Liberty Interactive believes adjusted OIBDA is an important indicator of the operational strength and performance of its businesses, including each business’ ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. Because adjusted OIBDA is used as a measure of operating performance, Liberty Interactive views operating income as the most directly comparable GAAP measure. Adjusted OIBDA is not meant to replace or supersede operating income or any other GAAP measure, but rather to supplement such GAAP measures in order to present investors with the same information that Liberty Interactive's management considers in assessing the results of operations and performance of its assets. Please see the attached schedules for applicable reconciliations.

SCHEDULE 1

The following table provides a reconciliation of Liberty Interactive’s adjusted OIBDA to its operating income calculated in accordance with GAAP for the three months ended June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012, respectively.

QUARTERLY SUMMARY
                     
(amounts in millions)   2Q11   3Q11   4Q11   1Q12   2Q12
Liberty Interactive        
Adjusted OIBDA $ 450 377 618 418 455
Depreciation and amortization (148 ) (151 ) (193 ) (143 ) (147 )
Stock compensation expense   (14 )   (2 )   (17 )   (17 )   (18 )
Operating Income $ 288     224     408     258     290  
                     

SCHEDULE 2

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