Liberty Media Group (L)SELL – 520 sharesSELL – 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

Affiliate Percentage Ownership Carrying Amount

USA Networks (USAI) 18.6% $2,542

Vivendi (12/17/01) 3.6% $1,600

Telewest Communications 25.0% $525

Discovery Communications 49.0% $2,945

QVC, Inc 43.0% $2,504

Other Various $3,285

Affiliate Performance(amounts in millions) Share of Earnings/Losses

  Nine months ended September 30

Affiliate 2001 2000

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) 1997 1998 1999 2000

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