EDEN PRAIRIE, MN -- (MARKET WIRE) -- 01/07/2009 -- ShopNBC (NASDAQ: VVTV), the premium lifestyle brand in electronic retailing, today announced cost reduction actions for fiscal 2009. These actions include an organizational restructuring and an update on the renewal of its cable and satellite distribution agreements.

The Company said it has restructured its organization and taken other cost reduction actions to bring greater focus on profitability, accountability and efficiency in key business units. As a result, the Company's salaried work force was reduced by approximately 11%, which is effective immediately. This represents a total reduction in the salaried workforce of 27% from fiscal 2007. Impacted team members were offered competitive severance and outplacement services. Additionally, the Company will suspend its 401(k) match for fiscal 2009, and there will be a salary freeze with no merit pay increases in the coming fiscal year.

"The steps taken to resize our organization for 2009 are difficult but necessary," said Keith Stewart, President and COO of ShopNBC. "Going forward, we will continue to aggressively explore and implement all appropriate cost reduction measures. By reducing our cost structure today, we will be able to focus on our long-term objectives of better serving our loyal customers and achieving profitable growth."

The Company also reported it is making meaningful progress on the renewal of its cable and satellite distribution agreements. To date, the Company has renegotiated agreements covering 18 million homes and achieved competitive rates for these homes. The Company remains in ongoing negotiations with cable operators that represent the majority of the households currently up for renewal and expects to provide a more complete status update before the end of this month.

Added Stewart, "We are pleased with how our negotiations are proceeding. To date, we have been successful in preserving our distribution footprint, which is important for our future growth as these homes are like our stores. We are maintaining strong relationships with our distribution partners and believe that we will be able to reach mutually beneficial agreements with most of our cable providers."

About ShopNBC

ShopNBC is a multi-channel electronic retailer operating with a premium lifestyle brand. The shopping network reaches 72 million homes in the United States via cable affiliates and satellite: DISH Network channel 228 and DIRECTV channel 316. www.ShopNBC.com is recognized as a top e-commerce site. ShopNBC is owned and operated by ValueVision Media (NASDAQ: VVTV). For more information, please visit www.ShopNBC.com/IR.

Forward-Looking Information

This release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and accordingly are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein due to various important factors, including (but not limited to): consumer spending and debt levels; interest rates; competitive pressures on sales, pricing and gross profit margins; the level of cable distribution for the Company's programming and the fees associated therewith; the success of the Company's e-commerce and rebranding initiatives; the performance of its equity investments; the success of its strategic alliances and relationships; the ability of the Company to manage its operating expenses successfully; risks associated with acquisitions; changes in governmental or regulatory requirements; litigation or governmental proceedings affecting the Company's operations; and the ability of the Company to obtain and retain key executives and employees. More detailed information about those factors is set forth in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Contacts:

Frank Elsenbast
Chief Financial Officer
952-943-6262

Anthony Giombetti
Media Relations
612-308-1190