MAIN NEWS HEADLINES
February 28 – March 6, 2008 Edition

Simon & Schuster
Revenues Slump in Fourth
Quarter; Up for Full Year

NEW YORK, NY/2/26/2008–Simon & Schuster’s revenues for the fourth quarter of 2007 decreased 4% to $242.3 million from $252.5 million for the same prior-year period, as best-selling titles in the fourth quarter of 2007, including YOU: Staying Young by Michael F. Roizen and Mehmet C. Oz, did not match contributions from prior year titles, which included YOU: On a Diet by Michael F. Roizen and Mehmet C. Oz and Lisey’s Story by Stephen King.

However, revenues for the full 2007 year increased 10% to $886.1 million from $807.0 million for 2006 reflecting higher sales from best-selling titles, including The Secret by Rhonda Byrne, YOU: Staying Young by Michael F. Roizen and Mehmet C. Oz and Become A Better You by Joel Osteen.

For the quarter, Publishing OIBDA and operating income decreased 24% to $29.5 million and 26% to $27.0 million, respectively, reflecting the decline in revenues and higher employee-related and digital archive costs.

For the full year Publishing OIBDA and operating income increased 25% to $97.2 million and 29% to $88.1 million, respectively, driven by the revenue increase and lower bad debt expense.

Simon & Schuster’s performance figures were part of owner CBS Corporation’s financial report for the fourth quarter and full year. CBS Corporation (NYSE: CBS.A and CBS) results for the fourth quarter and full year ended December 31, 2007.

CBS revenues of $3.76 billion for the fourth quarter of 2007 decreased 3% from $3.88 billion for the same quarter last year. The television and radio station divestitures, the non-renewal of several marginally profitable outdoor transit contracts, and record political advertising sales in the fourth quarter of 2006 negatively impacted the fourth quarter revenue comparison by 4%.

Revenues of $14.07 billion for the full year 2007 decreased 2% from $14.32 billion for 2006. The absence of UPN, the television and radio station divestitures and the non-renewal of several marginally profitable outdoor transit contracts negatively impacted the full year revenue comparison by 3%.

Revenues in 2007 were favorably impacted by the 2007 telecast of Super Bowl XLI and growth at Outdoor and Publishing. OIBDA of $3.08 billion for 2007 increased 1% from $3.05 billion for 2006 and operating income of $2.62 billion for 2007 also increased 1% from $2.61 billion for 2006. Stock-based compensation expense was $106.6 million for 2007 versus $64.3 million for 2006.

"I’m very pleased that CBS has turned in another solid quarter while making significant strides in the expanding interactive marketplace," said Sumner Redstone, Executive Chairman, CBS Corporation. "At the same time, the Company remained steadfast in delivering on its promises and returning significant value to investors. Leslie and his team continue to lead the Company with distinction, capitalizing upon our strength today and positioning CBS for success in the months and years to come."

"We finished 2007 with our businesses well poised to increase revenues and profits in 2008 and beyond," said Leslie Moonves, President and Chief Executive Officer, CBS Corporation. "In Television, I’m particularly pleased with the recent resolution of the WGA strike, which has restored stability to the network season. Meanwhile, Outdoor and Publishing had exceptionally strong performances for the year, with Outdoor picking up momentum to deliver a strong double-digit OIBDA gain in the fourth quarter.

Our businesses produced a significant amount of free cash flow and, during the year, we returned $4 billion of cash to shareholders through a combination of dividends and share repurchases. At the same time, we used a prudent portion of our cash to invest in higher-growth properties like the online social networking community Last.fm and digital outdoor displays both domestically and overseas."