DreamWorks Lifts Viacom Profits

NEW YORK, March 1: Viacom today reported a 271 percent
increase in its fourth-quarter profit to $480.8 million, thanks in part to the
addition of DreamWorks, which Viacom acquired last year.

Revenues for the quarter rose 32 percent to $3.6 billion.
Revenues at the media networks were up 4 percent to $2.08 billion, led by
growth in affiliate revenues, which were up 14 percent to $532 million.
Worldwide advertising revenues rose 6 percent to $1.26 billion, but ancillary
revenues declined 15 percent to $289 million. Filmed entertainment revenues
doubled to $1.57 billion, with the acquisition of DreamWorks and the
distribution activities for DreamWorks Animation and the DreamWorks live-action
library films contributing revenues of $560 million.

For the full year, revenues were up by 19 percent to $11.5
billion, delivering a profit of $1.6 billion, a 27 percent improvement on the
previous year’s results. Media networks revenues climbed 7 percent to $7.24
billion, led by an increase of 11 percent in affiliate revenues to $2.03
billion. Worldwide advertising revenues were up 6 percent to $4.29 billion,
while ancillary revenues grew 2 percent to $916 million. Filmed entertainment
saw its revenues rise 46 percent to $4.38 billion. DreamWorks contributed $1.36
billion to 2006 revenues.

Sumner M. Redstone, the executive chairman of Viacom,
commented: "Viacom delivered solid results for 2006, guided by a new
management team under the leadership of Philippe Dauman, who has moved quickly
to put the company back on a steady path of success. I have great confidence
that we will continue to build on the momentum of the last several months both
in expanding our digital horizons and continuing to grow in traditional
markets."

Dauman, the president and CEO of Viacom, added: "We are
making significant progress financially and operationally to ensure that we
thrive in all distribution channels, including the evolving digital
marketplace… During the first quarter of this year, we took decisive steps to
deploy our capital in more productive ways, including restructuring our
operations here and abroad. At the same time, we continued to introduce popular
new programming on our linear channels, to expand our digital operations
organically and to reach innovative agreements with new digital partners.
Additionally, we continue to expand on our position as a leading global
provider of digital wireless video, and to innovate with new online sites and
experiences."