Please see below for the definition of adjusted OIBDA and a discussion of why management believes the presentation of adjusted OIBDA provides useful information for investors. Schedule 2 to this press release provides a reconciliation of adjusted OIBDA for Starz, LLC to its operating income for the same period, as determined under GAAP.


(amounts in millions) 1Q11     2Q11     3Q11     4Q11     1Q12
Starz, LLC
Revenue $ 391 403 389 432 405
Adjusted OIBDA 131 118 107 93 127
Operating income 124 112 101 87 120
Subscription units – Starz 18.8 19.0 19.0 19.6 20.1
Subscription units – Encore   33.1     32.9     32.8     33.2     33.6


This press release includes a presentation of adjusted OIBDA, which is a non-GAAP financial measure, for Liberty Media and Starz LLC, together with a reconciliation to that entity’s operating income, as determined under GAAP. Liberty Media defines adjusted OIBDA as revenue less operating expenses, and selling, general and administrative expenses (excluding stock and other equity-based compensation) and excludes from that definition depreciation and amortization, restructuring and impairment charges and legal settlements that are included in the measurement of operating income pursuant to GAAP.

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