TOP TEN ADVERTISERS JULY 98 - JUNE 99 BASS PLC BRITISH TELECOM CADBURY SCHWEPPES CENTRAL OFFICE OF INFORMATION FORD MOTOR COMPANY MARS UK PROCTER & GAMBLE UK SCOTTISH COURAGE UNILEVER PLC VOLKSWAGON GROUP UK

Advertising BSkyB has evolved as a leading multimedia company. As a result, we have been able to develop a truly integrated multimedia advertising platform. No other UK broadcaster can offer such a comprehensive range of advertising opportunities. All from a single point of sale. Although we operate in a highly competitive marketplace, we succeeded in growing advertising revenues to £217 million in the last year, outperforming the estimated revenue growth in the UK television market of 8%. In fact, we’ve increased advertising revenues by 96% in just three years. This achievement is due to the strength of our programming, the profile of our audience and the ability of our sales team. A desirable environment Advertisers are attracted to BSkyB because our channels deliver viewers with a desirable demographic profile. We also create unique advertising opportunities that inspire enormous demand – whether they’re through Premiership football, British television premiere episodes of Friends or the opportunities offered by Sky News. For example, the recently launched Sky News at Ten bulletin is particularly appealing to advertisers who find it increasingly difficult to target their customers using alternative television advertising. Satellite and cable households are younger and more affluent than those in the UK as a whole. The Sky channels are particularly effective for advertisers that target traditionally elusive audience groups. Groups that are hard to reach on other television channels, such as young adults and upmarket men. Of course, we have a finite inventory of commercial audience to sell. The BSkyB sales team ensures that it is sold and apportioned to optimum effect in the manner that maximises revenue. As a result, we have a different category profile to the television advertising market as a whole. For example, our largest category is motoring while the food category is the biggest television spender overall. Sponsorship sales We are also a market leader in sponsorship sales. In fact, sponsorship accounts for a greater proportion of BSkyB’s advertising revenues than for any other major broadcaster. The most successful sponsorships are those that have a synergy between sponsor and programme. Our sponsorship department works hard to identify opportunities and the clients that will benefit from them most. Programme sponsorship can be a powerful tool. The sponsorship of ‘The Simpsons’ by Domino’s Pizza increased sales by 29% and won a Gold Media Week award for media effectiveness. Broadcast Sponsorship The Ford Motor Company are in their seventh year as sponsors of the FA Carling Premiership on Sky Sports. On-air advertising BSkyB's contribution to Ahheuser-Busch's television campaigns in Britain has been significant over the years given the common target audience of young men. Innovation BSkyB’s reputation for innovation is certainly evident within the sales team. We use our expertise to find an advertising opportunity in virtually every technological development. Well over 60 key brands are regular users of the Sky Online Internet service. The June launch of the Skynow free ISP and the Internet portal has opened up even more opportunities. Growth in this sector is dynamic. The Sky Online Internet service began the year with 3 million weekly page impressions and ended with 8.5 million. A further innovation came with the launch of a dedicated Sky Business channel for the pub industry in August 1999. This new service features the best Sky Sports live events, combined with programming tailor-made for the pub environment. It enables advertisers to communicate directly with pubgoers, who are predominantly young males, for the first time. Advertisers will be able to incorporate point of sale material to maximise impact. The next major development will be interactive advertising. This will begin within a few months of the launch of Open, which will allow viewers to respond directly to commercials, for example, requesting a brochure by using their SkyGuide remote control. A strong and convincing offer Our strategy recognises that consumers are becoming increasingly sophisticated consumers of media. The most effective advertising will span media by working creatively to develop the strengths of each. BSkyB offers a variety of in and out of home advertising opportunities, embracing spot advertising, sponsorship, interactivity, Internet and magazines to form a single integrated advertising proposition. Together they create a strong and convincing offer.