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) 3Q11 4Q11 1Q12 2Q12 3Q12
Starz, LLC
Revenue $ 389 432 405 403 400
Adjusted OIBDA 107 93 127 108 108
Operating income 101 87 120 100 99
Subscription units – Starz 19.0 19.6 20.1 20.7 20.8
Subscription units – Encore   32.8 33.2 33.6 34.2 34.3


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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