On Sept. 4, 2008, Standard&Poor's Ratings Services placed its ratings on Liberty Media Corp., including the 'BB+' corporate credit rating, on CreditWatch with negative implications. The CreditWatch placement is based on the board of directors' authorization to proceed with a plan to distribute the businesses and assets attributed to Liberty Entertainment to existing Liberty Entertainment tracking stock holders. If the transaction proceeds as planned, the split-off would remove significant asset value from Liberty Media, while leaving most of Liberty Media's consolidated debt in place, significantly raising financial risk. We expect the split-off company, Liberty Entertainment Inc., to comprise about 50% of The DIRECTV Group Inc.; 100% of Starz Entertainment, FUN Technologies, and Liberty Sports Holdings LLC; 50% of
