Dividend of Series C Common Stock 2014

Series C Dividend Q&A

August 2014

Record date for distribution: July 28, 2014
Date of distribution: August 6, 2014
First trading date: August 7, 2014

Transaction: On August 6, 2014, holders of our common stock received a dividend of one share of Series C commo n stock for each share of Series A, Series B and Series C common stock held on the record date (the "Dividend").

August 7, 2014, Trading Activity:

Series of Common Stock Opening Close Average1
Series A (DISCA) $43.25 $40.98 $41.56
Series B (DISCB) $42.35 $42.35 $42.35
Series C (DISCK) $41.17 $39.78 $40.48

August 7, 2014, Basis Allocation:

Series of Common Stock Shares Average1 Percent
Distribution of Series C to Series A Holders
Series A (DISCA) 1.00 $41.56 50.66%
Series C (DISCK) 1.00 $40.48 49.34%
Distribution of Series C to Series B Holders
Series B (DISCB) 1.00 $42.35 51.13%
Series C (DISCK) 1.00 $40.48 48.87%
Distribution of Series C to Series C Holders
Series C (DISCK) 1.00 $40.48 50.00%
Series C (DISCK) 1.00 $40.48 50.00%

1For these purposes, "average" prices indicate the volume-weighted average price for each series of stock on the first day of trading, August 7, 2014.

This is not tax advice. Discovery is providing an example of how to allocate a shareholder's aggregate tax basis in each pre-Dividend Discovery Series A, Series B or Series C common stock between such common stock and the Class C common stock distributed in the Dividend. This example is provided solely for illustrative purposes and as a convenience because shareholders and their tax advisors may find it useful when establishing their specific tax positions. Please remember that Discovery does not provide its shareholders with tax advice, and this illustrative example is not intended to provide tax advice. Discovery encourages its shareholders to consult with their own tax advisors with their specific questions pertaining to their own tax positions.

Form 8937