While always a great time to shop, the holiday season has also been a great time to target non-SHOWTIME subscribers. Last year affiliates participated in a big way- greater than any standard Showtime Networks exclusive campaign in the 4th Quarter. And, the campaign delivered for them- generating a 22% lift over total business as usual activity. Previous in-market testing indicated the Toys "R" Us overlay generated a significant lift over an affiliate's standalone offer. The campaign is consistent with SNI's overall marketing strategy to deliver strong added value partners packaged with flexible creative that help drive affiliate revenue.

According to Showtime Networks' Senior Vice President of Marketing Geof Rochester, "We are thrilled to be partnering with Toys "R" Us for a second year in a row. Last year's campaign was a terrific success for both companies, so when Toys "R" Us approached us this year, we jumped at the chance to team with this great brand again. This is the perfect campaign to capitalize on the momentum following a terrific summer with the launch of our critically-acclaimed new series. Our affiliates will have a lot to offer their customers this fall."

This year, Showtime Networks plans to push this campaign to the next level in a bigger and better way for the 2003 Holiday season. A national incentive sweepstakes will be available to help maximize sales during the campaign period. The incentive will mail to call centers in early September, and will include promotional displays to support awareness of the incentive in participating call centers. Hundreds of prizes, including $5,000 Visa(R) Gift Cards and Vespa Scooters, will be awarded to winning CCP as part of the sweepstakes.

Extensive planning and consideration have been given to surpass last year's campaign results. The acquisition campaign will be supported via customizable direct mail, Direct Response Television (DRTV) and radio spots. Additional tactics include ad slicks, billstuffers, doorhangers, direct sales coupons and additional marketing materials that support SVOD. Electronically, Web banners and customizable HTML emails will push this year's campaign to the next level of public exposure. Consumers will also be alerted to the Toys "R" Us offer via the SHOWTIME website located at SHO.com.

Viewers who subscribe to SHOWTIME will get treated to exclusive box office premieres such as "Spy Kids 2: Island of Lost Dreams" and "Die Another Day" as well as ground breaking original series and including "Dead Like Me" and new episodes of "The Chris Isaak Show."

Showtime Networks Inc. (SNI), which is a wholly owned subsidiary of Viacom Inc., owns the premium television networks SHOWTIME(R), THE MOVIE CHANNEL(TM) and FLIX(R), as well as the multiplex channels SHOWTIME(R) TOO(TM), SHOWTIME(R) SHOWCASE, SHOWTIME EXTREME(R), SHOWTIME BEYOND(R), SHOWTIME NEXT(R), SHOWTIME WOMEN(R), SHOWTIME FAMILYZONE(R) and TMC xtra. SNI also offers SHOWTIME HDTV(R), SHOWTIME ON DEMAND(R) and THE MOVIE CHANNEL ON DEMAND(TM). SNI operates and manages the premium television network SUNDANCE CHANNEL(R), which is owned by SNI, Robert Redford and Universal Studios. All SNI feeds provide enhanced sound using Dolby Digital 5.1. SNI markets and distributes sports and entertainment events for exhibition to subscribers on a pay-per-view basis through SHOWTIME(R) PPV. Additionally, the advertiser- supported television network SHOWTIME EXTREME(R) is available in Spain through a joint venture with Media Park and the advertiser-supported television network SHOWTIME is available in Turkey through a joint venture with UK-based Zone Vision.