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CTV Inc. Releases Results for the Quarter ended November 30, 1999

TORONTO,Jan. 18 2000 --CTV's income before interest, depreciation,
amortization and income taxes (EBITDA) for the three months ended November 30,
1999, was $47,300,000, equal to EBITDA recorded in the same period last year.
This was achieved despite a two percent revenue decline in the quarter
compared to the same period last year, due to continuing control of costs
resulting in reduced operating and administrative expenses.
    Total revenue for the three months was $151,590,000 compared to
$154,939,000. The revenue softness was in conventional television, which was
down four percent compared to the previous year's first quarter. This is in
part due to the building strength of the specialty channel sector. All of the
Company's specialty channels had significant percentage revenue increases
during the quarter, however only CTV Newsnet and The Comedy Network are
consolidated in the Company's results. Sportsnet and OLN are not consolidated,
as the Company's interest in these channels is less than 50%. CTV's 68%
interest in NetStar is also not consolidated as the transaction is still
before the regulators.
    Ratings for the Company's conventional television stations improved
strongly during the first quarter, achieving some of their best numbers in
years. In the competitive Toronto-Hamilton market, CTV achieved a 15%
improvement in the key 18 to 49 age group, making CTV number one in the
Toronto market according to A.C. Nielsen.
    These ratings improvements reflect the break-out hit Who Wants to be a
Millionaire, and the positive effect this show had on the rest of the
schedule. Strong numbers for Ally McBeal, Law & Order, ER and Jeopardy were
also achieved. New shows like The West Wing, Third Watch and Law & Order:
Special Victims Unit are also delivering very promising results. This bodes
well for revenue improvements in subsequent quarters of this fiscal year.
    EBITDA margin improved from 30.5% to 31.2% during the quarter. Net income
for the three months was $14,135,000 compared to $16,316,000 last year. Higher
interest expense arising from the NetStar transaction and the inclusion of the
Company's share of CTV Sportsnet's loss for the period accounted for the
    CTV Sportsnet celebrated its first anniversary on October 9, 1999, having
solidified its position as one of the highest rated specialty channels in
Canada. The Company accounts for its interest in Sportsnet using the equity
method and commenced recording its 40% share of Sportsnet's results September
1, 1999, after completion of the start-up period. Sportsnet is meeting
operating expectations and is anticipated to break even in terms of cash flow
next fiscal year.
    The Company's specialty channel interests, while barely two years old,
are becoming enormous value creators. When NetStar is added, subject to
regulatory approval, the combination of specialty and conventional television
assets will be the finest in the country.
    Earnings per share were 24 cents, compared to 38 centes in the same
period in the prior year. Weighted average shares outstanding for the period
increased from 42,700,500 to 57,872,500 shares outstanding. Cash flow from
operations per share was 70 cents compared to $1.00 last year. The Company is
accounting for its investment in NetStar on an equity basis while the
acquisition is proceeding through the regulatory process. If NetStar's results
were consolidated with the Company's results, cash flow per share would have
amounted to 88 cents during the first quarter.
    During December 1999, the Company presented its application to the CRTC
at a public hearing to acquire a 68% controlling interest in NetStar
Communications Inc. The Competition Bureau has advised the Company that it is
reserving its final decision until the outcome of the CRTC proceedings. A
decision on the Company's application is anticipated by early March.
    Also during December 1999, the Company announced the licencing of
technology from Blue Zone Productions Ltd., of Vancouver, which will create an
interactive and broadband Internet site for CTV news, expected to be
operational by September, 2000, that will provide consumers with full motion
video and news search capabilities, both in terms of text and video.
    During January 2000, Sportsnet and ExtendMedia launched,
which provides high quality video streaming over the Internet as well as
scores, statistics and standings. The site has e-commerce capabilities
enabling visitors to purchase a variety of sports memorabilia, equipment and
clothing as well as other products and services. The site complements CTV
Sportsnet, providing viewers with a broadened entertainment experience and
creating new marketing opportunities for the Company's customers.

    Ivan Fecan President and Chief Executive Officer

                                  CTV INC.

                    INTERIM FINANCIAL REPORT (unaudited)
                FOR THE THREE MONTHS ENDED NOVEMBER 30, 1999

                     (With Comparative Figures for 1998)



                                                             THREE MONTHS
                                                          ENDED NOVEMBER 30

                                                          1999        1998
                                                          ----        ----
    Revenue:                                               $ (thousands) $
      Net airtime                                        140,695     145,826
      Production, distribution and sundry                  6,119       5,257
      Subscriber                                           4,776       3,856
    Total Revenue                                        151,590     154,939
      Programming and production                          80,427      84,270
      Selling and administrative                          23,863      23,419
    Operating and administrative expenses                104,290     107,689
    Income before interest, depreciation,
     amortization, other and income taxes                 47,300      47,250
      Interest                                             7,787       4,520
      Depreciation                                         6,786       6,901
      Amortization                                         3,320       3,264
    Income before income taxes                            29,407      32,565
    Income taxes                                          14,332      15,987
    Income before the following                           15,075      16,578
    Equity in income of investees                           (650)        (68)
    Minority interest                                       (290)       (194)
    Net income                                            14,135      16,316
    Weighted average of shares outstanding (000's)        57,873      42,701

    Earning per share                                    $  0.24     $  0.38




                                                             THREE MONTHS
                                                          ENDED NOVEMBER 30

                                                          1999        1998
                                                          ----        ----
                                                           $ (thousands) $

    Operating activities:
    Net income                                            14,135      16,316
    Add (deduct) items not affecting cash:
      Depreciation, amortization and other                11,641      10,422
      Equity in income of investees                          650          68
      Minority interest                                      290         194
      Deferred income taxes                               14,079      15,786
    Cash flow from operations                             40,795      42,786
    Net change in non-cash operating items               (73,911)    (86,588)
    Cash provided by (used in) operating activities      (33,116)    (43,802)
    Investing activities:
      Purchase of capital assets                          (3,715)     (5,893)
    Cash (used in) investing activities                   (3,715)     (5,893)
    Financing activities:
      Increase in long term bank indebtedness             36,831      49,695
    Cash provided by financing activities                 36,831      49,695
    Net increase in current bank indebtedness
     during the period                                       -           -
    Current bank indebtedness, beginning of period           -           -
    Current bank indebtedness, end of period                 -           -
    Weighted average of shares outstanding (000's)        57,873      42,701

    Cash flow from operations per share before net
     change in non-cash operating items                  $  0.70     $  1.00


For further information: R.A. Fillingham, C.A., Executive
Vice-President, Chief Financial Officer and Secretary, CTV Inc., Tel.:
(416) 332-5020, Fax.: (416) 332-5022


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