Normally, I wouldn't post news about people leaving a network, but this came as kind of a shock to me.

Sandy Grushow to Begin "Phase Two" as He Exits as Chairman of Fox Television Entertainment Group

Los Angeles, CA, January 5, 2004 Fox Television Entertainment Group Chairman Sandy Grushow today announced his departure to launch a Twentieth Century Fox-based production company called Phase Two. Mr. Grushow's contract was set to expire this summer.

Commenting, Mr. Grushow said: "This was a very complicated decision for me to make. I've accomplished more than I ever thought possible as a buyer and seller of TV shows, but as I contemplated my future over the holidays, I concluded that it was in my best interest to exercise the 'production' option negotiated as part of my current contract rather than entering into another long-term executive agreement with the Company. I've spent almost my entire career at Fox -- from helping to launch a network that no one thought would ever succeed, to leading the television studio to industry prominence, to leading the network to a record three consecutive second-place season finishes, including two historic sweeps victories. Needless to say, it's been an extraordinary two decades. Through the years, I've been privileged to have Peter Chernin's support and friendship and one of the nicest aspects of my deal is that we can continue this uniquely successful relationship in my new role as a Fox producer."

Peter Chernin, Chairman and Chief Executive Officer of the Fox Group, said: "Sandy has been a close and valued colleague for almost 20 years and he will be missed. His contributions to the evolution of Fox are too numerous to list but I can say that Sandy's determination and savvy leadership over these past years have helped make the network and studio what they are today. I think he probably has had as long a tenure at the top of the fast-changing television industry as anyone in the business, and as much as I would have liked to continue to work shoulder to shoulder with Sandy as an executive, I certainly respect his decision and am looking forward to continuing our successful association."

Mr. Grushow has been Chairman of the Fox Television Entertainment Group since November 1999. In this role, he has overseen both the entertainment operations of the Fox Broadcasting Company and Twentieth Century Fox Television, the industry's foremost network television production company.

Mr. Grushow's appointment to oversee Fox Broadcasting's entertainment operations marked his return to the network he helped build. He first joined FOX in 1988 as Senior Vice President of Advertising and Promotion, helping to create and launch the new network's national brand identity as well as the hit programs "The Simpsons," "In Living Color" and "Beverly Hills 90210." He moved up to Executive Vice President and later President of the Fox Entertainment Group where he was responsible for taking the network from five to seven nights a week as well as such hit shows as "X-Files," "Melrose Place" and "Party of Five."

When Mr. Grushow returned to the network in 1999, the Fox Broadcasting Company was ranked number three in the 18-49 demographic. Since that time, FOX has surged to new heights with three consecutive second place season finishes and hit programs like "Malcolm in the Middle," "24," "American Idol," "OC," "Bernie Mac," "Joe Millionaire," "Simple Life" and the critically acclaimed "Arrested Development."

Under Mr. Grushow, Twentieth Century Fox Television rose from the eighth-ranked studio, with just five series on primetime, to become the undisputed leader in network television production two years running. As President of the studio from 199799, Mr. Grushow was responsible for overseeing such hit series as "The Practice," and "Dharma and Greg" on ABC; "Judging Amy" on CBS; "Ally McBeal," "King of the Hill," "The Simpsons," "Family Guy" and "The X-Files" on FOX; and "Buffy the Vampire Slayer," "Angel" and "Roswell" on the WB.

Mr. Grushow began his career as an intern at Twentieth Century Fox Film Corporation in 1983, rising to Vice President of Creative Advertising. In that role, he developed advertising campaigns for some of the studio's most successful films, including "Broadcast News," "Big," and "Die Hard."

Fox Entertainment Group, Inc., 82% owned by The News Corporation Limited (NYSE: NWS), is principally engaged in the development, production and worldwide distribution of feature films and television programs, television broadcasting and cable network programming. Fox has total assets as of September 30, 2003 of approximately $24 billion and total annual revenues of approximately $11 billion. The Company's studios, production facilities and film and television library provide high-quality creative content, and the Company's broadcasting and cable networks provide extensive distribution platforms for the Company's programs.