Liberty Media to Acquire Largest Stake in DIRECTV

Liberty's stake in News to be exchanged for 38.5% of DIRECTV, Three Regional Sports Networks, and Cash

Liberty Media Corporation ("Liberty") announced today that it has entered into a definitive agreement with News Corporation ("News") to exchange Liberty's 16.3% stake in News for News's 38.5% stake in DIRECTV Group, Inc. ("DIRECTV"), regional sports networks in Denver, Pittsburgh, and Seattle, and cash.

"We are happy to become the largest shareholder in the world's largest satellite television provider. Chase Carey and the DIRECTV team have done a fantastic job, and we look forward to the strategic benefits of them joining the Liberty family," said Liberty President and CEO Greg Maffei who added, "During 2006 we converted many passive investments into strategic operating businesses, but this transaction is the largest and most important. DIRECTV and the regional sports networks represent a critical step in our efforts to transform Liberty Media into a well-positioned, focused operating company."

"We are extremely pleased with the successful, tax-efficient conversion of our News holding. Our investment in DIRECTV will create financial, operating, and strategic flexibility," said Liberty Chairman John Malone. "Liberty's ownership of News has created tremendous value for our shareholders, and we are grateful to Rupert Murdoch and News management."

DIRECTV President and CEO Chase Carey stated, "We are very excited about welcoming Liberty to DIRECTV. They bring a wealth of expertise in media and technology that will be invaluable. I have known both John Malone and Greg Maffei for over 10 years which gives me great confidence this transition will be smooth, and we will move forward without missing a beat. I also want to take advantage of this opportunity to thank Rupert Murdoch and News for their contributions to DIRECTV's success over the last three years."

It is expected that Chase Carey will continue to serve as DIRECTV's President and CEO, and Liberty will appoint directors to fill the board seats currently held by News representatives.

Under the agreement, pursuant to Section 355 of the IRC, Liberty will transfer to News 188,000,000 NWS shares and 324,637,067 NWS.A shares, and News will transfer to Liberty the stock of a subsidiary that holds 470,420,752 shares of DIRECTV common stock, the Fox Sports Rocky Mountain, Northwest and Pittsburgh regional sports networks, and $550 million in cash.

The transaction, which was unanimously approved by the boards of News and Liberty, is expected to close in mid-2007, and is subject to regulatory and News Corp shareholder approvals and the receipt of a private letter ruling from the Internal Revenue Service.

Liberty was represented in the transaction by the investment banking firm of Bear Stearns and the law firm of Baker Botts.

By DIRECTV