Profits Rise at CBS Corporation

NEW YORK, August 3: CBS
Corporation’s net profit for the second quarter of this year rose from $753.8
million to $781.7 million despite a 1-percent fall in revenues to $3.48
billion.

"I am very pleased
with CBS Corporation's early performance as a stand-alone company," said
Sumner Redstone, the executive chairman of CBS Corporation. "CBS is
evolving to take full advantage of the rapidly changing media landscape. In
addition to our continued focus on operational excellence, we moved quickly to
divest non-core businesses and to develop new revenue streams for our
high-quality content through traditional and new media alike. Equally
important, we are demonstrating our commitment to steadily increasing returns
to shareholders, which, as promised, will be an ongoing and long-term priority
for CBS."

"Once again our core
operations generated healthy free cash flow across the board," added
Leslie Moonves, the president and CEO of CBS Corporation. "This quarter,
we delivered yet another dividend increase and achieved a very attractive price
for the divestiture of our Paramount Parks division, demonstrating the
tremendous value of all our assets. Additionally, we believe incremental
revenue streams for existing content will create margin expansion as new media
platforms begin to take hold. We continue to test a great number of new media
distribution methods and price points to determine which will attract the
largest revenue opportunities. Going forward, we're determined to translate the
higher margins afforded by digital content into increased shareholder
value."

Television revenues were
down 1 percent to $2.3 billion, with operating income for the segment falling 3
percent to $491.9 million. The company cited lower home entertainment revenues
due to the switch from self-distribution in 2005 to third-party distribution in
2006. Television affiliate fees
rose 11 percent due to the inclusion of CSTV since its acquisition in January
2006 and rate increases and subscriber growth at Showtime. Television license
revenues increased 5 percent, principally reflecting higher revenues from the
domestic syndication of Without a Trace and higher international syndication, partially offset by the absence
of license fees from the prior-year second-cycle cable renewal of Everybody
Loves Raymond. Television
advertising revenues remained relatively flat versus the prior year.

Radio revenues decreased 8
percent to $519.1 million, but Outdoor revenues were up 7 percent to $534.4
million. Publishing revenues increased 1 percent to $176 million.