Liberty Global Inks Deal on Japanese Operations

NEW YORK/LONDON/TOKYO, May 22: Liberty Global has announced
a series of transactions with its Japanese partner, Sumitomo Corporation, that
will see the cable MSO Jupiter Telecommunications (J:COM) merging with the
thematic channel operator Jupiter TV.

Liberty Global and Sumitomo each own half of Jupiter TV,
which owns 70 percent of Jupiter Shop Channel and varying stakes in 19 thematic
programming channels in the Japanese market.

Jupiter TV will be restructured into two companies, one of
which will own the Shop Channel stake. Liberty Global will exchange its
interest in Shop Channel for ¥105 billion ($867 million) in Sumitomo shares.
This transaction is expected to close in the third quarter of 2007.

The other part of the company, which operates the thematic
channels—including Movie Plus, Golf Network, LaLa TV and J Sports
Broadcasting—will then merge into J:COM, with Liberty Global and Sumitomo
collectively receiving approximately ¥52.5 billion ($433 million at current
exchange rates) in J:COM shares. Liberty Global will receive J:COM stock valued
at approximately $217 million, increasing its consolidated ownership position
in J:COM from 36.5 percent to 37.5 percent. This transaction is expected to
close in the third quarter of 2007.

Mike Fries, the president and CEO of Liberty Global, stated,
“The transfer of 19 leading thematic programming channels to J:COM strengthens
its strategic position in the Japanese pay TV market and increases Liberty
Global’s consolidated ownership in Japan’s leading broadband communications
provider.”

In related news, Liberty said it had a commitment for a loan
of at least $700 million secured against its interests in Jupiter
Telecommunications.