Ascent Media Group Restructures into Two Global Divisions; Streamlined Company to Better Align with Technology Advances and Evolving Media Industry Market Dynamics

The restructuring confirms the company's commitment to maintainingits leadership position in the provisioning of globally-integrated,file-based services for the media industry. "We are further empoweringour operating divisions by simplifying the overall organizationalstructure of the company. With these changes, we can more efficientlybuild an integrated suite of services to better serve our customers,"said Bill Fitzgerald, Chairman of AMG.

As part of this restructuring, Chief Executive Officer KenWilliams and Chief Technology Officer Gavin Schutz will be leaving thecompany. Day-to-day management of the company and execution of AMG'sglobal strategy will now be the responsibility of AMG's ManagementCommittee. This committee is composed of Scott Davis, PresidentNetwork Services; Robert Solomon, President Creative Services; GeorgePlatisa, Chief Financial Officer; and William Niles, General Counsel.The AMG Management Committee will report directly to Bill Fitzgerald,who continues in his position as AMG's Chairman.

"Ken Williams and his corporate team have done a phenomenal job ofguiding the company for the last four years," said Bill Fitzgerald."Ken leaves behind a mature enterprise with a solid track record. Thetransformation of AMG from a rollup of many independently operatedcompanies into an integrated organization is complete. It is now timeto prepare for the next phase of growth by consolidating four businessunits into two customer-focused global operating divisions."

Fitzgerald continued: "Gavin Schutz's contributions to thiscompany span years of innovation and technology leadership. Thefoundation of our file based strategy has been initiated under Gavin'sdirection and vision."

Under Solomon and Davis' leadership, the AMG Creative Services andNetworks Services groups have established an enviable roster of bluechip clients. Added Fitzgerald: "Most of this summer's topblockbusters passed through our Creative Services facilities, and thesame is true for many of the top-rated TV shows and high-profilecommercials. The work that our Network Services team does for majorbroadcasters and content aggregators around the world is equallyremarkable. AMG now manages thousands of hours of content that can beviewed on televisions at any hour of the day, in any major city,anywhere in the world."

The AMG Creative Services facilities in London, that perform workfor the television, film and the advertising industries, willconsolidate into the global Creative Services division. Solomon said:"We are particularly excited about further integrating our Londonbased companies into our pallet of creative options."

AMG will also consolidate its global Media Management Servicesunit into the Creative Services and Network Services divisions alongcustomer and service lines. This acknowledges the fundamental changesoccurring in the process of creating and managing entertainmentcontent worldwide. Solomon added: "With the collapsing release windowsour customers are looking to achieve, the creative workflow needs toincorporate many concurrent processes in order for projects to opensimultaneously, on multiple distribution platforms, all around theworld."

AMG's Networks Division will continue to operate as a globalorganization that provides outsourced solutions for media management,content distribution, and connectivity. Systems integration andconsulting capabilities round out the division's comprehensive serviceoffering. Said Scott Davis: "This reorganization will allow us tofurther integrate a range of media management services with thenext-generation content distribution platforms we are implementing forour customers. As our customers prepare to take advantage of these newdistribution opportunities for their content, our comprehensive filebased capabilities should prove essential to their strategies. Thesesystems allow them to readily adapt programming for local markets andto quickly re-purpose material for new distribution channels such asmobile and IPTV."

Jose Royo, who has been leading AMG's digital services efforts formajor studio clients, will now assume a broader role working with thecompany's divisional technology teams to ensure that their technicalsolutions align and converge. "The Networks and Creative Servicesdivisions have both developed leading-edge file based systems fortheir clients. Jose and his team will now focus on cross-divisionalalignment of these platforms," said Bill Fitzgerald.

Said Royo: "AMG is rapidly creating an advanced globallyinterconnected suite of file based services. The efficienciesavailable through these newly integrated workflows will delivertremendous value to our customers."

About Ascent Media Group

Santa Monica, California-based Ascent Media Group is awholly-owned subsidiary of Discovery Holding Company (NASDAQ:DISCA)(NASDAQ:DISCB), which, through its Creative Services and NetworkServices divisions, provides creative and technical media services tothe media and entertainment industries. Through more than 70facilities in the regions of Southern California, New York, Atlanta,London and Singapore and at locations throughout the world, AscentMedia Group provides effective solutions for the creation, managementand distribution of content to major motion picture studios,independent producers, broadcast networks, cable channels, advertisingagencies and other companies that produce, own and/or distributeentertainment, news, sports, corporate, educational, industrial andadvertising content. More information about Ascent Media Group isavailable at www.ascentmedia.com.