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British Sky Broad. (SKY)

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Friday 17 November, 2006

British Sky Broad.

BSkyB Buys 17.9% of ITV PLC

British Sky Broadcasting Group PLC
17 November 2006

                       British Sky Broadcasting Group PLC

                        Acquisition of Shares in ITV PLC

British Sky Broadcasting Group plc ('BSkyB') announces that it has acquired a
stake in ITV plc ('ITV'). BSkyB has today acquired 696 million shares,
representing 17.9 per cent of the issued share capital of ITV, at a price of 135
pence per share. The total consideration amounts to approximately GBP 940
million, which will be funded from the group's existing cash balances and its
currently undrawn revolving credit facility.

BSkyB wishes to explore options to create value in the interests of both BSkyB's
and ITV's shareholders. BSkyB believes that ITV is one of Europe's premier
broadcasting and production businesses, and holds substantial potential for
long-term value creation. This acquisition of shares has taken place without the
prior knowledge of the ITV board of directors, but BSkyB has today communicated
to ITV's board its intention to be a supportive shareholder.

BSkyB has no intention of acquiring shares that would result in BSkyB's stake
exceeding 19.9 per cent or making an offer for the whole of ITV's remaining
share capital.

BSkyB notes that under Section 350(3) and Schedule 14 of the Communications Act
2003, BSkyB is prohibited from controlling an interest of more than 20 per cent
in ITV plc.

A conference call for analysts and investors will be held at 18:00 p.m. (GMT)
today. The dial-in number is +44 20 7162 0025.


British Sky Broadcasting Group plc

Andrew Griffith 020 7705 3118
Robert Kingston 020 7705 3726

Matthew Anderson 020 7705 3267

Roland Rudd 020 7251 3801
Alice Macandrew 020 7251 3801

Morgan Stanley & Co. Limited (Financial Adviser):
Scott Matlock 020 7425 5000
Henry Stewart 020 7425 5000
Hugo Baring 020 7425 5000

Morgan Stanley and Co International Limited (Joint Corporate Broker to BSkyB):
Nick Wiles 020 7425 8000
Tim Pratelli 020 7425 8000

Merrill Lynch International (Joint Corporate Broker to BSkyB):
Mark Astaire 020 7628 1000
Patrick Bowes 020 7628 1000

Morgan Stanley & Co. Limited is acting exclusively for British Sky Broadcasting
Group plc and no one else in connection with the matters described in this
announcement and will not be responsible to any other person for providing the
protections afforded to clients of Morgan Stanley & Co. Limited nor for
providing advice in relation to the matters described in this announcement.

                      This information is provided by RNS
            The company news service from the London Stock Exchange