EXHIBIT 99.1 ATTRIBUTED FINANCIAL INFORMATION FOR TRACKING STOCK GROUPS On May 9, 2006, we completed a restructuring and recapitalization pursuant to which we issued two new tracking stocks, one ("Liberty Interactive Stock") intended to reflect the separate performance of our businesses engaged in video and on-line commerce, including our subsidiaries, QVC, Inc. and Provide Commerce, Inc. and our interests in IAC/InterActiveCorp and Expedia, Inc., the second ("Liberty Capital Stock") intended to reflect the separate performance of all of our assets and businesses not attributed to the Interactive Group. Each share of our existing Series A and Series B common stock was exchanged for .25 of a share of the same series of Liberty Interactive Stock and .05 of a share of the same series of Liberty Capital Stock. The following tables present our assets, liabilities, revenue, expenses and cash flows as of and for the three and six months ended June 30, 2006 and 2005. The tables further present our assets, liabilities, revenue, expenses and cash flows that are attributed to the Interactive Group and the Capital Group, respectively. The financial information is derived from our unaudited financial statements for the six months ended June 30, 2006 included in this Quarterly Report on Form 10-Q. The attributed financial information presented in the tables has been prepared assuming the restructuring had been completed as of January 1, 2005. Notwithstanding the following attribution of assets, liabilities, revenue, expenses and cash flows to the Interactive Group and the Capital Group, the restructuring does not affect the ownership or the respective legal title to our assets or responsibility for our liabilities. We and our subsidiaries each continue to be responsible for our respective liabilities. Holders of Liberty Interactive common stock and Liberty Capital common stock are holders of our common stock and continue to be subject to risks associated with an investment in our company and all of our businesses, assets and liabilities. The issuance of Liberty Interactive Stock and Liberty Capital Stock does not affect the rights of our creditors or creditors of our subsidiaries. 1 SUMMARY ATTRIBUTED HISTORICAL FINANCIAL DATA INTERACTIVE GROUP Summary balance sheet data:

JUNE 30, DECEMBER 31, 2006 2005 -------- ------------ AMOUNTS IN MILLIONS Current assets.............................................. $ 2,667 2,716 Cost investments............................................ $ 1,949 2,084 Equity investments.......................................... $ 1,228 1,229 Total assets................................................ $18,633 18,338 Long-term debt, including current portion................... $ 5,728 5,327 Deferred income tax liabilities............................. $ 3,006 3,104 Attributed net assets....................................... $ 8,265 8,231

Summary operations data:

THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------- ------------------- 2006 2005 2006 2005 -------- -------- -------- -------- AMOUNTS IN MILLIONS Revenue.................................................. $ 1,715 1,479 3,323 2,943 Cost of goods sold....................................... (1,054) (922) (2,054) (1,836) Operating expenses....................................... (141) (130) (273) (259) Selling, general and administrative expenses(1).......... (152) (121) (290) (228) Depreciation and amortization............................ (125) (114) (245) (229) ------- ----- ------ ------ Operating income....................................... 243 192 461 391 Interest expense......................................... (97) (88) (190) (181) Other income (expense), net.............................. 36 (36) 70 (24) Income tax expense....................................... (46) (39) (122) (90) Minority interests in earnings of subsidiaries........... (10) (9) (18) (28) ------- ----- ------ ------ Earnings before cumulative effect of accounting change............................................... 126 20 201 68 Cumulative effect of accounting change, net of taxes..... -- -- (87) -- ------- ----- ------ ------ Net earnings......................................... $ 126 20 114 68 ======= ===== ====== ======

- ------------------------ (1) Includes stock-based compensation of $17 million for each of the three-month periods ended June 30, 2006 and 2005 and $44 million and $25 million for the six months ended June 30, 2006 and 2005, respectively. 2 CAPITAL GROUP Summary balance sheet data:

JUNE 30, DECEMBER 31, 2006 2005 -------- ------------ AMOUNTS IN MILLIONS Current assets.............................................. $ 2,826 2,580 Cost investments............................................ $17,912 16,413 Total assets................................................ $25,442 23,750 Long-term debt, including current portion................... $ 2,493 2,423 Deferred income tax liabilities............................. $ 6,475 5,624 Attributed net assets....................................... $11,973 10,889

Summary operations data:

THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------- ------------------- 2006 2005 2006 2005 -------- -------- -------- -------- AMOUNTS IN MILLIONS Revenue.................................................. $392 360 767 717 Operating expenses....................................... (275) (252) (541) (497) Selling, general and administrative expenses(1).......... (69) (65) (139) (127) Depreciation and amortization............................ (44) (47) (88) (95) ---- ---- ---- ---- Operating income (loss)................................ 4 (4) (1) (2) Interest expense......................................... (63) (58) (118) (114) Other income (expense), net.............................. 699 (230) 565 189 Income tax benefit (expense)............................. (292) 141 (114) (33) Minority interests in losses of subsidiaries............. 4 5 8 5 ---- ---- ---- ---- Earnings (loss) from continuing operations............. 352 (146) 340 45 Earnings from discontinued operations, net of taxes...... -- 19 -- 34 Cumulative effect of accounting change, net of taxes..... -- -- (2) -- ---- ---- ---- ---- Net earnings (loss).................................. $352 (127) 338 79 ==== ==== ==== ====

- ------------------------ (1) Includes stock-based compensation of $5 million and $2 million for the three months ended June 30, 2006 and 2005, respectively, and $9 million and ($8) million for the six months ended June 30, 2006 and 2005, respectively. 3 BALANCE SHEET INFORMATION JUNE 30, 2006

ATTRIBUTED (NOTE 1) ---------------------- INTERACTIVE CAPITAL CONSOLIDATED GROUP GROUP ELIMINATIONS LIBERTY ----------- -------- ------------ ------------ AMOUNTS IN MILLIONS ASSETS Current assets: Cash and cash equivalents........................ $ 925 1,726 -- 2,651 Trade and other receivables, net................. 730 300 -- 1,030 Inventory, net................................... 737 -- -- 737 Derivative instruments (note 2).................. 16 182 -- 198 Current deferred tax assets...................... 186 -- (186) -- Other current assets............................. 73 618 -- 691 ------- ------ ---- ------ Total current assets........................... 2,667 2,826 (186) 5,307 ------- ------ ---- ------ Investments in available-for-sale securities and other cost investments (note 3).................. 1,949 17,912 -- 19,861 Long-term derivative instruments (note 2).......... 7 1,122 -- 1,129 Investments in affiliates, accounted for using the equity method.................................... 1,228 444 -- 1,672 Property and equipment, net........................ 812 410 -- 1,222 Goodwill........................................... 5,704 1,733 -- 7,437 Trademarks......................................... 2,401 5 -- 2,406 Intangible assets subject to amortization, net..... 3,838 199 -- 4,037 Other assets, at cost, net of accumulated amortization..................................... 27 791 -- 818 ------- ------ ---- ------ Total assets................................. $18,633 25,442 (186) 43,889 ======= ====== ==== ====== LIABILITIES AND EQUITY Current liabilities: Accounts payable................................. $ 406 57 -- 463 Accrued liabilities.............................. 741 397 -- 1,138 Intergroup payable (receivable).................. 13 (13) -- -- Derivative instruments (note 2).................. 6 1,484 -- 1,490 Current portion of debt (note 4)................. 1,378 4 -- 1,382 Current deferred tax liabilities................. -- 202 (186) 16 Other current liabilities........................ 35 174 -- 209 ------- ------ ---- ------ Total current liabilities.................... 2,579 2,305 (186) 4,698 ------- ------ ---- ------ Long-term debt (note 4).......................... 4,350 2,489 -- 6,839 Long-term derivative instruments (note 2)........ -- 1,067 -- 1,067 Deferred income tax liabilities (note 7)......... 3,006 6,475 -- 9,481 Other liabilities................................ 246 936 -- 1,182 ------- ------ ---- ------ Total liabilities............................ 10,181 13,272 (186) 23,267 Minority interests in equity of subsidiaries..... 187 197 -- 384 Equity/Attributed net assets..................... 8,265 11,973 -- 20,238 ------- ------ ---- ------ Total liabilities and equity................. $18,633 25,442 (186) 43,889 ======= ====== ==== ======

4 STATEMENT OF OPERATIONS INFORMATION THREE MONTHS ENDED JUNE 30, 2006

ATTRIBUTED (NOTE 1) ---------------------- INTERACTIVE CAPITAL CONSOLIDATED GROUP GROUP LIBERTY ----------- -------- ------------ AMOUNTS IN MILLIONS Revenue: Net sales from electronic retailing....................... $1,715 -- 1,715 Communications and programming services................... -- 392 392 ------ ---- ----- 1,715 392 2,107 ------ ---- ----- Operating costs and expenses: Cost of sales--electronic retailing services.............. 1,054 -- 1,054 Operating................................................. 141 275 416 Selling, general and administrative (including stock-based compensation of $17 million and $5 million for Interactive Group and Capital Group, respectively) (notes 5 and 6)......................................... 152 69 221 Depreciation and amortization............................. 125 44 169 ------ ---- ----- 1,472 388 1,860 ------ ---- ----- Operating income........................................ 243 4 247 Other income (expense): Interest expense.......................................... (97) (63) (160) Dividend and interest income.............................. 10 30 40 Share of earnings of affiliates, net...................... 17 4 21 Realized and unrealized gains (losses) on financial instruments, net........................................ (3) 365 362 Gains on dispositions of assets, net...................... -- 303 303 Other, net................................................ 12 (3) 9 ------ ---- ----- (61) 636 575 ====== ==== ===== Earnings from continuing operations before income taxes and minority interests................................ 182 640 822 Income tax expense (note 7)................................. (46) (292) (338) Minority interests in losses (earnings) of subsidiaries..... (10) 4 (6) ------ ---- ----- Net earnings............................................ $ 126 352 478 ====== ==== =====

5 STATEMENT OF OPERATIONS INFORMATION THREE MONTHS ENDED JUNE 30, 2005

ATTRIBUTED (NOTE 1) ---------------------- INTERACTIVE CAPITAL CONSOLIDATED GROUP GROUP LIBERTY ----------- -------- ------------ AMOUNTS IN MILLIONS Revenue: Net sales from electronic retailing....................... $1,479 -- 1,479 Communications and programming services................... -- 360 360 ------ ---- ----- 1,479 360 1,839 ------ ---- ----- Operating costs and expenses: Cost of sales--electronic retailing services.............. 922 -- 922 Operating................................................. 130 252 382 Selling, general and administrative (including stock-based compensation of $17 million and $2 million for Interactive Group and Capital Group, respectively (notes 5 and 6)................................................ 121 65 186 Depreciation and amortization............................. 114 47 161 ------ ---- ----- 1,287 364 1,651 ------ ---- ----- Operating income (loss)................................. 192 (4) 188 Other income (expense): Interest expense.......................................... (88) (58) (146) Dividend and interest income.............................. 10 13 23 Share of earnings (losses) of affiliates, net............. (1) 7 6 Realized and unrealized losses on derivative instruments, net..................................................... (22) (266) (288) Gains on dispositions, net................................ -- 17 17 Other, net................................................ (23) (1) (24) ------ ---- ----- (124) (288) (412) ------ ---- ----- Earnings (loss) from continuing operations before income taxes and minority interest........................... 68 (292) (224) Income tax benefit (expense) (note 7)....................... (39) 141 102 Minority interests in losses (earnings) of subsidiaries..... (9) 5 (4) ------ ---- ----- Earnings (loss) from continuing operations.............. 20 (146) (126) Earnings from discontinued operations, net of taxes......... -- 19 19 ------ ---- ----- Net earnings (loss)..................................... $ 20 (127) (107) ====== ==== =====

6 STATEMENT OF OPERATIONS INFORMATION SIX MONTHS ENDED JUNE 30, 2006

ATTRIBUTED (NOTE 1) ---------------------- INTERACTIVE CAPITAL CONSOLIDATED GROUP GROUP LIBERTY ----------- -------- ------------ AMOUNTS IN MILLIONS Revenue: Net sales from electronic retailing....................... $3,323 -- 3,323 Communications and programming services................... -- 767 767 ------ ---- ----- 3,323 767 4,090 ------ ---- ----- Operating costs and expenses: Cost of sales--electronic retailing services.............. 2,054 -- 2,054 Operating................................................. 273 541 814 Selling, general and administrative (including stock-based compensation of $44 million and $9 million for Interactive Group and Capital Group, respectively) (notes 5 and 6)......................................... 290 139 429 Depreciation and amortization............................. 245 88 333 ------ ---- ----- 2,862 768 3,630 ------ ---- ----- Operating income (loss)................................. 461 (1) 460 Other income (expense): Interest expense.......................................... (190) (118) (308) Dividend and interest income.............................. 19 78 97 Share of earnings of affiliates, net...................... 21 8 29 Realized and unrealized gains on financial instruments, net..................................................... 17 152 169 Gains on dispositions of assets, net...................... -- 327 327 Other, net................................................ 13 -- 13 ------ ---- ----- (120) 447 327 ------ ---- ----- Earnings from continuing operations before income taxes and minority interests................................ 341 446 787 Income tax expense (note 7)............................... (122) (114) (236) Minority interests in losses (earnings) of subsidiaries... (18) 8 (10) ------ ---- ----- Earnings from continuing operations..................... 201 340 541 Cumulative effect of accounting change, net of taxes...... (87) (2) (89) ------ ---- ----- Net earnings............................................ $ 114 338 452 ====== ==== =====

7 STATEMENT OF OPERATIONS INFORMATION SIX MONTHS ENDED JUNE 30, 2005

ATTRIBUTED (NOTE 1) ---------------------- INTERACTIVE CAPITAL CONSOLIDATED GROUP GROUP LIBERTY ----------- -------- ------------ AMOUNTS IN MILLIONS Revenue: Net sales from electronic retailing....................... $2,943 -- 2,943 Communications and programming services................... -- 717 717 ------ ---- ----- 2,943 717 3,660 ------ ---- ----- Operating costs and expenses: Cost of sales--electronic retailing services.............. 1,836 -- 1,836 Operating................................................. 259 497 756 Selling, general and administrative (including stock-based compensation of $25 million and ($8) million for Interactive Group and Capital Group, respectively (notes 5 and 6)................................................ 228 127 355 Depreciation and amortization............................. 229 95 324 ------ ---- ----- 2,552 719 3,271 ------ ---- ----- Operating income (loss)................................. 391 (2) 389 Other income (expense): Interest expense.......................................... (181) (114) (295) Dividend and interest income.............................. 18 47 65 Share of earnings (losses) of affiliates, net............. (2) 13 11 Realized and unrealized gains (losses) on derivative instruments, net........................................ (51) 531 480 Gains (losses) on dispositions, net....................... 40 (401) (361) Other, net................................................ (29) (1) (30) ------ ---- ----- (205) 75 (130) ------ ---- ----- Earnings from continuing operations before income taxes and minority interest................................. 186 73 259 Income tax expense (note 7)................................. (90) (33) (123) Minority interests in losses (earnings) of subsidiaries..... (28) 5 (23) ------ ---- ----- Earnings from continuing operations..................... 68 45 113 Earnings from discontinued operations, net of taxes......... -- 34 34 ------ ---- ----- Net earnings............................................ $ 68 79 147 ====== ==== =====

8 STATEMENT OF CASH FLOWS INFORMATION SIX MONTHS ENDED JUNE 30, 2006

ATTRIBUTED (NOTE 1) ---------------------- INTERACTIVE CAPITAL CONSOLIDATED GROUP GROUP LIBERTY ----------- -------- ------------ AMOUNTS IN MILLIONS Cash flows from operating activities: Net earnings.............................................. $ 114 338 452 Adjustments to reconcile net earnings to net cash provided by operating activities: Cumulative effect of accounting change.................. 87 2 89 Depreciation and amortization........................... 245 88 333 Stock-based compensation................................ 44 9 53 Payments of stock-based compensation.................... (1) -- (1) Noncash interest expense................................ 1 52 53 Share of earnings of affiliates, net.................... (21) (8) (29) Realized and unrealized gains on financial instruments, net................................................... (17) (152) (169) Gains on disposition of assets, net..................... -- (327) (327) Minority interests in earnings (losses) of subsidiaries.......................................... 18 (8) 10 Deferred income tax expense (benefit)................... (83) 151 68 Other noncash charges (credits), net.................... (13) 31 18 Changes in operating assets and liabilities, net of the effects of acquisitions: Current assets........................................ 89 (57) 32 Payables and other current liabilities................ (190) 135 (55) ----- ----- ----- Net cash provided by operating activities........... 273 254 527 ----- ----- ----- Cash flows from investing activities: Cash proceeds from dispositions........................... -- 920 920 Net proceeds from settlement of derivatives............... -- 200 200 Cash paid for acquisitions, net of cash acquired.......... (431) (170) (601) Capital expended for property and equipment............... (99) (42) (141) Net sales (purchases) of short term investments........... 23 (28) (5) Investments in and loans to cost and equity investees..... (2) (139) (141) Other investing activities, net........................... (9) 8 (1) ----- ----- ----- Net cash provided (used) by investing activities.... (518) 749 231 ----- ----- ----- Cash flows from financing activities: Borrowings of debt........................................ 400 -- 400 Repayments of debt........................................ (4) (2) (6) Repurchases of Liberty common stock....................... (341) -- (341) Intergroup cash transfers, net............................ 236 (236) -- Repurchases of subsidiary common stock.................... (159) (3) (162) Other financing activities, net........................... 77 (37) 40 ----- ----- ----- Net cash provided (used) by financing activities.... 209 (278) (69) ----- ----- ----- Effect of foreign currency rates on cash.................... 16 -- 16 ----- ----- ----- Net increase (decrease) in cash and cash equivalents....................................... (20) 725 705 Cash and cash equivalents at beginning of period.... 945 1,001 1,946 ----- ----- ----- Cash and cash equivalents at end period............. $ 925 1,726 2,651 ===== ===== =====

9 STATEMENT OF CASH FLOWS INFORMATION SIX MONTHS ENDED JUNE 30, 2005

ATTRIBUTED (NOTE 1) ---------------------- INTERACTIVE CAPITAL CONSOLIDATED GROUP GROUP LIBERTY ----------- -------- ------------ AMOUNTS IN MILLIONS Cash flows from operating activities: Net earnings.............................................. $ 68 79 147 Adjustments to reconcile net earnings to net cash provided by operating activities: Earnings from discontinued operations................... -- (34) (34) Depreciation and amortization........................... 229 95 324 Stock compensation...................................... 25 (8) 17 Payments of stock compensation.......................... -- (69) (69) Noncash interest expense................................ 1 49 50 Share of losses (earnings) of affiliates, net........... 2 (13) (11) Realized and unrealized losses (gains) on derivative instruments, net...................................... 51 (531) (480) Losses (gains) on disposition of assets, net............ (40) 401 361 Minority interests in earnings (losses) of subsidiaries.......................................... 28 (5) 23 Deferred income tax expense (benefit)................... (94) 111 17 Other noncash charges, net.............................. 29 20 49 Changes in operating assets and liabilities, net of the effect of acquisitions and dispositions: Current assets........................................ 148 (79) 69 Payables and other current liabilities................ (112) 78 (34) ------- ---- ------ Net cash provided by operating activities........... 335 94 429 ------- ---- ------ Cash flows from investing activities: Cash proceeds from dispositions........................... -- 52 52 Premium proceeds from origination of derivatives.......... -- 17 17 Net payments for settlement of derivatives................ -- (14) (14) Capital expended for property and equipment............... (50) (44) (94) Net sales of short term investments....................... -- 201 201 Other investing activities, net........................... (2) (8) (10) ------- ---- ------ Net cash provided (used) by investing activities.... (52) 204 152 ------- ---- ------ Cash flows from financing activities: Borrowings of debt........................................ 800 61 861 Repayments of debt........................................ (1,372) (60) (1,432) Intergroup cash transfers, net............................ 335 (335) -- Repurchases of subsidiary common stock.................... (50) (10) (60) Other financing activities, net........................... 8 66 74 ------- ---- ------ Net cash used by financing activities............... (279) (278) (557) ------- ---- ------ Effect of foreign currency rates on cash.................... (29) -- (29) ------- ---- ------ Net cash provided to discontinued operations: Cash provided by operating activities..................... -- 31 31 Cash used by investing activities......................... -- (47) (47) Cash provided by financing activities..................... -- -- -- Change in available cash held by discontinued operations.............................................. -- 10 10 ------- ---- ------ Net cash provided to discontinued operations........ -- (6) (6) ------- ---- ------ Net increase (decrease) in cash and cash equivalents..................................... (25) 14 (11) Cash and cash equivalents at beginning of period.......................................... 855 532 1,387 ------- ---- ------ Cash and cash equivalents at end of period........ $ 830 546 1,376 ======= ==== ======

10 NOTES TO ATTRIBUTED FINANCIAL INFORMATION (1) The assets attributed to our Interactive Group as of June 30, 2006 include our approximate 98% interest in QVC, Inc., our 100% interest in Provide Commerce, Inc., our approximate 22% ownership interest in IAC/InterActiveCorp and our approximate 19% ownership interest in GSI Commerce, Inc., which we account for as available-for-sale securities and our approximate 20% ownership in Expedia, which we account for as an equity affiliate. Accordingly, the accompanying attributed financial information for the Interactive Group includes our investments in IAC/ InterActiveCorp and Expedia as well as the assets, liabilities, revenue, expenses and cash flows of QVC and Provide. We have also attributed certain of our debt obligations (and related interest expense) to the Interactive Group based upon a number of factors, including the cash flow available to the Interactive Group and its ability to pay debt service and our assessment of the optimal capitalization for the Interactive Group. The specific debt obligations attributed to each of the Interactive Group and the Capital Group are described in note 4 below. In addition, we have allocated certain corporate general and administrative expenses between the Interactive Group and the Capital Group as described in note 5 below. The Interactive Group will focus on video and on-line commerce businesses. Accordingly, we expect that businesses that we may acquire in the future that we believe are complementary to this strategy will also be attributed to the Interactive Group. The Capital Group consists of all of our businesses not included in the Interactive Group, including our consolidated subsidiaries Starz Entertainment Group LLC, On Command Corporation, TruePosition, Inc., FUN Technologies, Inc. and OpenTV Corp. and our cost and equity investments in GSN, LLC, WildBlue Communications, Inc. and others. Accordingly, the accompanying attributed financial information for the Capital Group includes these investments and the assets, liabilities, revenue, expenses and cash flows of these consolidated subsidiaries. In addition, we have attributed to the Capital Group all of our notes and debentures (and related interest expense) that have not been attributed to the Interactive Group. See note 4 below for the debt obligations attributed to the Capital Group. Any businesses that we may acquire in the future that are not attributed to the Interactive Group will be attributed to the Capital Group. While we believe the allocation methodology described above is reasonable and fair to each group, we may elect to change the allocation methodology in the future. In the event we elect to transfer assets or businesses from one group to the other, such transfer would be made on a fair value basis and would be accounted for as a short-term loan unless our board of directors determines to account for it as a long-term loan or through an inter-group interest. (2) Derivative instruments attributed to the Interactive Group are comprised of total return bond swaps and interest rate swaps that are related to the parent company debt attributed to the Interactive Group. (3) The carrying value and unrealized holding gains as of June 30, 2006 of cost investments attributed to the Interactive Group are presented below:

UNREALIZED CARRYING HOLDING VALUE GAINS -------- ---------- AMOUNTS IN MILLIONS IAC/InterActiveCorp...................................... $1,834 269 GSI Commerce, Inc........................................ 115 56 ------ --- $1,949 325 ====== ===

11 (4) Debt attributed to the Interactive Group and the Capital Group is comprised of the following:

JUNE 30, 2006 ---------------------- OUTSTANDING CARRYING PRINCIPAL VALUE ----------- -------- AMOUNTS IN MILLIONS Interactive Group 3.5% Senior Notes due 2006............................ $ 121 121 Floating Rate Senior Notes due 2006................... 1,247 1,247 7.875% Senior Notes due 2009.......................... 670 667 7.75% Senior Notes due 2009........................... 234 235 5.7% Senior Notes due 2013............................ 802 800 8.5% Senior Debentures due 2029....................... 500 495 8.25% Senior Debentures due 2030...................... 902 895 QVC bank credit facility.............................. 1,200 1,200 QVC capital leases.................................... 68 68 ------- ----- Total Interactive Group debt........................ 5,744 5,728 ------- ----- Capital Group 4% Senior Exchangeable Debentures due 2029............ 869 253 3.75% Senior Exchangeable Debentures due 2030......... 810 232 3.5% Senior Exchangeable Debentures due 2031.......... 600 236 3.25% Senior Exchangeable Debentures due 2031......... 551 118 0.75% Senior Exchangeable Debentures due 2023......... 1,750 1,594 Subsidiary debt....................................... 60 60 ------- ----- Total Capital Group debt............................ 4,640 2,493 ------- ----- Total debt.............................................. $10,384 8,221 ======= =====

(5) Cash compensation expense for our corporate employees has been allocated between the Interactive Group and the Capital Group based on the estimated percentage of time spent providing services for each group. Stock-based compensation expense for our corporate employees has been allocated between the Interactive Group and the Capital Group based on the compensation derived from the equity awards for the respective tracking stock. Other general and administrative expenses are charged directly to the groups whenever possible and are otherwise allocated based on estimated usage or some other reasonably determined methodology. Amounts allocated from the Capital Group to the Interactive Group for the six months ended June 30, 2006 and 2005 were $7 million and $2 million, respectively. While we believe that this allocation method is reasonable and fair to each group, we may elect to change the allocation methodology or percentages used to allocate general and administrative expenses in the future. (6) Prior to January 1, 2006, we accounted for compensation expense related to stock options and stock appreciation rights pursuant to the recognition and measurement provisions of Accounting Principles Board Opinion No. 25, "ACCOUNTING FOR STOCK ISSUED TO EMPLOYEES" ("APB Opinion No. 25"). Compensation was recognized based upon the percentage of the options that were vested and the difference between the market price of the underlying common stock and the exercise price of the options at the balance sheet date. The following tables for the six months ended June 30, 2005 illustrate the effect on earnings from continuing operations if we had applied the fair value recognition provisions of Statement of Financial Accounting Standards No. 123, "ACCOUNTING FOR STOCK-BASED COMPENSATION," ("Statement 123") to our options. Compensation expense for SARs and options with tandem SARs is the same under APB Opinion No. 25 and 12 Statement 123. Accordingly, no pro forma adjustment for such awards is included in the following table.

THREE MONTHS SIX MONTHS ENDED ENDED JUNE 30, JUNE 30, 2005 2005 ------------ ---------- AMOUNTS IN MILLIONS Interactive Group Earnings from continuing operations, as reported....................................... $ 20 68 Add stock-based compensation as determined under the intrinsic value method, net of taxes........................................ 1 1 Deduct stock-based compensation as determined under the fair value method, net of taxes.... (4) (7) ----- --- Pro forma earnings from continuing operations.... $ 17 62 ===== === Capital Group Earnings (loss) from continuing operations, as reported....................................... $(146) 45 Add stock-based compensation as determined under the intrinsic value method, net of taxes........................................ -- 1 Deduct stock-based compensation as determined under the fair value method, net of taxes.... (5) (10) ----- --- Pro forma earnings (loss) from continuing operations..................................... $(151) 36 ===== ===

(7) We have accounted for income taxes for the Interactive Group and the Capital Group in the accompanying attributed financial information in a manner similar to a stand-alone company basis. To the extent this methodology differs from our tax sharing policy, differences have been reflected in the attributed net assets of the groups. (8) The Liberty Interactive Stock and the Liberty Capital Stock have voting and conversion rights under our amended charter. Following is a summary of those rights. Holders of Series A common stock of each group are entitled to one vote per share and holders of Series B common stock of each group are entitled to ten votes per share. Holders of Series C common stock of each group, if issued, will be entitled to 1/100th of a vote per share in certain limited cases and will otherwise not be entitled to vote. In general, holders of Series A and Series B common stock vote as a single class. In certain limited circumstances, the board may elect to seek the approval of the holders of only Series A and Series B Liberty Interactive Stock or the approval of the holders of only Series A and Series B Liberty Capital Sstock. At the option of the holder, each share of Series B common stock is convertible into one share of Series A common stock of the same group. At the discretion of our board, Liberty Interactive Stock may be converted into Liberty Capital Stock at any time following the first anniversary of the restructuring. In addition, following certain group dispositions and subject to certain limitations, Liberty Capital Stock may be converted into Liberty Interactive Stock, and Liberty Interactive Stock may be converted into Liberty Capital Stock. 13