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Discovery Looks to Expand Kids' Presence

Seeking to become more of a force in the kids' market, Discovery Kids will
bolster its programming and consumer marketing efforts.

The push behind the digital network, which is now in some 15 million U.S.
homes, is aimed at driving further distribution over the next three years,
according to Discovery Communications Inc. president and chief operating officer
Judith McHale.

As part of the strategy, Discovery Kids will invest in programming from
top-flight kids' producers The Jim Henson Co., Tom Lynch Co. and PorchLight
Entertainment

Aiming to add audience in the preschool segment, Discovery will relaunch the
'Ready, Set, Learn' block on The Learning Channel in the fourth quarter, with
series including Henson's Animal Jam and itsy bitsy Entertainment's
NiNi's Treehouse
. The block will also air commercial-free on Discovery
Kids.

While the company marshals its resources behind the digi-net, it will shut
the screen on its 'Discovery Kids' weekend programming blocks, which air on
flagship Discovery Channel Saturdays and Sundays from 9 a.m. until noon, as of
June 30.

'We plan to make Discovery Kids the most entertaining place for kids to
experience the real world,' McHale said in a prepared statement. 'We have
developed our kids' programming on the Discovery Channel and in the early years
of the Discovery Kids Channel, and we see enormous potential for growth.'

'With considerable investments in programming, marketing and robust
distribution commitments from our affiliate partners, our intention is to create
a complete kids' destination -- a new and distinctive place on the dial that
kids can call their own,' added Discovery Networks U.S. president Jonathan
Rodgers in a prepared statement.