equity, respectively. Today, NDS announced
that the independent committee reached an agreement in principle with
the Company and the Permira Newcos on a price at which they would
acquire all the issued and outstanding NDS Series A ordinary shares,
including those represented by American Depositary Shares traded on
NASDAQ, for per share consideration of $63 in cash. This price is an
increase from the Company and the Permira Newcos' initial offer of $60
per share. As part of this transaction, approximately 68% of the NDS
Series B ordinary shares held by News Corporation would be cancelled
in exchange for $63 per share in a mix of approximately $1.56 billion
in cash and a $242 million vendor note. The transaction is subject to
negotiation and execution of final legal documentation, and is also
conditioned upon approval by the holders of NDS' Series A ordinary
shares, court approval, the receipt of certain regulatory approvals
and other customary closing conditions.

REVIEW OF EQUITY EARNINGS OF AFFILIATES' RESULTS

Fourth quarter net earnings from affiliates were $22 million
versus $272 million in the same period a year ago. For the full year,
net earnings from affiliates were $327 million compared with earnings
of $1,019 million in fiscal 2007. The decrease in earnings from
affiliates in the fourth quarter and for the full year is due to the
absence of earnings from The DIRECTV Group as a result of the exchange
transaction completed with Liberty Media Corporation in February 2008.
Additionally, the full year and fourth quarter results include lower
contributions from BSkyB due to the writedown of its ITV investment.

The Company's share of equity earnings of affiliates is as
follows:

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*T
3 Months Ended 12 Months Ended
June 30, June 30,
% Owned 2008 2007 2008 2007
-------- -------- ------- -------- -------
US $ Millions
BSkyB 39% (a) $ (9) $ 63 $ (145) $ 336
The DIRECTV Group 0% / 41% (a) (b) - 153 297 489
Other affiliates Various (c) 31 56 175 194
-------- ------- -------- -------
Total equity
earnings of
affiliates $ 22 $ 272 $ 327 $ 1,019
======== ======= ======== =======
*T

(a) Please refer to each respective companies' earnings releases
and SEC filings for detailed information.

(b) As a result of the transaction with Liberty Media that was
completed on February 28, 2008, News Corporation no longer has an
equity ownership interest in The DIRECTV Group.

(c) Primarily comprised of Gemstar-TV Guide International (through
May 2, 2008), Fox Cable Networks affiliates, Sky Network Television
Limited and STAR equity affiliates.

Foreign Exchange Rates

Average foreign exchange rates used in the year-to-date results
are as follows:

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*T
12 Months Ended
June 30,
2008 2007
---------- ------------

Australian Dollar/U.S. Dollar 0.89 0.79
U.K. Pounds Sterling/U.S. Dollar 2.00 1.93
Euro/U.S. Dollar 1.47 1.30
*T

To receive a copy of this press release through the Internet,
access News Corp.'s corporate Web site located at
http://www.newscorp.com

Audio from News Corp.'s conference call with analysts on the
fourth quarter and fiscal year results can be heard live on the
Internet at 5:30 PM Eastern Daylight Time today. To listen to the
call, visit http://www.newscorp.com

Cautionary Statement Concerning Forward-Looking Statements

This document contains certain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are based on management's views and assumptions
regarding future events and business performance as of the time the
statements are made. Actual results may differ materially from these
expectations due to changes in global economic, business, competitive
market and regulatory factors. More detailed information about these
and other factors that could affect future results is contained in our
filings with the Securities and Exchange Commission. The
"forward-looking statements" included in this document are made only
as of the date of this document and we do not have any obligation to
publicly update any "forward-looking statements" to reflect subsequent
events or circumstances, except as required by law.

(1) See supplemental financial data on page 14 for detail on
earnings per share

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*T

CONSOLIDATED STATEMENTS OF
OPERATIONS 3 Months Ended 12 Months Ended
June 30, June 30,
2008 2007 2008 2007
-------- -------- --------- ---------
US $ Millions (except per share
amounts)

Revenues $ 8,589 $ 7,367 $ 32,996 $ 28,655
Expenses:
Operating 5,247 4,645 20,531 18,645
Selling, general and
administrative 1,684 1,255 5,984 4,655
Depreciation and amortization 306 242 1,207 879
Other operating income (126) 7 (107) 24
------- ------- -------- --------
Operating income 1,478 1,218 5,381 4,452
Other income (expense):
Equity earnings of
affiliates 22 272 327 1,019
Interest expense, net (224) (211) (926) (843)
Interest income 31 93 246 319
Other, net 433 (134) 2,293 359
------- ------- -------- --------
Income before income tax expense
and minority interest in
subsidiaries 1,740 1,238 7,321 5,306
Income tax expense (569) (328) (1,803) (1,814)
Minority interest in
subsidiaries, net of tax (42) (20) (131) (66)
------- ------- -------- --------
Net income $ 1,129 $ 890 $ 5,387 $ 3,426
======= ======= ======== ========

Per share amounts:
Basic earnings $ 0.43 $ 1.82
Class A $ 0.30 $ 1.14
Class B $ 0.25 $ 0.95

Diluted earnings $ 0.43 $ 1.81
Class A $ 0.30 $ 1.14
Class B $ 0.25 $ 0.95

Weighted average shares in
millions (diluted) 2,631 3,164 2,971 3,178
*T

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CONSOLIDATED BALANCE SHEETS June 30, June 30,
2008 2007
--------- ---------
Assets US $ Millions
Current assets:
Cash and cash equivalents $ 4,662 $ 7,654
Receivables, net 6,985 5,842
Inventories, net 2,255 2,039
Other 460 371
--------- ---------
Total current assets 14,362 15,906
--------- ---------

Non-current assets:
Receivables 464 437
Investments 3,284 11,413
Inventories, net 3,064 2,626
Property, plant and equipment, net 7,021 5,617
Intangible assets, net 14,460 11,703
Goodwill 18,620 13,819
Other non-current assets 1,033 822
--------- ---------
Total non-current assets 47,946 46,437
--------- ---------
Total assets $ 62,308 $ 62,343
========= =========

Liabilities and Stockholders' Equity
Current liabilities:
Borrowings $ 281 $ 355
Accounts payable, accrued expenses and other
current liabilities 5,695 4,545
Participations, residuals and royalties payable 1,288 1,185
Program rights payable 1,084 940
Deferred revenue 834 469
--------- ---------
Total current liabilities 9,182 7,494
--------- ---------

Non-current liabilities:
Borrowings 13,230 12,147
Other liabilities 4,823 3,319
Deferred income taxes 5,456 5,899
Minority interest in subsidiaries 994 562
Commitments and contingencies
Stockholders' Equity:
Class A common stock, $0.01 par value 18 21
Class B common stock, $0.01 par value 8 10
Additional paid-in capital 17,214 27,333
Retained earnings and accumulated other
comprehensive income 11,383 5,558
--------- ---------
Total stockholders' equity 28,623 32,922
--------- ---------
Total liabilities and stockholders' equity $ 62,308 $ 62,343
========= =========
*T

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CONSOLIDATED STATEMENTS OF CASH FLOWS 12 Months Ended
June 30,
2008 2007
-------- --------
US $ Millions
Operating activities:
Net income $ 5,387 $ 3,426
Adjustments to reconcile net income to cash provided
by operating activities:
Depreciation and amortization 1,207 879
Amortization of cable distribution investments 80 77
Equity earnings of affiliates (327) (1,019)
Cash distributions received from affiliates 350 255
Other, net (2,293) (359)
Minority interest in subsidiaries, net of tax 131 66
Change in operating assets and liabilities, net of
acquisitions:
Receivables and other assets (923) (169)
Inventories, net (587) (360)
Accounts payable and other liabilities 900 1,314
-------- --------
Net cash provided by operating activities 3,925 4,110
-------- --------

Investing activities:
Property, plant and equipment, net of acquisitions (1,443) (1,308)
Acquisitions, net of cash acquired (5,567) (1,059)
Investments in equity affiliates (799) (121)
Other investments (125) (328)
Proceeds from sale of investments, other non-
current assets and business disposals 1,580 740
-------- --------
Net cash used in investing activities (6,354) (2,076)
-------- --------

Financing activities:
Borrowings 1,292 1,196
Repayment of borrowings (728) (198)
Issuance of shares 90 392
Repurchase of shares (939) (1,294)
Dividends paid (373) (369)
Other, net 22 -
-------- --------
Net cash used in financing activities (636) (273)
-------- --------

Net (decrease) increase in cash and cash equivalents (3,065) 1,761
Cash and cash equivalents, beginning of year 7,654 5,783
Exchange movement on opening cash balance 73 110
-------- --------
Cash and cash equivalents, end of year $ 4,662 $ 7,654
======== ========
*T

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SEGMENT INFORMATION 3 Months Ended 12 Months Ended
June 30, June 30,
2008 2007 2008 2007
------- -------- ------- --------
US $ Millions

Revenues

Filmed Entertainment $ 1,523 $ 1,454 $ 6,699 $ 6,734
Television 1,333 1,434 5,807 5,705
Cable Network Programming 1,385 1,095 4,993 3,902
Direct Broadcast Satellite
Television 1,054 865 3,749 3,076
Magazines and Inserts 288 275 1,124 1,119
Newspapers and Information Services 1,844 1,196 6,248 4,486
Book Publishing 350 295 1,388 1,347
Other 812 753 2,988 2,286
------- -------- ------- --------
$ 8,589 $ 7,367 $32,996 $28,655
======= ======== ======= ========

Operating Income

Filmed Entertainment $ 220 $ 106 $ 1,246 $ 1,225
Television 279 385 1,126 962
Cable Network Programming 313 284 1,269 1,090
Direct Broadcast Satellite
Television 212 155 419 221
Magazines and Inserts 95 81 352 335
Newspapers and Information Services 262 203 767 653
Book Publishing 28 21 160 159
Other 69 (17) 42 (193)
------- -------- ------- --------
$ 1,478 $ 1,218 $ 5,381 $ 4,452
======= ======== ======= ========
*T

NOTE 1 - SUPPLEMENTAL EARNINGS PER SHARE DATA

Earnings per share is presented on a combined basis for fiscal
2007 as the Company was required to present the two-class method prior
to fiscal 2008. In fiscal 2007, under U.S. GAAP, earnings per share
was computed individually for the Class A and Class B shares. Class A
non-voting shares carried rights to a greater dividend than Class B
voting shares through fiscal 2007. As such, net income available to
the Company's common stockholders was allocated between our two
classes of common stock for fiscal 2007. The allocation between
classes was based upon the two-class method. Earnings per share by
class and by total weighted average shares outstanding (Class A and
Class B combined) is as follows:

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*T
3 Months Ended 12 Months Ended
June 30, June 30,
2007 2007
--------------- ---------------

Basic earnings per share:
Class A $0.30 $1.14
Class B $0.25 $0.95
Total $0.28 $1.09

Diluted earnings per share:
Class A $0.30 $1.14
Class B $0.25 $0.95
Total $0.28 $1.08

Weighted average shares outstanding
(diluted), in millions:
Class A 2,177 2,191
Class B 987 987
--------------- ---------------
Total 3,164 3,178
=============== ===============
*T

NOTE 2 - OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION

Operating income before depreciation and amortization, defined as
operating income plus depreciation and amortization and the
amortization of cable distribution investments, eliminates the
variable effect across all business segments of non-cash depreciation
and amortization. Since operating income before depreciation and
amortization is a non-GAAP measure, it should be considered in
addition to, not as a substitute for, operating income, net income,
cash flow and other measures of financial performance reported in
accordance with GAAP. Operating income before depreciation and
amortization does not reflect cash available to fund requirements, and
the items excluded from operating income before depreciation and
amortization, such as depreciation and amortization, are significant
components in assessing the Company's financial performance.
Management believes that operating income before depreciation and
amortization is an appropriate measure for evaluating the operating
performance of the Company's business segments. Operating income
before depreciation and amortization, which is the information
reported to and used by the Company's chief decision maker for the
purpose of making decisions about the allocation of resources to
segments and assessing their performance, provides management,
investors and equity analysts a measure to analyze operating
performance of each business segment and enterprise value against
historical and competitors' data.

The following table reconciles operating income before
depreciation and amortization to the presentation of operating income.

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*T
3 Months Ended 12 Months Ended
June 30, June 30,
2008 2007 2008 2007
------- ------- ------- -------
US $ Millions

Operating income $ 1,478 $ 1,218 $ 5,381 $ 4,452
Depreciation and amortization 306 242 1,207 879
Amortization of cable distribution
investments 23 21 80 77
------- ------- ------- -------
Operating income before depreciation
and amortization $ 1,807 $ 1,481 $ 6,668 $ 5,408
======= ======= ======= =======
*T

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*T
For the Three Months Ended June 30, 2008
(US $ Millions)
------------------------------------------------------
Operating
Amortization income
of before
Depreciation cable depreciation
Operating and distribution and
income amortization investments amortization
---------- ------------- -------------- --------------

Filmed
Entertainment $ 220 $ 24 $ - $ 244
Television 279 26 - 305
Cable Network
Programming 313 23 23 359
Direct
Broadcast
Satellite
Television 212 65 - 277
Magazines and
Inserts 95 2 - 97
Newspapers and
Information
Services 262 92 - 354
Book Publishing 28 3 - 31
Other 69 71 - 140
---------- ------------- -------------- --------------
Consolidated
Total $ 1,478 $ 306 $ 23 $ 1,807
========== ============= ============== ==============
*T

-0-
*T
For the Three Months Ended June 30, 2007
(US $ Millions)
-------------------------------------------------------
Operating
Amortization income
of before
Operating Depreciation cable depreciation
income and distribution and
(loss) amortization investments amortization
---------- -------------- -------------- --------------

Filmed
Entertainment $ 106 $ 23 $ - $ 129
Television 385 25 - 410
Cable Network
Programming 284 14 21 319
Direct
Broadcast
Satellite
Television 155 51 - 206
Magazines and
Inserts 81 2 - 83
Newspapers and
Information
Services 203 77 - 280
Book
Publishing 21 2 - 23
Other (17) 48 - 31
---------- -------------- -------------- --------------
Consolidated
Total $ 1,218 $ 242 $ 21 $ 1,481
========== ============== ============== ==============
*T

-0-
*T
For the Twelve Months Ended June 30, 2008
(US $ Millions)
-----------------------------------------------------
Operating
Amortization income
of before
Depreciation cable depreciation
Operating and distribution and
income amortization investments amortization
---------- ------------- -------------- -------------

Filmed
Entertainment $ 1,246 $ 88 $ - $ 1,334
Television 1,126 100 - 1,226
Cable Network
Programming 1,269 90 80 1,439
Direct Broadcast
Satellite
Television 419 228 - 647
Magazines and
Inserts 352 8 - 360
Newspapers and
Information
Services 767 433 - 1,200
Book Publishing 160 9 - 169
Other 42 251 - 293
---------- ------------- -------------- -------------
Consolidated
Total $ 5,381 $ 1,207 $ 80 $ 6,668
========== ============= ============== =============
*T

-0-
*T
For the Twelve Months Ended June 30, 2007
(US $ Millions)
-----------------------------------------------------
Operating
income
Amortization (loss)
of before
Operating Depreciation cable depreciation
income and distribution and
(loss) amortization investments amortization
---------- ------------- -------------- -------------

Filmed
Entertainment $ 1,225 $ 85 $ - $ 1,310
Television 962 93 - 1,055
Cable Network
Programming 1,090 56 77 1,223
Direct Broadcast
Satellite
Television 221 191 - 412
Magazines and
Inserts 335 8 - 343
Newspapers and
Information
Services 653 284 - 937
Book Publishing 159 8 - 167
Other (193) 154 - (39)
---------- ------------- -------------- -------------
Consolidated
Total $ 4,452 $ 879 $ 77 $ 5,408
========== ============= ============== =============
*T

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Investor Relations
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or
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