British Sky Broadcasting Group plc Interim Results 9 February 2000 1

Over 4 million direct-to-home subscribers Best ever quarterly net growth in BSkyB’s 10 year history 3

Record growth 500,000 new subscribers Improved pay to basic Reduced churn

DTH subscribers

Sky Digital Subscribers

Sky Digital Subscribers 2.3 million subscribers

Proportion of New Increasing 57% 46% Q1 Q2

Subscribers by Platform

Lower analogue churn digital churn of 2%

New state of the art digital customer contact centres

Subscribers by Platform

Turnover

DTH Subscription Revenue 1998/99 1999/00 £486.4 m £535.8 m 1998/99 1999/00

Two thirds on top tier

Action to increase buy rates

Cable / DTT Subscription Revenue 1998/99 1999/00 £116.1 m £147.9 m 1998/99 1999/00

Advertising Revenue 1998/99 1999/00 £103.0 m £113.5 m 1998/99 1999/00

Increased share of viewing in digital homes Advertising Increased share of viewing in digital homes

Costs

Programme Costs

Programming Costs - Sport UEFA Cup, Ryder Cup and Premier League

Programming Costs - Movies 8% increase in movie subscribers 12 multiplexed movie channels

$5 million advance revenues Programming Costs - Sky Pictures $5 million advance revenues

42% spent on own productions Programming Costs - Entertainment 42% spent on own productions

Marketing

Cost of acquiring 700,000 new subscribers Marketing Cost of acquiring 700,000 new subscribers

Costs

Operating Profit £107.2 m £27.8 m 1998/99 1999/00

Joint Ventures

Sky Ventures Reduced losses More channels profitable New media opportunities

Cashflow

£27 million of investments

Net Debt £ million

Continuing to build scale

Innovation Technology Instant PPV E-commerce E-mail on TV Interactivity SkySports Extra Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

European Expansion 24% Kirch PayTV 2.2 million subscribers 59% (1.3 million) now subscribing to the digital platform Kirch forecast a total of 4 million subscribers by 2002 Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

Key Focal Points Take-up of digital Improve customer service First European expansion First European expansion First European expansion Key Focal Points Take-up of digital Improve customer service Focus on content New Media 7

Digital Take-up 2.6 million digital DTH sales Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line. 2.6 million digital DTH sales

Customer Service Sky Services - Achievements to Date Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line. 81.5k installations week before Christmas 57k average installs per week, 6 months to December 1999 Approximately 1 million calls answered per week

Great service cannot be an optional extra Customer Service Great service cannot be an optional extra 10

Customer Service Key priority

Contact Centre - Creation Multi-platform E-enabled Data mining Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

Contact Centre - Payback Improved customer service Retention Improved PTB Additional new revenue streams Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

Original Production 8 Sky picture productions 212 Original shows/episodes in 6 months to December 99 Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

Original Production Oklahoma! - Emmy winner in the ‘Performing Arts’ category Saving Grace - Winner of ‘World Cinema Audience Award’ at Sundance Film Festival Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

Award winning international coverage Sky News Award winning international coverage Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

Sky Sports Ryder Cup International Cricket Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

Sky Sports Extra Over 36% of Sky’s football viewers use this service Expansion of service: now covers Rugby Six Nations Cricket and Golf to follow shortly Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

Sky Sports Ventures Investments in: Premier League First Division Leeds Sporting Manchester Utd Sunderland First Division Manchester City Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

Consolidation and expansion of Sky New Media Ventures Consolidation and expansion of New Media division 19

Sky New Media Ventures Successful launch of Open…. 8 million visits to Open…. in first two months of launch Over 125,000 orders Peak sales exceeding £1 million per week Nearly 80% awareness amongst Sky Digital customers Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

Sky New Media Ventures Position in the market place SkySports.com 3rd most visited sports site Sky.com Top 10 general site Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

Sky New Media Ventures Short Term Objectives Focus on positioning SkySports.com as number one sports site within 12 months Further development of movies, news and entertainment sites Funding Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999); Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share); Subsidy BiB have contributed £209 of subsidy to date (£99m for six months to December 1999); Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board; Results Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

Sky New Media Ventures Future News Entertainment Sports PC platform TV platform User PC POP Mobile platform Phone POP Broad-band POP TV Broadband platform News Entertainment Sports

Sky New Media Ventures £250 million investment in new media and e-commerce over the next 18 months

Summary Driving subscriptions Enhancing competitive advantage Continued delivery of content Adding value, building loyalty 21

British Sky Broadcasting Group plc Interim Results 9 February 2000 1