Bear Stearns Media Conference 2008SKY IN THE UK ENTERTAINMENT & COMMUNICATIONS LANDSCAPE

March, 2008

SKY IN THE UK ENTERTAINMENT & COMMUNICATIONS LANDSCAPE

March, 2008

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Forward-looking StatementsThis document contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 with respect to the Group's financial condition, results of operations and business, and management’s strategy, plans and objectives for the Group. These statements may include, without limitation, those that express forecasts, expectations and projections with regard to the potential for growth of free-to-air and pay-TV, advertising growth, DTH subscriber growth, Multiroom and Sky+ penetration, telephony and broadband penetration, DTH revenue, profitability and margin growth, cash flow generation, programming costs, subscriber management costs, administration costs and other costs, and marketing expenditure, capital expenditure programmes and proposals for returning capital to shareholders.

These statements (and all other forward-looking statements contained in this document) are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Group's control, are difficult to predict and could cause actual results to differ materially from those expressed or implied or forecast in the forward-looking statements. These factors include, but are not limited to, the fact that the Group operates in a highly competitive environment, the effects of government regulation upon the Group's activities, its reliance on technology, which is subject to risk, change and development, its ability to continue to obtain exclusive rights to movies, sports events and other programming content, risks inherent in the implementation of large-scale capital expenditure projects, the Group’s ability to continue to communicate and market its services effectively, and the risks associated with the Group's operation of digital television transmission in the UK and Ireland.

Information on the significant risks and uncertainties are described in the "Risk Factors" section of Sky's Interim Report on form 6-K for the half year ended 31 December 2007. Copies of the Interim Report on form 6-K are available from the British Sky Broadcasting Group plc web page at www.sky.com/corporate. All forward-looking statements in this presentation are based on information known to the Group on the date hereof. The Group undertakes no obligation publicly to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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JUSTIN FIELDERDirector, Research Design & Customer Technology

JUSTIN FIELDERDirector, Research Design & Customer Technology

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Core Strengths Driving Customer Growth

• Capitalising on core capabilities:

– Delivering high quality content over flexible infrastructure

– Innovative products

– Value

– Customer experience

– Trusted brand

• Customers are responding:

– 8.8 million customers have chosen Sky

– One in two already choose an additional product

– Strong start to broadband and telephony

Major network POPs

Existing Easynet exchanges

New exchanges

Broadband and Telephony – Challenging the Incumbents

• Largest fibre optic all-IP network in the UK

– Durability to meet customers’ future needs

• 70% coverage c.1,200 exchanges

• Value for customers

• Strong response from customers

– Over 1.2 million broadband customers

– Over 1 million telephony customers

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High Bandwidth Satellite• National reach• Unlimited bandwidth• Cost efficient, scaleable

PVR• Cost Effective• Flexible• Expandable

Broadband • National reach• Two way connectivity• Ease and cost effectiveness

of network build

High Bandwidth Satellite• National reach• Unlimited bandwidth• Cost efficient, scaleable

Broadband • National reach• Two way connectivity• Ease and cost effectiveness

of network build

PVR• Cost Effective• Flexible• Expandable

Hybrid Network

Satellite Broadband On-demand Content

PVR

Unified Customer Interface

Unified TV Customer Interface

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Well Positioned

• Hybrid network

• Executing on network advantages

• Well positioned to grow

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STEPHEN VAN ROOYENDirector, Product Management

STEPHEN VAN ROOYENDirector, Product Management

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Well Positioned

ValueSky TV

Sky BroadbandSky Talk

ContentSky One

Sky Sports

Sky Movies

HD programming

CustomerExperience

SimplePersonalReliable

ProductSky+

Sky HDSky Anytime

ValueSky TV

Sky BroadbandSky Talk

Brand

Customer Satisfaction

1111

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Products: Control and Flexibility of Content with Sky+

• Over 3 million Sky+ households

• 35% penetration of customer base

• Benefits

– High satisfaction

– Lower churn

– Strong advocacy

• Strong usage

– 18% viewing share in Sky+ homes (1)

– 335 million instances of time-shifting using Sky+ in December (2)

Sky+ Net Customer Additions (000)

168254 276

434

23%

35%

8%

16%

Q2 05 Q2 06 Q2 07 Q2 08

Net Customer Additions Penetration of customer base

129

4%

Q2 04

(1) Source: Sky View Oct – Dec 2007(2) Source: Sky View Dec 2007

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Products: High Definition TV

• 15m HD ready TVs by 2010 (1)

• The UK’s only national HD provider

• 17 HD channels

• Over 6,500 hours of HD output per month

• An HD channel uses c. 15-20mbs of bandwidth

• 422,000 customers

• Fastest ever take-up of additional TV product

(1) Source: Gfk research

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Products: Accessibility of Content with Sky Anytime

• More value for customers through core TV subscription

• Sky Anytime on TV

– Available in c.2m homes

– 6th most watched channel in Anytime TV homes

• Sky Anytime on PC

– Broadest library of movies, entertainment and sports programming

– Over 2m movie downloads to date

– Over 1m sports and entertainment downloads

Accessibility of Content

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Sky+

Sundays 9pm ep

12%

Red buttonDirectors cut

5%

Sunday 9pm

38%

All showings

2%

Anytime (TV)

4%

repeats

21%

repeats

16%

Ross Kemp in Afghanistan

Source: Sky View/TNS

Anytime (PC)

2%

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Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07

Value: Leading Broadband Customer Growth

Broadband Quarterly Net Additions (000)

0

50

100

150

200

250

300

350

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Value: Challenging the Incumbents in Telephony

Talk Net Quarterly Additions In 2007 (000)

Calendar quarters 1-4.

-100

-43

132

-165

-46

171

-223

14

153

236

-264

52

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Demand

DTH Sky+ Multiroom HD Broadband Telephony

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2005 2006 2007 2008

0.6m+

0.8m+

1.2m+

1.6m+

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Well Positioned to Grow

• Differentiated network infrastructure

• Customer growth and product penetration

– Exceptional quality and range of content and products

– Exceptional value and transparent pricing for customers

– Superior customer experience

– Trusted brand

• Significant headroom for growth

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