For the first quarter of 2001, Viacom’s reported revenues rose 90% to $5.75 billion from $3.03 billion in the same quarter last year, and reported EBITDA (earnings before interest, taxes, depreciation and amortization) increased 145% to $1.15 billion, from $470 million in the first quarter of 2000.

Reported free cash flow for the first quarter of 2001 was $586 million, up 169% from $218 million in the same quarter last year and after-tax cash flow of $691 million climbed 114% over after-tax cash flow of $323 million for the same quarter last year. The Company considers free cash flow to be an important measure of performance because it reflects the resources available to the Company after interest, taxes and capital expenditures that can be used to invest in the business, acquire additional assets, strengthen the balance sheet and repurchase stock.

Viacom’s first quarter 2001 performance was led by the sharply higher results in the Cable Networks, Television and Entertainment segments. Cable Networks reported EBITDA increased 53% to $359 million and Television reported EBITDA rose 168% to $315 million. Cable Networks posted a 17% increase in pro forma EBITDA to $365 million, versus $312 million in the first quarter of 2000. Television pro forma EBITDA rose 14% to $315 million, versus $276 million in the same quarter last year. The Entertainment segment reported and pro forma EBITDA increased 17% to $64 million, compared with $55 million in the first quarter of 2000.

Infinity outperformed the out-of-home market and also made major EBITDA contributions in the quarter, despite challenges created by the steep fall-off of advertising by Internet companies, which created an unusually robust advertising market during the first half of last year.

Viacom’s results for the first quarter of 2001 highlight the Company’s ability to deliver sustained growth and are another demonstration that the internal growth and acquisition strategies put into effect with the original acquisition of Viacom continue to pay off in rich rewards for stockholders, said Sumner M. Redstone, Chairman and Chief Executive Officer of Viacom. The breadth of our high-growth, high-margin businesses, our leadership positions and strong brands enable us to produce superior short-term and long-term results, even while we continue to strengthen our balance sheet and enhance value for stockholders through our share repurchase programs.

Mel Karmazin, President and Chief Operating Officer of Viacom, said, We are pleased with our record first quarter financial results, particularly our ability to generate significant free cash flow growth at a rate well beyond any other company in our industry. Other notable accomplishments in the quarter included the swift integration of the BET acquisition, the breakthrough programming successes of the CBS Network, double-digit advertising increases at MTV, VH1 and BET, the successful relaunch of the TNN cable network, the box-office strength of the Paramount film lineup and the acquisition of the outstanding shares of Infinity. All these significant achievements will benefit the Company well into the future.

With our powerful and highly integrated media assets that are in the forefront of the highest growth sectors and a management team completely focused on generating superior returns in any environment, Mr. Karmazin added, Viacom has all the attributes necessary to generate significant future growth for stockholders.