Home Shopping Nets Added to Indices


Minneapolis -- Home shopping networks ValueVision
International Inc. and Shop at Home Inc. had their stocks added to the Russell 2000 and
3000 indexes as a result of market-capitalization gains.

ValueVision has benefited greatly from the March investment
by General Electric Co. units NBC and GE Equity. At the time, ValueVision, the
third-biggest home shopper, had carriage to about 15 million homes.

The GE units first bought 19.9 percent of ValueVision for
about $44 million, then increased that stake to 39.9 percent this month by exercising
warrants and buying about $175 million in stock.

NBC also agreed to handle affiliate relations for
ValueVision and, this month, it delivered carriage deals with direct-broadcast satellite
providers DirecTV Inc. and EchoStar Communications Corp. Those deals should raise
ValueVision's full-time carriage to about 23 million homes.

ValueVision's share price has risen from about $10 at the
time of the initial GE investment to $24.63 July 9, when its market capitalization stood
at $642.4 million.

Analysts that favor the stock believe NBC will be able to
bring more subscriber gains, especially as cable systems add capacity with digital
compression. They also noted that NBC has not completed plans yet to make ValueVision a
significant component of its electronic-commerce push.

Shop at Home, meanwhile, has experienced big swings in its
share price. Selling recently at about $10 per share, its 52-week low was $1.88, but its
52-week high, which came in February, was $30.13.

Earlier this month, Nashville, Tenn.-based Shop at Home
sold about 5.5 million shares at $8 per share in a secondary offering, raising more than
$40 million to repay $20 million it borrowed to buy a Bridgeport, Conn., television
station, along with other debt, and to help launch a new collectibles-selling Web site
this fall.

Shop at Home's market capitalization has risen to more than
$300 million.

The Russell 3000 Index measures the performance of the
3,000 largest U.S. companies based on total market capitalization, which represents
approximately 98 percent of the investable U.S. equity market.

The Russell 2000 Index measures the performance of the
2,000 smallest companies in the Russell 3000. More than $100 billion has been invested in
portfolios that use Russell indexes as a model.

The Russell indexes allow investors to track current and
historical market-value performance by specific market segment (large cap or small cap) or
investment style (growth or value).