Viacom Lowers Full-Year Guidance - Multichannel

Viacom Lowers Full-Year Guidance

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Viacom Inc. revised its full-year revenue and earnings guidance Wednesday,
saying the recovery in the local advertising market is not as brisk as it had
expected.

In a statement issued Wednesday morning, Viacom said that while the economic
recovery has resulted in a robust national advertising market, "the pace of
recovery in local advertising markets going into the fourth quarter is not as
rapid as had been anticipated."

Viacom said it now expects mid- to high-single-digit growth in revenues and
operating income for the full year, versus its earlier guidance of
high-single-digit growth for revenues and double-digit growth for operating
income.

In addition, the company now expects to deliver low- to mid-teen growth in
net earnings and earnings per share for full-year 2003, versus its earlier
guidance of mid-teen growth.

Viacom said it still expects to report record revenue, operating income, net
earnings and earnings per share in 2003, as well as strong growth for 2004.

In the statement, the company said it is well-positioned to reap the benefits
of an expected improvement in local advertising markets in 2004, driven by an
improving economy, political advertising and the Super Bowl on CBS.

Viacom stock fell $1.42 each (3.5%) Wednesday to $38.90
per share.

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