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.

QUARTERLY SUMMARY
(amounts in millions)       4Q11       1Q12       2Q12       3Q12       4Q12    
Starz, LLC                        
Revenue $ 432 $ 405 $ 403 $ 400 $ 423
Adjusted OIBDA 93 127 108 108 102
Operating income 87 120 100 99 87
Subscription units – Starz 19.6 20.1 20.7 20.8 21.2
Subscription units – Encore 33.2       33.6       34.2       34.3       34.8
 

ANNUAL SUMMARY
(amounts in millions)       2011     2012
Starz, LLC    
Revenue $ 1,615 $ 1,631
Adjusted OIBDA 449 445
Operating income 424 406
Subscription units – Starz 19.6 21.2
Subscription units – Encore 33.2     34.8
 

NON-GAAP FINANCIAL MEASURES

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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