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AMC Networks Inc. Reports Second Quarter 2012 Results

Second quarter revenues reflected an increase in affiliate fee revenues related to the Company's international operations more than offset by a decline in revenues at IFC Films and Broadcasting & Technology.

Second quarter AOCF reflected the decrease in revenues and an increase in litigation expenses related to VOOM HD. Operating loss results reflected the AOCF performance.

Other Matters

On May 20, 2012, DISH Network, LLC ("DISH Network") terminated carriage of the Sundance Channel and on July 1, 2012 DISH Network terminated carriage of AMC, WE tv and IFC. We believe that DISH Network's termination of carriage is directly related to the ongoing litigation between DISH Network and VOOM HD. The financial impact on us will depend on several factors, including the length of time our networks are not carried on DISH Network's platform and if, when and on what terms DISH Network and the Company enter into new carriage agreements. The termination of DISH Network's carriage will have a material impact on our revenues, AOCF and operating income in future periods. Although DISH Network's termination has reduced the Company's total subscribers by approximately 13%, the impact on our AOCF and operating income, if it continues, will be materially higher.

Year-to-date, the Company has voluntarily prepaid $100 million of the outstanding balance of the Term A Credit Facility. The total prepaid amount consists of two $50 million payments made on March 8, 2012 and July 9, 2012, respectively.

Description of Non-GAAP Measures

The Company defines Adjusted Operating Cash Flow ("AOCF"), which is a non-GAAP financial measure, as operating income (loss) before depreciation and amortization, share-based compensation expense or benefit and restructuring expenses or credits. Because it is based upon operating income (loss), AOCF also excludes interest expense (including cash interest expense) and other non-operating income and expense items. The Company believes that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the various operating units of the business without regard to the effect of the settlement of an obligation that is not expected to be made in cash.

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