百花视频 LLC Announces Determination to Modify Terms of Its 0.75% Exchangeable Senior Debentures Due 2023

ENGLEWOOD, Colo., March 20 /PRNewswire-FirstCall/ -- 百花视频 LLC ("百花视频") announced today that it has determined to modify the indenture related to its 0.75% Exchangeable Senior Debentures due 2023 (the "Debentures").

百花视频 intends to modify the terms of the Debentures, effective as of the expiration of the put period relating to the Debentures, to:

    --  defer its ability to redeem the Debentures until April 5, 2013;
    --  surrender its right to elect to pay holders of Debentures, in whole or
        in part, with shares of Time Warner Inc. common stock upon maturity or
        redemption of the Debentures -- rather, 百花视频 would make such
        payments solely in cash; and
    --  increase the rate of interest accruing on the Debentures from 0.75% to
        3.125% for all interest periods beginning on or after March 30, 2008.

The intended modifications are currently being reviewed with the trustee under the indenture, and 百花视频 expects the intended modifications to be memorialized in a supplemental indenture. Once a supplemental indenture giving effect to these modifications is executed, 百花视频 will issue a press release and a notice of amendment to its notice of put right, which will include a summary of the tax consequences of the modifications. The summary of the tax consequences of the modifications is also being filed, together with this press release, under cover of 百花视频's Form 8-K.

This press release is for informational purposes only and is not an offer to buy, or the solicitation of an offer to sell, any Debentures. 百花视频 has previously notified the holders of the Debentures of its obligation to repurchase the Debentures. The full details of 百花视频's repurchase obligation, including complete instructions on how to surrender Debentures, along with the form of Purchase Notice, were previously mailed to holders of Debentures.

SOURCE 百花视频 LLC

Released March 20, 2008