Liberty Media Group (L) SELL – 520 shares Presented by: Todd Whaley February 27, 2002

Company Overview Liberty Media Corporation owns interests in a broad range of video programming, communications and Internet businesses in the United States, Europe, South America and Asia. Liberty’s assets include interests in Starz Encore Group LLC, Discovery Communications, Inc., AOL Time Warner Inc., QVC Inc., USA Networks Inc. (USAI), Telewest Communications plc, Motorola Inc., Sprint PCS Group, The News Corporation Limited and Liberty Digital Inc.

Principal Assets (amounts in millions)September 30, 2001 AffiliatePercentage OwnershipCarrying Amount USA Networks (USAI)18.6%$2,542 Vivendi (12/17/01)3.6%$1,600 Telewest Communications25.0%$525 Discovery Communications49.0%$2,945 QVC, Inc43.0%$2,504 OtherVarious$3,285

Affiliate Performance (amounts in millions)Share of Earnings/Losses Nine months ended September 30 Affiliate USA Networks (USAI)$48($18) Telewest Communications($2,126)($262) Discovery Communications($246)($219) QVC, Inc$1 Teligent, Inc.($85)($1,106) Other($417)($786)

Overall Performance (amounts in millions) Revenues$1,225$1,359$964$1,526 Other, Net*($345)$1,618($247)$4,721 Net Income($470)$622($2,045)$2,569

Stock Performance

Valuation DCF valuation method yields an intrinsic price of approximately $9/share vs. $12.50 mkt price Assumptions: Abnormal sales growth of 15% for years 1-5 Transitional sales growth of 10% for years 6-10 Steady state sales growth of 5% WACC = 10%

Sell Rationale Earnings very unpredictable due to dependence on success of very diverse portfolio of assets Major other-than-temporary declines in value of primary assets in 2000 & 2001 makes it difficult to treat as non-recurring Projected negative earnings through FY 2002 Near term appreciation would likely be momentum driven

Recommendation SELL 520 SHARES AT THE MARKET