LOS ANGELES, April 2, 1998 - Peter Chernin, President and COO of News Corporation and Chairman and CEO of the Fox Group, announced today that 20th Century Fox has entered into a far-reaching agreement with Lucasfilm Ltd. to distribute the next three Star Wars films, which are prequels to the original Star Wars trilogy. Fox will handle the worldwide theatrical and video distribution for all three of the upcoming films. In addition, Fox Broadcasting Company has licensed the network broadcasting rights to the first of the new films, tentatively titled "Episode I."

Peter Chernin stated: "The biggest thrill of any motion picture executive is to touch greatness. At Twentieth Century Fox, it has been a tremendous joy to have been a part of George Lucas' groundbreaking Star Wars Trilogy. It is one of the privileges of my career that Fox will once again join George Lucas and Lucasfilm to bring the first three chapters in this incredible saga to the world."

George Lucas stated: "I'm delighted that we can continue our relationship with Fox through all six of the Star Wars films. We all look forward to working with the great team that Peter has built."

The new films are Episodes I, II, and III of the Star Wars saga. Episodes IV, V, and VI - Star Wars: A New Hope, The Empire Strikes Back, and Return of the Jedi - were released by Fox in 1977, 1980, and 1983 respectively. In 1997, on the twentieth anniversary of Star Wars, 20th Century Fox released the Star Wars Trilogy Special Edition to theaters around the world.

Bill Mechanic, Chairman and CEO of Fox Film Entertainment, stated: "Fox and Lucasfilm created history last year with the successful release of the Star Wars Trilogy Special Edition. We not only achieved amazing results but moreover sparked a fervor for the Star Wars movies and characters."

Gordon Radley, President of Lucasfilm Ltd., stated: "Choosing the right distribution partner was a critical decision for us. Fox has proven to be an outstanding world-wide film and video distributor. We've enjoyed working very closely with Bill, Tom Sherak, and their talented colleagues on the world-wide theatrical and video releases of the Special Edition."

Tom Sherak, Senior Executive Vice President of Fox Filmed Entertainment and Chairman, 20th Domestic Film Group, commented: "Star Wars is a classic story that imparts values and themes that everyone can relate to. The saga is an important part of Fox's heritage and an intrinsic thread in our historic tapestry."

The original Star Wars trilogy told the story of Luke Skywalker, a young farmboy who became a hero in the struggle to overthrow an evil empire and had to confront one of the Empire's staunchest henchmen, his own father, Darth Vader. The new Star Wars trilogy will go back in time a full generation to reveal the origins of Darth Vader. In Episode I Darth Vader is a hopeful 9 year old boy named Anakin Skywalker and Obi-Wan Kenobi is a brash young Jedi Knight. This first chapter in the Star Wars saga follows Anakin's journey as he pursues his dreams and confronts his deepest fears in the midst of a galaxy in turmoil.

Episode I was shot in England last summer and is currently in post-production at Skywalker Ranch and Industrial Light & Magic in Marin County, California. The film was written and directed by George Lucas, produced by Rick McCallum and stars Liam Neeson, Ewan McGregor, Natalie Portman, and Jake Lloyd. Additional cast members include Ian McDiarmid, Samuel L. Jackson, Terrence Stamp, and Pernilla August. Episode I is scheduled to be released in the United States in May 1999.

20th Century Fox is a unit of Fox Filmed Entertainment, a News Corporation Company.

Lucasfilm Ltd. is one of the leading film and entertainment companies in the world. Lucasfilm Ltd.'s businesses include George Lucas' film and television production and distribution activities as well as the business activities of the THX Group. Lucasfilm's feature films have won 17 Oscars and received 56 Academy Award nominations, and its television projects have won 12 Emmy Awards.