Liberty Announces Semi-Annual Payment on 3.5% Senior Exchangeable Debentures Due 2031

         Results in Further Reduction of Adjusted Principal Amount



    ENGLEWOOD, Colo., July 15 /EMWNews-FirstCall/ -- Liberty Media

Corporation (Nasdaq: LINTA, LCAPA, LMDIA) ("Liberty") announced a

semi-annual payment to the holders of its 3.5% Senior Exchangeable

Debentures due in 2031 (the "Debentures"). The amount of the payment is

$17.50 per $1,000 of original principal amount of the Debentures.



    This semi-annual payment will result in the further reduction of the

adjusted principal amount of the Debentures. As previously announced, the

principal amount of the Debentures was reduced in the amount of $162.616

per Debenture, resulting in an adjusted principal amount equal to $837.384

per Debenture. This adjustment resulted from an extraordinary distribution

of cash that was paid to bondholders on January 10, 2007 in accordance with

the indenture governing the Debentures (the "Indenture"). This

extraordinary distribution arose from Freescale Semiconductor's merger with

an entity controlled by a consortium of private equity firms in exchange

for cash. At that time, Liberty announced that, in accordance with the

Indenture, the adjusted principal amount of the Debentures would be further

reduced on each successive semi-annual interest payment date to the extent

necessary to cause the semi-annual payment on that date to represent the

payment by Liberty, in arrears, of an annualized yield of 3.5% of the

adjusted principal amount of the Debentures.



    The adjustments described above will not affect the amount of the

semi-annual payments received by holders of the debentures, which will

continue to be a rate equal to 3.5% per annum of the original principal

amount of the Debentures. Below is a detail of the amount of the payment

being made on the Debentures, its allocation between payment of interest

and repayment of principal and the revised adjusted principal amount

resulting from the payment, per $1,000 of original principal amount of the

Debentures:








      July 15, 2008                                           July 15, 2008

        Beginning                                Additional       Ending

         Adjusted                                Payment of      Adjusted

        Principal       Payment      Interest    Principal      Principal



        831.6426        $17.50       14.5537       2.9463        828.6963



    The semi-annual interest payment and additional distribution are

expected to be made on July 15, 2008 to holders of record of the Debentures

on July 1, 2008.



    Liberty Media Corporation owns interests in a broad range of electronic

retailing, media, communications and entertainment businesses. Those

interests are attributed to three tracking stock groups: (1) the Liberty

Interactive group, which includes Liberty's interests in QVC.com, Provide

Commerce, Backcountry.com, BUYSEASONS, Bodybuilding.com,

IAC/InterActiveCorp, and Expedia, (2) the Liberty Entertainment Group,

which includes Liberty's interests in the DIRECTV Group, Inc., Starz

Entertainment, FUN Technologies, Inc., GSN, LLC, Wildblue Communications,

Inc., and Liberty Sports Holdings LLC, and (3) the Liberty Capital group,

which includes all businesses, assets and liabilities not attributed to the

Interactive Group or the Entertainment Group including our subsidiaries

Starz Media, LLC, Atlanta National League Baseball Club, Inc., and

TruePosition, Inc., and minority equity investments in Time Warner Inc. and

Sprint Nextel Corporation. For more information, please see

http://www.libertymedia.com.