Q2 Results Stable at CBS Corp.

NEW YORK, July 31: CBS
Corporation has released its second-quarter results, with revenues and profit
both up just 1 percent to $3.4 billion and $408 million, respectively, and
announced a plan to sell off a slate of radio stations.

"The media business
is changing and CBS Corporation is changing along with it, to enable us to
expand the reach of our world-class content to fast-growing areas such as the
interactive marketplace," said Sumner Redstone, the executive chairman of
CBS Corporation. "I am very confident that Leslie and his team are
effectively operating our company to prevail in the current market environment,
while positioning CBS to thrive over the long term."

"We've taken key
steps to position our asset portfolio for superior long-term growth,"
added Leslie Moonves, the president and CEO of CBS Corporation. "During
the quarter, we completed our acquisition of CNET Networks, which we believe
will add at least two percentage points to our revenue and profit growth rates
going forward, in addition to being accretive to earnings and free cash flow in
2008. We also closed on our acquisition of IOA, the largest outdoor business in
the vibrant South American market. Both of these growing businesses exemplify
our strategy to increase our presence in the areas of highest potential. At the
same time, we have taken this opportunity to change our portfolio by initiating
a plan to divest 50 mid-size market radio stations. By selling selected
stations in these markets we can focus on the larger market stations, many of
which are showing growth."

Moonves continued:
"In a more difficult economic environment, with our local businesses
affected by an advertising slowdown, we have taken aggressive cost reduction
actions to manage expenses. Since the beginning of the year, well before the
current softness in the marketplace, we have been working to rationalize the
cost structure in our Television, Radio and Outdoor businesses. When the
marketplace comes back, we will be well prepared to capitalize on that upturn."

The move to offload a
selection of radio stations comes as CBS Corp. revealed that revenues at its
radio division were down 10 percent in the quarter to $416.4 million, while
operating income fell 16 percent to $150.7 million. In the television segment, meanwhile,
as revenues gained 2 percent to $2.2 billion, profit was down 12 percent to
$446.8 million. Within the TV segment, license fees rose 35 percent, thanks to
the new international self-distribution arrangement for the CSI franchise and higher international syndication
sales. Affiliate revenues increased 5 percent due to rate increases and
subscriber growth at Showtime Networks and CBS College Sports Network. However,
TV ad revenues dropped 6 percent.

Outdoor revenues gained 8
percent to $598.1 million, but publishing revenues fall 7 percent to $186
million.

—By Mansha Daswani