Discovery to Redeem 25-Percent Stake Held by Cox

SILVER SPRING, March 29: Discovery Communications has signed
a non-binding letter of intent to redeem Cox Communications’ 25-percent stake
in the company in a $1.275 billion deal that sees Discovery giving up its
ownership of Travel Channel.

In the proposed transaction, Discovery will transfer to Cox
a wholly owned subsidiary that includes all of the assets and businesses of
Travel Channel, Travelchannel.com and Antenna Audio, as well as $1.275 billion
in cash.

“This proposed transaction will simplify Discovery's
ownership structure, further streamline our operations and give the company
more strategic flexibility,” says David Zaslav, the president and CEO of
Discovery Communications. “With the structural changes we are putting in place,
Discovery is creating a more efficient decision-making process and building a
strong, aggressive organization poised for continued growth.”

Upon completion of the transaction, which is expected to
close by mid-May, two-thirds of the ownership interest in Discovery
Communications will be owned by Discovery Holding Company and the remaining
one-third will be held by Advance/Newhouse Communications.