Discovery Communications to Close Retail Stores

SILVER SPRING, May 18: In
an effort to focus on e-commerce and licensing partnerships, Discovery
Communications has announced that it will shutter all of its 103 mall-based and
stand-alone Discovery Channel Stores by the end of the third quarter of this
year, resulting in about 1,000 layoffs.

Approximately 1,000
full-time and part-time employees, or 25 percent of Discovery Communications'
global workforce, will be affected. The move is part of the company’s new
strategy to expand the presence of its branded consumer products in the retail
marketplace through the continued formation of partnerships with large
retailers and e-commerce platforms. As part of this new commerce strategy, the
company plans to focus on cost-effective initiatives with large retailers, such
as Animal Planet's relationship with Toys "R" Us. In terms of other
licensing and retail partnerships, Discovery Communications will continue its
licensing partnership with transportation retail specialist Hudson Group, which
operates Discovery Channel Airport Stores in top airports across the United
States and Canada. Discovery will also develop long-term programs with key
manufacturers to translate Discovery's content in a wide array of merchandising
opportunities.

The company also plans to
focus on e-commerce platforms such as its own online retail store,
DiscoveryStore.com, which currently has more than 12 million unique visitors
annually, in addition to reaching consumers through partnerships with
Amazon.com and eBay. The company's e-commerce operations posted record growth
and sales for 2006 and are up 144 percent year-to-date over last year.

"By eliminating our
owned and operated brick-and-mortar storefronts, which are cost-intensive and
complicated businesses, Discovery can focus its efforts on high-growth
e-commerce and licensing operations," said David Zaslav, the president and
CEO of Discovery Communications. "While retail is historically not the
core competency of global media companies, there is strong consumer demand for
Discovery's branded product lines. The company's e-commerce operations posted
record growth and sales for 2006, and to realize the full value of our quality
content, Discovery must also sell through large retailers who have more stores
and provide more exposure to a greater number of consumers."

Discovery Communications
will retain Gordon Brothers Group, an advisory, restructuring and investment
firm specializing in the retail, consumer products and real estate sectors, to
facilitate the liquidation.