SEG, IDT Entertainment Merge to Create New Entity

ENGLEWOOD, August 29: With Liberty Media’s acquisition of
IDT Entertainment complete, the venture has merged with Starz Entertainment
Group (SEG) to create Starz, a new production, distribution and broadcasting
entity that will be overseen by Robert Clasen as chairman and CEO.

SEG and IDT Entertainment are wholly owned subsidiaries of
Starz, which itself is a wholly owned subsidiary of Liberty Media Corp. Under
the new structure announced today, IDT Entertainment has been renamed Starz
Media, and Starz Entertainment Group has been renamed Starz Entertainment.

Robert B. Clasen will serve as chairman and CEO of both
entities and of Starz, which will be the umbrella company overseeing the two
operating units. Clasen had been president and CEO of SEG.

"Our new company," Clasen said, "will produce
all kinds of programming and distribute through all platforms. Because of that
structure we will be able to provide greater creative freedom to those who
produce our programming and a more innovative approach to the business
relationships with those partners who distribute it. We can tailor our
programming to specific needs or develop programming that works on multiple
platforms. In the modern media world creativity will be the key to success, and
creativity will be the hallmark of our company."

"This combination," he continued, "will also
permit us to experiment with different release windows depending on which
release sequence offers the best economic value."

Most units in the new company will be branded with the Starz
name, although well-known brands such as Anchor Bay, Encore, Film Roman, Manga
and Vongo will keep their identities.

Starz Media’s division will include Starz Home
Entertainment, encompassing Anchor Bay Entertainment and Manga Entertainment.
John W. Hyde, who is also president and COO of Starz Media, serves as president
of Starz Home Entertainment. Bill Clark serves as executive VP and general
manager of Starz Home Entertainment. Starz Productions produces non-theatrical
live-action programming for DVD release and sale to networks and other outlets.
Film Roman provides animation under contract for television series. It also
produces feature films, direct-to-DVD programming, commercials and music
videos. The Worldwide Distribution division is responsible for all marketing,
sales and distribution functions as well as Internet, wireless and general
business development. Content distributed by this unit includes programming
developed by Starz units and content acquired from outside producers. This unit
is headed by Neil Braun as president of distribution and marketing. Prior to
joining Starz Media, Braun served as co-founder and president of Vanguard
Animation, president of the NBC Television Network, chairman and CEO of Viacom
Entertainment, and president and COO of Imagine Films Entertainment. Starz
Animation develops and produces animated feature-length movies and is headed by
CEO Kent Rice and president Janet Healy. Former MGM COO Chris McGurk serves as
senior advisor to the new ventures division.

At Starz Entertainment, William D. Myers has been named
president and COO, responsible for all day-to-day business operations of the
company. Here, he will oversee the Starz and Encore channels, reaching 15.1
million and 27.1 million homes respectively through cable, satellite and
telephone company affiliates. The unit also delivers on-demand services and
high definition television channels and the newly launched IndiePlex and
RetroPlex channels. Vongo provides a menu of almost 2,000 movies and other
programming, as well as a stream of the flagship Starz channel, to monthly
subscribers and pay-per-view customers via broadband Internet connections.

Clasen noted, "At Starz Entertainment, customers of
Starz, Encore and Vongo will benefit by the addition of exclusive Starz Media
productions to the already outstanding core lineup of feature films and other
programming. For the Starz Media unit, the deal means a guaranteed outlet on
premium television and the Internet for their productions, complementing the
home video, theatrical and international distribution operations already part
of Starz Media."