GSN/FUNKey Deal Information

March 2009

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Table of Contents

SPE IMPACT

A) Gain CalculationB) Cash ImpactC) EBIT Impact

GSN

A) Historical Actual P&L 2001 -2008B) Historical Balance Sheet 2001 - 2008 C) Historical Cash Flow 2001 - 2008 D) Historical Cash Dynamic E) Pro Forma P&L F) Pro Forma Amortization Schedule (To Be Completed)G) EY Forecast (Preliminary)H) EY ValuationI) DirecTV $0.04 Issue and MFNJ) Dividend Payout (Why all paid out, 50% of MFN issue, why not considered "probable")K) Trailing and Forward Comps

FUN

A) Historical Actual P&L 2006 -2008B) Pro Forma Growth Model 2005 - 2014C) Old Liberty Deal Economics (Implied Valuation)D) Old Liberty CompsE) Liberty's Forecast and Detailed AssumptionsF) Prior FUN Forecasts Provided by LibertyG) EY ForecastH) EY Valuation

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SPE IMPACT

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Section (A) - Gain Calculation

High Case: Valuations as written, plus full dividendMid Case: More conservative valuation, small haircut to full dividendLow Case: Low valuation, low dividend ($20mm withheld)

($ in 000's) Low Case Mid Case High Case

Sale Price 1 $75,125 $79,500 $90,000Less: Transaction/Legal Costs 2 - - -

Net Proceeds from Sale 75,125 79,500 90,000

ITD Capital Invested 61,953 61,953 61,953 ITD Dividends Received (40,000) (40,000) (40,000) Cume Equity Earnings Since Initial Sale to Liberty 27,557 27,557 27,557

SPE's Net Book Value 3 (50%) as of 11/30/08 49,510 49,510 49,510

Estimated Equty Earnings 12/08-3/09 5,750 5,750 5,750 Estimated Dividends (37,500) (45,000) (46,500)

SPE's Estimated Net Book Value 3 (50%) as of 3/31/09 17,760 10,260 8,760

SPE's Estimated Net Book Value (15%) to be Sold 5,328 3,078 2,628

SPE Book Gain $69,797 $76,422 $87,372

Notes:1. Sale price based on 15% of GSN assumed valuation of $500MM for Low Case, $530MM for Mid Case, and $600MM for High Case. Implies FUN valuation of $137.5MM, $150MM, and $180MM respectively.

Implied FUN Value = [(GSN Value x 15%) less $27MM Cash] / 35% SPE Purchase of FUN

$180MM = [($600MM x 15%) - $27MM] / 35%

2. Transaction/Legal Costs open, need to obtain an estimate

3. Total Investment value per SPT v. GSN has a difference of $5M related to launch support. Still researching, per D. Mastalski should identify reasoning behind GSN's balance sheet entry only.

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Section (B) – Cash Impact

$600MM $180MMValuation

% Sold / Bought 15% 35%

Cash to (from) SPE $90MM ($63MM)

$27MMNet Cash to SPE

Interim SPE Stake 35% 35%

SPE Stake in GSN/FUN 35%

GSN FUN

TRANSACTION ECONOMICS

$95MMCash Balance at Deal Close

Working Capital Needed

Estimated Total Dividend

SPE GSN Ownership

Prior to Close

SPE Share GSN Dividend

LOW CASE

MID CASE

DIVIDEND

HIGH CASE

$95MM $95MM

($20MM) ($5MM) ($2MM)

$75MM $90MM $93MM

50% 50% 50%

$37.5MM $45MM $46.5MM

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Section (C) – Forecasted EBIT Impact as Included in FY2010 Budget(Based on GSN Guidance)

NO DEAL DEAL

Total GSN EBIT $40.0 $40.0(FY2010 Budget)

SPE GSN Ownership % 50% 35%

SPE Share GSN EBIT (A) $20.0 $14.0

Total FUN EBIT $14.0(FY2010 Budget)

SPE FUN Ownership % 35%

SPE Share FUN EBIT (B) $4.9

Total SPE Share GSN / FUN EBIT (A+B) $20.0 $18.9

Net SPE EBIT Impact w/ Deal Close ($1.1)

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GSN

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Section (A) - Historical Actual P&L 2001 - 2008

NOTE: Revenue figures for 2008 based on $0.04 / subscriber for DirecTV and inclusive of rate reserve for Comcast of $5.6MM; Fee per subscriber being looked into for 2007 data.

2001 2002 2003 2004 2005 2006 2007 2008

REVENUENET ADVERTISING REVENUE 25,626 33,518 43,851 49,742 58,076 65,527 68,079 67,039 NET AFFILIATE REVENUE 33,711 39,800 44,576 53,066 58,762 62,728 62,575 71,620 ONLINE REVENUE - - - - 156 591 1,075 395 OTHER REVENUE 8 27 31 34 494 1,850 397 642

TOTAL GROSS REVENUE 59,345 73,345 88,458 102,842 117,488 130,696 132,126 139,696

LAUNCH SUPPORT AMORTIZATION (22,008) (20,031) (12,813) (15,287) (14,449) (11,633) (6,515) -

TOTAL REVENUE 37,337 53,314 75,645 87,555 103,039 119,063 125,611 139,696

COST OF SALESPROGRAMMING AMORT (21,368) (24,007) (35,221) (33,749) (39,393) (41,725) (46,344) (33,647) TOTAL COST OF SALES (21,368) (24,007) (35,221) (33,749) (39,393) (41,725) (46,344) (33,647)

GROSS PROFIT 15,969 29,307 40,424 53,806 63,646 77,338 79,267 106,049 GROSS MARGIN % 12% 22% 31% 41% 48% 59% 60% 80%

SG&AG&A (27,539) (24,552) (25,639) (29,055) (31,957) (35,663) (37,627) (46,894) MARKETING (5,022) (15,670) (14,157) (26,421) (24,421) (25,369) (25,175) (11,210) TOTAL SG&A (32,561) (40,222) (39,796) (55,476) (56,378) (61,032) (62,802) (58,104)

EBITDA (16,592) (10,915) 628 (1,670) 7,268 16,306 16,465 47,945 EBITDA % -13% -8% 0% -1% 6% 12% 12% 36%

DEPRECIATION AND AMORTIZATION (838) (1,056) (1,246) (1,454) (1,446) (1,710) (1,608) (1,495) OTHER INCOME AND EXPENSE - - - (1) - - (5,388) (519) INTEREST INCOME 82 184 142 339 1,209 1,844 2,043 1,516

NET INCOME (LOSS) (17,348) (11,787) (476) (2,786) 7,031 16,440 11,512 47,447

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Section (B) - Historical Actual Balance Sheet 2001 - 20082001 2002 2003 2004 2005 2006 2007 2008

ASSETS

CURRENT ASSETS:CASH AND CASH EQUIVALENTS $10,280 $12,771 $21,523 $37,087 $50,590 $60,187 $46,663 $90,084ACCOUNTS RECEIVABLE LESS ALLOWANCE FOR DOUBTFUL ACCOUNTS 14,389 16,150 18,790 19,560 22,246 24,885 26,231 25,195 PREPAID EXPENSES - 314 481 199 1 1 - 203 PROGRAMMING RIGHTS 6,158 9,335 11,062 14,113 19,967 13,960 8,125 12,003 TOTAL CURRENT ASSETS 30,827 38,570 51,856 70,959 92,804 99,033 81,019 127,485

PROPERTY AND EQUIPMENT:TOTAL PROPERTY AND EQUIPMENT 10,457 15,025 15,275 16,225 16,247 14,758 17,114 18,575 ACCUMULATED DEPRECIATION AND AMORTIZATION (8,759) (10,911) (11,200) (12,611) (12,916) (12,355) (13,713) (15,207) NET PROPERTY AND EQUIPMENT 1,698 4,114 4,075 3,614 3,331 2,403 3,401 3,368

OTHER ASSETSDEPOSITS - 474 422 492 513 514 353 298 PROGRAMMING RIGHTS NET OF CURRENT PORTION 3,515 9,909 9,852 9,895 11,499 11,394 10,854 13,042 LAUNCH SUPPORT AND CARRIAGE COMMITMENTS 40,879 41,592 35,132 22,868 8,482 6,515 - - OTHER ASSETS - - 36 19 3 250 - - TOTAL OTHER ASSETS 44,394 51,975 45,442 33,274 20,497 18,673 11,207 13,340

TOTAL ASSETS $76,919 $94,659 $101,373 $107,847 $116,632 $120,109 $95,627 $144,193

LIABILITIES AND EQUITY

CURRENT LIABILITIES:ACCOUNTS PAYABLE $3,484 $3,224 $1,425 $4,215 $1,845 $2,353 $906 $1,176PROGRAMMING RIGHTS PAYABLE - 3,458 4,373 10,951 15,217 7,961 7,326 6,380 LAUNCH SUPPORT AND CARRIAGE COMMITMENTS PAYABLE 17,521 25,297 15,242 10,529 9,014 1,961 960 ACCRUED EXPENSES 8,518 6,229 4,767 6,335 6,586 9,768 18,047 14,496 DEFERRED REVENUE - - 2,225 1,770 1,007 1,775 2,008 1,306 OTHER ACCRUED LIABILITIES - 507 1,223 3,665 5,118 5,625 - TOTAL CURRENT LIABILITIES 29,523 38,715 29,255 37,465 38,787 29,443 29,247 23,358

NONCURRENT LIABILITIES:LOAN PAYABLE TO MEMBERS - 15,000 25,000 - - - - - PROGRAMMING RIGHTS PAYABLE - - - - - - - 4,851 LONG TERM INCENTIVE COMPENSATION - - 6,350 7,401 7,832 8,270 - 2,157 TOTAL NONCURRENT LIABILITIES - 15,000 31,350 7,401 7,832 8,270 - 7,008

TOTAL LIABILITIES $29,523 $53,715 $60,605 $44,866 $46,619 $37,713 $29,247 $30,366

EQUITYMEMBERSHIP INTEREST - LDIG 23,698 20,472 20,384 31,491 35,007 41,198 33,190 56,914 MEMBERSHIP INTEREST - SPCV 23,461 20,267 20,180 31,175 34,656 40,786 32,858 56,344 MEMBERSHIP INTEREST - TGSC 237 205 204 315 350 412 332 569

TOTAL EQUITY $47,396 $40,944 $40,768 $62,981 $70,013 $82,396 $66,380 $113,827

TOTAL LIABILITIES AND EQUITY $76,919 $94,659 $101,373 $107,847 $116,632 $120,109 $95,627 $144,193

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Section (C) - Historical Actual Statement of Cash Flows 2001 - 2008

2001 2002 2003 2004 2005 2006 2007 2008

CASH FLOW FROM OPERATING ACTIVITIESNET INCOME (LOSS) ($2,094) ($11,787) ($476) ($2,786) $7,031 $16,440 $11,512 $47,447ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES:

AMORTIZATION OF CAPITALIZED LAUNCH SUPPORT 2,952 20,031 12,813 15,288 14,449 11,633 6,515 AMORTIZATION OF PROGRAMMING RIGHTS 1,165 11,867 22,328 29,563 33,485 31,489 41,937 33,647 DEPRECIATION AND AMORTIZATION 211 1,056 1,246 1,454 1,446 1,710 1,608 1,494 PROVISION FOR DOUBTFUL ACCOUNTS 51 1,990 414 (560) 224 (469) -

CHANGES IN OPERATING ASSETS AND LIABILITIES: ACCOUNTS RECEIVABLE 590 (7,234) (3,054) (211) (2,910) (2,173) (1,346) 6,672 PREPAID ASSETS / EXPENSES 29 (504) (165) 211 177 - 162 (147) PROGRAMMING RIGHTS (644) (21,438) (23,998) (32,658) (40,942) (25,375) (35,560) (39,715) LAUNCH SUPPORT PAYABLE (1,699) (13,302) (16,409) (7,735) (1,579) (763) (1,001) ACCOUNTS PAYABLE 180 3,730 1,143 4,777 (916) (5,853) (1,447) (10,992) ADU LIABILITY - - - - (1,084) 1,015 653 (702) ACCRUED PROGRAMMING - 1,168 5,803 8,146 - 668 (635) 3,905 OTHER ACCRUED EXPENSES - - - - (3,975) (6,038) 3,273 OTHER CURRENT LIABILITIES - - - 4,838 7,472 NONCURRENT LIABILITIES - - 1,051 431 438 -

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 741 (14,423) (355) 16,540 14,650 24,785 23,832 44,882

CASH FLOW FROM INVESTING ACTIVITIESCAPITAL EXPENDED FOR PROPERTY AND EQUIPMENT (98) (3,421) (1,193) (976) (1,147) (1,029) (2,356) (1,461) NET CASH USED IN INVESTING ACTIVITIES (98) (3,421) (1,193) (976) (1,147) (1,029) (2,356) (1,461)

CASH FLOW FROM FINANCING ACTIVITIESREPAYMENT OF MEMBER LOANS - (25,000) - - - - CAPITAL CONTRIBUTED BY MEMBERS - 20,335 10,300 12,500 - 5,841 - - CAPITAL DISTRIBUTED TO MEMBERS - 12,500 - (20,000) (35,000) - NET CASH USED FOR FINANCING ACTIVITIES - 20,335 10,300 - - (14,159) (35,000) -

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 643 2,491 8,752 15,564 13,503 9,597 (13,524) 43,421

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9,637 10,280 12,771 21,523 37,087 50,590 60,187 46,663

CASH AND CASH EQUIVALENTS, END OF PERIOD $10,280 $12,771 $21,523 $37,087 $50,590 $60,187 $46,663 $90,084

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Section (D) Historical Actual Cash Dynamic 2006 - 2008

Cash Flow

Beginning Cash Operating Investment Financing Ending Cash Op + Investment CF

2006 April - $3,624 ($164) - $27,878 $3,460May' $27,878 $1,201 ($19) $5,841 $34,901 $1,182June $34,901 $276 ($8) - $35,169 $268July $35,169 $5,285 ($6) - $40,448 $5,279August $40,448 $2,268 ($93) - $42,623 $2,175Septemeber $42,623 $3,972 ($30) - $46,565 $3,942October $46,565 $4,522 ($31) - $51,056 $4,491November $51,056 $3,002 ($26) - $54,032 $2,976December $54,032 $6,631 ($476) - $60,187 $6,155

2007 January $60,187 $3,654 ($50) - $63,791 $3,604February $63,791 ($1,782) ($46) ($35,000) $26,963 ($1,828)March $26,963 $2,983 ($54) - $29,892 $2,929April $29,892 $2,520 ($84) - $32,328 $2,436May' $32,328 $2,313 ($330) - $34,311 $1,983June $34,311 $2,698 ($468) - $36,541 $2,230July $36,541 ($4,371) ($824) - $31,346 ($5,195)August $31,346 $127 ($249) - $31,224 ($122)Septemeber $31,224 $1,174 ($110) - $32,288 $1,064October $32,288 $4,665 ($34) - $36,919 $4,631November $36,919 $3,310 $23 - $40,252 $3,333December $40,252 $5,985 $253 - $46,490 $6,238

2008 January $46,490 $4,238 ($59) - $50,669 $4,179February $50,669 $1,883 ($49) - $52,503 $1,834March $52,503 $6,278 ($448) - $58,333 $5,830April $58,333 $3,920 ($158) - $62,095 $3,762May' $62,095 $5,905 ($91) - $67,909 $5,814June $67,909 $2,858 ($32) - $70,735 $2,826July $70,735 $4,719 ($126) - $75,328 $4,593August $75,328 $3,664 ($42) - $78,950 $3,622Septemeber $78,950 $2,928 ($230) - $81,648 $2,698October $81,648 $2,567 ($78) - $84,137 $2,489November $84,137 $2,239 ($50) - $86,326 $2,189December $86,326 $3,683 ($98) - $89,911 $3,585

2009 January $89,911 $5,157 ($46) - $95,022 $5,111

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Section (E) - Pro Forma Forecast 2009 – 2013

Values in $000s Budget Forecast

2009 2010 2011 2012 2013

REVENUEAd Sales - Television $63,645 $70,010 $77,011 $84,712 $93,183Ad Sales - Online 1,440 3,000 4,000 5,000 6,000

Affiliate Sales (1) 79,951 83,948 88,145 92,553 97,180 Online / Other 1,336 2,000 2,500 3,000 3,500

Total Revenue 146,372 158,958 171,656 185,265 199,864 % Growth 9% 9% 8% 8% 8%

COST OF SALESProgramming Amortization (44,924) (46,394) (47,412) (48,513) (49,409) Partner Share / Other (953) (1,800) (2,400) (3,000) (3,600)

Total Cost of Sales (45,877) (48,194) (49,812) (51,513) (53,009)

GROSS PROFIT 100,495 110,764 121,845 133,751 146,855 Gross Profit % 69% 70% 71% 72% 73%

OPERATING COSTSG & A (50,478) (52,497) (54,597) (56,781) (59,052) Marketing (13,401) (14,000) (14,500) (15,000) (15,500)

Total Operating Costs (63,879) (66,497) (69,097) (71,781) (74,552)

EBITDA $36,616 $44,267 $52,748 $61,971 $72,303

EBITDA % 25% 28% 31% 33% 36%

Depreciation/Amortization (1,587) (1,500) (1,500) (1,500) (1,500) Interest Income 1,358 1,500 1,500 1,500 1,500

NET INCOME BEFORE TAXES $36,387 $44,267 $52,748 $61,971 $72,303

PRO FORMA ADJUSTMENTS

EBITDA w/ ALL MSOs @ $0.08 / sub $38,630 $46,281 $54,762 $63,985 $74,317

EBITDA w/ DirecTV, Echostar, & $20,533 $28,184 $36,665 $45,888 $56,220Comcast @ $0.04 / sub

(1) Affiliate Sales based on DirecTV at $0.04 / sub

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Section (E) – Comparison of Current vs. Original Forecast

(1) Affiliate Sales based on DirecTV at $0.04 / sub

CURRENT ORIGINAL

Values in $000s Actuals Budget Forecast Forecast as of April 2008

2008 2009 2010 2011 2012 2013 2008 2009 2010

REVENUEAd Sales - Television $67,039 $63,645 $70,010 $77,011 $84,712 $93,183 $79,318 $90,249 $103,929Ad Sales - Online - 1,440 3,000 4,000 5,000 6,000

Affiliate Sales (1) 65,995 79,951 83,948 88,145 92,553 97,180 70,882 76,151 82,012 Online / Other 1,037 1,336 2,000 2,500 3,000 3,500 981 750 750

Total Revenue 134,071 146,372 158,958 171,656 185,265 199,864 151,181 167,149 186,691 % Growth 9% 9% 8% 8% 8% 11% 12%

COST OF SALESProgramming Amortization (33,647) (44,924) (46,394) (47,412) (48,513) (49,409) (44,278) (49,365) (49,746) Partner Share / Other - (953) (1,800) (2,400) (3,000) (3,600) - - -

Total Cost of Sales (33,647) (45,877) (48,194) (49,812) (51,513) (53,009) (44,278) (49,365) (49,746)

GROSS PROFIT 100,424 100,495 110,764 121,845 133,751 146,855 106,903 117,784 136,945 Gross Profit % 75% 69% 70% 71% 72% 73% 71% 70% 73%

OPERATING COSTSG & A (46,893) (50,478) (52,497) (54,597) (56,781) (59,052) (51,645) (53,093) (56,637) Marketing (11,210) (13,401) (14,000) (14,500) (15,000) (15,500) (17,355) (17,500) (20,000)

Total Operating Costs (58,103) (63,879) (66,497) (69,097) (71,781) (74,552) (69,000) (70,593) (76,637)

Operating Income 42,321 36,616 44,267 52,748 61,971 72,303 37,903 47,191 60,308

Comcast Reserve Reversal 5,625 - - - - - - - -

EBITDA $47,946 $36,616 $44,267 $52,748 $61,971 $72,303 $37,903 $47,191 $60,308EBITDA % 36% 25% 28% 31% 33% 36% 25% 28% 32%

Depreciation/Amortization (1,495) (1,587) (1,500) (1,500) (1,500) (1,500) (1,181) (1,200) (1,200) Interest / Other Income 997 1,358 1,500 1,500 1,500 1,500 1,800 2,665 4,631

NET INCOME BEFORE TAXES $47,448 $36,387 $44,267 $52,748 $61,971 $72,303 $38,522 $48,657 $63,739

PRO FORMA ADJUSTMENTS

EBITDA w/ ALL MSOs @ $0.08 / sub $49,283 $38,630 $46,281 $54,762 $63,985 $74,317

EBITDA w/ DirecTV, Echostar, & $32,383 $20,533 $28,184 $36,665 $45,888 $56,220Comcast @ $0.04 / sub

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Section (G) - EY Forecast (Preliminary Draft)

ACTUALS BUDGET GSN FORECAST EY FORECAST

2007 2008 2009E 2010E 2011E 2012E 2013E 2014E 2015E 2016E 2017E

REVENUEAd Sales - Television Revenue 68,079 67,039 63,645 70,010 77,011 84,712 93,183 100,638 106,676 112,010 116,490 Ad Sales - Online Revenue - - 1,440 3,000 4,000 5,000 6,000 7,020 8,073 8,719 9,068 Affiliate Sales Revenue 56,060 71,620 79,951 83,948 88,145 92,553 97,180 102,039 107,141 112,498 116,998 Online / other Revenue 1,472 1,037 1,336 2,000 2,500 3,000 3,500 3,990 4,389 4,696 4,884 Total Revenue 125,611 139,696 146,372 158,958 171,656 185,265 199,863 213,687 226,279 237,923 247,440

COST OF SALESProgramming Amortization 44,153 33,647 44,924 46,394 47,412 48,513 49,409 49,713 51,614 56,774 52,925 Partner share / other - - 953 1,800 2,400 3,000 3,600 4,212 4,844 5,231 5,441 Total Cost of Sales 44,153 33,647 45,877 48,194 49,812 51,513 53,009 53,925 56,458 62,005 58,366

GROSS PROFIT 81,458 106,049 100,495 110,764 121,844 133,752 146,854 159,762 169,821 175,918 189,074

SG&AG&A 49,088 46,893 50,478 52,497 54,597 56,781 59,052 61,119 63,258 65,472 67,764 Sales and Marketing 15,905 11,210 13,401 14,000 14,500 15,000 15,500 16,027 16,971 17,844 18,558 Total SG&A 64,993 58,103 63,879 66,497 69,097 71,781 74,552 77,146 80,229 83,316 86,322

EBITDA 16,465 47,946 36,616 44,267 52,747 61,971 72,302 82,616 89,592 92,602 102,752

Depreciation 1,608 1,495 1,198 1,354 1,524 584 781 918 987 1,055 1,121

EBIT 14,857 46,451 35,418 42,913 51,223 61,387 71,521 81,698 88,605 91,547 101,631

Other Expense (income) 5,387 519 - - - - - - - - - Interest (income) (2,043) (1,516) (1,358) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500)

EBT 11,513 47,448 36,776 44,413 52,723 62,887 73,021 83,198 90,105 93,047 103,131

Add: Programming Amortization 44,924 46,394 47,412 48,513 49,409 49,713 51,614 56,774 52,925 Add: Depreciation Expense 1,198 1,354 1,524 584 781 918 987 1,055 1,121 Add / (Less): Changes in debt-free working capital (671) (1,265) (1,277) (1,368) (1,468) (1,390) (1,266) (1,171) (957) (Less) Capital Expenditures (750) (814) (880) (949) (1,024) (1,095) (1,159) (1,219) (1,268) (Less) Programming expense (56,141) (56,394) (55,136) (51,585) (48,603) (48,002) (49,748) (53,345) (54,017)

FCF After Taxes 11,582 17,168 24,938 35,097 45,584 53,248 58,022 61,600 63,864

830,238 CF for DCF 11,582 17,168 24,938 35,097 45,584 53,248 58,022 61,600 894,102

Discount Rate 10%Tax Rate 35%Terminal Multiple 13 NPV $563,484

15

Section (G) - GSN Valuation Sensitivity Table (from Pro Forma Forecast)

Terminal Multiple6.0x 8.0x 10.0x 11.0x 12.0x 13.0x 14.0x 15.0x

6.0% $488,389 $563,992 $639,594 $677,396 $715,197 $752,998 $790,799 $828,6018.0% 426,387 490,284 554,180 586,128 618,076 650,024 681,972 713,920 9.0% 399,061 457,871 516,681 546,086 575,491 604,896 634,301 663,706

10.0% 373,890 428,060 482,229 509,314 536,399 $563,484 590,568 617,653 11.0% 350,682 400,614 450,546 475,513 500,479 525,445 550,411 575,377 12.0% 329,261 375,321 421,381 444,412 467,442 490,472 513,502 536,532 14.0% 291,170 330,447 369,725 389,364 409,003 428,641 448,280 467,919 16.5% 251,120 283,431 315,743 331,899 348,054 364,210 380,366 396,521

Dis

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16

ISSUES TO DATE

• GSN’s affiliate agreement with DirecTV has been out of contract since February 2007 and is currently being renegotiated

• Since the expiration of the contract, DirecTV has paid a rate of $0.04 / sub as opposed to the previous rate of $0.082

• The reduced rate caused a GSN earnings shortfall of $5.7MM in 2007 and $6.8MM in 2008

Section I - Summary of EBITDA Impact by Reducing the Affiliate Fee / Subscriber

GO – FORWARD IMPACT

• If DirecTV does not true-up the affiliate fee payments by the earnings shortfall amount, GSN will have to restate 2007 – 2008 financials

• Restating financials could retroactively trigger the MFN provisions for Comcast and Echostar, increasing the total earnings shortfall by $9.6MM in 2007 and $10.1MM in 2008

• If the MFN is not triggered and DirecTV rates continue at $0.04 / sub, GSN will forego approximately $7.8MM in 2009 EBITDA

• If the DirecTV rate triggers the MFN, GSN could lose approximately $18.1MM in 2009 EBITDA

(1) Any change in affiliate revenue has no associated costs and therefore is a direct EBITDA impact

GSN Subs Annualized Adjusted Annualized GSN Lost(in 000's) YE 2008 Est. 2008 Rate Affiliate Revenue Rate Affiliate Revenue 2009 EBITDA 1

CARRIERS

DirecTV 15,544 $0.082 $15,295 $0.040 $7,461 ($7,834)Comcast 12,213 $0.082 $12,018 $0.040 $5,862 ($6,155)EchoStar 8,150 $0.082 $8,020 $0.040 $3,912 ($4,108)Total 35,907 $35,332 $17,235 ($18,097)

17

Section (L) - Summary of Comparable Company Transactions

Acquisition Transaction Trailing ForwardChannel Date Buyer Seller % Acquired Value ($MM) (1) $ / Sub TEV / CF (2) TEV / Rev $ / Sub TEV / CF (2) TEV / Rev

TIER 1

Weather Channel Jul-08 NBCU, BX, Bain Landmark 100% $3,500 $37.10 29.4X 11.8X $36.17 28.8X 11.4X

EI Entertainment Nov-06 Comcast Disney 39.5% $1,230 $35.33 24.2X 8.9X $34.44 22.4X 7.9X

TIER 2

TruTV (Court TV) May-06 Time Warner Liberty Media 50% $735 $17.38 36.4X 6.0X $16.82 25.7X 5.3X

Oxygen Media Oct-07 NBCU Oxygen Media 100% $925 $13.03 24.0X 4.8X $12.57 11.9X 4.3X

Sundance Channel Jun-08 Cablevision NBCU, CBS 100% $496 $17.75 13.5X 5.2X $15.95 10.9X 4.6X

** Outdoor Channel (3) N/A Public N/A 100% $33 $1.10 3.3X 0.7X $1.06 4.3X 0.7X

** TV Guide Jan-09 Lionsgate Macrovision 100% $255 $3.01 5.4X 2.0X $2.90 5.7X 2.0X

GSN N/A N/A Sony, Liberty 100% N/A 68 $49 $134 70 $39 $146

TIER 1: > 90MM Subs; > $100MM Cash Flow; Closed Deals MEDIAN VALUES

TIER 2: < 90MM Subs; < $100MM Cash Flow; Closed Deals / Market Value All Comps $17.38 24.0X 5.2X $15.95 11.9X 4.6X

TIER 1 $36.22 26.8X 10.4X $35.31 25.6X 9.6X

TIER 2 $13.03 13.5X 4.8X $12.57 10.9X 4.3X

SOURCE: Kagan, Bloomberg, New York Times, Deutsche Bank, Gabelli & Company, Inc., Pali Research(1) Represents acquisition price for closed deals; includes equity and net debt for public companies

(2) Cash flow per Kagan definitiion represents revenue less SG&A and programming, excludes depreciation of PP&E and amortization of goodwill

(3) Publically traded company; data as of market close 2/20/2009

18

FUN TECHNOLOGIES

19

Section (A) – Historical P&L 2006 – 2008 & Budget 2009

ACTUALS BUDGET

2006 2007 2008 2009

REVENUEPartner Fees - - $1,292 $2,512Advertising 117 1,187 1,300 2,467 Standard Tournament 4,474 29,580 40,814 52,274 Jackpot / FPUE Tournament 3,596 10,244 11,956 16,917 Other 14,147 1,258 749 820 Total Revenue $22,334 $42,269 $56,111 $74,990Growth 89% 33% 34%

COST OF SALES Partner and Affiliate Commistions / Expenses (4,523) (9,025) (12,382) (17,215) License Fees (761) (1,892) (3,405) (4,983) Tournament Expense / FPUE Costs (4,673) (6,457) (9,515) (13,580) Credit Card Processing Fees (1,193) (2,225) (2,662) (3,440) Other (2,441) (970) (831) (1,409) Total Cost of Sales (13,591) (20,569) (28,794) (40,627)

GROSS PROFIT $8,743 $21,700 $27,316 $34,364Gross Profit % 39% 51% 49% 46%

OPERATING EXPENSESSalaries & Benefits (10,735) (8,181) (9,500) (10,919) Marketing (4,011) (3,438) (6,552) (6,052) Other (6,100) (3,273) (2,911) (3,468) Total Operating Expenses (20,846) (14,892) (18,963) (20,439)

EBITDA ($12,103) $6,808 $8,354 $13,925EBITDA % -54% 16% 15% 19%

Depreciation of Tangible Assets (614) (782) (847) Amortization of Intangible Assets (5,739) (5,152) (10,451)

EBIT ($18,457) $874 ($2,944)

Gain/Loss on Sale of Fixed Assets (449) (2) (30,793) Impairments - - (3,576) NOTRestructuring Charges (202) (178) (458) PROVIDEDLTIP - - (715) Dividend Income - - 2,308

Income (Loss) before Income Taxes (19,107) 694 (36,178)

Interest (312) (625) (407)

Income Taxes 1,370 2,834 3,983

NET INCOME (LOSS) ($18,050) $2,904 ($32,602)

20

Section (B) - FUN Pro Forma Forecast

PRO FORMA ACTUALS BUDGET FORECAST Prior FUN Forecast

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Revenue $18.2 $24.8 $42.7 $57.7 $74.9 $89.9 $103.4 $113.7 $119.4 $119.4Growth 36% 72% 35% 30% 20% 15% 10% 5% 0%

COGS 29.2 40.6 48.7 56.0 61.6 64.7 64.7 % of revenue 51% 54% 54% 54% 54% 54% 54%

Gross Profit $28.5 $34.3 $41.2 $47.3 $52.1 $54.7 $54.7

G&A 12.5 14.3 16.4 17.7 18.6 19.5 20.5 Growth 14% 15% 8% 5% 5% 5%

Marketing 6.9 6.1 6.7 7.2 7.6 8.0 8.4 Growth -12% 10% 8% 5% 5% 5%

LTIP 1.5 (0.2) - - - - -

EBITDA $7.6 $14.1 $18.0 $22.4 $25.9 $27.2 $25.9

VALUATION

Terminal Multiple 10.0xDiscount Rate 15%

5 YEAR DCFEBITDA $14.1 $18.0 $22.4 $25.9 $27.2 $25.9Terminal Value $258.6Cash Flow $14.1 $18.0 $22.4 $25.9 $27.2 $284.4NPV $191.95

3 YEAR DCFEBITDA 14.1$ 18.0$ 22.4$ Terminal Value 224.4$ Cash Flow 14.1$ 18.0$ 246.9$ DCF Value at $188.19

21

Section (B) - FUN Valuation Sensitivity Table (from Pro Forma Forecast)

Terminal Multiple4.0x 5.0x 6.0x 7.0x 8.0x 10.0x 12.0x 14.0x

10.0% $152 $167 $181 $196 $211 $240 $269 $29811.0% 146 160 174 188 201 229 257 284 12.0% 140 153 167 180 193 219 245 271 13.0% 135 147 160 172 185 209 234 259 14.0% 130 142 153 165 177 200 224 248 15.0% 125 136 147 158 170 $192 214 237 16.5% 118 128 139 149 159 180 201 221 18.0% 112 121 131 140 150 169 188 207

Dis

coun

t Rat

e

22

Section (C) – Economics of Liberty’s Purchase of FUN Technologies (Implied Valuation)

TRANCHE (A) - 53% TRANCHE (B) - 47%

March 10, 2006 December 21, 2007

SHARES ACQUIREDShares Purchased 33,764,972 29,942,522 Percentage 53% 47%Implied Shares Outstanding 63,707,494 63,707,494

PURCHASE PRICEDollars (MM) $50.00 - GBP £83.70 £1.75Exchange Rate (GBP) 1.73 1.98Total Purchase $194.4 $103.9

IMPLIED VALUATION $366.8 $221.0

WEIGHTED AVERAGE VALUATION $298.3

23

Section (D) - Comparable Transaction Multiples

Enterprise Value /Announce

Date Acquiror TargetEnterprise

ValueLTM

RevenueLTM

EBITDA12-Sep-06 Real Networks, Inc. WiderThan Co. Ltd $257 2.2x 10.6x24-Aug-06 FUN Technologies Inc CDM Fantasy Sports $10 1.3x 10.0x3-Aug-06 PartyGaming Plc Gamebookers $191 10.1x 22.2x20-Mar-06 FUN Technologies Inc WorldWinner.com $23 2.2x nmf17-Mar-06 Electronic Arts Inc. Digital Illusions CE AB $68 2.3x 8.1x16-Dec-05 BET and WIN.com Ongame e-solutions AB $566 5.4x 18.8x8-Dec-05 Electronic Arts Inc. JAMDAT Mobile Inc $683 10.3x nmf22-Nov-05 Liberty Freedom Inc. Fun Technologies Plc (51%) $320 21.5x nmf8-Sep-05 Fox Interactive Media IGN Entertainment, Inc. $748 13.0x nmf18-Jul-05 Fox Interactive Media Intermix Media, Inc. $605 6.8x nmf13-Jun-05 FUN Technologies Plc Fanball Interactive, LLC $22 4.8x na5-Jan-05 FUN Technologies Plc Don Best $56 5.3x na15-Nov-04 Electronic Arts Inc. Digital Illusions CE AB $76 2.3x 7.9x2-Aug-04 Viacom Inc SportsLine.com, Inc. $120 2.0x nmf1-Jul-04 FUN Technologies Plc Skilljam $8 2.2x na26-Jan-04 Real Networks, Inc. GameHouse, Inc. $36 3.6x na5-Feb-01 Flipside, Inc. Uproar Inc. $60 1.2x nmf26-Jul-00 Uproar Inc iWin.com $90 10.8x nmf21-Jul-00 Quokka Sports, Inc. Total Sports Inc. $117 13.6x nmf

Implied FUN Value

NOTE: Revenue and EBITDA figures for comps analysis based on 2007 actuals

Enterprise Value /

LTM Revenue LTM EBITDA

Median All Deals 4.8x 10.3x

24

Section (F) - Comparison of Current vs. Prior Forecasts

CURRENT PRIOR

($MM) ACTUAL BUDGET AS OF JULY 2008 AS OF APRIL 2008

2008 2009 2008 2009 2010 2008 2009 2010

RevenueStandard Tournament 40.8$ 52.3$ 47.6$ 66.9$ 82.6$ 52.3$ 70.6$ 85.4$ Jackpot / FPUE Tournament 12.0 16.9 15.9 22.4 27.6 18.3 24.7 29.9 Advertising 1.3 2.5 1.9 3.9 6.6 4.1 6.1 9.2 All Other 2.0 3.3 2.0 3.1 4.1 2.0 2.1 2.7

Total Revenue 56.1 75.0 67.4 96.3 120.9 76.7 103.6 127.3

Cost of SalesPartner and Affiliate Commissions / Expenses (12.4) (17.2) (13.8) (19.4) (23.9) (16.7) (22.8) (24.9) Tournament Expense (9.5) (13.6) (12.3) (17.2) (21.3) (14.1) (17.3) (20.9) CC Fees / License Fees & Site Hosting (6.9) (9.8) (7.6) (11.9) (15.8) (8.1) (12.3) (15.8)

Total Cost of Sales (28.8) (40.6) (33.7) (48.6) (61.0) (38.8) (52.4) (61.6)

Gross Profit 27.3 34.4 33.8 47.7 59.9 37.9 51.2 65.7 Gross Profit % 49% 46% 50% 50% 50% 49% 49% 52%

SG&AG & A (12.4) (14.4) (15.9) (19.6) (21.7) (17.5) (19.9) (22.7) Marketing (6.6) (6.1) (7.7) (10.1) (11.0) (9.5) (11.6) (13.0)

Total SG&A (19.0) (20.4) (23.6) (29.8) (32.8) (27.0) (31.5) (35.6)

EBITDA 8.4$ 13.9$ 10.1$ 17.9$ 27.1$ 10.9$ 19.7$ 30.0$

EBITDA % 15% 19% 15% 19% 22% 14% 19% 24%

EBITDA w/ Free Games - - - - - $13.0 $26.0 $39.4