Gemstar-TV Guide Announces First Quarter Results

Operating income for the first quarter of 2006 was $7.7 million,which included depreciation and amortization charges of $8.0 million,compared with operating income of $3.0 million for the first quarterended March 31, 2005, which included depreciation and amortizationcharges of $6.9 million.

The Company reported income from continuing operations of $8.6million, or $0.02 per share, for the first quarter of 2006, comparedwith a loss from continuing operations of $(4.4) million, or $(0.01)per share, for the first quarter of 2005. For the first quarter of2006, the Company's net income was $8.6 million, or $0.02 per share,compared with a net loss of $(3.7) million, or $(0.01) per share, inthe first quarter of 2005.

Rich Battista, Gemstar-TV Guide CEO, commented, "I am pleased withthe progress we made this quarter in improving the Company's financialand operating performance. This year we are dedicated to implementingour new corporate strategy and building on the strong foundation weset last year. There is great excitement across the company as we movetoward the goal of becoming the leading provider of video guidanceacross multiple media platforms. Executing on this goal will help usto continue to build value for our shareholders."

Mr. Battista continued, "This past quarter, there were several keydevelopments in our operating segments that have aided in advancingour strategy. We signed, or renewed long-term multi-service deals withtwo leading MSOs, Charter Communications and Cox Communications; welaunched a number of new programs on TV Guide Channel; we attractedapproximately 1.4 million new or renewing subscribers to TV Guidemagazine since the re-launch last October; we began the revitalizationof TVGuide.com by adding video search and community; and our CE groupsigned new agreements with Panasonic and Samsung further strengtheningour position in the worldwide marketplace."
First Quarter Highlights

Cable and Satellite Segment

-- Revenues at TV Guide Channel were up 8%, at TV Guide Interactive
were up 10%, and at TVG Network were up 24%, versus Q1 2005.

-- TV Guide Interactive cable and satellite technology licenses were
up 21% and TVG Network households were up 21% versus Q1 2005. TV
Guide Spot, the Company's on demand network, grew to 15.8 million
digital cable households at the end of Q1 2006.

-- The Company signed, or renewed, long-term multi-service agreements
with Cox Communications and Charter Communications, which included
Gemstar-TV Guide's Interactive Program Guide (IPG) and carriage
for TV Guide Channel, TV Guide Spot, and TVG Network. The Company
also signed a new distribution agreement with Cablevision for TV
Guide Spot carriage.

-- TV Guide Channel launched new programming

-- Launches include "TV Watercooler", "Square Off", and "Idol
Tonight", an exclusive live pre-show of America's #1 TV Show
-- American Idol. The Red Carpet live pre-show at the 78th
Annual Academy Awards(R) delivered the strongest ratings in
the quarter; tune-in grew 76% among females ages 18-34, versus
last year's live pre-show.

-- TV Guide Interactive unveiled "j-Guide"

-- j-Guide, a new Java-based IPG solution for OCAP compatible
retail cable set top boxes was unveiled by TV Guide
Interactive. With a richer user interface and enhanced
navigation, j-Guide enables consumers to purchase TVs and set
top boxes at retail and receive two-way digital cable
services, including VOD from their local cable service.

-- TVG Network's new format debuts next week

-- TVG Network's new programming format will debut on May 10th.
Along with a new programming format and revamped on-screen
graphics, the network also introduced its redesigned website,
www.TVG.com, adding new content and navigation elements making
it easier for customers to watch and wager from home.

-- TV Guide Mobile Entertainment introduced new IPG for mobile
devices

-- TV Guide Mobile introduced a new television interactive
program guide designed specifically for mobile devices. In
addition, the Company unveiled a new cellular on-demand
version of TV Guide Channel. The first customer to announce
this new service was Cingular Wireless' streaming video
service, Cingular Video.

Publishing Segment

-- TV Guide magazine continues rollout of new full-size, contemporary
format

-- Weekly average circulation in Q1 2006 was 4.1 million copies,
27% higher than the guaranteed rate base. Magazine is on track
to manage circulation base down to a target of 3.2 million
copies per week.
-- Non-contributing subscribers were reduced and average
subscriber revenue per copy was up 9% versus Q1 2005.

-- TV Guide Online (www.tvguide.com) launched new services,
performance up

-- Revenues at TV Guide Online were up 41%, unique users were up
23%, and average page views top 158 million, up 26% versus Q1
2005.
-- A uniquely relevant and comprehensive search product, which
integrates online video with the breadth and depth of TV
Guide's content, launched in Q1 2006.
-- One of the largest professional entertainment blog
communities, featuring over 60 entertainment blogs at
http://www.tvguide.com/blogs, was launched utilizing both our
TV Guide magazine and TV Guide Online editorial staff.

Consumer Electronics (CE) Licensing Segment

-- Revenues for CE IPG were up 47% and for VCR Plus+ were up 11%,
versus Q1 2005.

-- Worldwide CE IPG incorporations were up 84% at quarter end versus
Q1, 2005.

-- Segment EBITDA was up 54 % versus Q1 2005.

-- CE Licensing group made key organizational improvements and signed
new licensing agreement

-- Centralized its global sales, management and marketing
strategy and made key senior management team hires and
promotions.
-- Signed a multi-product, multi-year licensing agreement with
Samsung Electronics Co., Ltd., across its portfolio of digital
televisions, recorders and VCRs to license the Company's VCR
Plus+, CE Interactive Program Guide (IPG) and certain other
Intellectual Property.

First Quarter 2006 Segment Performance

The schedule below reflects Gemstar-TV Guide's performance for thequarter ended March 31, 2006 and 2005, by segment. Segment informationis presented and reconciled to consolidated income from continuingoperations before income taxes as follows.
GEMSTAR-TV GUIDE INTERNATIONAL, INC.
CONSOLIDATED CONTINUING SEGMENT PERFORMANCE(1)
(In thousands)

Three Months Ended
March 31,
--------------------------------
2006 2005
--------------- --------------
Cable and Satellite Segment:
Revenues $ 71,812 $ 64,813
Operating Expenses(2) 45,178 44,513
--------------- --------------
Adjusted EBITDA(3) 26,634 20,300
--------------- --------------
Publishing Segment:
Revenues 38,369 71,005
Operating Expenses(2) 52,018 79,458
--------------- --------------
Adjusted EBITDA(3) (13,649) (8,453)
--------------- --------------
CE Licensing Segment:
Revenues 33,851 28,250
Operating Expenses(2) 12,949 14,719
--------------- --------------
Adjusted EBITDA(3) 20,902 13,531
--------------- --------------
Corporate Segment:
Operating Expenses(2) 17,876 15,429
--------------- --------------
Adjusted EBITDA(3) (17,876) (15,429)
--------------- --------------
Consolidated:
Revenues 144,032 164,068
Operating Expenses(2) 128,021 154,119
--------------- --------------
Adjusted EBITDA(3) 16,011 9,949
Stock compensation (312) (25)
Depreciation and amortization (7,961) (6,924)
--------------- --------------
Operating income 7,738 3,000
Interest income, net 5,169 3,214
Other income, net 118 261
--------------- --------------
Income from continuing operations
before income taxes $ 13,025 $ 6,475
=============== ==============

(1) Segment information is presented and reconciled to consolidated
income from continuing operations before income taxes in
accordance with SFAS No. 131. In 2005 the Company sold its SkyMall
business and accordingly, the operations have been reclassified
from the Publishing Segment to Discontinued Operations.
Additionally, certain financial statement items for the prior
period have been reclassified to conform to the 2006 presentation.

(2) Operating expenses means operating expenses, excluding stock
compensation, depreciation and amortization and impairment of
intangible assets.

(3) Adjusted EBITDA is defined as operating income (loss), excluding
stock compensation, depreciation and amortization and impairment
of intangible assets. The Company believes adjusted EBITDA to be
relevant and useful information as adjusted EBITDA is the
primary measure used by our chief operating decision maker to
evaluate the performance of and make decisions about resource
allocation to the industry segments.

(4) Intersegment revenues and expenses have been eliminated from
segment financial information as transactions between reportable
segments are excluded from the measure of segment profit and loss
reviewed by the chief operating decision maker.


Segment Financials

Cable and Satellite Segment

-- For the first quarter ended March 31, 2006, revenues for the
Cable and Satellite Segment were $71.8 million, an increase of
11%, or $7.0 million, from $64.8 million in the prior year's
quarter. This was primarily due to increased subscriber and
licensing revenues at TV Guide Interactive of $3.3 million, an
increase in advertising revenues at TV Guide Channel of $2.3
million, and $2.0 million of increased revenues at TVG
Network, primarily from increased wagering and licensing
revenues.

-- Adjusted EBITDA for the Cable and Satellite Segment was $26.6
million, an increase of 31%, or $6.3 million, from $20.3
million in the prior year's quarter. The 31% increase was due
to the increase in revenues noted above, offset primarily by a
$2.2 million increase in TV Guide Channel programming and
marketing expenses.

Publishing Segment

-- For the first quarter ended March 31, 2006, revenues for the
Publishing Segment were $38.4 million, a decrease of 46%, or
$32.6 million from $71.0 million in the prior year's quarter.
The decrease from the first quarter of 2005 was primarily due
to $15.4 million lower circulation revenue and $17.8 million
lower advertising revenue. The first quarter circulation
variance was primarily due to the planned reduction in our
circulation base and includes the year over year price
reduction from $2.49 to $1.99 and a $2.3 million investment to
acquire consumer facing rack space.

-- Adjusted EBITDA loss for the Publishing Segment increased 61%,
or $5.2 million, to negative $(13.6) million, from a loss of
negative $(8.4) million in the first quarter of the prior
year. The increased loss was due to the reduction in revenues
noted above, offset by a $16.7 million reduction in TV Guide
magazine production costs, primarily from reduced numbers of
printed copies, and an operating cost decrease of $10.1
million associated with the reformatted TV Guide magazine.

CE Licensing Segment

-- For the first quarter ended March 31, 2006, revenues for the
CE Licensing Segment were $33.9 million, an increase of 20%,
or $5.6 million, from $28.3 million in the prior year's
quarter. This increase was primarily due to increases in
licensing revenue from incorporations of our CE IPG technology
of $5.4 million, and from a revenue increase of $1.6 million
from VCR Plus+.

-- Adjusted EBITDA for the CE Licensing Segment increased 54%, or
$7.4 million, to $20.9 million from $13.5 million in the prior
year's quarter. This increase was primarily related to the
revenue increase noted above, and lower compensation expenses.

Corporate Segment

-- For the first quarter ended March 31, 2006, adjusted EBITDA
for the Corporate Segment was a negative $(17.9) million,
compared with a negative $(15.4) million in the prior year's
quarter. This increase in costs was largely associated with
the Company's strategic initiatives.

-- Consolidated legal costs for the first quarter were $6.2
million compared with $6.5 million for the same period in
2005. The Company expects outside legal expenses to continue
to be significant for the foreseeable future.

Discussion of Cash and Liquidity

At March 31, 2006, the Company's cash, cash equivalents andcurrent marketable securities were $498.3 million, excludingrestricted cash of $39.7 million. Cash and cash equivalents increased$23.8 million from the year ended December 31, 2005. Net cash providedby operating activities in the first quarter of 2006 totaled $28.5million, which was $52.2 million better than the first quarter of2005, primarily due to the receipt of $52.4 million in Federal incometax refunds. For the first quarter of 2006, the Company recognizednon-cash revenue of approximately $23.7 million, including fromcontracts entered into in prior years for which we received large upfront cash payments.

We anticipate that we will incur operating losses in conjunctionwith TV Guide magazine operations of approximately $30 million to $36million during the remainder of 2006. Included in these losses are theanticipated costs of new rack acquisitions, consumer marketing andpromotion programs. We incurred approximately $14 million in operatinglosses for the quarter ended March 31, 2006.

We intend to also pursue various strategic initiatives to betterposition ourselves as the leading consumer brand for video guidanceacross multiple platforms. We anticipate that these initiatives willresult in additional operating and capital expenditures. In the firstquarter, the Company invested $2.7 million in capital expendituresprimarily related to building or enhancing our data, digital content,TV Guide Channel production, ERP systems, and information technologyinfrastructures. Consistent with previous estimates, for the remainderof 2006 we plan to make capital expenditures of approximately $37.0million to $42.0 million.

We anticipate additional operating expenses related to thesecapital expenditures, and for additional research and developmentactivities, of approximately $15 million to $20 million, for theremainder of 2006.

Conference Call

Gemstar-TV Guide will host a conference call with the financialcommunity today, Thursday, May 4, 2006 at 2:00 p.m. PDT (5:00 p.m.EDT). Rich Battista, chief executive officer, and Bedi A. Singh, chieffinancial officer, will present management's review of the firstquarter's results, followed by a question and answer period.

The conference call will also be broadcast live via bothteleconference and Internet web cast. Investors and analysts mayconnect to the call by dialing 888-895-3052 (domestic) or 706-758-2228(international). The conference ID number is "8030330". To listen viaweb cast, link to the Company's Website http://ir.gemstartvguide.com.

Investors unable to listen to the call live may access an audioreplay, which will be hosted for one week following the conclusion ofthe call. To access the replay, call 800-642-1687 (domestic) or706-645-9291 (international). The conference ID number is"8030330". Anaudio archive will also be hosted on the Company's investor relationsWebsite at http://ir.gemstartvguide.com. Replays will be availableapproximately two hours following the conclusion of the call.

About Gemstar-TV Guide International, Inc.

Gemstar-TV Guide International, Inc. (the "Company") (NASDAQ:GMST)is a leading media, entertainment and technology company thatdevelops, licenses, markets and distributes technologies, products andservices targeted at the television guidance and home entertainmentneeds of consumers worldwide. The Company's businesses include:television media and publishing properties; interactive program guideservices and products; and technology and intellectual propertylicensing. Additional information about the Company can be found atwww.gemstartvguide.com.

Forward-Looking Statements:

This news release contains forward-looking statements that involverisks and uncertainties, including risks and uncertainties related tothe transformation of our TV Guide magazine publishing business;timely availability and market acceptance of products and servicesincorporating the Company's technologies and content; our investmentin new and existing businesses, including TV Guide magazine and TVGuide Spot; the impact of competitive products and pricing; ongoingand potential future litigation; and the other risks detailed fromtime to time in the Company's SEC reports, including the most recentreports on Forms 10-K, 10-Q and 8-K, each as it may be amended fromtime to time. The Company assumes no obligation to update theseforward-looking statements.

Note to Editors: Gemstar(R), TV Guide(R), TV Guide Channel(R), TVGuide Interactive(R), and TV Guide Mobile(TM) are trademarks orregistered trademarks of Gemstar-TV Guide International, Inc. and/orits subsidiaries. The names of other companies and products usedherein are for identification purposes only and may be trademarks oftheir respective owners.
GEMSTAR-TV GUIDE INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS--UNAUDITED
(In thousands, except per share data)

Three Months Ended
March 31,
--------------------------------
2006 2005
---------------- ---------------

Revenues:
Cable and satellite $ 71,812 $ 64,813
Publishing 38,369 71,005
Consumer electronics licensing 33,851 28,250
---------------- ---------------
144,032 164,068
---------------- ---------------
Operating expenses:
Cable and satellite 45,283 44,513
Publishing 52,078 79,458
Consumer electronics licensing 12,982 14,719
Corporate 17,990 15,454
---------------- ---------------
Operating expenses, exclusive of
expenses shown below 128,333 154,144
Depreciation and amortization 7,961 6,924
---------------- ---------------
136,294 161,068
---------------- ---------------
Operating income 7,738 3,000
Interest income, net 5,169 3,214
Other income, net 118 261
---------------- ---------------
Income from continuing operations
before income taxes 13,025 6,475
Income tax expense 4,459 10,882
---------------- ---------------
Income (loss) from continuing
operations 8,566 (4,407)
---------------- ---------------
Discontinued operations:
Income from discontinued
operations -- 419
Income tax benefit -- 239
---------------- ---------------
Income from discontinued operations -- 658
---------------- ---------------
Net income (loss) $ 8,566 $ (3,749)
================ ===============

Basic and diluted per share:
Income (loss) from continuing
operations $ 0.02 $ (0.01)
Income from discontinued
operations -- --
---------------- ---------------
Net income (loss) $ 0.02 $ (0.01)
================ ===============

Weighted average shares outstanding:
Basic 426,173 424,287
Diluted 426,213 424,287

See Notes to Condensed Consolidated Financial Statements as filed
in the Company's Form 10-Q.


GEMSTAR-TV GUIDE INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)

March 31, December 31,
2006 2005
---------------- ---------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 488,968 $ 465,131
Restricted cash 39,672 39,484
Marketable securities 9,320 9,253
Receivables, net 68,588 77,230
Deferred tax assets, net 28,709 21,305
Current income taxes receivable -- 50,204
Other current assets 24,090 29,348
---------------- ---------------
Total current assets 659,347 691,955
Property and equipment, net 49,857 51,127
Indefinite-lived intangible assets 61,800 61,800
Finite-lived intangible assets, net 103,796 107,638
Goodwill 259,524 259,524
Income taxes receivable 55,629 55,629
Deferred tax assets, long-term 1,596 10,143
Other assets 26,579 21,866
---------------- ---------------
$ 1,218,128 $ 1,259,682
================ ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 20,549 $ 29,111
Accrued liabilities 148,334 166,285
Income taxes payable 5,646 3,259
Current portion of capital lease
obligations 570 558
Current portion of deferred
revenue 131,243 139,913
---------------- ---------------
Total current liabilities 306,342 339,126
Long-term capital lease obligations,
less current portion 12,569 12,715
Deferred revenue, less current
portion 410,295 425,286
Other liabilities 106,794 109,349
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.01
per share -- --
Common stock, par value $0.01 per
share 4,337 4,337
Additional paid-in capital 8,465,952 8,465,785
Accumulated deficit (8,014,319) (8,022,885)
Accumulated other comprehensive
income, net of tax 454 477
Treasury stock, at cost (74,296) (74,508)
---------------- ---------------
Total stockholders' equity 382,128 373,206
---------------- ---------------
$ 1,218,128 $ 1,259,682
================ ===============

See Notes to Condensed Consolidated Financial Statements as filed
in the Company's Form 10-Q.


GEMSTAR-TV GUIDE INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS--UNAUDITED
(In thousands)

Three Months Ended
March 31,
--------------------------------
2006 2005
---------------- ---------------

Cash flows from operating activities:
Net income (loss) $ 8,566 $ (3,749)
Adjustments to reconcile net
income (loss) to net cash
provided by (used in) operating
activities:
Depreciation and amortization 7,961 7,215
Deferred income taxes 1,143 (3,123)
Other 1,219 1,008
Changes in operating assets and
liabilities:
Receivables 8,864 12,275
Income taxes receivable 50,204 4,665
Other assets 1,082 5,528
Accounts payable, accrued
liabilities and other
liabilities (29,229) (43,687)
Income taxes payable 2,387 11,418
Deferred revenue (23,661) (15,192)
---------------- ---------------
Net cash provided by
(used in) operating
activities 28,536 (23,642)
---------------- ---------------
Cash flows from investing activities:
Investments (1,788) -
Purchases of marketable
securities (9,330) (5,099)
Maturities of marketable
securities 9,246 7
Proceeds from sale of assets 8 11
Additions to property and
equipment (2,732) (2,491)
---------------- ---------------
Net cash used in
investing activities (4,596) (7,572)
---------------- ---------------
Cash flows from financing activities:
Repayment of capital lease
obligations (135) (125)
Proceeds from exercise of stock
options 40 1,403
---------------- ---------------
Net cash (used in)
provided by financing
activities (95) 1,278
---------------- ---------------
Effect of exchange rate changes on
cash and cash equivalents (8) (99)
---------------- ---------------
Net increase (decrease)
in cash and cash
equivalents 23,837 (30,035)
Cash and cash equivalents at
beginning of period 465,131 558,529
---------------- ---------------
Cash and cash equivalents at end of
period $ 488,968 $ 528,494
================ ===============

See Notes to Condensed Consolidated Financial Statements as filed
in the Company's Form 10-Q.


Revenues by Segment and Business Unit (in thousands):

Three Months
Ended March 31, Change
----------------- -----------------
2006 2005 Dollars Percent
------- ------- --------- -------
Cable and Satellite Segment:
TV Guide Channel $35,397 $32,805 $ 2,592 7.9%
TV Guide Interactive 25,958 23,578 2,380 10.1%
TVG Network 10,426 8,409 2,017 24.0%
Other 31 21 10 47.6%
------- ------- --------
Total $71,812 $64,813 $ 6,999 10.8%
======= ======= ========


Three Months
Ended March 31, Change
----------------- -----------------
2006 2005 Dollars Percent
------- ------- --------- -------
Publishing Segment:
TV Guide Magazine $35,480 $68,981 $(33,501) (48.6)%
TV Guide Online 2,731 1,933 798 41.3%
Other 158 91 67 73.6%
------- ------- --------
Total $38,369 $71,005 $(32,636) (46.0)%
======= ======= ========


Three Months
Ended March 31, Change
----------------- -----------------
2006 2005 Dollars Percent
------- ------- --------- -------
CE Licensing Segment:
VCR Plus+ $15,740 $14,112 $ 1,628 11.5%
CE IPG 16,855 11,444 5,411 47.3%
Other 1,256 2,694 (1,438) (53.4)%
------- ------- --------
Total $33,851 $28,250 $ 5,601 19.8%
======= ======= ========


Cable and Satellite Segment Operating Statistics

As of
----------------------------------------
Subscriber Data (in March 31, Dec. 31, March 31, Dec. 31,
thousands)(1) 2006 2005 2005 2004
---------- -------- --------- ----------
TV Guide Channel 77,954 77,353 76,911 76,667
Cable and Satellite
Technology Licenses 41,699 39,372 34,511 32,659
TVG Network 18,100 18,000 15,000 14,300

(1) Subscriber data represents:

-- Nielsen households for the domestic TV Guide Channel
-- Cable and Satellite Technology Licenses reported by domestic
cable and satellite subscribers that receive either our IPG or
another party's IPG provided under a patent license for which
we are paid
-- Households for TVG Network, based primarily on information
provided by distributors


Publishing Segment Operating Statistics:

March 31, Dec. 31, March 31, Dec. 31,
2006 2005(4) 2005(5) 2004(5)
---------- -------- --------- ----------
(in thousands)
TV Guide magazine
circulation(1)
Newsstand(2)(3) 307 401 311 349
Subscriptions 3,747 4,575 5,799 5,707
Sponsored/arrears 17 604 2,921 2,996
---------- -------- --------- ----------
4,071 5,580 9,031 9,052
========== ======== ========= ==========

(1) Average weekly circulation for the three months ended.

(2) Current period numbers include an estimate for returns. Prior
period numbers are updated to reflect actual returns.

(3) Newsstand cover price was increased by $1.00 per copy in early
Q1, 2006.

(4) Includes two issues of the digest format TV Guide magazine.

(5) Results are for the digest format TV Guide magazine.