News Corp. Results for the Quarter ended December 31, 2006

SKY Italia operating results improve $41 million, reflecting net subscriber additions of 432,000 over the past 12 months expanding the subscriber base to over four million

NEW YORK, NY — News Corporation (NYSE: NWS, NWSA; ASX: NWS, NWSLV) today reported second quarter income from continuing operations of $822 million ($0.26 per share on a diluted combined basis), as compared with $694 million ($0.21 per share on a diluted combined basis) reported in the second quarter a year ago.

DIRECT BROADCAST SATELLITE TELEVISION

SKY Italia reported a second quarter operating loss of $12 million, an improvement of $41 million versus a loss of $53 million a year ago on local currency revenue growth of 14%. This improvement primarily reflects subscriber additions, with more than 432,000 net subscribers added over the past 12 months, bringing SKY Italia’s subscriber base to 4.03 million at quarter end. The revenue growth was partially offset by increased programming spending associated with the larger subscriber base as well as costs associated with broadcasting additional Series A and Series B soccer matches.

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