Gemstar-TV Guide Announces Fourth Quarter and Full Year 2004 Results

    Business Editors

    LOS ANGELES--(BUSINESS WIRE)--Feb. 23, 2005--Gemstar-TV Guide International, Inc. (NASDAQ:GMST) announced that for the fourth quarter ended December 31, 2004, revenues increased to $186.6 million, compared with revenues of $176.3 million in the fourth quarter ended December 31, 2003. Net income for the fourth quarter of 2004 was $1.6 million, or $0.00 cents per share, compared with a net loss of $(491.4) million, or $(1.18) per share, for the fourth quarter of 2003.
    Operating loss for the fourth quarter of 2004 was $(2.8) million, which included stock compensation, depreciation, and amortization charges of $8.0 million. Operating loss for the fourth quarter of 2003 was $(483.9) million, which included stock compensation, depreciation and amortization charges of $8.2 million and a $391.0 million impairment charge.
    For the full year 2004, revenues increased to $732.3 million, from $695.1 million for 2003. Operating loss for 2004 was $(97.3) million, versus a loss of $(639.5) million for 2003. Net loss for 2004 was $(94.5) million, or $(0.22) per diluted share, compared with a net loss of $(577.4) million, or $(1.41) per diluted share, for 2003.
    Gemstar-TV Guide's Chief Executive Officer Richard Battista commented, "Gemstar-TV Guide made good progress towards stabilizing its various businesses in 2004. We entered into new IPG patent license agreements, substantially increased distribution for our television networks, formed Guideworks, an IPG product development joint venture with Comcast, and launched our new I-Guide interactive programming guide. We also began implementing a new programming strategy for TV Guide Channel, recruited very strong editorial talent for our magazine group, and put the majority of our legal and regulatory issues behind us."
    Battista continued, "As we continue to evaluate the markets in which we operate, we foresee a number of strategic and executional challenges across its businesses and have a great deal of work ahead of us in 2005. The coming year will be a period of significant investment in both our new and existing businesses, including Inside TV, our new magazine. Over the longer term, we believe our strategies will generate positive returns for the Company, but it is clear that dramatic improvements in performance will not come overnight."
    At December 31, 2004, the Company's cash, cash equivalents and current marketable securities were $569.7 million, excluding restricted cash of $38.9 million. Outstanding debt and capital lease obligations, both short and long term, were $13.8 million, resulting in cash and cash equivalents and current marketable securities in excess of debt and capital lease obligations of $555.9 million, excluding $38.9 million in restricted cash. During the fourth quarter of 2004, the Company spent $6.5 million on capital expenditures and a total of $13.4 million in 2004.

    Fourth Quarter and Full Year 2004 Segment Performance

    The schedule below reflects Gemstar-TV Guide's performance for the fourth quarter and full year periods ended December 31, 2004 and 2003 by segment. More detailed information will be contained in the Company's Form 10-K to be filed in the next week.

GEMSTAR-TV GUIDE INTERNATIONAL, INC. CONSOLIDATED CONTINUING SEGMENT PERFORMANCE(1) (In thousands)

Three months Ended Year Ended December 31, December 31, -------------------------------------- 2004 2003 2004 2003 -------------------------------------- (unaudited) ------------------- Publishing Segment: Revenues $99,716 $107,418 $383,811 $423,567 Operating expenses, exclusive of lease settlement (2) 102,832 109,174 380,216 415,619 Lease Settlement - - (10,088) -- -------------------------------------- Adjusted EBITDA (3) (3,116) (1,756) 13,683 7,948 -------------------------------------- Cable and Satellite Segment: Revenues 64,267 44,547 230,948 161,776 Operating expenses (2) 44,017 36,987 133,040 121,657 -------------------------------------- Adjusted EBITDA (3) 20,250 7,560 97,908 40,119 -------------------------------------- CE Licensing Segment: Revenues 22,591 24,335 117,541 109,767 Operating expenses (2) 18,373 19,093 74,941 69,911 -------------------------------------- Adjusted EBITDA (3) 4,218 5,242 42,600 39,856 -------------------------------------- Corporate Segment: Operating expenses (2) 16,188 95,745 78,870 169,257 -------------------------------------- Adjusted EBITDA (3) (16,188) (95,745) (78,870) (169,257) -------------------------------------- Consolidated: Revenues 186,574 176,300 732,300 695,110 Operating expenses, exclusive of lease settlement (2) 181,410 260,999 667,067 776,444 Lease Settlement - - (10,088) -- -------------------------------------- Adjusted EBITDA (3) 5,164 (84,699) 75,321 (81,334) Stock compensation (111) (442) (437) (33,551) Depreciation and amortization (7,880) (7,727) (40,548) (133,577) Impairment of intangible assets - (391,003)(131,637) (391,003) -------------------------------------- Operating loss (2,827) (483,871) (97,301) (639,465) Interest income (expense), net 2,856 (719) 5,705 (4,240) Other income, net 1,391 638 14,722 3,842 -------------------------------------- Income (loss) from continuing operations before income taxes $1,420 $(483,952)$(76,874)$(639,863) ======================================

    (1) Segment information for 2004 and 2003 is presented and reconciled to consolidated loss from continuing operations before income taxes in accordance with SFAS No. 131.
    (2) Operating expenses means operating expenses, excluding stock compensation, depreciation and amortization and impairment of intangible assets.
    (3) Adjusted EBITDA is defined as operating (loss) income, 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 allocate resources to the industry segments. Adjusted EBITDA does not take into account substantial costs of doing business, such as income taxes and interest expense. While many in the financial community consider this term to be an important measure of comparative operating performance, it should be considered in addition to, but not as a substitute for, operating income (loss), net income (loss), cash flow provided by (used in) operating activities and other measures of financial performance prepared in accordance with U.S. generally accepted accounting principles that are presented in the financial statements included in this report.
    (4) Certain financial statement items for prior periods, including the results of discontinued operations, have been reclassified to conform to the 2004 presentation.
    5) 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.

    Publishing Segment

    For the fourth quarter ended December 31, 2004, revenues for the Publishing Segment were $99.7 million, a decrease of $7.7 million, or 7.2%, from revenues of $107.4 million in the prior year's quarter. The decrease was primarily due to a $9.9 million decline in TV Guide magazine revenue, which primarily consisted of decreased individually paid subscriber revenues, lower newsstand revenues, and decreased advertising revenues, offset by an increase in revenue of $3.0 million at SkyMall.
    For the fourth quarter of 2004, adjusted EBITDA for the Publishing Segment was $(3.1) million, a decrease of $1.3 million from adjusted EBITDA of $(1.8) in the prior year's quarter. The decrease was primarily due to the decline in revenues noted above, offset by a reduction in operating expenses at TV Guide magazine, which included the absence of magazine re-launch expenses of $4.4 million, and lower cost of magazine production of $2.6 million.
    For the full year ended December 31, 2004, the Publishing Segment generated revenue of $383.8 million, which represented 52.4% of the Company's total revenue. Revenues for the full year 2004 decreased $39.8 million, or 9.4%, from revenues of $423.6 million in 2003. This decrease in revenues was primarily due to a decrease in individually paid subscriber revenues of $32.1 million, a decrease of $5.3 million in newsstand revenues, and a $8.4 million decrease in advertising revenues at TV Guide magazine and a reduction of $6.3 million in e-Book's revenues due to the shut down of this operation in 2003, offset by a revenue increase of $6.5 million at Skymall.
    For the full year 2004, adjusted EBITDA for the Publishing Segment was $13.7 million, an increase of $5.8 million from adjusted EBITDA of $7.9 million in 2003. The increase was due to the favorable impact of $10.1 million from the settlement of an eBook long-term lease obligation, a reduction in TV Guide magazine expenses of $29.9 million, and reduced eBook business expenses of $8.4 million, offset by the $39.8 million decline in revenues noted above. The net reduction in TV Guide magazine expenses was primarily due to the absence of re-launch expenses of $20.1 million incurred in 2003, reduced compensation expenses of $3.5 million, and reduced production costs of $6.7 million primarily due to the discontinuation of the monthly cable guide and lower paper rates.

    Cable and Satellite Segment

    For the fourth quarter ended December 31, 2004, revenues for the Cable and Satellite Segment were $64.3 million, an increase of $19.7 million, or 44.3%, from revenues of $44.5 million in the prior year's quarter. The increase in revenues was primarily due to an increase in subscriber, licensing, and advertising revenues at TV Guide Interactive of $13.5 million, an increase in TVG Network related wagering and licensing revenues of $3.6 million, and an increase of TV Guide Channel revenues of $2.8 million.
    For the fourth quarter of 2004, adjusted EBITDA for the Cable and Satellite Segment was $20.3 million, an increase of $12.7 million from adjusted EBITDA of $7.6 million in the prior year's quarter. The increase was primarily due to the increase in revenues noted above, offset by a $5.0 million increase in marketing and programming costs primarily related to the Joan & Melissa Rivers Red Carpet shows on the TV Guide Channel.
    For the full year ended December 31, 2004, the Cable and Satellite Segment generated revenue of $230.9 million, which represented 31.5% of the Company's total revenue. Revenues for the full year 2004 increased $69.2 million, or 42.8%, from revenues of $161.8 million in 2003. The increase in revenues was primarily due to a 203.4% increase in TV Guide Interactive revenues, or $45.5 million, due primarily to new technology licenses with Comcast Corporation, Time Warner Cable, DirecTV and EchoStar, a 13.2% increase in TV Guide Channel revenues, or $13.4 million, primarily attributable to increases in advertising revenue, and a 37.5% growth in TVG Network revenue, or $10.6 million, due to increased wagering volumes, in part, due to expanded distribution and resulting growth in customers.
    For the full year 2004, adjusted EBITDA for the Cable and Satellite Segment was $97.9 million, an increase of $57.8 million from adjusted EBITDA of $40.1 million in 2003. Increases in revenues noted above were offset by an $11.4 million increase in operating expenses primarily due to increased compensation costs as well as increased production and advertising spend associated with new programming initiatives including the Red Carpet events.

    Consumer Electronics Licensing Segment

    For the fourth quarter ended December 31, 2004, revenues for the Consumer Electronics (CE) Licensing Segment were $22.6 million, a decrease of $1.7 million, or 7.2%, from revenues of $24.3 million in the prior year's quarter. The decrease was primarily due to the discontinuance of revenue associated with digital broadcast satellite (DBS) set top box manufacturers of $4.7 million, offset by a $2.6 million increase in revenues from the Company's Guide Plus+ and VCR Plus+ businesses.
    For the fourth quarter of 2004, adjusted EBITDA for the CE Licensing Segment was $4.2 million, a decrease of $1.0 million from adjusted EBITDA of $5.2 million in the prior year's quarter. The decrease was primarily related to the decrease in revenues noted above.
    For the full year ended December 31, 2004, the CE Licensing Segment generated revenue of $117.5 million, which represented 16.1% of the Company's total revenue. Revenues for the full year 2004 increased $7.8 million, or 7.1%, from revenues of $109.8 million in 2003. The revenue increase was comprised primarily of an increase in one-time settlements of $16.8 million, an increase in recurring CE IPG revenues of $6.4 million, and an increase of $0.6 million in VCR Plus+ revenue, offset by the discontinuance of revenue associated with DBS set top box manufacturers of $18.6 million now being recognized to a large degree in the Cable and Satellite Segment results.
    For the full year 2004, adjusted EBITDA for the CE Licensing Segment was $42.6 million, an increase of $2.7 million from adjusted EBITDA of $39.9 million in 2003. The increase was due in part to the increases in revenues noted above, offset by a $5.8 million bad debt recovery recognized in 2003 that did not occur in 2004.

    Corporate Segment

    For the fourth quarter ended December 31, 2004, adjusted EBITDA for the Corporate Segment was $(16.2) million, an improvement of $79.6 million from adjusted EBITDA of $(95.7) million in the prior year's quarter. The improvement was primarily due to the absence of certain costs incurred in 2003 related to the resolution of several legal disputes including the Federal securities class action and a reduction in consulting and legal expenses.
    For the full year ended December 31, 2004, adjusted EBITDA for the Corporate Segment was $(78.9) million, an improvement of $90.4 million from adjusted EBITDA of $(169.3) million in 2003. The decline in corporate expenses was primarily due to a $77.2 million decline in legal settlement costs in 2004, primarily due to the $67.5 million charge recorded in 2003 for the settlement of the Federal securities class action lawsuits and the SEC investigation. A reduction in consulting fees and legal expenses also contributed to the reduction.
    Consolidated legal costs for the three month and full year periods ended December 31, 2004 were $13.6 and $68.0 million, respectively, compared with $20.6 million and $77.4 million for the same periods in 2003.

    Conference Call

    Gemstar-TV Guide will host a conference call with the financial community today, Wednesday, February 23, 2005 at 2:00 p.m. PDT (5:00 p.m. EDT). Richard Battista, chief executive officer, and Brian D. Urban, chief financial officer, will present management's review of the fourth quarter and full year 2004, followed by a question and answer period.
    The conference call will also be broadcast live via both teleconference and Internet web cast. Investors and analysts may connect to the call by dialing (800) 901-5247 (domestic) or (617) 786-4501 (international). The pass code is "53581590". To listen via web cast, link to the Company's Website http://ir.gemstartvguide.com.
    Investors unable to listen to the call live may access an audio replay, which will be hosted for one week following the conclusion of the call. To access the replay, call (888) 286-8010 (domestic) or (617) 801-6888 (international). The pass code is "45993871". An audio archive will also be hosted on the Company's investor relations Website at http://ir.gemstartvguide.com. Replays will be available approximately two hours following the conclusion of the call.

    About Gemstar-TV Guide International, Inc.

    Gemstar-TV Guide International, Inc. (the "Company"), is a leading media, entertainment, and technology company that develops, licenses, markets and distributes technologies, products and services targeted at the television guidance and home entertainment needs of consumers worldwide. The Company's businesses include: television media and publishing properties; interactive program guide services and products; and technology and intellectual property licensing. Additional information about the Company can be found at www.gemstartvguide.com.

    Except for historical information contained herein, the matters discussed in this news release contain forward-looking statements that involve risks and uncertainties, including risks and uncertainties related to declines in our magazine business; timely availability and market acceptance of products and services incorporating the Company's technologies and content; our new initiatives aimed at increasing advertising revenues of the TV Guide Channel; the impact of competitive products and pricing; ongoing and potential future litigation; and the other risks detailed from time to time in the Company's SEC reports, including the most recent reports on Forms 10-K, 8-K and 10-Q, each as it may be amended from time to time. The Company assumes no obligation to update these forward-looking statements.

    Note to Editors: Gemstar(R), TV Guide(R), TV Guide Channel(R), and TV Guide Interactive(R) are trademarks or registered trademarks of Gemstar-TV Guide International, Inc. and/or its subsidiaries. The names of other companies and products used herein are for identification purposes only and may be trademarks of their respective owners.

(Financial Tables Follow)

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

December 31, ------------------------- 2004 2003 ------------ ------------ ASSETS Current assets: Cash and cash equivalents $558,529 $257,360 Restricted cash 38,880 37,546 Marketable securities 11,191 4,897 Receivables, net 123,981 113,561 Deferred tax assets, net 3,863 21,175 Current income taxes receivable 21,333 -- Other current assets 30,950 26,884 ----------- ----------- Total current assets 788,727 461,423 Property and equipment, net 45,483 51,115 Indefinite-lived intangible assets 66,272 125,673 Finite-lived intangible assets, net 123,349 180,860 Goodwill 259,524 380,070 Income taxes receivable 40,998 83,327 Other assets 38,020 47,729 ----------- ----------- $1,362,373 $1,330,197 =========== ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities: Accounts payable $62,284 $46,385 Accrued liabilities 171,853 229,721 Current portion of long-term debt and capital lease obligations 515 1,924 Current portion of deferred revenue 161,687 182,175 ----------- ----------- Total current liabilities 396,339 460,205 Deferred tax liabilities, net 28,274 47,828 Long-term debt and capital lease obligations, less current portion 13,274 138,736 Deferred revenue, less current portion 485,941 137,047 Other liabilities 127,753 170,408 Commitments and contingencies Stockholders' equity: Preferred stock, par value $.01 per share; authorized 150,000 shares, none issued -- -- Common stock, par value $.01 per share; authorized 2,350,000 shares; 433,754 shares issued and 424,063 shares outstanding at December 31, 2004; 427,864 shares issued and 417,845 shares outstanding at December 31, 2003 4,337 4,279 Additional paid-in capital 8,478,540 8,452,702 Accumulated deficit (8,077,700) (7,983,239) Accumulated other comprehensive income, net of tax 659 743 Unearned compensation -- (246) Treasury stock, at cost; 9,691 shares at December 31, 2004 and 10,019 shares at December 31, 2003 (95,044) (98,266) ----------- ----------- Total stockholders' equity 310,792 375,973 ----------- ----------- $1,362,373 $1,330,197 =========== ===========

GEMSTAR-TV GUIDE INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)

Three Months Ended Year Ended December 31, December 31, ------------------------------------------------- 2004 2003 2004 2003 2002 ------------------------------------------------- (Unaudited) Revenues: Publishing $99,716 $107,418 $383,811 $423,567 $474,098 Cable and satellite 64,267 44,547 230,948 161,776 154,191 Consumer electronics licensing 22,591 24,335 117,541 109,767 116,146 ------------------------------------------------- 186,574 176,300 732,300 695,110 744,435 Operating Expenses: Publishing 102,832 109,174 380,216 415,619 430,991 Lease settlement - - (10,088) - 16,225 Cable and satellite 44,017 36,987 133,040 121,657 101,846 Consumer electronics licensing 18,373 19,093 74,941 69,911 85,408 Corporate 16,188 95,745 78,870 169,257 104,026 ------------------------------------------------- Operating expenses, exclusive of expenses shown below 181,410 260,999 656,979 776,444 738,496

Stock compensation 111 442 437 33,551 23,695 Depreciation and amortization 7,880 7,727 40,548 133,577 315,695 Impairment of intangible assets - 391,003 131,637 391,003 2,419,933 ------------------------------------------------- 189,401 660,171 829,601 1,334,575 3,498,089 Operating loss (2,827) (483,871) (97,301) (639,465) (2,753,654) Interest income (expense), net 2,856 (719) 5,705 (4,240) (3,224) Other income (expense), net 1,391 638 14,722 3,842 (101,966) ------------------------------------------------- Income (loss) from continuing operations before income taxes and cumulative effect of accounting change 1,420 (483,952) (76,874) (639,863) (2,858,844)

Income tax benefit (220) (8,484) (7,925) (62,884) (611,204) ------------------------------------------------- Income (loss) from continuing operations before cumulative effect of accounting change 1,640 (475,468) (68,949) (576,979) (2,247,640) Discontinued operations: (Loss) income from discontinued operations - (19,617) 15,612 5,883 34,603 Loss on disposal of discontinued operations - - (28,882) - - Income tax (benefit) expense - (3,720) 12,242 6,302 22,101 ------------------------------------------------- Loss (income) from discontinued operations - (15,897) (25,512) (419) 12,502 Loss before cumulative effect of accounting change 1,640 (491,365) (94,461) (577,398) (2,235,138) ------------------------------------------------- Cumulative effect of accounting change, net of tax - - - - (4,188,037) ------------------------------------------------- Net income (loss) $1,640 $(491,365)$(94,461)$(577,398)$(6,423,175) =================================================

Basic and diluted per share: Loss from continuing operations before cumulative effect of accounting change $0.00 $(1.14) $(0.16) $(1.41) $(5.47) (Loss) income from discontinued operations 0.00 (0.04) (0.06) - 0.03 ------------------------------------------------- Loss before cumulative effect of accounting change - - (0.22) (1.41) (5.44) Cumulative effect of accounting change, net of tax - - - - (10.20) ------------------------------------------------- Net income (loss) $0.00 $(1.18) $(0.22) $(1.41) $(15.64) ================================================= Weighted average shares outstanding - basic and diluted 423,951 416,231 422,723 410,265 410,610 =================================================

    In 2004, the Company adopted a plan to dispose of its Superstar/Netlink Group LLC ("SNG"), UVTV distribution services and SpaceCom Systems businesses (collectively the "SNG Businesses") and subsequently sold substantially all of the operating assets of these businesses. Accordingly, the SNG Businesses, previously reported as part of the Cable and Satellite business segment, are shown as discontinued operations in the accompanying consolidated statements of operations.
    Certain financial statement items for prior periods, including the results of discontinued operations, have been reclassified to conform to the 2004 presentation.

GEMSTAR-TV GUIDE INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year ended December 31, -------------------------------- 2004 2003 2002 -------------------------------- Cash flows from operating activities: Net loss $(94,461)(577,398)$(6,423,175) Adjustments to reconcile net loss to net cash provided by operating activities: Cumulative effect of accounting change, net of tax -- -- 4,188,037 Depreciation and amortization 40,548 172,940 356,354 Deferred income taxes (2,242) (58,038) (646,148) Loss on disposal of discontinued operations 28,882 -- -- Stock compensation expense 437 33,551 23,965 Impairment of intangible assets 131,637 416,481 2,446,836 Gain on sale of equity investments (14,482) -- -- Investment write-downs -- -- 50,696 Transfer to restricted cash (925) -- (37,068) (Gain) loss on lease settlement (10,088) -- 16,225 Other 1,346 (1,788) 4,590 Changes in operating assets and liabilities: Receivables (16,097) 43,639 137,546 Income tax receivables 20,997 6,479 (89,775) Other assets 3,842 15,248 (10,145) Accounts payable, accrued liabilities and other liabilities (61,944) 17,762 148,920

Deferred revenue 359,667 (63,779) (63,781) -------------------------------- Net cash provided by operating activities 387,117 5,097 103,077

Cash flows from investing activities: Purchases of minority interests and investments (16,943) -- (2,077) Proceeds from dispositions of businesses 48,000 -- -- Proceeds from sale of equity investments 14,538 -- -- Purchases of marketable securities (10,700) (4,635) (45,840) Sales and maturities of marketable securities 4,775 12,811 114,414 Proceeds from sale of assets 2,640 848 16

Additions to property and equipment (13,377) (16,159) (9,722) -------------------------------- Net cash provided by (used in) investing activities 28,933 (7,135) 56,791

Cash flows from financing activities: Repayments of long-term debt (138,736)(113,000) (75,000) Repayments of capital lease obligations (1,962) (2,369) (2,021) Purchase of treasury stock -- -- (63,423) Proceeds from exercise of stock options 27,343 28,811 1,270 Distributions to minority interests (1,060) (5,097) (18,555) -------------------------------- Net cash used in financing activities (114,415) (91,655) (157,729) --------------------------------

Effect of exchange rate changes on cash and cash equivalents (466) 791 (1,127) -------------------------------- Net increase (decrease) in cash and cash equivalents 301,169 (92,902) 1,012 Cash and cash equivalents at beginning of period 257,360 350,262 349,250 -------------------------------- Cash and cash equivalents at end of period $558,529 $257,360 $350,262 ================================

Supplemental disclosures of cash flow information: Cash paid for income taxes $5,421 $12,235 $64,479 Cash paid for interest 1,888 5,641 15,850

    The following tables show a breakdown of revenues by Segment business unit and additional Segment Operating statistics:

Publishing Revenue by Business Unit

Quarter Ended Year Ended December 31, December 31, ------------------- -------------------- 2004 2003 2004 2003 --------- --------- --------- ---------- (in thousands) Publishing Segment: TV Guide magazine $76,082 $85,954 $321,153 $362,927 SkyMall 21,732 18,732 55,931 49,417 TV Guide Online 1,808 1,354 6,366 4,595 Other 94 1,378 361 6,628 --------- --------- --------- ---------- Total $99,716 $107,418 $383,811 $423,567 ========= ========= ========= ==========

Publishing Segment Operating Statistics

2004 2003 -------- -------- (in thousands) TV Guide magazine circulation (1) Newstand (2) 451 660 Subscriptions 5,779 5,422 Sponsored/arrears 2,780 2,933 -------- -------- 9,010 9,015 ======== ========

SkyMall-annual enplanements (3)(4) 644,000 598,000

(1) Average weekly circulation for the year. (2) Current period numbers include an estimate for returns. Prior period numbers are restated to reflect actual returns. (3) Enplanements represent an estimate of the number of passengers on all flights carrying the SkyMall catalog. Fluctuations in this measure have a strong correlation with the volume of catalog orders. (4) Prior period estimate has been adjusted to reflect the most recent reported information.

Cable and Satellite Revenue by Business Unit

Quarter Ended Year Ended December 31, December 31, 2004 2003 2004 2003 ----------- ----------- ---------- ---------- (in thousands) Cable & Satellite Segment: TV Guide Channel $30,887 $28,040 $115,219 $101,802 TV Guide Interactive 19,122 5,638 67,937 22,393 TVG Network 11,311 7,694 38,985 28,347 Other 2,947 3,175 8,807 9,234 ----------- ----------- ---------- ---------- Total $64,267 $44,547 $230,948 $161,776 =========== =========== ========== ==========

Cable and Satellite Segment Operating Statistics

As of As of 12/31/2004 12/31/2003 ---------------------- Subscriber Data (in thousands) (1) TV Guide Channel 76,667 57,091 TV Guide Channel (international) 2,639 1,702 TV Guide Interactive (international) 960 804 TVG Network 14,300 12,300 Cable and Satellite Technology Licenses 32,659 11,456

    (1) Subscriber data represents:
    -- Nielsen households for TV Guide Channel
    -- Subscribers for TV Guide Channel (international) and TV Guide
    Interactive (international) are based primarily on information
    provided by distributors
    -- Households for TVG Network are based primarily on information
    provided by distributors
    -- Cable and Satellite Technology Licenses represent 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

Consumer Electronics Licensing Revenue by Business Unit

Quarter Ended Year Ended December 31, December 31,

2004 2003 2004 2003 ----------- ---------- ------------- ------------- (in thousands) CE Licensing Segment: VCR Plus+ $11,188 $10,433 $51,531 $50,944 CE IPG 8,921 7,108 48,789 25,317 DBS 280 5,001 9,719 28,301 Other 2,202 1,793 7,502 5,205 ----------- ---------- ------------- ------------- Total $22,591 $24,335 $117,541 $109,767 =========== ========== ============= =============

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CONTACT: Gemstar-TV Guide International, Inc. Analysts and Shareholders: Robert L. Carl, 323-817-4600 or Media: Christine Levesque, 212-852-7585

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS PUBLISHING TELEVISION/RADIO CABLE ENTERTAINMENT EARNINGS CONFERENCE CALLS SOURCE: Gemstar-TV Guide International, Inc.

Copyright Business Wire 2005