LCAPA Liberty Media Corp. - Liberty Cap Class A Common Stock (MM)

Additional Distribution a Result of Freescale Semiconductor Announcement ENGLEWOOD, Colo., Dec. 14 /PRNewswire-FirstCall/ -- Liberty Media Corporation (NASDAQ:LINTANASDAQ:LCAPA) ("Liberty") announced a cash distribution to the holders of its 3.5% Senior Exchangeable Debentures due in 2031 (the Debentures). This distribution is the result of Freescale Semiconductor's merger with an entity controlled by a consortium of private equity firms for a price of $40 per share. Pursuant to the indenture covering the Debentures, this distribution is considered an extraordinary distribution of cash. As a result, each Debenture holder will be entitled to receive a cash payment of $162.62 per bond. The distribution is expected to be made on January 10, 2007 to holders of record of the Debentures on December 26, 2006. In addition, on any date that we pay or make an additional distribution to the holders of the debentures that is attributable to an extraordinary distribution on the reference shares, the original principal amount of each debenture will be reduced by the amount of the additional distribution that is paid or made with respect to that debenture. Thereafter, the adjusted principal amount will be further reduced on each successive semi-annual interest payment date to the extent necessary to cause the semi-annual interest 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. An adjustment for purposes of ensuring that Liberty does not pay an annualized yield of more than 3.5% of the adjusted principal amount of the debentures that is necessary by the payment of an additional distribution to holders of the debentures will take effect on the second succeeding interest payment date after the payment of that distribution. We will issue a press release each time an adjustment is made to the adjusted principal amount of the debentures. The adjustments described above will not affect the amount of the semi-annual interest payments received by holders of the debentures, which will continue to be a rate of interest equal to 3.5% per annum of the original principal amount of the debentures. Liberty Media Corporation is a holding company that owns interests in a broad range of electronic retailing, media, communications and entertainment businesses. Those interests are attributed to two tracking stock groups: the Liberty Interactive group, which includes Liberty's interests in QVC, Provide Commerce, BUYSEASONS, IAC/InterActiveCorp and Expedia, and the Liberty Capital group, which includes all of Liberty's assets that are not attributed to the Liberty Interactive group, including Liberty's interests in Starz Entertainment and News Corporation. DATASOURCE: Liberty Media Corporation CONTACT: John Orr of Liberty Media Corporation, +1-720-875-5622

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