News Corp. Profit Up 6 Percent

NEW YORK, May 9: With third quarter revenues up 21 percent
to $7.5 billion, News Corporation has posted an improved profit of $871
million, a 6-percent gain on the same period last year.

Commenting on the results, chairman and CEO Rupert Murdoch
said: "We continue to be pleased with the broad-based momentum we are
achieving across our various operating segments. While filmed entertainment's
record quarter was the biggest driver of our 23 percent operating income and 21
percent revenue growth, it was far from our only catalyst. Sustained subscriber
momentum at SKY Italia, ratings strength at our broadcast network and growth
across our myriad of cable assets also resulted in very solid returns.
Additionally, the popularity of our Internet assets is translating into
improved results, and we have just begun to scrape the surface of their
potential. Along those lines we took several additional steps during the
quarter to further capitalize on the evolving digital world. We announced,
along with NBC Universal, the launch of the largest Internet video distribution
network ever assembled. And separately, we finalized a joint venture combining
Jamba and Fox Mobile Entertainment assets to form a leading global provider of
mobile entertainment. Both of these transactions ideally complement our
existing asset base and further solidify our position as a leader in the
evolving media landscape."

The Filmed Entertainment segment reported record third
quarter operating income of $410 million, an 82 percent growth thanks to
increased contributions from theatrical releases as well as higher
contributions from film and television home entertainment releases. Key
theatrical titles included Night at the Museum, while home entertainment releases were led by Borat:
Cultural Learnings of America for Make Benefit Glorious Nation of Kazakhstan, The Devil Wears Prada, Little Miss Sunshine, Ice Age: The Meltdown and Eragon. Twentieth Century Fox Television increased contributions versus the
third quarter a year ago, led by DVD revenues from Prison Break and 24.

The Television segment reported third quarter operating
income of $273 million, a decline of $13 million versus the same period a year
ago as increased contributions from the FOX Broadcasting Company and Fox
Television Stations were more than offset by lower contributions from STAR and
by losses from the first year of MyNetworkTV. At FOX, operating income
increased 49 percent versus a year ago. Fox Television Stations' operating
income increased 4 percent. STAR's operating income decreased 11 percent.

Cable Network Programming reported operating income of $282
million, an increase of 34 percent, with higher contributions from Fox News
Channel, the FX Network, the Regional Sports Networks (RSNs) and the Fox
International Channels.

SKY Italia reported third quarter operating income of $91
million, an increase of 32 percent, with more than 456,000 net subscribers
added over the past 12 months, bringing SKY Italia's subscriber base to 4.17
million at quarter end.