Viacom, CBS Corp. Update Earnings Outlook

NEW YORK, October 11: With the difficult economic conditions
in the U.S., both Viacom and CBS Corporation have revised their projected
earnings estimates for 2008.

Viacom now expects to deliver mid-single to low double-digit
growth in adjusted diluted earnings per share from continuing operations for
this year. In 2007, adjusted diluted earnings per share from continuing
operations was $2.36.

For the third quarter, meanwhile, Viacom projects an
adjusted diluted earnings per share of $0.53 to $0.55. The period is expected
to be impacted by a 2-percent fall in global ad revenues, with a 2-percent fall
in U.S. ad revenues but an 8-percent rise in international ad revenues.

Viacom’s president and CEO, Philippe Dauman, said: “Given
the rapid softening of the economy and the uncertainty this creates in
forecasting advertising growth, we are taking the prudent step of moderating
our near-term targets. At the same time, we are moving quickly to adapt to the
changing environment and will take appropriate steps to secure new efficiencies
that will enhance our long-term earnings growth prospects. Viacom is
fundamentally strong with powerful brands and leadership positions in
attractive and growing media segments around the world. We have a strong
balance sheet and we continue to generate significant cash flow, which are
important attributes in this time of economic uncertainty.”

CBS Corporation is also expecting to take a hit as a result
of the weakened local ad market in the U.S. As such, it is revising its 2008
full year business outlook for both adjusted operating income before
depreciation and amortization (OIBDA) and adjusted operating income to a
decline of mid-teens versus 2007.

The third quarter is projected to show a 3-percent revenue
rise, led by higher syndication revenues and recent acquisitions. Adjusted
diluted earnings per share for the period is expected to be approximately $0.42
to $0.44, compared to $0.51 for the third quarter of 2007. CBS Corp. also said
it expects to incur a non-cash impairment charge of approximately $14 billion
in the third quarter of 2008 to reduce the carrying value of goodwill,
intangible assets related to FCC licenses and investments.

—By Mansha Daswani