Document:

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                                                                     Exhibit 4.3

                          REGISTRATION RIGHTS AGREEMENT

                           Dated as of March 21, 2003

                                  by and among

                          THE NEWS CORPORATION LIMITED,

                           NEWS AMERICA INCORPORATED,

                        NEWS CORPORATION FINANCE TRUST II

                                       and

                            SALOMON SMITH BARNEY INC.

                                       and

       J.P. MORGAN SECURITIES INC., as the representatives of the Initial
                                   Purchasers

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                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (the "Agreement") is made and
entered into as of March 21, 2003 by and among THE NEWS CORPORATION LIMITED, a
South Australia corporation (A.C.N. 007 910 330) ("News Corporation"), NEWS
AMERICA INCORPORATED, a Delaware corporation (the "Company"), NEWS CORPORATION
FINANCE TRUST II, a statutory business trust formed under the laws of the State
of Delaware (the "Trust"), and J.P. MORGAN SECURITIES INC. and SALOMON SMITH
BARNEY INC., as representatives of the Initial Purchasers listed on Annex I
(collectively, the "Initial Purchasers").

         This Agreement is made pursuant to the Purchase Agreement dated as of
March 18, 2003, by and among the Company, News Corporation and certain of its
subsidiaries from time to time serving as guarantors under the Indenture (as
hereinafter defined) (the "Subsidiary Guarantors" and collectively with News
Corporation, the "Guarantors"), the Trust and the Initial Purchasers (the
"Purchase Agreement"), which provides, among other things, for the sale by the
Trust to the Initial Purchasers of up to $1,750,000,000 of the Trust's 0.75%
Senior Exchangeable BUCS, (the "Exchangeable Preferred Securities") with an
original liquidation preference of $1,000 per Exchangeable Preferred Security.
Pursuant to the terms of the Declaration (as defined below), (i) the
Exchangeable Preferred Securities are exchangeable into BSkyB Ordinary Shares or
BSkyB ADSs (as such terms are defined below) or, at the Company's option, cash,
or a combination thereof, (ii) the Exchangeable Preferred Securities are subject
to redemption at various times, in exchange for BSkyB Ordinary Shares or BSkyB
ADSs or cash, or a combination thereof, at the Company's option, and (iii) the
Holders of the Exchangeable Preferred Securities shall have the right to require
the Company to repurchase the Exchangeable Preferred Securities in exchange for
BSkyB Ordinary Shares, or BSkyB ADSs, News Corporation Preferred ADSs (as
hereinafter defined) or cash, or a combination thereof, at News Corporation's
option. In order to induce the Initial Purchasers to enter into the Purchase
Agreement, News Corporation, the Company and the Trust have agreed to provide,
and News Corporation has agreed to cause the Subsidiary Guarantors to provide,
to the Initial Purchasers and their direct and indirect transferees, the
registration rights set forth in this Agreement. The execution and delivery of
this Agreement is a condition to the closing under the Purchase Agreement.

         In consideration of the foregoing, the parties hereto agree as follows:

         1. Definitions

         As used in this Agreement, the following capitalized defined terms
shall have the following meanings:

         "Additional Interest" shall have the meaning set forth in Section 2.4
hereof.

         "Advice" shall have the meaning set forth in the last paragraph of
Section 3 hereof.

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         "Affiliates" shall mean with respect to any specified Person, any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the specified Person.

         "Agreement" shall have the meaning set forth in the preamble.

         "Beneficial Owner" shall mean (i), in the case of a Debenture held in
certificated form, the Holder of such Debenture and (ii), in the case of a
Debenture held through the Depositary, the Person identified in the records of
the Depositary's direct or indirect participants as the owner of such Debenture;
provided, however, that in the case of a Holder described in clause (ii), such
Holder is identified to the Company in accordance with this Agreement.

         "BSkyB" shall mean British Sky Broadcasting Group plc, a public limited
company incorporated under the laws of England and Wales.

         "BSkyB ADRs" shall mean American Depositary Receipts evidencing BSkyB
ADSs issued from time to time by the BSkyB Depositary.

         "BSkyB ADSs" shall mean American Depositary Shares, evidenced by BSkyB
ADRs, issued from time to time by the BSkyB Depositary, each such share
representing, as of the date hereof four BSkyB Ordinary Shares.

         "BSkyB Depositary" shall mean depositary pursuant to the terms of a
Deposit Agreement, dated as of December 9, 2002, among BSkyB, The Bank of New
York and the holders from time to time of BSkyB ADSs, as such agreement may be
amended or modified, or any deposit agreement entered into by BSkyB in
substitution or replacement thereof.

         "BSkyB Ordinary Shares" shall mean the ordinary shares, nominal value
50p per share, of BSkyB.

         "BSkyB Securities" shall mean the BSkyB ADSs and the BSkyB Ordinary
Shares deliverable upon exchange or redemption of the Exchangeable Preferred
Securities and the Debentures.

         "Business Day" shall mean a day that is not a Saturday, a Sunday, or a
day on which banking institutions in New York, New York are authorized or
required to be closed.

         "Closing Date" shall mean the Closing Time as defined in the Purchase
Agreement.

         "Company" shall have the meaning set forth in the preamble and shall
also include the Company's successors.

         "Debentures" shall mean the Company's 0.75% Senior Debentures due 2023
issued pursuant to the Indenture.

         "Debt Guarantees" shall mean the full and unconditional guarantees by
the Guarantors of the Company's obligations under the Debentures, as set forth
in the Indenture.

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         "Declaration" shall mean the Amended and Restated Declaration of Trust,
dated as of March 21, 2003, among the Company, as sponsor, The Bank of New York,
as property trustee, The Bank of New York (Delaware), as Delaware trustee (the
"Delaware Trustee"), and the regular trustees named therein.

         "Depositary" shall mean The Depository Trust Company, or any other
depositary appointed by the Company; provided, however, that such depositary
must have an address in the Borough of Manhattan, in The City of New York.

         "Effectiveness Period" shall have the meaning set forth in Section 2.1
hereof.

         "Event Date" shall have the meaning set forth in Section 2.4 hereof.

         "Exchangeable Preferred Securities" shall have the meaning set forth in
the second paragraph of this Agreement.

         "Exchangeable Preferred Securities Guarantee" shall mean the guarantee
by News Corporation, as set forth in the Exchangeable Preferred Securities
Guarantee Agreement, of the payment of distributions and the amount payable upon
redemption of the Exchangeable Preferred Securities and the liquidation
preference of the Exchangeable Preferred Securities, in each case, to the extent
the Company or any Guarantor has made a payment to the property trustee of the
Trust of interest or principal on the Debentures.

         "Exchangeable Preferred Securities Guarantee Agreement" shall mean the
Guarantee, dated as of March 21, 2003, between News Corporation and the Initial
Purchasers.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time.

         "Guarantees" shall mean the Exchangeable Preferred Securities Guarantee
and the Debt Guarantees.

         "Guarantors" shall have the meaning set forth in the second paragraph
of this Agreement.

         "Holder" shall mean the Initial Purchasers, for so long as either of
them owns, beneficially or otherwise, any Registrable Securities, and each of
their respective successors, assigns and direct and indirect transferees who
become Holders of Exchangeable Preferred Securities or Debentures.

         "Indenture" shall mean the Indenture, dated as of March 21, 2003, among
the Company, News Corporation, the Subsidiary Guarantors and the Bank of New
York, as trustee, relating to the Debentures.

         "Initial Purchasers" shall have the meaning set forth in the preamble.

         "Inspectors" shall have the meaning set forth in Section 3(m) hereof.

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         "Majority Holders" shall mean the Holders of a majority of (i) the
aggregate adjusted liquidation value, as determined under the Declaration, of
the then outstanding Exchangeable Preferred Securities that are Registrable
Securities, but without taking into account accrued but unpaid distributions, or
(ii) if the Debentures have been distributed to the Holders, the aggregate
principal amount at maturity, as determined under the Indenture, of the
outstanding Debentures that are Registrable Securities.

         "NASD" shall mean the National Association of Securities Dealers, Inc.

         "News Corporation" shall have the meaning set forth in the preamble.

         "News Corporation Depositary" shall mean the depositary pursuant to the
terms of an amended and restated Deposit Agreement, dated as of December 3,
1996, among News Corporation, Citibank, N.A. and the holders from time to time
of News Corporation Preferred ADSs, as such agreement may be amended or
modified, or any deposit agreement entered into by News Corporation in
substitution or replacement thereof.

         "News Corporation Preferred ADRs" shall mean American Depositary
Receipts evidencing News Corporation Preferred ADSs issued from time to time by
the News Corporation Depositary.

         "News Corporation Preferred ADSs" shall mean American Depositary
Shares, evidenced by News Corporation Preferred ADRs, issued from time to time
by the News Corporation Depositary, each such share representing, as of the date
hereof four News Corporation Preferred Ordinary Shares.

         "News Corporation Preferred Ordinary Shares" shall mean the preferred
limited voting ordinary shares of News Corporation.

         "News Corporation Securities" shall mean the News Corporation Preferred
ADSs and News Corporation Preferred Ordinary Shares deliverable upon redemption
of the Exchangeable Preferred Securities or the Debentures at the option of the
Holders.

         "NYSE" shall mean the New York Stock Exchange.

         "Person" shall mean an individual, partnership (general or limited),
corporation, limited liability company, trust or unincorporated organization, or
a government or agency or political subdivision thereof.

         "Prospectus" shall mean the prospectus included in the Shelf
Registration Statement, including any preliminary prospectus, and any such
prospectus as amended or supplemented by any prospectus supplement, including
any such prospectus supplement with respect to the terms of the offering of any
portion of the Registrable Securities covered by the Shelf Registration
Statement, and by all other amendments and supplements to a prospectus,
including post-effective amendments, and in each case including all material
incorporated by reference therein.

         "Purchase Agreement" shall have the meaning set forth in the second
paragraph of this Agreement.

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         "Records" shall have the meaning set forth in Section 3(m) hereof.

         "Registrable Securities" shall mean the Securities; provided, however,
that (i) any Securities (other than the BSkyB Securities) shall cease to be
Registrable Securities when (A) a Registration Statement with respect to such
Securities shall have been declared effective under the Securities Act and such
Securities shall have been disposed of, (B) such Securities (other than any such
Securities held by the Company, the Guarantors, the Trust or BSkyB or their
Affiliates) shall be eligible for sale under Rule 144(k) (or any similar
provision then in force, but not Rule 144A) under the Securities Act or shall
otherwise be freely tradable without registration under the Securities Act, or
(C) such Securities shall have ceased to be outstanding, and (ii) any BSkyB
Securities shall cease to be Registrable Securities when (A) a Registration
Statement with respect to such BSkyB Securities shall have been declared
effective under the Securities Act and such BSkyB Securities have been
distributed to the Holders, (B) the Exchangeable Preferred Securities or
Debentures in respect of which such BSkyB Securities may be distributed cease to
be outstanding, or (C) such Securities shall be eligible for sale under Rule
144(k) (or any similar provision then in force, but not Rule 144A) under the
Securities Act or shall otherwise be freely tradable without registration under
the Securities Act.

         "Registrants" shall mean News Corporation, the Company, the Trust, the
Subsidiary Guarantors and BSkyB.

         "Registration Default" shall have the meaning set forth in Section 2.4
hereof.

         "Registration Expenses" shall mean any and all reasonable expenses
incident to performance of or compliance by News Corporation, the Company and
the Trust with this Agreement, including without limitation: (i) all SEC or
stock exchange registration and filing fees, (ii) all reasonable fees and
expenses incurred in connection with compliance with state securities or blue
sky laws (including reasonable fees and disbursements of counsel for the Initial
Purchasers in connection with blue sky qualification of any of the Registrable
Securities), (iii) all reasonable expenses of any Persons (other than the
Holders or Persons acting on the request of the Holders) in preparing or
assisting in preparing, word processing, printing and distributing any Shelf
Registration Statement, any Prospectus, any amendments or supplements thereto,
and other documents relating to the performance of and compliance with this
Agreement, (iv) all fees and expenses incurred in connection with the listing,
if any, of any of the Registrable Securities on any securities exchange or
exchanges, (v) all rating agency fees, (vi) the reasonable fees and
disbursements of counsel for the Registrants and of the independent public
accountants of the Registrants, including the expenses of any special audits
required by or incident to such performance and compliance, (vii) the reasonable
fees and expenses of the Trustees and any custodian, (viii) the reasonable fees
and expenses incurred in connection with the listing of the Registrable
Securities on the NYSE; and (ix) all reasonable fees and expenses of the Special
Counsel, but excluding other counsel fees and any discounts, commissions and
transfer taxes, if any, relating to the sale or disposition of Registrable
Securities by the Holders.

         "Registration Statement" shall mean any Shelf Registration Statement.

         "Registration Suspension" shall have the meaning set forth in Section
2.4 hereof.

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         "SEC" shall mean the Securities and Exchange Commission or any
successor agency or government body performing the functions currently performed
by the Securities and Exchange Commission.

         "Securities" shall mean, collectively, the Exchangeable Preferred
Securities, the Debentures, the Guarantees and the Exchangeable Preferred
Securities Guarantees and the BSkyB Securities.

         "Securities Act" shall mean the Securities Act of 1933, as amended from
time to time.

         "Shelf Registration" shall mean any registration effected pursuant to
Section 2.1 hereof.

         "Shelf Registration Statement" shall mean any "shelf" registration
statement or registration statements of any Registrant filed pursuant to the
provisions of Section 2.1 hereof, which cover any of the Securities and all
amendments to any such registration statement, including post-effective
amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference therein.

         "Special Counsel" shall mean one counsel designated in writing by the
Majority Holders to act as counsel to the Holders of the Registrable Securities
in connection with a Shelf Registration Statement.

         "Subsidiary Guarantors" shall have the meaning set forth in the second
paragraph of this Agreement.

         "TIA" shall have the meaning set forth in Section 3(k) hereof.

         "Trustees" shall mean any and all trustees with respect to (i) the
Exchangeable Preferred Securities under the Declaration and (ii) the Debentures
and the Guarantees under the Indenture.

         2. Registration under the Securities Act.

            2.1 Shelf Registration. (a) News Corporation, the Company and the
Trust shall, subject to Section 2.2 hereof, at News Corporation's and the
Company's cost, (i) prepare and, as soon as practicable but not later than 120
days following the Closing Date, file with the SEC a Shelf Registration
Statement on an appropriate form under the Securities Act covering the resale of
the Securities (other than the BSkyB Securities) and (ii) use their reasonable
best efforts to cause such Shelf Registration Statement to be declared effective
under the Securities Act within 180 days following the Closing Date; (b) News
Corporation shall, subject to Section 2.2 hereof, at News Corporation's and the
Company's cost, use its reasonable best efforts to cause BSkyB to use its
reasonable best efforts to prepare and file a Shelf Registration Statement on an
appropriate form under the Securities Act covering the BSkyB Securities and to
cause such Shelf Registration Statement to be declared effective under the
Securities Act on or prior to April 2, 2004; (c) News Corporation, the Company
and the Trust shall use their reasonable best efforts (and News Corporation
shall use its reasonable best efforts to cause BSkyB to use its reasonable best
efforts, solely with respect to the registration of the BSkyB Securities on any
Shelf Registration Statement) to keep each such Shelf Registration Statement
continuously effective in order to permit the Prospectus forming part thereof to
be usable (i) with respect to the Securities

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(other than the BSkyB Securities), for a period of two years from the later of
the original issue date of the Exchangeable Preferred Securities or the latest
issue date of any Exchangeable Preferred Securities issued upon exercise of the
Initial Purchasers' option to purchase additional Exchangeable Preferred
Securities under the Purchase Agreement, or for such shorter period that will
terminate when all such Securities covered by the Shelf Registration Statement
cease to be Registrable Securities, and (ii) with respect to the BSkyB
Securities, until all such BSkyB Securities cease to be Registrable Securities
(each such period, as applicable, being the "Effectiveness Period"); provided,
however, that the Effectiveness Period in respect of the Shelf Registration
Statement shall be extended up to a maximum of 90 days if necessary to permit
dealers to comply with the applicable prospectus delivery requirements of Rule
174 under the Securities Act and as otherwise provided herein; and (d)
notwithstanding any other provisions hereof, News Corporation, the Company and
the Trust shall use their reasonable best efforts to ensure that (i) each Shelf
Registration Statement and any amendment thereto and any Prospectus forming part
thereof and any supplement thereto complies in all material respects with the
Securities Act and the rules and regulations thereunder, (ii) such Shelf
Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading and (iii) any Prospectus forming part of such Shelf
Registration Statement, and any supplement to such Prospectus (as amended or
supplemented from time to time), does not include an untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements, in light of the circumstances under which they were made, not
misleading.

            Notwithstanding anything to the contrary contained in this
Agreement, no Registrant shall be required to file a post-effective amendment to
the Registration Statement or to amend or supplement any Prospectus in order to
include any information regarding any selling Holder (as to which information
was not previously included in a Prospectus) that requests in writing that it be
covered by any such amendment or supplement (i) more than once in any 90-day
period or (ii) unless Exchangeable Preferred Securities with an aggregate
adjusted liquidation value, but without taking into account accrued but unpaid
distributions (as determined under the Declaration), of at least $100,000,000
(or Debentures with an equal aggregate principal amount at maturity) are being
registered on behalf of such Holders. Such Registrants shall be entitled, in
their sole discretion, to aggregate any and all requests from selling Holders
with respect to the preparation of any such post-effective amendment or
amendment or supplement to any Prospectus and to control the timing of the
filing or use thereof.

         2.2 Expenses. News Corporation and the Company shall pay all
Registration Expenses in connection with any Shelf Registration pursuant to
Section 2.1 hereof. Each Holder shall pay all underwriting expenses, discounts
and commissions and transfer taxes, if any, relating to the sale or disposition
of such Holder's Securities pursuant to any Shelf Registration Statement.

         2.3 Effectiveness. Each of News Corporation, the Company and the Trust
will be deemed not to have used its reasonable best efforts to cause any Shelf
Registration Statement to become, or to remain, effective during the requisite
period if it voluntarily takes any action that would, or omits to take any
action which omission would, result in such Shelf

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Registration Statement not being declared effective or in the Holders of
Securities covered thereby not being able to offer and sell such Securities
during that period as and to the extent contemplated hereby, unless (i) such
action or omission from acting is required by applicable law, or (ii) such
action or omission from acting is taken by News Corporation, the Company or the
Trust in good faith and for valid business reasons (not including avoidance of
its obligations hereunder), including the acquisition or divestiture of assets,
so long as News Corporation, the Company or the Trust, as the case may be,
promptly thereafter complies with the requirements of Section 3(i) hereof, if
applicable. Notwithstanding the foregoing, the only remedies available under
this Agreement for the failure of News Corporation, the Company and/or the Trust
to satisfy the obligations set forth in this Section 2.3 and Sections 2.1 and 3
hereof shall be payment by the Company of the Additional Interest (and the
payment by the Trust of the corresponding additional distributions on the
Exchangeable Preferred Securities, as provided in the Declaration) as set forth
in Section 2.4 hereof and the remedy of specific enforcement provided by Section
2.5 hereof.

            A Shelf Registration Statement will not be deemed to have become
effective unless it has been declared effective by the SEC; provided, however,
that if, after it has been declared effective, the offering of Securities
pursuant to a Shelf Registration Statement is interfered with by any stop order,
injunction or other order or requirement of the SEC or any other governmental
agency or court, the Shelf Registration Statement will be deemed not to have
become effective during the period of such interference, until the offering of
Securities pursuant to the Shelf Registration Statement may legally resume.

         2.4 Additional Interest. The Indenture executed in connection with the
Securities provides that in the event that either (a) any Shelf Registration
Statement described in Section 2.1(a) hereof is not filed with the Commission on
or prior to the 120th calendar day following the Closing Date, (b) such Shelf
Registration Statement has not been declared effective on or prior to the 180th
calendar day following the Closing Date or (c) a Shelf Registration Statement
described in Section 2.1(b) hereof with respect to the BSkyB Securities has not
been declared effective on or prior to the date specified in Section 2.1(b)
(each such event referred to in clauses (a), (b) and (c) above, a "Registration
Default"), the interest rate borne by the Debentures shall be increased
("Additional Interest"), (i) initially, by one quarter of one percent (0.25%)
per annum of the principal amount of the Debentures upon the occurrence of a
Registration Default, and thereafter (ii) by an additional one quarter of one
percent (0.25%) per annum if such Registration Default continues for more than
90 days (and such increase will be in addition to the increase set forth in
clause (i) and will take effect beginning on the 91st day of such Registration
Default), and thereafter (iii) by an additional one half of one percent (0.50%)
per annum if such Registration Default continues for more than 180 days (and
such increase will be in addition to the increase set forth in clauses (i) and
(ii) and will take effect beginning on the 181st day of such Registration
Default), and thereafter (iv) by an additional one half of one percent per annum
if such Registration Default continues for more than 270 days (and such increase
will be in addition to the increase set forth in clauses (i), (ii) and (iii) and
will take effect beginning on the 271st day of such Registration Default).

            If a Shelf Registration Statement filed pursuant to Section 2.1(a)
or 2.1(b) hereof is declared effective but becomes unusable by the Holders of
Securities covered by the Shelf Registration Statement for any reason, and the
aggregate number of days for which the

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Shelf Registration Statement shall not be usable shall exceed 30 consecutive
days (which period may be increased by up to 15 days in the circumstances
described in the last paragraph of Section 3 of this Agreement) or exceed 90
days during any consecutive twelve-month period (a "Registration Suspension"),
then the interest rate borne by the Debentures shall be increased (which
increased interest shall also be deemed to be "Additional Interest" hereunder),
(i) initially, by one quarter of one percent (0.25%) per annum of the
principal amount of the Debentures upon the occurrence of a Registration
Suspension, and thereafter (ii) by an additional one quarter of one percent
(0.25%) per annum if such Registration Suspension continues for more than 90
days (and such increase will be in addition to the increase set forth in clause
(i) and will take effect beginning on the 91st day of such Registration
Suspension), and thereafter (iii) by an additional one half of one percent
(0.50%) per annum if such Registration Suspension continues for more than 180
days (and such increase will be in addition to the increase set forth in clauses
(i) and (ii) and will take effect beginning on the 181st day of such
Registration Suspension), and thereafter (iv) by an additional one half of one
percent per annum if such Registration Suspension continues for more than 270
days (and such increase will be in addition to the increase set forth in clauses
(i), (ii) and (iii) and will take effect beginning on the 271st day of such
Registration Suspension.

            Notwithstanding the foregoing provisions of this Section 2.4, the
maximum aggregate increase in the interest rate as a result of a Shelf
Registration Statement being unusable (inclusive of any interest that accrues on
such Debentures pursuant to the first paragraph of this Section 2.4) will in no
event exceed one and one half of one percent (1.5%) per annum. The Company shall
not be required to pay Additional Interest for more than one Registration
Default or Registration Suspension (but not both) if there are concurrent
Registration Defaults and/or Registration Suspensions.

            Accrual of Additional Interest will cease and the interest rate will
revert to the original rate, (i) in the case of a Registration Default,
immediately upon the earlier to occur of (A) the cure of all Registration
Defaults, or (B) the date on which the Securities that would otherwise be
required to be registered on a Shelf Registration Statement, are saleable
pursuant to Rule 144(k) under the Securities Act or any successor provision or
are otherwise freely tradable without registration under the Securities Act; and
(ii) in the case of a Registration Suspension, immediately upon the earlier to
occur of (A) the cure of all Registration Suspensions, or (B) the date on which
the Securities with respect to which a usable Shelf Registration Statement is
required are saleable pursuant to Rule 144(k) under the Securities Act or any
successor provision or are otherwise freely tradable without registration under
the Securities Act.

            Additional Interest shall accrue from and including the day
following the applicable Event Date (as defined below), and shall be computed
based on the actual number of days elapsed in each 90-day period in which any
Registration Default or Registration Suspension continues. The Company shall
notify the Trustees within three Business Days after each and every date on
which an event occurs in respect of which Additional Interest is required to be
paid (an "Event Date"). The Additional Interest due shall be payable by the
Company in accordance with the Indenture on each interest payment date to the
holder of Debentures entitled to receive the interest payment to be paid on such
date as set forth in the Indenture.

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            Upon any accrual of Additional Interest, additional distributions
will accrue on the Exchangeable Preferred Securities, and upon the due date for
the payment of Additional Interest to the holder of the Debentures, additional
distributions shall be made in respect of the Exchangeable Preferred Securities,
all in accordance with the terms of the Declaration.

         2.5 Specific Enforcement. News Corporation, the Company and the Trust
acknowledge that any failure by them to comply with their respective obligations
under Section 2.1 and 2.3 hereof may result in material irreparable injury to
the Initial Purchasers or the Holders for which there is no adequate remedy at
law, that it would not be possible to measure damages for such injuries
precisely and that, in the event of any such failure, the Initial Purchasers or
any Holder may obtain such relief as may be required to specifically enforce
their respective rights under Sections 2.1 and 2.3 hereof.

         2.6 Registration of News Securities. News Corporation may, in its sole
discretion, but shall not be obligated to, prepare and file a registration
statement with respect to the News Corporation Securities. Any News Corporation
Securities delivered upon redemption of the Exchangeable Preferred Securities or
the Debentures will be registered under the Securities Act or freely tradable
without such registration.

     3. Registration Procedures. In connection with the obligations of News
Corporation, the Company and the Trust with respect to each Shelf Registration
Statement filed pursuant to Section 2.1 hereof, News Corporation, the Company
and the Trust shall use their reasonable best efforts (and News Corporation
shall use its reasonable best efforts to cause BSkyB to use its reasonable best
efforts, solely with respect to the registration of the BSkyB Securities), as
applicable, to:

             (a) prepare and file with the SEC a Shelf Registration Statement,
within the relevant time period for such filing as specified in Section 2
hereof, on an appropriate form under the Securities Act, which form (i) shall be
selected by News Corporation, the Company and the Trust, (ii) shall be available
for the distribution of the Registrable Securities in accordance with the plan
of distribution contained therein, including, if applicable, the resale of the
Registrable Securities by the selling Holders thereof, (iii) shall comply as to
form in all material respects with the requirements of the applicable form and
include or incorporate by reference all financial statements required by the SEC
to be filed therewith or incorporated by reference therein, and (iv) shall
comply in all respects with the requirements of Regulation S-T under the
Securities Act;

             (b) prepare and file with the SEC such amendments and
post-effective amendments to the Shelf Registration Statement as may be
necessary under applicable law to keep the Shelf Registration Statement
effective for the Effectiveness Period; and cause each Prospectus to be
supplemented by any required prospectus supplement, and as so supplemented to be
filed pursuant to Rule 424 (or any similar provision then in force) under the
Securities Act and comply with the provisions of the Securities Act, the
Exchange Act and the rules and regulations thereunder applicable to them with
respect to the disposition of all Securities covered by the Shelf Registration
Statement during the Effectiveness Period in accordance with the plan of
distribution included in the Prospectus;

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             (c) (i) notify each Holder of Registrable Securities (or, in the
case of Registrable Securities held through the Depositary, the participant in
the Depositary through whom such Holder holds), at least five Business Days
prior to filing, that a Shelf Registration Statement with respect to the
Securities is being filed; (ii) furnish to each Holder of Registrable
Securities, without charge, as many copies of each Prospectus, including each
preliminary Prospectus, and any amendment or supplement thereto and such other
documents as such Holder may reasonably request, including financial statements
and schedules and, if the Holder so requests, all exhibits in order to
facilitate the public sale or other disposition of the Registrable Securities;
and (iii) consent to the use of the Prospectus or any amendment or supplement
thereto by each of the selling Holders of Registrable Securities in connection
with the offering and sale of the Registrable Securities covered by the
Prospectus or any amendment or supplement thereto;

             (d) use their reasonable best efforts to register or qualify the
Registrable Securities under all applicable state securities or "blue sky" laws
of such jurisdictions by the time the Shelf Registration Statement is declared
effective by the SEC as any Holder of Registrable Securities covered by the
Shelf Registration Statement shall reasonably request in advance of the filing
of the Shelf Registration Statement, and do any and all other acts and things
which may be reasonably necessary or advisable to enable each such Holder to
consummate the disposition in each such jurisdiction of such Registrable
Securities owned by such Holder; provided, however, that none of the Registrants
shall be required to (i) qualify as a foreign corporation or as a dealer in
securities in any jurisdiction where it would not otherwise be required to
qualify but for this Section 3(d), (ii) take any action which would subject any
of them to general service of process or taxation in any such jurisdiction where
it is not then so subject, or (iii) conform their capitalization or the
composition of their assets at the time to the securities or blue sky laws of
such jurisdiction;

             (e) notify promptly each selling Holder of Registrable Securities
included in the Prospectus forming part of the Shelf Registration Statement (i)
when the Shelf Registration Statement has become effective and when any
post-effective amendments and supplements thereto become effective (other than
any such post-effective amendment primarily for the purpose of including
additional selling Holders), (ii) of any request by the SEC or any state
securities authority for post-effective amendments (other than any such
post-effective amendment primarily for the purpose of including additional
selling Holders) and supplements to the Shelf Registration Statement and
Prospectus or for additional information after the Registration Statement has
become effective, (iii) of the issuance by the SEC or any state securities
authority of any stop order suspending the effectiveness of the Shelf
Registration Statement or the initiation of any proceedings for that purpose,
(iv) of the happening of any event or the discovery of any facts during the
period the Shelf Registration Statement is effective which makes any statement
made in the Shelf Registration Statement or the related Prospectus untrue in any
material respect or which requires the making of any changes in the Shelf
Registration Statement or Prospectus in order to make the statements therein not
misleading, (v) of the receipt by any Registrant of any notification with
respect to the suspension of the qualification of the Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose
and (vi) of any determination by News Corporation, the Company, the Trust or
BSkyB that a post-effective amendment to the Shelf Registration Statement would
be appropriate by reason of a fundamental change in the information set forth in
the Shelf

                                      -11-

<PAGE>

Registration Statement (but not including any such post-effective amendment
primarily for the purpose of including additional selling Holders).

             (f) make every reasonable effort to obtain the withdrawal of any
order suspending the effectiveness of the Shelf Registration Statement at the
earliest practicable date;

             (g) furnish to each selling Holder of Registrable Securities
included in the Prospectus forming part of the Shelf Registration Statement,
without charge, at least one conformed copy of the Shelf Registration Statement
and any post-effective amendment thereto (other than any such post-effective
amendment filed primarily for the purpose of including additional selling
Holders), including financial statements and schedules (without documents
incorporated therein by reference or exhibits thereto, unless requested);

             (h) with respect to Registrable Securities represented by a global
certificate, facilitate the timely preparation and delivery of a new global
certificate representing Securities which have been or may be sold through the
Shelf Registration Statement that does not bear any restrictive legends;

             (i) upon the occurrence of any event or the discovery of any facts,
such as contemplated by Sections 3(e)(iv) and 3(e)(vi) hereof, as promptly as
practicable after the occurrence of such an event, use its reasonable best
efforts to prepare a supplement or post-effective amendment to the Shelf
Registration Statement or the related Prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter
delivered to the purchasers of the Securities, such Prospectus will not contain
at the time of such delivery any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. At such time as such
public disclosure is otherwise made or the Company determines that such
disclosure is not necessary, in each case to correct any misstatement of a
material fact or to include any omitted material fact, the Company agrees
promptly to notify each Holder of such determination and to furnish each Holder
such number of copies of the Prospectus as amended or supplemented, as such
Holder may reasonably request;

             (j) obtain a CUSIP number for each new global certificate referred
to in Section 3(h) above, not later than the effective date of the Shelf
Registration Statement;

             (k) (i) cause the Indenture, the Declaration and the Guarantees to
be qualified under the Trust Indenture Act of 1939, as amended (the "TIA"), in
connection with the registration of the Securities, (ii) cooperate with the
Trustees and the Initial Purchasers to effect such changes to the Indenture, the
Declaration and the Guarantees as may be required for such qualification in
accordance with the terms of the TIA, and (iii) execute, and use its reasonable
best efforts to cause the Trustees to execute, all documents as may be required
to effect such changes, and all other forms and documents required to be filed
with the SEC to enable the Indenture, the Declaration and the Guarantees to be
so qualified in a timely manner;

             (l) take all other customary and appropriate actions in order to
expedite or facilitate the disposition of the Registrable Securities; provided
that in no event shall

                                      -12-

<PAGE>

any Registrant be required to enter into any underwriting agreement with respect
to the disposition of the Registrable Securities;

             (m) make available for inspection by Special Counsel and any
accountant or other agent retained by the Majority Holders (collectively, the
"Inspectors"), at the offices where normally kept, during reasonable business
hours, such financial and other records, pertinent corporate documents and
properties of News Corporation, the Company, the Trust and the Subsidiary
Guarantors (collectively, the "Records") as shall be reasonably necessary to
enable them to exercise any applicable due diligence responsibilities, and cause
the officers, directors and employees of News Corporation, the Company, the
Trust and the Subsidiary Guarantors to supply all such information in each case
reasonably requested by any such Inspector to enable them to exercise any such
due diligence responsibilities in connection with such Registration Statement.
Records which any Registrant determines to be confidential or any Records which
they notify the Inspectors are confidential shall not be disclosed by the
Inspectors unless (i) the disclosure of such Records is necessary in connection
with the Inspectors' assertion of any claims or actions or with their
establishment of any defense in an action then pending before a court of
competent jurisdiction, (ii) the release of such Records is ordered pursuant to
a subpoena or other order from a court of competent jurisdiction or (iii) the
information in such Records has been made generally available to the public.
Each selling Holder of such Registrable Securities will be required to agree (in
a written confidentiality agreement satisfactory to the Company) that
information obtained by it as a result of such inspections shall be deemed
confidential and shall not be used by it as the basis for any market
transactions in the securities of the Issuer unless and until such is made
generally available to the public. Each selling Holder of such Registrable
Securities will be required to further agree (in a written confidentiality
agreement satisfactory to the Company) that it will, prior to disclosure of such
Records pursuant to clause (i) or (ii) above, give prompt notice to the Company
and allow the Company and the other Registrants at their expense to undertake
appropriate action to prevent disclosure to the public of the Records deemed
confidential; and

             (n) otherwise comply with all applicable rules and regulations of
the SEC and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering at least 12 months which shall
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder.

             The Company may require each seller of Registrable Securities as to
which any registration is being effected (or is proposed to be effected) to
furnish to the Company such information regarding such seller and the proposed
distribution of such Registrable Securities as the Company may from time to time
reasonably request in writing. Each selling Holder of Registrable Securities as
to which any Shelf Registration is being effected agrees to furnish to the
Company, within 20 days after receipt of a request therefor, all such
information; provided that any information with respect to such Seller necessary
to make the information furnished to the Company by such Holder not materially
misleading shall be furnished as promptly as may be practicable.

             The Company may exclude from such registration, or from any
post-effective amendment or Prospectus (including any amendment or supplement
thereof), the Registrable Securities of any seller who fails to furnish any such
information which the

                                      -13-

<PAGE>

Company reasonably requires (including, without limitation, the information
included in Annex A to the offering memorandum, dated March 18, 2003, with
respect to the offering of the Exchangeable Preferred Securities) in order for
the Registration Statement to comply with applicable law and SEC policy within a
reasonable time after receiving such request (and, in any event, no later than
20 days after receipt of such request), without the accrual of Additional
Interest on such excluded Registrable Securities, and shall be under no
obligation to include the Registrable Securities of such seller in the Shelf
Registration Statement or to compensate any such seller for any lost income,
interest or other opportunity foregone, or any liability incurred, as a result
of the Company's decision to exclude such seller.

             Each selling Holder agrees that, upon receipt of any notice from
the Company of the happening of any event of the kind described in Section
3(e)(ii), 3(e)(iii), 3(e)(iv), 3(e)(v) or 3(e)(vi) hereof, such Holder will
forthwith discontinue disposition of Registrable Securities pursuant to a
Registration Statement until such Holder receives copies of the supplemented or
amended Prospectus contemplated by Section 3(i) hereof or until it is advised in
writing (the "Advice") by the Company that the use of the applicable Prospectus
may be resumed, and, if so directed by the Company, such Holder will deliver to
the Company (at the Company's expense) all copies in such Holder's possession,
other than permanent file copies then in such Holder's possession, of the
Prospectus covering such Registrable Securities current at the time of receipt
of such notice. If the Company shall give any such notice to suspend the
disposition of Registrable Securities, as the case may be, pursuant to a
Registration Statement, each of News Corporation, the Company and the Trust
shall use its reasonable best efforts (and News Corporation shall use its
reasonable best efforts to cause BSkyB to use its reasonable best efforts) to
file as soon as practicable an amendment or supplement to the Registration
Statement and, in the case of an amendment, have such amendment declared
effective as soon as practicable; provided, however, that the Company may
postpone the filing of such amendment or supplement for a period not to extend
beyond the Business Day after the cessation of the circumstances described below
upon which such postponement is based, if the members of the Board of Directors
of any Registrant (and, in the case of the Trust, the Board of Directors of the
Company) determine reasonably and in good faith that such filing would require
disclosure of material information which such entity has a bona fide purpose for
preserving as confidential; provided, further, however, that (i) the exercise of
rights under this provision shall relieve the Company of any obligation to pay
Additional Interest otherwise required under Section 2.4 only if such period
during which the Company may postpone the filing of such amendment or supplement
does not exceed 15 days in any three month period (in addition to the 30
consecutive day period set forth in the second paragraph of Section 2.4) or the
90 day period set forth in such Section 2.4, in which case, a Registration
Suspension shall not be deemed to have occurred during such period and (ii) the
period during which such Registration Statement shall be maintained effective
pursuant to this Agreement shall be extended by the number of days in the period
from and including the date of the giving of such notice to and including the
date when the Company shall have made available to the selling Holders (A)
copies of the supplemented or amended Prospectus necessary to resume such
dispositions or (B) the Advice.

     4. Indemnification; Contribution.

             (a) News Corporation, the Company and the Trust jointly and
severally agree to indemnify and hold harmless each Holder named as a selling
Holder in any

                                      -14-

<PAGE>

Prospectus forming part of a Shelf Registration Statement, and each Person, if
any, who controls any selling Holder named in any such Prospectus within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act as
follows except to the extent otherwise provided in Section 4(b) hereof:

             (i) against any and all loss, liability, claim, damage and expense,
as incurred, arising out of any untrue statement or alleged untrue statement of
a material fact contained in the Shelf Registration Statement (or any amendment
or supplement thereto) pursuant to which Securities were registered under the
Securities Act, including all documents incorporated therein by reference, or
the omission or alleged omission therefrom of a material fact required to be
stated therein or necessary to make the statements therein not misleading, or
arising out of any untrue statement or alleged untrue statement of a material
fact contained in any Prospectus (or any amendment or supplement thereto) or the
omission or alleged omission therefrom of a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading;

             (ii) against any and all loss, liability, claim, damage and
expense, as incurred, to the extent of the aggregate amount paid in settlement
of any litigation, or any investigation or proceeding by any governmental agency
or body, commenced or threatened, or of any claim based upon any such untrue
statement or omission, or any such alleged untrue statement or omission;
provided, however, that (subject to Section 4(d) below) any such settlement is
effected with the written consent of the Company; and

             (iii) against any and all expense, as incurred (including the fees
and disbursements of counsel chosen by any indemnified party as provided
therein), reasonably incurred in investigating or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim based upon any such untrue statement
or omission, or any such alleged untrue statement or omission, to the extent
that any such expense is not paid under subparagraph (i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to News Corporation,
the Company, the Trust or BSkyB by such Holder expressly for use in the
Registration Statement (or any amendment thereto) or any Prospectus (or any
amendment or supplement thereto), and provided further that News Corporation,
the Company, and the Trust shall not indemnify any Holder from any loss,
liability, claim or damage (or expense incurred in connection therewith) alleged
by any person who purchased Securities from such Holder if the untrue statement,
omission or allegation thereof upon which such loss, liability, claim or damage
is based was made in (i) any preliminary prospectus, if a copy of the Prospectus
(as then amended or supplemented if the Company shall have furnished any
amendments or supplements thereto) was not sent or given by or on behalf of such
Holder to such person at or prior to the written confirmation of the sale of
Securities to such person, and if the Prospectus (as so amended or supplemented)
corrected the untrue statement or omission giving rise to such loss, claim,
damage or liability; (ii) any Prospectus used by such Holder or any Person who
controls such Holder, after such time as any Registrant advised the Holder in
writing that the filing of a post-effective amendment or supplement thereto was
required, except

                                      -15-

<PAGE>

the Prospectus as so amended or supplemented, if the Prospectus as amended or
supplemented by such post-effective amendment or supplement would not have given
rise to such loss, liability, claim or damage; or (iii) any Prospectus used
after such time as the obligation hereunder to keep the same current and
effective has expired.

             (b) Each Holder severally, but not jointly, agrees to indemnify and
hold harmless the Registrants and the Initial Purchasers, and the other selling
Holders, and each of their respective directors and officers, and each Person,
if any, who controls any of the Registrants, the Initial Purchasers, or any
other selling Holder within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act, against any and all loss, liability, claim,
damage and expense described in the indemnity contained in Section 4(a) hereof,
as incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in the Shelf Registration Statement (or any
amendment thereto) or any Prospectus included therein (or any amendment or
supplement thereto) in reliance upon and in conformity with written information
with respect to such Holder furnished to News Corporation, the Company, the
Trust or BSkyB by such Holder expressly for use in the Shelf Registration
Statement (or any amendment thereto) or such Prospectus (or any amendment or
supplement thereto); provided, however, that no such Holder shall be liable for
any claims hereunder in excess of the amount of net proceeds received by such
Holder from the sale of Registrable Securities pursuant to the Registration
Statement.

             (c) Each indemnified party shall give written notice as promptly as
reasonably practicable to each indemnifying party of any action or proceeding
commenced against it in respect of which indemnity may be sought hereunder, and
the indemnifying party shall assume the defense thereof, including the
employment of counsel satisfactory to the indemnified party, and the payment of
all expenses. Any omission to so notify an indemnifying party shall not relieve
such indemnifying party from any liability hereunder to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it
from any liability which it may have otherwise than on account of this indemnity
agreement. Any such indemnified party shall have the right to employ separate
counsel in any such action or proceeding and to participate in the defense
thereof, but the fees and expenses of such separate counsel shall be paid by
such indemnified party unless (a) the indemnifying party has agreed to pay such
fees and expenses or (b) the indemnifying party shall have failed to assume the
defense of such action or proceeding and employ counsel reasonably satisfactory
to the indemnified party in any such action or proceeding or (c) the named
parties to any such action of proceeding (including any impleaded parties)
include both such indemnified party and indemnifying party, and the indemnified
party shall have been advised by its counsel that there may be a conflict of
interest between such indemnified party and indemnifying party in the conduct of
the defense of such action (in which case, if such indemnified party notifies
the indemnifying party in writing that it elects to employ separate counsel at
the expense of the indemnifying party, the indemnifying party shall not have the
right to assume the defense of such action or proceeding on behalf of such
indemnified party), it being understood, however, that the indemnifying party
shall not, in connection with any one such action or proceeding or separate but
substantially similar or related actions or proceedings arising out of the same
general allegations or circumstances, be liable for the reasonable fees and
expenses of more than one separate firm of attorneys (unless the members of such
firm are not admitted to practice in a jurisdiction where an action is pending,
in which case the indemnifying party shall pay the reasonable fees and expenses
of one additional

                                      -16-

<PAGE>

firm of attorneys to act as local counsel in such jurisdiction, provided the
services of such counsel are substantially limited to that of appearing as
attorneys of record) at any time for all indemnified parties, which firm shall
be designated in writing by the indemnified party. No indemnifying party shall,
without the prior written consent of the indemnified parties, settle or
compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Section 4 (whether or
not the indemnified parties are actual or potential parties thereto), unless
such settlement, compromise or consent (i) includes an unconditional release of
each indemnified party from all liability arising out of such litigation,
investigation, proceeding or claim and (ii) does not include a statement as to
or an admission of fault, culpability or a failure to act by or on behalf of any
indemnified party.

             (d) If at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 4(a)(ii) hereof effected
without its written consent if (i) such settlement is entered into more than 45
days after receipt by such indemnifying party of the aforesaid request, (ii)
such indemnifying party shall have received notice of the terms of such
settlement at least 30 days prior to such settlement being entered into, and
(iii) such indemnifying party shall not have reimbursed such indemnified party
in accordance with such request prior to the date of such settlement.
Notwithstanding the immediately preceding sentence, if at any time an
indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel, such indemnifying party
shall not be liable for any settlement of the nature contemplated by Section
4(a)(ii) effected without its prior written consent if such indemnifying party
(i) reimburses such indemnified party in accordance with such request to the
extent it considers such request to be reasonable and (ii) provides written
notice to the indemnified party substantiating the unpaid balance as
unreasonable, in each case prior to the date of such settlement.

             (e) In order to provide for just and equitable contribution in
circumstances under which any of the indemnity provisions set forth in this
Section 4 is for any reason held to be unavailable to the indemnified parties
although applicable in accordance with its terms, News Corporation, the Company,
the Trust, the Initial Purchasers and the Holders agree that each indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the
amount paid or payable by such indemnified party as a result of such losses,
liabilities, claims, damages or expenses; provided, however, that no Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person that was
not guilty of such fraudulent misrepresentation. As between News Corporation,
the Company and the Trust on the one hand and the Initial Purchasers and the
Holders on the other, such parties shall contribute to such aggregate losses,
liabilities, claims, damages and expenses of the nature contemplated by such
indemnity agreement in such proportion as shall be appropriate to reflect the
relative fault of the Registrants on the one hand and of the Initial Purchasers
and the Holders, as the case may be, on the other hand in connection with the
statements or omissions which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.

                                      -17-

<PAGE>

             (f) The relative fault of the Registrants on the one hand and the
Initial Purchasers and the Holders on the other hand shall be determined by
reference to, amount other things, whether any such untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Registrants, the Initial Purchasers
or the Holders and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.

             (g) News Corporation, the Company, the Trust, the Initial
Purchasers and the Holders agree that it would not be just and equitable if
contribution pursuant to this Section 4 were determined by pro rata allocation
or by any other method of allocation which does not take account of the
equitable considerations referred to above in this Section 4.

             (h) For purposes of this Section 4, each Person, if any, who
controls a Holder or an Initial Purchaser within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act, shall have the same rights
to contribution as such Holder or Initial Purchaser, and each Person, if any,
who controls any Registrant within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act shall have the same rights to contribution
as any Registrant.

     5. Miscellaneous.

         5.1 Rule 144 and Rule 144A. For so long as News Corporation is subject
to the reporting requirements of Section 13 or 15 of the Exchange Act, News
Corporation covenants that it will file the reports required to be filed by it
under the Securities Act and Section 13(a) or 15(d) of the Exchange Act and the
rules and regulations adopted by the SEC thereunder. If News Corporation ceases
to be so required to file such reports, News Corporation covenants that it will
upon the request of any Holder of Registrable Securities (a) deliver to a
prospective purchaser such information as is necessary to permit sales pursuant
to Rule 144A under the Securities Act and it will take such further action as
any Holder of Registrable Securities may reasonably request, and (b) take such
further action that is reasonable in the circumstances, in each case, to the
extent required from time to time to enable such Holder to sell its Registrable
Securities without registration under the Securities Act within the limitation
of the exemptions provided by (i) Rule 144 under the Securities Act, as such
Rule may be amended from time to time, (ii) Rule 144A under the Securities Act,
as such Rule may be amended from time to time, or (iii) any similar rules or
regulations hereafter adopted by the SEC. Notwithstanding the foregoing, nothing
in this Section 5.1 shall be deemed to require News Corporation to register any
of its securities under the Exchange Act.

     Upon the reasonable request of any Holder, the Company will deliver to such
Holder a written statement as to whether it has complied with such requirements.
The Company's obligations under this Section 5.1 shall terminate upon the
consummation of the Effectiveness Period.

         5.2 No Inconsistent Agreements. The Company has not entered into and
the Company will not after the date of this Agreement enter into any agreement
which is inconsistent with the rights granted to the Holders of Registrable
Securities in this Agreement or otherwise conflicts with the provisions hereof.
The rights granted to the Holders hereunder do not and will

                                      -18-

<PAGE>

not for the term of this Agreement in any way conflict with the rights granted
to the initial purchasers of the Company's other issued and outstanding
securities under any such agreements.

         5.3 Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given unless News Corporation, the Company and the Trust consent thereto in
writing and the written consent of Holders of at least a majority in aggregate
redemption value (calculated as set forth in the definition of Majority Holders
herein) of the then outstanding Registrable Securities affected by such
amendment, modification, supplement, waiver or departure has been obtained.

         5.4 Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, registered
first-class mail, telecopier, or any courier guaranteeing overnight delivery (a)
if to a Holder, at the most current address given by such Holder to the Company
by means of a notice given in accordance with the provisions of this Section
5.4, which address initially is the address set forth in the Purchase Agreement
with respect to the Initial Purchasers; and (b) if to News Corporation, the
Company or the Trust initially at the Company's address set forth in the
Purchase Agreement, and thereafter at such other address of which notice is
given in accordance with the provisions of this Section 5.4.

     All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five Business
Days after being deposited in the mail, postage prepaid, if mailed; when receipt
is acknowledged, if telecopied; and on the next Business Day if timely delivered
to an air courier guaranteeing overnight delivery.

         5.5 Successor and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors, assigns and transferees of parties,
including, without limitation and without the need for an express assignment,
Holders of the Securities; provided, however, that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Securities in
violation of the terms of the Declaration, the Purchase Agreement or the
Indenture.

     If any transferee of any Holder shall acquire Registrable Securities, in
any manner, whether by operation of law or otherwise, such Registrable
Securities shall be held subject to all of the terms of this Agreement, and by
taking and holding such Registrable Securities such Person shall be conclusively
deemed to have agreed to be bound by and to perform all of the terms and
provisions of this Agreement, including the restrictions on resale set forth in
this Agreement and, if applicable, the Purchase Agreement, and such Person shall
be entitled to receive the benefits hereof.

         5.6 Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

         5.7 Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

                                      -19-

<PAGE>

         5.8 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICT OF LAWS THEREOF. SPECIFIED TIMES OF DAY REFER TO NEW YORK
CITY TIME.

         5.9 Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

                            [Signature Page Follows]

                                      -20-

<PAGE>

                  IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first written above.

                                  THE NEWS CORPORATION LIMITED

                                  By: /s/ Arthur M. Siskind
                                      ---------------------------------------
                                      Name:  Arthur M. Siskind
                                      Title: Senior Executive Vice President

                                  NEWS AMERICA INCORPORATED

                                  By: /s/ Arthur M. Siskind
                                      ---------------------------------------
                                      Name:  Arthur M. Siskind
                                      Title: Senior Executive Vice President

                                  NEWS CORPORATION FINANCE TRUST II

                                  By: /s/ Arthur M. Siskind
                                      ---------------------------------------
                                      Name:  Arthur M. Siskind
                                      Title: Regular Trustee

                                  By: /s/ Paula M. Wardynski
                                      ---------------------------------------
                                      Name:  Paula M. Wardynski
                                      Title: Regular Trustee

Confirmed and accepted as of the date first above written:

As representatives of the Initial Purchasers
listed on Annex I hereto:

SALOMON SMITH BARNEY INC.

By: /s/ Daniel Richards
    ------------------------------
    Name:  Daniel Richards
    Title: Managing Director

J.P. MORGAN SECURITIES INC.

By: /s/ J. Andrew Sanford
    ------------------------------
    Name:  J. Andrew Sanford
    Title: Managing Director

                                      -21-<PAGE>

                                                                     EXHIBIT 4.4

                        AMENDED AND RESTATED DECLARATION

                                    OF TRUST

                        NEWS CORPORATION FINANCE TRUST II

                           Dated as of March 21, 2003

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                              Page

<S>                    <C>                                                                      <C>
ARTICLE I INTERPRETATION AND DEFINITIONS.........................................................5
     Section 1.1       Definitions...............................................................5

ARTICLE II TRUST INDENTURE ACT..................................................................13
     Section 2.1       Trust Indenture Act; Application.........................................13
     Section 2.2       Lists of Holders of Securities...........................................13
     Section 2.3       Reports by the Property Trustee..........................................14
     Section 2.4       Periodic Reports to the Property Trustee.................................14
     Section 2.5       Evidence of Compliance with Conditions Precedent.........................14
     Section 2.6       Events of Default; Waiver................................................15
     Section 2.7       Event of Default; Notice.................................................16

ARTICLE III ORGANIZATION........................................................................17
     Section 3.1       Name.....................................................................17
     Section 3.2       Office...................................................................17
     Section 3.3       Purpose..................................................................17
     Section 3.4       Authority................................................................17
     Section 3.5       Title to Property of the Trust...........................................18
     Section 3.6       Powers and Duties of the Regular Trustees................................18
     Section 3.7       Prohibition of Actions by the Trust and the Trustees.....................21
     Section 3.8       Powers and Duties of the Property Trustee................................22
     Section 3.9       Certain Duties and Responsibilities of the Property Trustee..............24
     Section 3.10      Certain Rights of Property Trustee.......................................26
     Section 3.11      Delaware Trustee.........................................................28
     Section 3.12      Not Responsible for Recitals or Issuance of Securities...................28
     Section 3.13      Duration of Trust........................................................28
     Section 3.14      Mergers..................................................................28

ARTICLE IV SPONSOR..............................................................................30
     Section 4.1       Sponsor's Purchase of Common Securities..................................30
     Section 4.2       Responsibilities of the Sponsor..........................................30
     Section 4.3       Right to Proceed.........................................................31

ARTICLE V TRUSTEES..............................................................................31
     Section 5.1       Number of Trustees.......................................................31
     Section 5.2       Delaware Trustee.........................................................32
     Section 5.3       Property Trustee; Eligibility............................................32
     Section 5.4       Qualifications of Regular Trustees and Delaware Trustee Generally........33
</TABLE>

<PAGE>

<TABLE>
     <C>               <S>
     Section 5.5       Initial Trustees.........................................................33
     Section 5.6       Appointment, Removal and Resignation of Trustees.........................33
     Section 5.7       Vacancies among Trustees.................................................35
     Section 5.8       Effect of Vacancies......................................................35
     Section 5.9       Meetings.................................................................35
     Section 5.10      Delegation of Power......................................................36
     Section 5.11      Merger, Conversion, Consolidation or Succession to Business..............36

ARTICLE VI DISTRIBUTIONS........................................................................37
     Section 6.1       Distributions............................................................37

ARTICLE VII ISSUANCE OF SECURITIES..............................................................37
     Section 7.1       General Provisions Regarding Securities..................................37
     Section 7.2       Execution and Authentication.............................................38
     Section 7.3       Form and Dating..........................................................38
     Section 7.4       Registrar, Paying Agent and Exchange Agent...............................40
     Section 7.5       Paying Agent to Hold Money in Trust......................................41
     Section 7.6       Replacement Securities...................................................41
     Section 7.7       Outstanding Exchangeable Preferred Securities............................41
     Section 7.8       Exchangeable Preferred Securities in Treasury............................42
     Section 7.9       Temporary Securities.....................................................42
     Section 7.10      Cancellation.............................................................43

ARTICLE VIII TERMINATION OF TRUST...............................................................44
     Section 8.1       Termination of Trust.....................................................44

ARTICLE IX TRANSFERS AND EXCHANGE...............................................................45
     Section 9.1       General..................................................................45
     Section 9.2       Transfer Procedures and Restrictions.....................................46
     Section 9.3       Deemed Security Holders..................................................51
     Section 9.4       Book Entry Interests.....................................................52
     Section 9.5       Notices to Clearing Agency...............................................52
     Section 9.6       Appointment of Successor Clearing Agency.................................52

ARTICLE X LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS..................53
     Section 10.1      Liability................................................................53
     Section 10.2      Exculpation..............................................................53
     Section 10.3      Fiduciary Duty...........................................................54
     Section 10.4      Indemnification..........................................................55
     Section 10.5      Outside Businesses.......................................................57
</TABLE>

                                        2

<PAGE>

<TABLE>
<S>                    <C>                                                                    <C>
ARTICLE XI ACCOUNTING...........................................................................58
     Section 11.1      Fiscal Year..............................................................58
     Section 11.2      Certain Accounting Matters...............................................58
     Section 11.3      Banking..................................................................59
     Section 11.4      Withholding..............................................................59

ARTICLE XII AMENDMENTS AND MEETINGS.............................................................59
     Section 12.1      Amendments...............................................................59
     Section 12.2      Meetings of the Holders of Securities; Action by Written Consent.........62

ARTICLE XIII REPRESENTATIONS OF PROPERTY TRUSTEE AND DELAWARE TRUSTEE...........................63
     Section 13.1      Representations and Warranties of Property Trustee.......................63
     Section 13.2      Representations and Warranties of Delaware Trustee.......................64

ARTICLE XIV REGISTRATION RIGHTS.................................................................65
     Section 14.1      Registration Rights......................................................65

ARTICLE XV MISCELLANEOUS........................................................................65
     Section 15.1      Notices..................................................................65
     Section 15.2      Governing Law............................................................66
     Section 15.3      Intention of the Parties.................................................67
     Section 15.4      Headings.................................................................67
     Section 15.5      Successors and Assigns...................................................67
     Section 15.6      Partial Enforceability...................................................67
     Section 15.7      Counterparts.............................................................67

ANNEX I                TERMS OF SECURITIES.....................................................I-1

EXHIBIT A-1            FORM OF EXCHANGEABLE PREFERRED SECURITY................................A1-1

EXHIBIT A-2            FORM OF COMMON SECURITY................................................A2-1

EXHIBIT 1              INDENTURE
</TABLE>

                                        3

<PAGE>

                    AMENDED AND RESTATED DECLARATION OF TRUST

                                       OF

                        NEWS CORPORATION FINANCE TRUST II

                                 March 21, 2003

     AMENDED AND RESTATED DECLARATION OF TRUST ("Declaration") (which term
includes Annex I hereto) dated and effective as of March 21, 2003, by the
undersigned trustees (together with all other Persons from time to time duly
appointed and serving as trustees in accordance with the provisions of this
Declaration, the "Trustees"), News America Incorporated, a Delaware corporation,
as trust sponsor, and by the holders, from time to time, of undivided beneficial
interests in the Trust to be issued pursuant to this Declaration;

     WHEREAS, the Trustees and the Sponsor established News Corporation Finance
Trust II (the "Trust"), a statutory trust under the Statutory Trust Act (as
defined herein) pursuant to a Declaration of Trust dated as of March 18, 2003
(the "Original Declaration") and a Certificate of Trust filed with the Secretary
of State of the State of Delaware on March 18, 2003 for the sole purpose of
issuing and selling certain securities representing undivided beneficial
interests in the assets of the Trust and investing the proceeds thereof in
certain Debentures (as defined herein) of the Debenture Issuer (as defined
herein);

     WHEREAS, as of the date hereof, no interests in the Trust have been issued;

     WHEREAS, the Trust intends to issue 0.75% Senior Exchangeable BUCS(sm);

     WHEREAS, all of the Trustees and the Sponsor, by this Declaration, amend
and restate each and every term and provision of the Original Declaration; and

     NOW, THEREFORE, it being the intention of the parties hereto to continue
the Trust as a business trust under the Statutory Trust Act and that this
Declaration constitute the governing instrument of statutory trust, the Trustees
declare that all assets contributed to the Trust will be held in trust for the
benefit of the holders, from time to time, of the securities representing
undivided beneficial interests in the assets of the Trust issued hereunder,
subject to the provisions of this Declaration.

                                        4

<PAGE>

                                    ARTICLE I
                         INTERPRETATION AND DEFINITIONS

Section 1.1    Definitions.

     Unless the context otherwise requires:

     (a) Capitalized terms used in this Declaration but not defined in the
preamble above have the respective meanings assigned to them in this Section
1.1;

     (b) a term defined anywhere in this Declaration has the same meaning
throughout;

     (c) all references to "the Declaration" or "this Declaration" are to this
Declaration as modified, supplemented or amended from time to time;

     (d) all references in this Declaration to Articles and Sections and Annexes
and Exhibits are to Articles and Sections of and Annexes and Exhibits to this
Declaration unless otherwise specified;

     (e) a term defined in the Trust Indenture Act has the same meaning when
used in this Declaration unless otherwise defined in this Declaration or unless
the context otherwise requires; and

     (f) a reference to the singular includes the plural and vice versa.

     "Additional Interest" means, if the Trust is required to pay any taxes,
duties, assessments or governmental charges of whatever nature (other than
withholding taxes) imposed by the United States or any other taxing authority,
such amounts as shall be required so that the net amounts received and retained
by the Trust after paying such taxes, duties, assessments and governmental
charges will not be less than the amounts the Trust would have received had no
such taxes, duties, assessments or governmental charges been imposed.

     "Affiliate" has the same meaning as given to that term in Rule 405 of the
Securities Act or any successor rule thereunder.

     "Agent" means any Registrar, Paying Agent, Exchange Agent or co-registrar.

     "Authorized Officer" of a Person means any Person that is authorized to
bind such Person.

     "Book Entry Interest" means a beneficial interest in a Global Certificate,
ownership and transfers of which shall be maintained and made through book
entries by a Depositary as described in Section 9.4.

                                        5

<PAGE>

     "BSkyB" means British Sky Broadcasting Group, plc, a public limited company
incorporated under the laws of England and Wales.

     "BSkyB ADSs" means the American Depositary Shares of BSkyB, each
representing four (4) BSkyB Ordinary Shares.

     "BSkyB Deposit Agreement" means the deposit agreement dated as of December
9, 2002 among BSkyB, The Bank of New York and the holders from time to time of
BSkyB ADSs, or any successor to such Deposit Agreement.

     "BSkyB Depositary" means the depositary (presently The Bank of New York)
under the BSkyB Deposit Agreement.

     "BSkyB Ordinary Shares" means the ordinary shares of BSkyB, nominal value
50p per share; "BSkyB Ordinary Share" means each such share.

     "Business Day" means each Monday, Tuesday, Wednesday, Thursday and Friday
which is not (1) a day on which banking institutions in the State of New York
are authorized or obligated by applicable law, regulation or executive order to
close; or (2) a day on which the Corporate Trust Office or the corporate trust
office the Debenture Trustee is closed for business.

     "Certificate" means a certificate in global or definitive form representing
a Common Security or an Exchangeable Preferred Security.

     "Clearing Agency" means an organization registered as a "Clearing Agency"
pursuant to Section 17A of the Exchange Act.

     "Closing Date" means March 21, 2003.

     "Code" means the Internal Revenue Code of 1986, as amended from time to
time, or any successor legislation.

     "Commission" means the Securities and Exchange Commission, or any successor
government agency.

     "Common Securities" has the meaning specified in Section 7.1(a).

     "Company" means News America Incorporated otherwise than in its capacity as
Sponsor of the Trust or any successor entity pursuant to a merger,
consolidation, amalgamation or other reorganization.

     "Company Indemnified Person" means (a) any Regular Trustee; (b) any
Affiliate of any Regular Trustee; (c) any officers, directors, shareholders,
members, partners, employees,

                                        6

<PAGE>

representatives or agents of any Regular Trustee; or (d) any officer,
employee or agent of the Trust or its Affiliates.

     "Corporate Trust Office" means the office of the Property Trustee at which
the corporate trust business of the Property Trustee shall, at any particular
time, be principally administered, which office at the date of execution of this
Declaration is located at The Bank of New York, 101 Barclay Street, Fl. 8W, New
York, New York 10286.

     "Covered Person" means (a) any officer, director, shareholder, partner,
member, representative, employee or agent of (i) the Trust or (ii) the Trust's
Affiliates; and (b) any Holder of Securities.

     "Debenture Issuer" means News America Incorporated (or the Sponsor) in its
capacity as issuer of the Debentures under the Indenture.

     "Debenture Trustee" means The Bank of New York, a New York banking
corporation, as trustee under the Indenture until a successor is appointed
thereunder, and thereafter means such successor trustee.

     "Debentures" means the 0.75% Senior Exchangeable Debentures due March 15,
2023 to be issued by the Debenture Issuer under the Indenture to be held by the
Property Trustee of the Trust.

     "Declaration Event of Default" has the meaning set forth in Annex I.

     "Definitive Exchangeable Preferred Securities" means any Exchangeable
Preferred Security in definitive form issued by the Trust.

     "Definitive Securities" means any Definitive Exchangeable Preferred
Securities and any Common Securities in definitive form issued by the Trust.

     "Delaware Trustee" has the meaning set forth in Section 5.2.

     "Depositary" means The Depository Trust Company, the initial Clearing
Agency.

     "Distribution" means a distribution payable to Holders of Securities in
accordance with Section 6.1.

     "Distribution Payment Date" has the meaning set forth in Section 6.1.

     "Event of Default" in respect of the Securities means an Event of Default
(as defined in the Indenture) has occurred and is continuing in respect of the
Debentures.

                                        7

<PAGE>

     "Exchange Act" means the Securities Exchange Act of 1934, as amended from
time to time, or any successor legislation.

     "Exchange Agent" has the meaning set forth in Section 7.4(a).

     "Exchangeable Preferred Securities" has the meaning specified in Section
7.1(a) and shall include Exchangeable Securities issued in exchange for
Exchangeable Preferred Securities. Any reference to "BUCS" or "Preferred
Securities" in any Security, Certificate, the Preferred Securities Guarantee,
the Indenture or otherwise in connection with this Declaration shall be deemed a
reference to Exchangeable Preferred Securities.

     "Exchangeable Preferred Security Beneficial Owner" means, with respect to a
Book Entry Interest, a Person who is the beneficial owner of such Book Entry
Interest, as reflected on the books of the Depositary, or on the books of a
Person maintaining an account with such Depositary (directly as a participant or
as an indirect participant, in each case in accordance with the rules of such
Depositary).

     "Exchangeable Securities" means any Exchangeable Preferred Security issued
in connection with a sale or exchange pursuant to an effective registration
statement and not bearing any Restricted Securities Legend.

     "Fiduciary Indemnified Person" has the meaning set forth in Section
10.4(j).

     "Fiscal Year" has the meaning set forth in Section 11.1.

     "Global Exchangeable Preferred Security" has the meaning set forth in
Section 9.2(b).

     "Guarantee" means the full and unconditional guarantee of the Company's
obligations under the Debentures by the Guarantors.

     "Guarantors" means News Corporation and certain subsidiaries of News
Corporation pursuant to the Indenture.

     "Holder" means a Person in whose name a Certificate representing a Security
is registered, such Person being a beneficial owner within the meaning of the
Statutory Trust Act.

     "Indemnified Person" means a Company Indemnified Person or a Fiduciary
Indemnified Person.

                                        8

<PAGE>

     "Indenture" means the Indenture dated as of March 21, 2003, among the
Debenture Issuer, the Debenture Trustee and the Guarantors, and any indenture
supplemental thereto, pursuant to which the Debentures are to be issued.

     "Investment Company" means an "investment company" as defined in the
Investment Company Act.

     "Investment Company Act" means the Investment Company Act of 1940, as
amended from time to time, or any successor legislation.

     "Legal Action" has the meaning set forth in Section 3.6(g).

     "List of Holders" has the meaning set forth in Section 2.2(a).

     "Majority in Stated Liquidation Amount" means, except as provided in the
terms of the Exchangeable Preferred Securities or the Common Securities, as the
case may be, or by the Trust Indenture Act, with Respect to (i) the Exchangeable
Preferred Securities, holders of more than 50% of the aggregate stated
liquidation amount (including the stated preference that would be paid on
redemption, liquidation or otherwise, plus accrued and unpaid Distributions, if
any, to the date upon which the voting percentages are determined) of all
outstanding Exchangeable Preferred Securities, and (ii) the Common Securities,
holders of more than 50% of the aggregate stated liquidation amount (including
the stated amount that would be paid on redemption, liquidation or otherwise,
plus accrued and unpaid Distributions, if any, to the date upon which the voting
percentages are determined) of all outstanding Common Securities.

     "News Corporation" means The News Corporation Limited (A.C.N. 007 910 330),
a corporation duly organized and existing under the laws of Australia, or any
successor entity pursuant to merger, consolidation, amalgamation or other
reorganization.

     "News Corporation Preferred ADRs" means American Depositary Receipts
evidencing News Corporation Preferred ADSs issued from time to time by the News
Depositary; "News Corporation Preferred ADR" means each such receipt.

     "News Corporation Preferred ADSs" means American Depositary Shares,
evidenced by News Corporation Preferred ADRs, issued from time to time by the
News Depositary, each such share representing, as of the date hereof, four News
Corporation Preferred Ordinary Shares; "News Corporation Preferred ADS" means
each such American Depositary Share.

     "News Corporation Preferred Ordinary Shares" means the preferred limiting
voting ordinary shares of News Corporation; "News Corporation Preferred Ordinary
Share" means each such share.

     "News Deposit Agreement" means the Amended and Restated Deposit Agreement,
dated as of December 3, 1996, as amended to the date hereof, and as it may

                                        9

<PAGE>

subsequently be amended, among News Corporation, Citibank, N.A., as depositary,
and the holders from time to time of Preferred ADSs, or any successor to such
deposit agreement.

     "News Depositary" means the depositary (presently Citibank, N.A.) under the
News Deposit Agreement.

     "Offering Memorandum" has the meaning set forth in Section 3.6(b).

     "Officers' Certificate" means, with respect to any Person, a certificate
signed by two Authorized Officers of such Person. Any Officers' Certificate
delivered with respect to compliance with a condition or covenant provided for
in this Declaration shall include:

          (a) a statement that each officer signing the Officers' Certificate
     has read the covenant or condition and the definitions relating thereto;

          (b) a brief statement of the nature and scope of the examination or
     investigation undertaken by each officer in rendering the Officers'
     Certificate;

          (c) a statement that each such officer has made such examination or
     investigation as, in such officer's opinion, is necessary to enable such
     officer to express an informed opinion as to whether or not such covenant
     or condition has been complied with; and

          (d) a statement as to whether, in the opinion of each such officer,
     such condition or covenant has been complied with.

     "Participants" has the meaning set forth in Section 7.3(f).

     "Paying Agent" has the meaning specified in Section 7.4(a).

     "Payment Amount" has the meaning specified in Section 6.1.

     "Person" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature.

     "PORTAL Market" means the National Association of Securities Dealers Inc.'s
market for designated foreign and domestic securities that are eligible for
resale under Rule 144A of the Securities Act.

     "Preferred Securities Guarantee" means the guarantee agreement dated as of
March 21, 2003 of News Corporation in respect of the Exchangeable Preferred
Securities.

     "Property Trustee" means the Trustee meeting the eligibility requirements
set forth in Section 5.3.

                                       10

<PAGE>

     "Property Trustee Account" has the meaning set forth in Section 3.8(c).

     "Purchase Agreement" has the meaning set forth in Section 7.3(b).

     "Quorum" means a majority of the Regular Trustees or, if there are only two
Regular Trustees, both of them.

     "Registrar" has the meaning set forth in Section 7.4(a).

     "Registration Interest" means the additional interest which shall accrue on
the Debentures and, accordingly, on the Exchangeable Preferred Securities in
accordance with the Indenture and Registration Rights Agreement.

     "Registration Rights Agreement" means the Registration Rights Agreement,
dated as of March 21, 2003, among the Sponsor, the Trust, News Corporation and
Salomon Smith Barney Inc. and J.P. Morgan Securities Inc., as representative of
the Initial Purchasers.

     "Regular Trustee" means any Trustee other than the Property Trustee and the
Delaware Trustee.

     "Related Party" means, with respect to the Sponsor, any direct or indirect
wholly owned subsidiary of the Sponsor or any other Person that owns, directly
or indirectly, 100% of the outstanding voting securities of the Sponsor, or any
direct or indirect wholly owned subsidiary of such other Person.

     "Responsible Officer" means, with respect to the Property Trustee, any
vice-president, any assistant vice-president, the treasurer, any assistant
treasurer, any trust officer or assistant trust officer or any other officer in
the Corporate Trust Department of the Property Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of that officer's knowledge of
and familiarity with the particular subject.

     "Restricted Definitive Exchangeable Preferred Security" means a Definitive
Exchangeable Preferred Security with a Restricted Securities Legend.

     "Restricted Global Exchangeable Preferred Security" has the meaning set
forth in Section 7.3(c).

     "Restricted Exchangeable Preferred Security" means a Restricted Definitive
Exchangeable Preferred Security or a Restricted Global Exchangeable Preferred
Security.

     "Restricted Period" means the one-year period following the last issue date
for the Exchangeable Preferred Securities (including Common Securities issued in
connection with

                                       11

<PAGE>

related capital contributions). The Sponsor shall inform the Trustee as to the
termination of the restricted period and the Trustee may rely conclusively
thereon.

     "Restricted Securities Legend" has the meaning set for in Section 9.2(i).

     "Rule 3a-5" means Rule 3a-5 under the Investment Company Act.

     "Securities" means the Common Securities and the Exchangeable Preferred
Securities.

     "Securities Act" means the Securities Act of 1933, as amended from time to
time, or any successor legislation.

     "Security Register" has the meaning set forth in Section 7.4(a).

     "Sponsor" means News America Incorporated, a Delaware corporation, or any
successor entity in a merger, consolidation or amalgamation, in its capacity as
sponsor of the Trust.

     "Statutory Trust Act" means Chapter 38 of Title 12 of the Delaware Code, 12
Del. Code Section 3801 et seq., as it may be amended from time to time, or any
successor legislation.

     "Successor Delaware Trustee" has the meaning set forth in Section 5.6(c).

     "Successor Entity" has the meaning set forth in Section 3.14(b).

     "Successor Property Trustee" has the meaning set forth in Section 5.6(b).

     "Successor Securities" has the meaning set forth in Section 3.14(b).

     "Super Majority" has the meaning set forth in Section 2.6(b)(ii).

     "Super Majority" has the meaning set forth in Section 2.6(b)(ii).

     "Tax Event" has the meaning set forth in the Indenture.

     "10% in stated liquidation amount of the Securities" means, except as
provided in the terms of the Exchangeable Preferred Securities or otherwise by
the Trust Indenture Act, Holder(s) of outstanding Securities voting together as
a single class or, as the context may require, Holders of outstanding
Exchangeable Preferred Securities or Holders of outstanding Common Securities
voting separately as a class, who are the record owners of 10% or more of the
aggregate stated liquidation amount (including the stated amount that would be
paid on redemption, liquidation or otherwise, plus accrued and unpaid
Distributions to the date upon which the voting percentages are determined) of
all outstanding Securities of the relevant class.

                                       12

<PAGE>

     "Terms" has the meaning set forth in Section 7.1(a).

     "Treasury Regulations" means the income tax regulations, including
temporary and proposed regulations, promulgated under the Code by the United
States Treasury, as such regulations may be amended from time to time (including
corresponding provisions of succeeding regulations).

     "Trust" has the meaning set forth in the preamble.

     "Trustee" or "Trustees" means each Person who has signed this Declaration
as a trustee, so long as such Person shall continue in office in accordance with
the terms hereof, and all other Persons who may from time to time be duly
appointed, qualified and serving as Trustees in accordance with the provisions
hereof, and references herein to a Trustee or the Trustees shall refer to such
Person or Persons solely in their capacity as trustees hereunder.

     "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended
from time to time, or any successor legislation.

                                   ARTICLE II
                               TRUST INDENTURE ACT

Section 2.1    Trust Indenture Act; Application.

     (a) This Declaration is subject to the provisions of the Trust Indenture
Act that are required to be part of this Declaration, which are incorporated by
reference in and made part of this Declaration and shall, to the extent
applicable, be governed by such provisions.

     (b) The Property Trustee shall be the only Trustee which is a Trustee for
the purposes of the Trust Indenture Act.

     (c) If and to the extent that any provision of this Declaration limits,
qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such imposed duties shall control.

     (d) The application of the Trust Indenture Act to this Declaration shall
not affect the nature of the Securities as equity securities representing
undivided beneficial interests in the assets of the Trust.

Section 2.2    Lists of Holders of Securities.

     (a) Each of the Sponsor and the Regular Trustees on behalf of the Trust
shall provide the Property Trustee (i) within 14 days after each record date for
payment of Distributions, a list, in such form as the Property Trustee may
reasonably require, of the names and addresses of the Holders of the Securities
("List of Holders") as of such record date,

                                       13

<PAGE>

provided, that neither the Sponsor nor the Regular Trustees on behalf of the
Trust shall be obligated to provide such List of Holders at any time the List of
Holders does not differ from the most recent List of Holders given to the
Property Trustee by the Sponsor and the Regular Trustees on behalf of the Trust,
and (ii) at any other time, within 30 days of receipt by the Trust of a written
request for a List of Holders as of a date no more than 14 days before such List
of Holders is given to the Property Trustee. The Property Trustee shall
preserve, in as current a form as is reasonably practicable, all information
contained in Lists of Holders given to it or which it receives in the capacity
as Paying Agent (if acting in such capacity), provided, that the Property
Trustee may destroy any List of Holders previously given to it on receipt of a
new List of Holders.

     (b) The Property Trustee shall comply with its obligations under Sections
311(a), 311(b) and 312(b) of the Trust Indenture Act.

Section 2.3    Reports by the Property Trustee.

     Within 60 days after May 15 of each year, the Property Trustee shall
provide to the Holders of the Exchangeable Preferred Securities such reports as
are required by Section 313 of the Trust Indenture Act, if any, in the form and
in the manner provided by Section 313 of the Trust Indenture Act. The Property
Trustee shall also comply with the requirements of Section 313(d) of the Trust
Indenture Act.

Section 2.4    Periodic Reports to the Property Trustee.

     Each of the Sponsor and the Regular Trustees on behalf of the Trust shall
provide to the Property Trustee such documents, reports and information as
required by Section 314 of the Trust Indenture Act (if any) and the compliance
certificate required by Section 314 of the Trust Indenture Act in the form, in
the manner and at the times required by Section 314 of the Trust Indenture Act.
Delivery of such reports, information and documents to the Property Trustee is
for informational purposes only and the Property Trustee's receipt of such shall
not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Property Trustee
is entitled to rely exclusively on Officers' Certificates).

Section 2.5    Evidence of Compliance with Conditions Precedent.

     Each of the Sponsor and the Regular Trustees on behalf of the Trust shall
provide to the Property Trustee such evidence of compliance with any conditions
precedent, if any, provided for in this Declaration that relate to any of the
matters set forth in Section 314(c) of the Trust Indenture Act. Any certificate
or opinion required to be given by an officer pursuant to Section 314(c)(1) of
the Trust Indenture Act may be given in the form of an Officers' Certificate.

                                       14

<PAGE>

Section 2.6    Events of Default; Waiver.

     (a) The Property Trustee, as holder of the Debentures, shall vote all of
the Debentures held by it with respect to a waiver of any past Event of Default
in respect of the Debentures and its consequences, in proportion to the votes of
the Holders of the Exchangeable Preferred Securities issued pursuant hereto;
provided, that, if the underlying Event of Default under the Indenture is not
waivable under the Indenture, the Declaration Event of Default under this
Declaration shall also not be waivable.

     The foregoing provisions of this Section 2.6(a) shall be in lieu
     of Section 316(a)(1)(B) of the Trust Indenture Act and such
     Section 316(a)(1)(B) of the Trust Indenture Act is hereby
     expressly excluded from this Declaration and the Securities, as
     permitted by the Trust Indenture Act. Upon any waiver obtained or
     provided in the Indenture, any such default shall cease to exist,
     and any Declaration Event of Default with respect to the
     Exchangeable Preferred Securities arising therefrom shall be
     deemed to have been cured, for every purpose of this Declaration,
     but no such waiver shall extend to any subsequent or other
     default or a Declaration Event of Default with respect to the
     Exchangeable Preferred Securities or impair any right consequent
     thereon. Any waiver by the Holders of the Exchangeable Preferred
     Securities of a Declaration Event of Default with respect to the
     Exchangeable Preferred Securities shall also be deemed to
     constitute a waiver by the Holders of the Common Securities of
     any such Declaration Event of Default with respect to the Common
     Securities for all purposes of this Declaration without any
     further act, vote, or consent of the Holders of the Common
     Securities.

     (b) The Holders of a Majority in stated liquidation amount of the Common
Securities may, by vote, on behalf of the Holders of all of the Common
Securities, waive any past Declaration Event of Default with respect to the
Common Securities and its consequences, provided, that if the underlying Event
of Default under the Indenture:

          (i) is not waivable under the Indenture, except where the Holders of
     the Common Securities are deemed to have waived such Event of Default under
     the Declaration as provided in this Section 2.6(b), the Declaration Event
     of Default under the Declaration shall also not be waivable; or

          (ii) requires the consent or vote of greater than a majority in
     principal amount at maturity of the holders of the Debentures (a "Super
     Majority") to be waived, except where the Holders of the Common Securities
     are deemed to have waived such Declaration Event of Default as provided in
     this Section 2.6(b), the Declaration Event of Default may only be waived by
     the vote of the Holders of at least the proportion in stated liquidation
     amount of the Common Securities that the relevant Super Majority represents
     voting together with Holders of Exchangeable Preferred Securities as a
     single class of the aggregate principal amount of the Debentures
     outstanding;

                                       15

<PAGE>

provided, further, that each Holder of Common Securities will be deemed to have
waived any such Declaration Event of Default and all Declaration Events of
Default with respect to the Common Securities and its consequences until all
Declaration Events of Default with respect to the Exchangeable Preferred
Securities have been cured, waived or otherwise eliminated, and until such
Events of Default have been so cured, waived or otherwise eliminated, the
Property Trustee will be deemed to be acting solely on behalf of the Holders of
the Exchangeable Preferred Securities and only the Holders of the Exchangeable
Preferred Securities will have the right to direct the Property Trustee in
accordance with the terms of the Securities. The foregoing provisions of this
Section 2.6(b) shall be in lieu of Sections 316(a)(1)(A) and 316(a)(1)(B) of the
Trust Indenture Act and such Sections 316(a)(1)(A) and 316(a)(1)(B) of the Trust
Indenture Act are hereby expressly excluded from this Declaration and the
Securities, as permitted by the Trust Indenture Act. Subject to the foregoing
provisions of this Section 2.6(b), upon such waiver, any such default shall
cease to exist and any Declaration Event of Default with respect to the Common
Securities arising therefrom shall be deemed to have been cured for every
purpose of this Declaration, but no such waiver shall extend to any subsequent
or other default or Declaration Event of Default with respect to the Common
Securities or impair any right consequent thereon.

     (c) A waiver of an Event of Default under the Indenture by the Property
Trustee at the direction of the Holders of the Exchangeable Preferred Securities
constitutes a waiver of the corresponding Declaration Event of Default. The
foregoing provisions of this Section 2.6(c) shall be in lieu of Section
316(a)(1)(B) of the Trust Indenture Act and such Section 316(a)(1)(B) of the
Trust Indenture Act is hereby expressly excluded from this Declaration and the
Securities, as permitted by the Trust Indenture Act.

Section 2.7    Event of Default; Notice.

     (a) The Property Trustee shall, within 10 days after the occurrence of a
default actually known to a Responsible Officer of the Property Trustee,
transmit by mail, first class postage prepaid, to the Holders of the Securities,
the Regular Trustees and the News Corporation, notices of all defaults with
respect to the Securities, unless such defaults have been cured before the
giving of such notice (the term "defaults" for the purposes of this Section
2.7(a) being hereby defined to be an Event of Default as defined in the
Indenture, not including any periods of grace provided for therein and
irrespective of the giving of any notice provided therein); provided that,
except for a default in the payment of principal of or interest on any of the
Debentures or in the payment of any sinking fund installment established for the
Debentures, the Property Trustee shall be protected in withholding such notice
if and so long as a trust committee of directors and/or Responsible Officers of
the Property Trustee in good faith determines that the withholding of such
notice is in the interests of the Holders of the Securities.

     (b) The Property Trustee shall not be deemed to have knowledge of any
default except:

          (i) a default under Sections 5.1(1) and 5.1(2) of the Indenture; or

                                       16

<PAGE>

          (ii) any default as to which the Property Trustee shall have received
     written notice or of which a Responsible Officer of the Property Trustee
     charged with the administration of the Declaration shall have actual
     knowledge.

                                   ARTICLE III
                                  ORGANIZATION

Section 3.1    Name.

     The Trust is named "News Corporation Finance Trust II," as such name may be
modified from time to time by the Regular Trustees following written notice to
the registered Holders of Securities. The Trust's activities may be conducted
under the name of the Trust or any other name deemed advisable by the Regular
Trustees.

Section 3.2    Office.

     The address of the registered principal office of the Trust is c/o News
America Incorporated, 1211 Avenue of the Americas, New York, New York 10036,
Attention: Arthur M. Siskind, Esq. On 10 Business Days written notice to the
Holders of Securities, the Regular Trustees may designate another principal
office.

Section 3.3    Purpose.

     The exclusive purposes and functions of the Trust are (a) to issue and sell
Securities and use the proceeds from such sale to acquire the Debentures, and
(b) except as otherwise limited herein, to engage in only those other activities
necessary, or incidental thereto. The Trust shall not borrow money, issue debt
or reinvest proceeds derived from investments, pledge any of its assets, or
otherwise undertake (or permit to be undertaken) any activity that would cause
the Trust not to be classified for United States federal income tax purposes as
a grantor trust.

Section 3.4    Authority.

     (a) Subject to the limitations provided in this Declaration and to the
specific duties of the Property Trustee, the Regular Trustees shall have
exclusive and complete authority to carry out the purposes of the Trust. An
action taken by the Regular Trustees in accordance with their powers shall
constitute the act of and serve to bind the Trust and an action taken by the
Property Trustee on behalf of the Trust in accordance with its powers shall
constitute the act of and serve to bind the Trust. In dealing with the Trustees
acting on behalf of the Trust, no person shall be required to inquire into the
authority of the Trustees to bind the Trust. Persons dealing with the Trust are
entitled to rely conclusively on the power and authority of the Trustees as set
forth in this Declaration.

                                       17

<PAGE>

     (b) Except as expressly set forth in this Declaration and except if a
meeting of the Regular Trustees is called with respect to any matter over which
the Regular Trustees have power to act, any power of the Regular Trustees may be
exercised by, or with the consent of, any one such Regular Trustee.

     (c) Unless otherwise determined by the Regular Trustees, and except as
otherwise required by the Statutory Trust Act or applicable law, any Regular
Trustee or, if there is only one, such Regular Trustee is authorized to execute
on behalf of the Trust any documents which the Regular Trustees have the power
and authority to cause the Trust to execute pursuant to Section 3.6, provided,
that the registration statement referred to in Section 3.6, including any
amendments thereto, shall be signed by a majority of the Regular Trustees.

     (d) A Regular Trustee may, by power of attorney consistent with applicable
law, delegate to any other natural person over the age of 21 his or her power
for the purposes of signing any documents which the Regular Trustees have power
and authority to cause the Trust to execute pursuant to Section 3.6.

Section 3.5    Title to Property of the Trust.

     Except as provided in Section 3.8 with respect to the Debentures and the
Property Trustee Account or as otherwise provided in this Declaration, legal
title to all assets of the Trust shall be vested in the Trust. The Holders shall
not have legal title to any part of the assets of the Trust, but shall have an
undivided beneficial interest in the assets of the Trust.

Section 3.6    Powers and Duties of the Regular Trustees.

     The Regular Trustees shall have the exclusive power, duty and authority to
cause the Trust to engage in the following activities:

     (a) to issue and sell the Exchangeable Preferred Securities and the Common
Securities in accordance with this Declaration; provided, however, that the
Trust may issue no more than one series of Exchangeable Preferred Securities and
no more than one series of Common Securities, and, provided further, that there
shall be no interests in the Trust other than the Securities, and the issuance
of Securities shall be limited to a simultaneous issuance of both Exchangeable
Preferred Securities and Common Securities on the Closing Date and, to the
extent applicable, on any Date of Delivery (as defined in the Purchase
Agreement);

     (b) in connection with the issue and sale of the Exchangeable Preferred
Securities, at the direction of the Sponsor, to:

          (i) execute, if necessary, an offering memorandum (the "Offering
     Memorandum") in preliminary and final form prepared by the Sponsor in
     relation to the offering and sale of the Exchangeable Preferred Securities
     to qualified institutional buyers in reliance on Rule 144A under the
     Securities Act and outside the United States to

                                       18

<PAGE>

     non-U.S. persons in offshore transactions in reliance on Regulation S under
     the Securities Act and to execute and file with the Commission on behalf of
     the Trust a registration statement on Form F-3 or on another appropriate
     form prepared by the Sponsor, including any pre-effective or post-effective
     amendments thereto, relating to the registration under the Securities Act
     of the Exchangeable Preferred Securities pursuant to the Registration
     Rights Agreement;

          (ii) execute and file any documents prepared by the Sponsor, or take
     any acts as determined by the Sponsor to be necessary in order to qualify
     or register all or part of the Exchangeable Preferred Securities in any
     State or foreign jurisdiction in which the Sponsor has determined to
     qualify or register such Exchangeable Preferred Securities for sale;

          (iii) execute and file an application, prepared by the Sponsor, to the
     PORTAL Market and, at such time as determined by the Sponsor;

          (iv) execute and deliver letters, documents or instruments with The
     Depository Trust Company relating to the Exchangeable Preferred Securities;
     and

          (v) execute and enter into the Purchase Agreement, the Registration
     Rights Agreement and any Common Securities purchase agreement and other
     related agreements providing for the sale of the Exchangeable Preferred
     Securities or the Common Securities;

     (c) to acquire the Debentures with the proceeds of the sale of the
Exchangeable Preferred Securities and the Common Securities; provided, however,
that the Regular Trustees shall cause legal title to the Debentures to be held
of record in the name of the Property Trustee for the benefit of the Holders of
the Exchangeable Preferred Securities and the Holders of Common Securities;

     (d) to give the Sponsor and the Property Trustee prompt written notice of
the occurrence of a Tax Event; provided, that the Regular Trustees shall consult
with the Sponsor and the Property Trustee before taking or refraining from
taking any ministerial action, such as filing a form or making an election, or
pursuing some other similar measure which in the sole judgment of the Sponsor,
has or will cause no adverse effect on the Trust, the Sponsor or the Holders of
the Securities and will involve no material cost in relation to a Tax Event;

     (e) to establish a record date with respect to all actions to be taken
hereunder that require a record date be established, including and with respect
to, for the purposes of Section 316(c) of the Trust Indenture Act,
Distributions, voting rights, redemptions and exchanges, and to issue relevant
notices to the Holders of Exchangeable Preferred Securities and Holders of
Common Securities as to such actions and applicable record dates;

                                       19

<PAGE>

     (f) to take all actions and perform such duties as may be required of the
Regular Trustees pursuant to the terms of the Securities, the Purchase Agreement
and the Registration Rights Agreement;

     (g) to bring or defend, pay, collect, compromise, arbitrate, resort to
legal action, or otherwise adjust claims or demands of or against the Trust
("Legal Action"), unless pursuant to Section 3.8(e), the Property Trustee has
the exclusive power to bring such Legal Action;

     (h) to employ or otherwise engage employees and agents (who may be
designated as officers with titles) and managers, contractors, advisors, and
consultants and pay reasonable compensation for such services;

     (i) to cause the Trust to comply with the Trust's obligations under the
Trust Indenture Act;

     (j) to give the certificate required by Section 314(a)(4) of the Trust
Indenture Act to the Property Trustee, which certificate may be executed by any
Regular Trustee;

     (k) to incur expenses that are necessary or incidental to carry out any of
the purposes of the Trust;

     (l) to act as, or appoint another Person to act as, registrar and transfer
agent for the Securities;

     (m) to give prompt written notice to the Holders of the Securities of any
notice received from the Debenture Issuer of the deferral of payments of
interest on the Debentures on account of the Debenture Issuer's extending the
interest payment period on the Debentures under the Indenture;

     (n) to take all action that may be necessary or appropriate for the
preservation and the continuation of the Trust's valid existence, rights,
franchises and privileges as a statutory trust under the laws of the State of
Delaware and of each other jurisdiction in which such existence is necessary to
protect the limited liability of the Holders of the Exchangeable Preferred
Securities or to enable the Trust to effect the purposes for which the Trust was
created;

     (o) to take any action, not inconsistent with this Declaration or with
applicable law, that the Regular Trustees determine in their discretion to be
necessary or desirable in carrying out the activities of the Trust as set out in
this Section 3.6, including, but not limited to:

          (i) causing the Trust not to be deemed to be an Investment Company
     required to be registered under the Investment Company Act;

                                       20

<PAGE>

          (ii) causing the Trust to be classified for United States federal
     income tax purposes as a grantor trust; and

          (iii) cooperating with the Debenture Issuer to ensure that (x) the
     Debentures will be treated as indebtedness of the Debenture Issuer for
     United States federal income tax purposes and (y) the Trust is classified
     for United States federal income tax purposes as a grantor trust;

     provided, that any such action does not adversely affect the interests of
     Holders;

     (p) to take all action necessary to cause all applicable tax returns and
tax information reports that are required to be filed with respect to the Trust
to be duly prepared and filed by the Regular Trustees, on behalf of the Trust;
and

     (q) to execute all documents or instruments, perform all duties and powers,
and do all things for and on behalf of the Trust in all matters necessary or
incidental to the foregoing.

     The Regular Trustees must exercise the powers set forth in this Section 3.6
in a manner that is consistent with the purposes and functions of the Trust set
out in Section 3.3, and the Regular Trustees shall not take any action that is
inconsistent with the purposes and functions of the Trust set forth in Section
3.3.

     Subject to this Section 3.6, the Regular Trustees shall have none of the
powers or the authority of the Property Trustee set forth in Section 3.8.

     Any expenses incurred by the Regular Trustees pursuant to this Section 3.6
shall be reimbursed by the Sponsor and News Corporation.

Section 3.7    Prohibition of Actions by the Trust and the Trustees.

     (a) The Trust shall not, and the Trustees (including the Property Trustee)
shall not, engage in any activity other than as required or authorized by this
Declaration. In particular, the Trust shall not and the Trustees (including the
Property Trustee) shall cause the Trust not to:

          (i) invest any proceeds received by the Trust from holding the
     Debentures, but shall distribute all such proceeds to Holders of Securities
     pursuant to the terms of this Declaration and of the Securities;

          (ii) acquire any assets other than as expressly provided herein;

          (iii) possess Trust property for other than a Trust purpose;

                                       21

<PAGE>

          (iv) make any loans or incur any indebtedness other than loans
     represented by the Debentures;

          (v) possess any power or otherwise act in such a way as to vary the
     Trust assets or the terms of the Securities in any way whatsoever;

          (vi) issue any securities or other evidences of beneficial ownership
     of, or beneficial interest in, the Trust other than the Securities; or

          (vii) other than as provided in this Declaration or Annex I hereto,
     (A) direct the time, method and place of exercising any trust or power
     conferred upon the Debenture Trustee with respect to the Debentures, (B)
     waive any past default that is waivable under the Indenture, (C) exercise
     any right to rescind or annul any declaration that the principal of all the
     Debentures shall be due and payable or (D) consent to any amendment,
     modification or termination of the Indenture or the Debentures where such
     consent shall be required unless the Trust shall have received an opinion
     of nationally recognized independent tax counsel experienced in such
     matters to the effect that such modification will not cause more than an
     insubstantial risk that (x) the Trust will be deemed an Investment Company
     required to be registered under the Investment Company Act or (y) for
     United States federal income tax purposes the Trust will not be classified
     as a grantor trust.

Section 3.8    Powers and Duties of the Property Trustee.

     (a) The legal title to the Debentures shall be owned by and held of record
in the name of the Property Trustee in trust for the benefit of the Holders of
the Securities. The right, title and interest of the Property Trustee to the
Debentures shall vest automatically in each Person who may hereafter be
appointed as Property Trustee in accordance with Section 5.6. Such vesting and
cessation of title shall be effective whether or not conveyancing documents with
regard to the Debentures have been executed and delivered.

     (b) The Property Trustee shall not transfer its right, title and interest
in the Debentures to the Regular Trustees or to the Delaware Trustee (if the
Property Trustee does not also act as Delaware Trustee).

     (c) The Property Trustee shall:

          (i) establish and maintain a segregated non-interest bearing trust
     account (the "Property Trustee Account") in the name of and under the
     exclusive control of the Property Trustee on behalf of the Holders of the
     Securities and, upon the receipt of payments of funds made in respect of
     the Debentures held by the Property Trustee, deposit such funds into the
     Property Trustee Account and make payments to the Holders of the
     Exchangeable Preferred Securities and Holders of the Common Securities

                                       22

<PAGE>

     from the Property Trustee Account in accordance with Section 6.1. Funds in
     the Property Trustee Account shall be held uninvested until disbursed in
     accordance with this Declaration. The Property Trustee Account shall be an
     account that is maintained with a banking institution the rating on whose
     long-term unsecured indebtedness is at least equal to the rating assigned
     to the Exchangeable Preferred Securities by a "nationally recognized
     statistical rating organization," as that term is defined for purposes of
     Rule 436(g)(2) under the Securities Act;

          (ii) engage in such ministerial activities as so directed and as shall
     be necessary or appropriate to effect the redemption of the Exchangeable
     Preferred Securities and the Common Securities to the extent the Debentures
     are redeemed or mature; and

          (iii) upon written notice of distribution issued by the Regular
     Trustees in accordance with the terms of the Securities, engage in such
     ministerial activities as so directed and as shall be necessary or
     appropriate to effect the distribution of the Debentures to Holders of
     Securities upon the occurrence of certain special events (as may be defined
     in the terms of the Securities) arising from a change in law or a change in
     legal interpretation or other specified circumstances pursuant to the terms
     of the Securities.

     (d) The Property Trustee shall take all actions and perform such duties as
may be specifically required of the Property Trustee pursuant to the terms of
the Securities.

     (e) The Property Trustee shall take any Legal Action which arises out of or
in connection with an Event of Default of which a Responsible Officer of the
Property Trustee has actual knowledge or the Property Trustee's duties and
obligations under this Declaration or the Trust Indenture Act.

     (f) The Property Trustee shall not resign as a Trustee unless either:

          (i) the Trust has been completely liquidated and the proceeds of the
     liquidation distributed to the Holders of Securities pursuant to the terms
     of the Securities; or

          (ii) a Successor Property Trustee has been appointed and has accepted
     that appointment in accordance with Section 5.6.

     (g) The Property Trustee shall have the legal power to exercise all of the
rights, powers and privileges of a holder of Debentures under the Indenture and,
if an Event of Default on the Debentures actually known to a Responsible Officer
of the Property Trustee occurs and is continuing, the Property Trustee shall,
for the benefit of Holders of the Securities, enforce its rights as holder of
the Debentures subject to the rights of the Holders pursuant to the terms of
such Securities.

                                       23

<PAGE>

     (h) The Property Trustee will act as Paying Agent and Registrar in both
London and New York to pay Distributions, redemption payments or liquidation
payments on behalf of the Trust with respect to all securities and any such
Paying Agent shall comply with Section 317(b) of the Trust Indenture Act. Any
Paying Agent may be removed by the Property Trustee at any time and a successor
Paying Agent or additional Paying Agents may be appointed at any time by the
Property Trustee.

     (i) Subject to this Section 3.8, the Property Trustee shall have none of
the duties, liabilities, powers or the authority of the Regular Trustees set
forth in Section 3.6.

     The Property Trustee shall exercise the powers set forth in this Section
3.8 in a manner that is consistent with the purposes and functions of the Trust
set out in Section 3.3, and the Property Trustee shall not take any action that
is inconsistent with the purposes and functions of the Trust set out in Section
3.3.

Section 3.9    Certain Duties and Responsibilities of the Property Trustee.

     (a) The Property Trustee, before the occurrence of any Event of Default and
after the curing of all Events of Default that may have occurred, shall
undertake to perform only such duties as are specifically set forth in this
Declaration and no implied covenants shall be read into this Declaration against
the Property Trustee. In case an Event of Default has occurred (that has not
been cured or waived pursuant to Section 2.6) of which a Responsible Officer of
the Property Trustee has actual knowledge, the Property Trustee shall exercise
such of the rights and powers vested in it by this Declaration, and use the same
degree of care and skill in their exercise as a prudent person would exercise or
use under the circumstances in the conduct of his or her own affairs.

     (b) No provision of this Declaration shall be construed to relieve the
Property Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:

          (i) prior to the occurrence of an Event of Default and after the
     curing or waiving of all such Events of Default that may have occurred:

               (A) the duties and obligations of the Property Trustee shall be
          determined solely by the express provisions of this Declaration and
          the Property Trustee shall not be liable except for the performance of
          such duties and obligations as are specifically set forth in this
          Declaration, and no implied covenants or obligations shall be read
          into this Declaration against the Property Trustee; and

               (B) in the absence of bad faith on the part of the Property
          Trustee, the Property Trustee may conclusively rely, as to the truth
          of the

                                       24

<PAGE>

          statements and the correctness of the opinions expressed therein, upon
          any certificates or opinions furnished to the Property Trustee and
          conforming to the requirements of this Declaration; but in the case of
          any such certificates or opinions that by any provision hereof are
          specifically required to be furnished to the Property Trustee, the
          Property Trustee shall be under a duty to examine the same to
          determine whether or not they conform to the requirements of this
          Declaration (but shall not be required to confirm the mathematical
          accuracy thereof);

          (ii) the Property Trustee shall not be liable for any error of
     judgment made in good faith by a Responsible Officer of the Property
     Trustee, unless it shall be proved that the Property Trustee was negligent
     in ascertaining the pertinent facts;

          (iii) the Property Trustee shall not be liable with respect to any
     action taken or omitted to be taken by it in good faith in accordance with
     the direction of the Holders of not less than a Majority in Stated
     Liquidation Amount of the Securities relating to the time, method and place
     of conducting any proceeding for any remedy available to the Property
     Trustee, or exercising any trust or power conferred upon the Property
     Trustee under this Declaration;

          (iv) no provision of this Declaration shall require the Property
     Trustee to expend or risk its own funds or otherwise incur personal
     financial liability in the performance of any of its duties or in the
     exercise of any of its rights or powers, if it shall have reasonable
     grounds for believing that the repayment of such funds or liability is not
     reasonably assured to it under the terms of this Declaration or indemnity
     reasonably satisfactory to the Property Trustee against such risk or
     liability is not reasonably assured to it;

          (v) the Property Trustee's sole duty with respect to the custody, safe
     keeping and physical preservation of the Debentures and the Property
     Trustee Account shall be to deal with such property in a similar manner as
     the Property Trustee deals with similar property for its own account,
     subject to the protections and limitations on liability afforded to the
     Property Trustee under this Declaration and the Trust Indenture Act;

          (vi) the Property Trustee shall have no duty or liability for or with
     respect to the value, genuineness, existence or sufficiency of the
     Debentures or the payment of any taxes or assessments levied thereon or in
     connection therewith;

          (vii) the Property Trustee shall not be liable for any interest on any
     money received by it except as it may otherwise agree in writing with the
     Sponsor. Money held by the Property Trustee need not be segregated from
     other funds held by it except in relation to the Property Trustee Account
     maintained by the Property Trustee pursuant to Section 3.8(c)(i) and except
     to the extent otherwise required by law; and

                                       25

<PAGE>

          (viii) the Property Trustee shall not be responsible for monitoring
     the compliance by the Regular Trustees or the Sponsor with their respective
     duties under this Declaration, nor shall the Property Trustee be liable for
     any default or misconduct of the Regular Trustees or the Sponsor.

Section 3.10   Certain Rights of Property Trustee.

     (a) Subject to the provisions of Section 3.9:

          (i) the Property Trustee may conclusively rely and shall be fully
     protected in acting or refraining from acting upon any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     direction, consent, order, bond, debenture, note, other evidence of
     indebtedness or other paper or document (whether in original or facsimile
     form) reasonably believed by it to be genuine and to have been signed, sent
     or presented by the proper party or parties;

          (ii) any direction or act of the Sponsor or the Regular Trustees
     contemplated by this Declaration shall be sufficiently evidenced by an
     Officers' Certificate;

          (iii) whenever in the administration of this Declaration, the Property
     Trustee shall deem it desirable that a matter be proved or established
     before taking, suffering or omitting any action hereunder, the Property
     Trustee (unless other evidence is herein specifically prescribed) may, in
     the absence of bad faith on its part, request and rely upon an Officers'
     Certificate which, upon receipt of such request, shall be promptly
     delivered by the Sponsor or the Regular Trustees;

          (iv) the Property Trustee shall have no duty to see to any recording,
     filing or registration of any instrument (including any financing or
     continuation statement or any filing under tax or securities laws) or any
     rerecording, refiling or registration thereof;

          (v) the Property Trustee may consult with counsel of its choice or
     other experts and the advice or opinion of such counsel and experts with
     respect to legal matters or advice within the scope of such experts' area
     of expertise shall be full and complete authorization and protection in
     respect of any action taken, suffered or omitted by it hereunder in good
     faith and in accordance with such advice or opinion, such counsel may be
     counsel to the Sponsor or any of its Affiliates, and may include any of its
     employees. The Property Trustee shall have the right at any time to seek
     instructions concerning the administration of this Declaration from any
     court of competent jurisdiction;

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<PAGE>

          (vi) the Property Trustee shall be under no obligation to exercise any
     of the rights or powers vested in it by this Declaration at the request or
     direction of any Holder, unless such Holder shall have provided to the
     Property Trustee adequate security and indemnity, reasonably satisfactory
     to the Property Trustee, against the costs, expenses (including attorneys'
     fees and expenses and the expenses of the Property Trustee's agents,
     nominees or custodians) and liabilities that might be incurred by it in
     complying with such request or direction, including such reasonable
     advances as may be requested by the Property Trustee provided, that,
     nothing contained in this Section 3.10(a)(vi) shall be taken to relieve the
     Property Trustee, upon the occurrence of an Event of Default, of its
     obligation to exercise the rights and powers vested in it by this
     Declaration;

          (vii) the Property Trustee shall not be bound to make any
     investigation into the facts or matters stated in any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     direction, consent, order, security, bond, debenture, note, other evidence
     of indebtedness or other paper or document, but the Property Trustee, in
     its discretion, may make such further inquiry or investigation into such
     facts or matters as it may see fit at the expense of the Sponsor and shall
     not incur liability of any kind in connection with any such inquiry or
     investigation;

          (viii) the Property Trustee may execute any of the trusts or powers
     hereunder or perform any duties hereunder either directly or by or through
     agents or attorneys and the Property Trustee shall not be responsible for
     any misconduct or negligence on the part of any agent or attorney appointed
     with due care by it hereunder;

          (ix) any action taken by the Property Trustee or its agents hereunder
     shall bind the Trust and the Holders of the Securities, and the signature
     of the Property Trustee or its agents alone shall be sufficient and
     effective to perform any such action and no third party shall be required
     to inquire as to the authority of the Property Trustee to so act or as to
     its compliance with any of the terms and provisions of this Declaration,
     both of which shall be conclusively evidenced by the Property Trustee's or
     its agent's taking such action;

          (x) whenever in the administration of this Declaration the Property
     Trustee shall deem it desirable to receive instructions with respect to
     enforcing any remedy or right or taking any other action hereunder, the
     Property Trustee (i) may request instructions from the Holders of the
     Securities which instructions may only be given by the Holders of the same
     proportion in liquidation amount of the Securities as would be entitled to
     direct the Property Trustee under the terms of the Securities in respect of
     such remedy, right or action, (ii) may refrain from enforcing such remedy
     or right or taking such other action until such instructions are received,
     and (iii) shall be protected in acting in accordance with such
     instructions;

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<PAGE>

          (xi) except as otherwise expressly provided by this Declaration, the
     Property Trustee shall not be under any obligation to take any action that
     is discretionary under the provisions of this Declaration; and

          (xii) the Property Trustee shall not be liable for any action taken,
     suffered or omitted to be taken by it in good faith and reasonably believed
     by it to be authorized or within the discretion or rights or powers
     conferred upon it by this Declaration.

     (b) No provision of this Declaration shall be deemed to impose any duty or
obligation on the Property Trustee to perform any act or acts or exercise any
right, power, duty or obligation conferred or imposed on it, in any jurisdiction
in which it shall be illegal, or in which the Property Trustee shall be
unqualified or incompetent in accordance with applicable law, to perform any
such act or acts, or to exercise any such right, power, duty or obligation. No
permissive power or authority available to the Property Trustee shall be
construed to be a duty.

Section 3.11   Delaware Trustee.

     Notwithstanding any other provision of this Declaration other than Section
5.2, the Delaware Trustee shall not be entitled to exercise any powers, nor
shall the Delaware Trustee have any of the duties and responsibilities of the
Regular Trustees or the Property Trustee described in this Declaration. Except
as set forth in Section 5.2, the Delaware Trustee shall be a Trustee for the
sole and limited purpose of fulfilling the requirements of Section 3807 of the
Statutory Trust Act.

Section 3.12   Not Responsible for Recitals or Issuance of Securities.

     The recitals contained in this Declaration and the Securities shall be
taken as the statements of the Sponsor, and the Trustees do not assume any
responsibility for their correctness. The Trustees make no representations as to
the value or condition of the property of the Trust or any part thereof. The
Trustees make no representations as to the validity or sufficiency of this
Declaration or the Securities.

Section 3.13   Duration of Trust.

     The Trust, unless terminated pursuant to the provisions of Article VIII
hereof, shall exist until March 15, 2024.

Section 3.14   Mergers.

     (a) The Trust may not consolidate, amalgamate, merge with or into, or be
replaced by, or convey, transfer or lease its properties and assets
substantially as an entirety, to any corporation or other entity or body, except
as described in Section 3.14(b) and (c).

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<PAGE>

     (b) The Trust may, with the consent of the Regular Trustees or, if there
are more than two, a majority of the Regular Trustees and without the consent of
the Holders of the Securities, the Delaware Trustee or the Property Trustee,
consolidate, amalgamate, merge with or into, or be replaced by a trust organized
as such under the laws of any State of the United States; provided, that:

          (i) if the Trust is not the survivor, such successor entity (the
     "Successor Entity") either:

               (A) expressly assumes all of the obligations of the Trust under
          the Securities; or

               (B) substitutes for the Exchangeable Preferred Securities other
          securities having substantially the same terms as the Exchangeable
          Preferred Securities (the "Successor Securities") so long as the
          Successor Securities rank the same as the Exchangeable Preferred
          Securities rank with respect to Distributions, assets and payments
          upon liquidation, redemption and otherwise;

          (ii) the Sponsor expressly appoints a trustee of the Successor Entity
     that possesses the same powers and duties as the Property Trustee as the
     Holder of the Debentures;

          (iii) the Preferred Securities or any Successor Securities are listed,
     or any Successor Securities will be listed upon notification of issuance,
     on any national securities exchange or with another organization on which
     the Exchangeable Preferred Securities are then listed or quoted;

          (iv) such merger, consolidation, amalgamation or replacement does not
     cause the Exchangeable Preferred Securities (including any Successor
     Securities) to be downgraded by any nationally recognized statistical
     rating organization;

          (v) such merger, consolidation, amalgamation or replacement does not
     adversely affect the rights, preferences and privileges of the Holders of
     the Exchangeable Preferred Securities (including any Successor Securities)
     in any material respect;

          (vi) such Successor Entity has a purpose substantially identical to
     that of the Trust;

          (vii) News Corporation or any permitted successor or assignee
     continues to own, directly or indirectly, 100% of the Common Securities and
     guarantees the obligations of such Successor Entity under the Successor
     Securities at least to the extent provided by the Exchangeable Preferred
     Securities Guarantee; and

                                       29

<PAGE>

          (viii) prior to such merger, consolidation, amalgamation or
     replacement, the Sponsor has received an opinion of a nationally recognized
     independent counsel to the Trust reasonably acceptable to the Property
     Trustee and experienced in such matters to the effect that:

               (A) such merger, consolidation, amalgamation or replacement will
          not adversely affect the rights, preferences and privileges of the
          Holders of the Securities (including any Successor Securities) in any
          material respect (other than with respect to any dilution of the
          Holders' interest in the new entity);

               (B) following such merger, consolidation, amalgamation or
          replacement, neither the Trust nor the Successor Entity will be
          required to register as an Investment Company; and

               (C) following such merger, consolidation, amalgamation or
          replacement, the Trust (or the Successor Entity) will be treated as a
          grantor trust for United States federal income tax purposes.

     (c) Notwithstanding Section 3.14(b), the Trust shall not, except with the
consent of Holders of 100% in stated liquidation amount of the Common
Securities, consolidate, amalgamate, merge with or into, or be replaced by any
other entity or permit any other entity to consolidate, amalgamate, merge with
or into, or replace it if, in the opinion of a nationally recognized independent
tax counsel experienced in such matters, such consolidation, amalgamation,
merger or replacement would cause the Trust or Successor Entity to be classified
as other than a grantor trust for United States federal income tax purposes.

                                   ARTICLE IV
                                     SPONSOR

Section 4.1    Sponsor's Purchase of Common Securities.

     On the Closing Date, the Sponsor will purchase all of the Common Securities
issued by the Trust, for an amount at least equal to 1% of the capital of the
Trust, at the same time as the Exchangeable Preferred Securities are sold.

Section 4.2    Responsibilities of the Sponsor.

     In connection with the issuance and sale of the Exchangeable Preferred
Securities, the Sponsor shall have the exclusive right and responsibility to
engage in the following activities:

     (a) to prepare the Offering Memorandum and to prepare for filing by the
Trust with the Commission a registration statement on Form F-3 or on another
appropriate form, including any pre-effective or post-effective amendments
thereto, relating to the registration under the Securities Act of the
Exchangeable Preferred Securities;

                                       30

<PAGE>

     (b) to determine the States and foreign jurisdictions in which to take
appropriate action to qualify or register for sale all or part of the
Exchangeable Preferred Securities and to do any and all such acts, other than
actions that must be taken by the Trust, and advise the Trust of actions it must
take, and prepare for execution and filing any documents to be executed and
filed by the Trust, as the Sponsor deems necessary or advisable in order to
comply with the applicable laws of any such States and foreign jurisdictions;

     (c) to prepare for filing by the Trust an application to list the
Exchangeable Preferred Securities on the PORTAL Market;

     (d) to negotiate the terms of the Purchase Agreement, the Registration
Rights Agreement and any Common Securities purchase agreement and other related
agreements providing for the sale of the Exchangeable Preferred Securities or
the Common Securities.

Section 4.3    Right to Proceed.

     The Sponsor acknowledges the rights of the Holders of Exchangeable
Preferred Securities, in the circumstances set out in Annex I, to institute a
proceeding directly against the Company for enforcement of their obligations on
the Debentures.

                                    ARTICLE V
                                    TRUSTEES

Section 5.1    Number of Trustees.

     The number of Trustees shall initially be three (3), and:

     (a) at any time before the issuance of any Securities, the Sponsor may, by
written instrument, increase or decrease the number of Trustees; and

     (b) after the issuance of any Securities, the number of Trustees may be
increased or decreased by vote of the Holders of a majority in stated
liquidation amount of the Common Securities voting as a class at a meeting of
the Holders of the Common Securities,

provided, however, that the number of Trustees shall in no event be less than
two (2); provided further that (1) one Trustee, the Delaware Trustee, in the
case of a natural person, shall be a person who is a resident of the State of
Delaware or that, if not a natural person, is an entity which has its principal
place of business in the State of Delaware; (2) there shall be at least one
Regular Trustee who is an employee or officer of, or is affiliated with the
Sponsor; and (3) one Trustee shall be the Property Trustee for so long as this
Declaration is required to qualify as an indenture under the Trust Indenture
Act, and such Trustee may also serve as Delaware Trustee if it meets the
applicable requirements.

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<PAGE>

Section 5.2    Delaware Trustee.

     If required by the Statutory Trust Act, one Trustee (the "Delaware
Trustee") shall be:

     (a) a natural person who is a resident of the State of Delaware; or

     (b) if not a natural person, an entity which has its principal place of
business in the State of Delaware, and otherwise meets the requirements of
applicable law,

provided, that if the Property Trustee has its principal place of business in
the State of Delaware and otherwise meets the requirements of applicable law,
then the Property Trustee shall also be the Delaware Trustee and Section 3.11
shall have no application.

Section 5.3    Property Trustee; Eligibility.

     (a) There shall at all times be one Trustee which shall act as Property
Trustee which shall:

          (i) not be an Affiliate of the Sponsor;

          (ii) be a corporation organized and doing business under the laws of
     the United States of America or any State or Territory thereof or of the
     District of Columbia, or a corporation or Person permitted by the
     Commission to act as an institutional trustee under the Trust Indenture
     Act, authorized under such laws to exercise corporate trust powers, having
     a combined capital and surplus of at least 50 million U.S. dollars
     ($50,000,000), and subject to supervision or examination by Federal, State,
     Territorial or District of Columbia authority. If such corporation
     publishes reports of condition at least annually, pursuant to law or to the
     requirements of the supervising or examining authority referred to above,
     then for the purposes of this Section 5.3(a)(ii), the combined capital and
     surplus of such corporation shall be deemed to be its combined capital and
     surplus as set forth in its most recent report of condition so published;
     and

          (iii) if the Trust is excluded from the definition of an Investment
     Company solely by means of Rule 3a-5 and to the extent Rule 3a-5 requires a
     trustee having certain qualifications to hold title to the "eligible
     assets" of the Trust, the Property Trustee shall possess those
     qualifications.

     (b) If at any time the Property Trustee shall cease to be eligible to so
act under Section 5.3(a), the Property Trustee shall promptly resign in the
manner and with the effect set forth in Section 5.6(d).

     (c) If the Property Trustee has or shall acquire any "conflicting interest"
within the meaning of Section 310(b) of the Trust Indenture Act, the Property
Trustee and the Holder

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<PAGE>

of the Common Securities (as if it were the obligor referred to in Section
310(b) of the Trust Indenture Act) shall in all respects comply with the
provisions of Section 310(b) of the Trust Indenture Act.

     (d) The Preferred Securities Guarantee shall be deemed to be specifically
described in this Declaration for purposes of clause (i) of the first provision
contained in Section 310(b) of the Trust Indenture Act.

     (e) The initial Property Trustee shall be set forth in Section 5.5 hereof.

Section 5.4    Qualifications of Regular Trustees and Delaware Trustee
               Generally.

     Each Regular Trustee and the Delaware Trustee (unless the Property Trustee
also acts as Delaware Trustee) shall be either a natural person who is at least
21 years of age or a legal entity that shall act through one or more Authorized
Officers.

Section 5.5    Initial Trustees.

     (a) The initial Regular Trustees shall be:

               Arthur M. Siskind
               David F. DeVoe
               Paula M. Wardynski
               c/o News America Incorporated
               1211 Avenue of the Americas
               New York, NY  10036

     The initial Delaware Trustee shall be:

               The Bank of New York
               700 White Clay Centre
               Route 273
               Newark, Delaware  19711

     The initial Property Trustee shall be:

               The Bank of New York
               101 Barclay Street, Fl. 8W
               New York, New York  10286
               Attention:  Corporate Trust Administration

Section 5.6    Appointment, Removal and Resignation of Trustees.

     (a) Subject to Section 5.6(b), Trustees may be appointed or removed without
cause at any time:

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<PAGE>

          (i) until the issuance of any Securities, by written instrument
     executed by the Sponsor; and

          (ii) after the issuance of any Securities, by vote of the Holders of a
     majority in stated liquidation amount of the Common Securities voting as a
     class at a meeting of the Holders of the Common Securities.

     (b) The Trustee that acts as Property Trustee shall not be removed in
accordance with Section 5.6(a) until a successor Trustee possessing the
qualifications to act as Property Trustee under Section 5.3 (a "Successor
Property Trustee") has been appointed and has accepted such appointment by
written instrument executed by such Successor Property Trustee and delivered to
the Regular Trustees and the Sponsor.

     (c) The Trustee that acts as Delaware Trustee shall not be removed in
accordance with Section 5.6(a) until a successor Trustee possessing the
qualifications to act as Delaware Trustee under Sections 5.2 and 5.4 (a
"Successor Delaware Trustee") has been appointed and has accepted such
appointment by written instrument executed by such Successor Delaware Trustee
and delivered to the Regular Trustees and the Sponsor.

     (d) A Trustee appointed to office shall hold office until his successor
shall have been appointed or until his death, removal or resignation. Any
Trustee may resign from office (without need for prior or subsequent accounting)
by an instrument in writing signed by the Trustee and delivered to the Sponsor
and the Trust, which resignation shall take effect upon such delivery or upon
such later date as is specified therein; provided, however, that:

          (i) No such resignation of the Trustee that acts as the Property
     Trustee shall be effective:

               (A) until a Successor Property Trustee has been appointed and has
          accepted such appointment by instrument executed by such Successor
          Property Trustee and delivered to the Trust, the Sponsor and the
          resigning Property Trustee; or

               (B) until the assets of the Trust have been completely liquidated
          and the proceeds thereof distributed to the holders of the Securities;
          and

          (ii) no such resignation of the Trustee that acts as the Delaware
     Trustee shall be effective until a Successor Delaware Trustee has been
     appointed and has accepted such appointment by instrument executed by such
     Successor Delaware Trustee and delivered to the Trust, the Sponsor and the
     resigning Delaware Trustee.

     (e) The Holders of the Common Securities shall use their best efforts to
promptly appoint a Successor Property Trustee or Successor Delaware Trustee as
the case may

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<PAGE>

be if the Property Trustee or the Delaware Trustee delivers an instrument of
resignation in accordance with this Section 5.6.

     (f) If no Successor Property Trustee or Successor Delaware Trustee shall
have been appointed and accepted appointment as provided in this Section 5.6
within 30 days after delivery pursuant to this Section 5.6 of an instrument of
resignation or removal, the Property Trustee or Delaware Trustee resigning or
being removed, as applicable, may petition at the expense of the Sponsor any
court of competent jurisdiction for appointment of a Successor Property Trustee
or Successor Delaware Trustee. Such court may thereupon, after prescribing such
notice, if any, as it may deem proper and prescribe, appoint a Successor
Property Trustee or Successor Delaware Trustee, as the case may be.

     (g) No Property Trustee or Delaware Trustee shall be liable for the acts or
omissions to act of any Successor Property Trustee or Successor Delaware
Trustee, as the case may be.

Section 5.7    Vacancies among Trustees.

     If a Trustee ceases to hold office for any reason and the number of
Trustees is not reduced pursuant to Section 5.1, or if the number of Trustees is
increased pursuant to Section 5.1, a vacancy shall occur. A resolution
certifying the existence of such vacancy by the Regular Trustees or, if there
are more than two, a majority of the Regular Trustees shall be conclusive
evidence of the existence of such vacancy. The vacancy shall be filled with a
Trustee appointed in accordance with Section 5.6.

Section 5.8    Effect of Vacancies.

     The death, resignation, retirement, removal, bankruptcy, dissolution,
liquidation, incompetence or incapacity to perform the duties of a Trustee shall
not operate to annul the Trust. Whenever a vacancy in the number of Regular
Trustees shall occur, until such vacancy is filled by the appointment of a
Regular Trustee in accordance with Section 5.6, the Regular Trustees in office,
regardless of their number, shall have all the powers granted to the Regular
Trustees and shall discharge all the duties imposed upon the Regular Trustees by
this Declaration.

Section 5.9    Meetings.

     If there is more than one Regular Trustee, meetings of the Regular Trustees
shall be held from time to time upon the call of any Regular Trustee. Regular
meetings of the Regular Trustees may be held at a time and place fixed by
resolution of the Regular Trustees. Notice of any in-person meetings of the
Regular Trustees shall be hand delivered or otherwise delivered in writing
(including by facsimile, with a hard copy by overnight courier) not less than 48
hours before such meeting. Notice of any telephonic meetings of the Regular
Trustees or any

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<PAGE>

committee thereof shall be hand delivered or otherwise delivered in writing
(including by facsimile, with a hard copy by overnight courier) not less than 24
hours before a meeting. Notices shall contain a brief statement of the time,
place and anticipated purposes of the meeting. The presence (whether in person
or by telephone) of a Regular Trustee at a meeting shall constitute a waiver of
notice of such meeting except where a Regular Trustee attends a meeting for the
express purpose of objecting to the transaction of any activity on the ground
that the meeting has not been lawfully called or convened. Unless provided
otherwise in this Declaration, any action of the Regular Trustees may be taken
at a meeting by vote of a majority of the Regular Trustees present (whether in
person or by telephone) and eligible to vote with respect to such matter,
provided that a Quorum is present, or without a meeting by the unanimous written
consent of the Regular Trustees. In the event there is only one Regular Trustee,
any and all action of such Regular Trustee shall be evidenced by a written
consent of such Regular Trustee.

Section 5.10   Delegation of Power.

     (a) Any Regular Trustee may, by power of attorney consistent with
applicable law, delegate to any other natural person over the age of 21 his or
her power for the purpose of executing any documents contemplated in Section
3.6, including any registration statement or amendment thereto filed with the
Commission, or making any other governmental filing; and

     (b) the Regular Trustees shall have power to delegate from time to time to
such of their number or to officers of the Trust the doing of such things and
the execution of such instruments either in the name of the Trust or the names
of the Regular Trustees or otherwise as the Regular Trustees may deem expedient,
to the extent such delegation is not prohibited by applicable law or contrary to
the provisions of the Trust, as set forth herein.

Section 5.11   Merger, Conversion, Consolidation or Succession to Business.

     Any corporation into which the Property Trustee or the Delaware Trustee, as
the case may be, may be merged or converted or with which either may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Property Trustee or the Delaware Trustee, as the case
may be, shall be a party, or any corporation succeeding to all or substantially
all the corporate trust business of the Property Trustee or the Delaware
Trustee, as the case may be, shall be the successor of the Property Trustee or
the Delaware Trustee, as the case may be, hereunder, provided such corporation
shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto.

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<PAGE>

                                   ARTICLE VI
                                  DISTRIBUTIONS

Section 6.1    Distributions.

     Distributions shall be made on the Exchangeable Preferred Securities and
the Common Securities in accordance with the preferences set forth in their
respective terms. If and to the extent that the Debenture Issuer makes a payment
of principal of, premium, if any, or interest, if any, (excluding Additional
Interest, if any, which the Trust shall apply to the payment of taxes, duties,
assessments and governmental charges which gave rise to such Additional
Interest) on the Debentures held by the Property Trustee (the amount of any such
payment being a "Payment Amount"), the Property Trustee shall and is directed,
to the extent funds are available for that purpose, to make a distribution (a
"Distribution") of the Payment Amount to Holders (each day on which
Distributions are payable in accordance with this Section 6.1, a "Distribution
Payment Date").

                                   ARTICLE VII
                             ISSUANCE OF SECURITIES

Section 7.1    General Provisions Regarding Securities.

     (a) The Regular Trustees shall on behalf of the Trust issue one class of
exchangeable preferred securities, representing undivided beneficial interests
in the assets of the Trust, its 0.75% Senior Exchangeable BUCS(sm) (the
"Exchangeable Preferred Securities") having such terms (the "Terms") as are set
forth in Annex I and one class of exchangeable common securities, representing
undivided beneficial interests in the assets of the Trust (the "Common
Securities") having such terms as are set forth in Annex I. The Trust shall
issue no securities or other interests in the assets of the Trust other than the
Exchangeable Preferred Securities and the Common Securities. Any reference to
"BUCS" in any Security or any Certificate or otherwise in connection with this
Declaration shall be deemed a reference to Exchangeable Preferred Securities.
The Trust shall issue no Securities in bearer form.

     (b) The consideration received by the Trust for the issuance of the
Securities shall constitute a contribution to the capital of the Trust and shall
not constitute a loan to the Trust.

     (c) Upon issuance of the Securities as provided in this Declaration, the
Securities so issued shall be deemed to be validly issued, fully paid and
nonassessable.

     (d) Every Person, by virtue of having become a Holder or an Exchangeable
Preferred Security Beneficial Owner in accordance with the terms of this
Declaration, shall be deemed to have expressly assented and agreed to the terms
of, and shall be bound by, this Declaration.

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<PAGE>

     (e) The Securities shall have no preemptive rights.

Section 7.2    Execution and Authentication.

     (a) The Securities shall be signed on behalf of the Trust by a Regular
Trustee. In case any Regular Trustee of the Trust who shall have signed any of
the Securities shall cease to be such Regular Trustee before the Securities so
signed shall be delivered by the Trust, such Securities nevertheless may be
delivered as though the person who signed such Securities had not ceased to be
such Regular Trustee; and any Securities may be signed on behalf of the Trust by
such persons who, at the actual date of execution of such Security, shall be the
Regular Trustees of the Trust, although at the date of the execution and
delivery of the Declaration any such person was not such a Regular Trustee.

     (b) One Regular Trustee shall sign the Exchangeable Preferred Securities
for the Trust by manual or facsimile signature. Unless otherwise determined by
the Trust, such signature shall, in the case of Common Securities, be a manual
signature.

     (c) An Exchangeable Preferred Security shall not be valid until
authenticated by the manual signature of an authorized signatory of the Property
Trustee. The signature shall be conclusive evidence that the Exchangeable
Preferred Security has been authenticated under this Declaration. All securities
shall be dated the date of their authentication; provided, however, that each
Exchangeable Preferred Security issued hereunder shall be deemed for all
purposes of this Declaration to have been issued on March 21, 2003.

     (d) Upon a written order of the Trust signed by one Regular Trustee, the
Property Trustee shall authenticate the Exchangeable Preferred Securities for
original issue in paragraph 5 of the Securities. The aggregate number of
Exchangeable Preferred Securities outstanding at any time shall not exceed the
number set forth in the Terms in Annex I hereto except as provided in Section
7.6.

     (e) The Property Trustee may appoint an authenticating agent acceptable to
the Trust to authenticate Exchangeable Preferred Securities. An authenticating
agent may authenticate Preferred Securities whenever the Property Trustee may do
so. Each reference in this Declaration to authentication by the Property Trustee
includes authentication by such agent. An authenticating agent has the same
rights as the Property Trustee to deal with the Sponsor or an Affiliate.

Section 7.3    Form and Dating.

     (a) The Exchangeable Preferred Securities and the Property Trustee's
certificate of authentication shall be substantially in the form of Exhibit A-1
and the Common Securities shall be substantially in the form of Exhibit A-2,
each of which is hereby incorporated in and expressly made a part of this
Declaration. Certificates may be printed, lithographed or engraved or may be
produced in any other manner as is reasonably acceptable to the Regular
Trustees, as evidenced by their execution thereof. The Securities may have
letters, CUSIP or

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<PAGE>

other numbers, notations or other marks of identification or designation and
such legends or endorsements required by law, stock exchange rule, agreements to
which the Trust is subject, if any, or usage (provided that any such notation,
legend or endorsement is in a form acceptable to the Trust). The Trust at the
direction of the Sponsor shall furnish any such legend not contained in Exhibit
A-1 to the Property Trustee in writing. Each Exchangeable Preferred Security
shall be dated the date of its authentication. The terms and provisions of the
Securities set forth in Annex I and the forms of Securities set forth in
Exhibits A-1 and A-2 are part of the terms of this Declaration and to the extent
applicable, the Property Trustee and the Sponsor, by their execution and
delivery of this Declaration, expressly agree to such terms and provisions and
to be bound thereby. All securities shall be dated the date of their
authentication.

     (b) Global Securities. The Exchangeable Preferred Securities are being
offered and sold by the Trust pursuant to a Purchase Agreement relating to the
Exchangeable Preferred Securities, dated March 18, 2003 , among, inter alia, the
Trust, the Sponsor, News Corporation and Initial Purchasers (as defined therein)
(the "Purchase Agreement").

     (c) The Exchangeable Preferred Securities shall be issued in the form of
one or more, permanent global Securities in definitive, fully registered form
without distribution coupons with the appropriate global legends and Restricted
Securities Legend set forth in Exhibit A-1 hereto (a "Restricted Global
Exchangeable Preferred Security"), which shall be deposited on behalf of the
purchasers of the Exchangeable Preferred Securities represented thereby with the
Property Trustee, at its New York office, as custodian for the Depositary, and
registered in the name of the Depositary or a nominee of the Depositary, duly
executed by the Trust and authenticated by the Property Trustee as hereinafter
provided. The number of Exchangeable Preferred Securities represented by the
Restricted Global Exchangeable Preferred Security may from time to time be
increased or decreased by adjustments made on the records of the Property
Trustee and the Depositary or its nominee as hereinafter provided.

     (d) Book-Entry Provisions. This Section 7.3(b) shall apply only to the
Restricted Global Exchangeable Preferred Securities and such other Exchangeable
Preferred Securities in global form as may be authorized by the Trust to be
deposited with or on behalf of the Depositary.

     (e) The Trust shall execute and the Property Trustee shall, in accordance
with this Section 7.3, authenticate and make available for delivery initially
one or more Restricted Global Exchangeable Preferred Securities that (a) shall
be registered in the name of Cede & Co. or other nominee of such Depositary and
(b) shall be delivered by the Property Trustee to such Depositary or pursuant to
such Depositary's written instructions or held by the Property Trustee as
custodian for the Depositary.

     (f) Members of, or participants in, the Depositary ("Participants") shall
have no rights under this Declaration with respect to any Restricted Global
Exchangeable Preferred Security held on their behalf by the Depositary or by the
Property Trustee as the custodian of the

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<PAGE>

Depositary or under such Restricted Global Exchangeable Preferred Security, and
the Depositary may be treated by the Trust, the Property Trustee and any agent
of the Trust or the Property Trustee as the absolute owner of such Restricted
Global Exchangeable Preferred Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Trust, the
Property Trustee or any agent of the Trust or the Property Trustee from giving
effect to any written certification, proxy or other authorization furnished by
the Depositary or impair, as between the Depositary and its Participants, the
operation of customary practices of such Depositary governing the exercise of
the rights of a holder of a beneficial interest in any Restricted Global
Exchangeable Preferred Security.

     (g) Definitive Exchangeable Preferred Securities. Except as provided in
Section 7.9, owners of beneficial interests in a Restricted Global Exchangeable
Preferred Security will not be entitled to receive physical delivery of
certificated Exchangeable Preferred Securities ("Definitive Exchangeable
Preferred Securities").

Section 7.4    Registrar, Paying Agent and Exchange Agent.

     (a) The Trust shall maintain in the Borough of Manhattan, the City of New
York, State of New York or in the city of London, England, as the case may be,
(i) an office or agency where Exchangeable Preferred Securities may be presented
for registration of transfer or for exchange ("Registrar"), (ii) an office or
agency where Exchangeable Preferred Securities may be presented for payment
("Paying Agent") and an office or agency where Securities may be presented for
exchange ("Exchange Agent"). The Registrar shall keep a register (the "Security
Register") of the Exchangeable Preferred Securities and of their transfer and
exchange. The Trust may appoint the Registrar, the Paying Agent and the Exchange
Agent and may appoint one or more co-registrars, one or more additional paying
agents and one or more additional exchange agents in such other locations as it
shall determine. The term "Paying Agent" includes any additional paying agent
and the term "Exchange Agent" includes any additional exchange agent. The Trust
may change any Paying Agent, Registrar, co-registrar or Exchange Agent without
prior notice to any Holder. The Paying Agent shall be permitted to resign as
Paying Agent upon 30 days' written notice to the Regular Trustees. The Trust
shall notify the Property Trustee of the name and address of any Agent not a
party to this Declaration. If the Trust fails to appoint or maintain another
entity as Registrar, Paying Agent or Exchange Agent, the Property Trustee shall
act as such. The Trust or any of its Affiliates may act as Paying Agent,
Registrar, or Exchange Agent. The Trust shall act as Paying Agent, Registrar,
co-registrar, and Exchange Agent for the Common Securities.

     (b) The Trust initially appoints the Property Trustee as Registrar, Paying
Agent, and Exchange Agent for the Preferred Securities.

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Section 7.5    Paying Agent to Hold Money in Trust.

     The Trust shall require each Paying Agent other than the Property Trustee
to agree in writing that the Paying Agent will hold in trust for the benefit of
Holders or the Property Trustee all money held by the Paying Agent for the
payment of principal or distributions on the Securities, and will notify the
Property Trustee if there are insufficient funds. While any such insufficiency
continues, the Property Trustee may require a Paying Agent to pay all money held
by it to the Property Trustee. The Trust at any time may require a Paying Agent
to pay all money held by it to the Property Trustee and to account for any money
disbursed by it. Upon payment over to the Property Trustee, the Paying Agent (if
other than the Trust or an Affiliate of the Trust) shall have no further
liability for the money. If the Trust or the Sponsor or an Affiliate of the
Trust or the Sponsor acts as Paying Agent, it shall segregate and hold in a
separate trust fund for the benefit of the Holders all money held by it as
Paying Agent.

Section 7.6    Replacement Securities.

     (a) If the holder of a Security claims that the Security has been lost,
destroyed or wrongfully taken or if such Security is mutilated and is
surrendered to the Trust or in the case of the Exchangeable Preferred Securities
to the Property Trustee, the Trust shall issue and the Property Trustee shall
authenticate a replacement Security if the Property Trustee's and the Trust's
requirements, as the case may be, are met. If required by the Property Trustee
or the Trust, an indemnity bond must be sufficient in the judgment of both to
protect the Trustees, the Property Trustee, the Sponsor or any authenticating
agent from any loss which any of them may suffer if a Security is replaced. The
Trust may charge such Holder for its expenses in replacing a Security.

     (b) In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, or is about to be purchased by the
Sponsor pursuant to Article III hereof, the Sponsor in its discretion may,
instead of issuing a new Security, pay or purchase such Security, as the case
may be.

     (c) Every replacement Security is an additional obligation of the Trust.

Section 7.7    Outstanding Exchangeable Preferred Securities.

     (a) The Exchangeable Preferred Securities outstanding at any time are all
the Exchangeable Preferred Securities authenticated by the Property Trustee
except for those cancelled by it, those delivered to it for cancellation, and
those described in this Section as not outstanding.

     (b) If an Exchangeable Preferred Security is replaced, paid or purchased
pursuant to Section 7.6 hereof, it ceases to be outstanding unless the Property
Trustee receives

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proof satisfactory to it that the replaced, paid or purchased Preferred Security
is held by a bona fide purchaser.

     (c) If Exchangeable Preferred Securities are considered paid in accordance
with the terms of this Declaration, they cease to be outstanding and interest on
them ceases to accrue.

     (d) An Exchangeable Preferred Security does not cease to be outstanding
because one of the Trust, the Sponsor or an Affiliate of the Sponsor holds the
Security.

Section 7.8    Exchangeable Preferred Securities in Treasury.

     In determining whether the Holders of the required amount of Securities
have concurred in any direction, waiver or consent, Exchangeable Preferred
Securities owned by the Trust, the Sponsor or an Affiliate of the Sponsor, as
the case may be, shall be disregarded and deemed not to be outstanding, except
that for the purposes of determining whether the Property Trustee shall be fully
protected in relying on any such direction, waiver or consent, only Securities
which the Property Trustee actually knows are so owned shall be so disregarded.

Section 7.9    Temporary Securities.

     (a) Until Securities are ready for delivery, the Trust may prepare and, in
the case of the Exchangeable Preferred Securities, the Property Trustee shall
authenticate temporary Securities. Temporary Securities shall be substantially
in the form of Definitive Securities but may have variations that the Trust
considers appropriate for temporary Securities. Without unreasonable delay, the
Trust shall prepare and, in the case of the Exchangeable Preferred Securities,
the Property Trustee shall authenticate Definitive Securities in exchange for
temporary Securities.

     (b) A Global Exchangeable Preferred Security deposited with the Depositary
or with the Property Trustee as custodian for the Depositary pursuant to Section
7.3 shall be transferred to the beneficial owners thereof in the form of
certificated Definitive Exchangeable Preferred Securities only if such transfer
complies with Section 9.2 and (i) the Depositary notifies the Trust and News
Corporation that it is unwilling or unable to continue as Depositary for such
Global Preferred Security or if at any time such Depositary ceases to be a
"clearing agency" registered under the Exchange Act and a successor depositary
is not appointed by the Sponsor within 90 days of such notice, or (ii) News
Corporation, at its option, notifies the Property Trustee in writing that it
elects to cause the issuance of Definitive Exchangeable Preferred Securities or
(iii) an Event of Default has occurred and is continuing and the Holders of a
Majority in stated liquidation amount of the Exchangeable Preferred Securities
elect to cause the issuance of Definitive Exchangeable Preferred Securities.

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     (c) Any Global Exchangeable Preferred Security that is transferable to the
beneficial owners thereof in the form of certificated Exchangeable Preferred
Securities pursuant to this Section 7.9 shall be surrendered by the Depositary
to the Property Trustee located in the Borough of Manhattan, The City of New
York, to be so transferred, in whole or from time to time in part, without
charge, and the Property Trustee shall authenticate and make available for
delivery, upon such transfer of each portion of such Global Exchangeable
Preferred Security, an equal aggregate liquidation amount of Securities of
authorized denominations in the form of certificated Securities. Any portion of
a Global Exchangeable Preferred Security transferred pursuant to this Section
shall be registered in such names as the Depositary shall direct. Any
Exchangeable Preferred Security in the form of certificated Exchangeable
Preferred Securities delivered in exchange for an interest in the Restricted
Global Exchangeable Preferred Security shall, except as otherwise provided by
Sections 7.3 and 9.1 bear the Restricted Securities Legend set forth in Exhibit
A-1 hereto.

     (d) Subject to the provisions of Section 7.9(c), the registered holder of a
Global Exchangeable Preferred Security may grant proxies and otherwise authorize
any person, including Participants and persons that may hold interests through
Participants, to take any action which a holder is entitled to take under this
Declaration or the Securities.

     (e) In the event of the occurrence of either of the events specified in
Section 7.9(b), the Trust will promptly make available to the Property Trustee a
reasonable supply of certificated Securities in definite, fully registered form
without interest coupons.

Section 7.10   Cancellation.

     The Trust at any time may deliver Exchangeable Preferred Securities,
including, without limitation, Exchangeable Preferred Securities held in the
name of News Corporation or any of its subsidiaries or nominees, to the Property
Trustee for cancellation. The Registrar, Paying Agent and Exchange Agent shall
forward to the Property Trustee any Exchangeable Preferred Securities
surrendered to them for registration of transfer, redemption, exchange or
payment. The Property Trustee shall promptly (i) cancel all Exchangeable
Preferred Securities surrendered for registration of transfer, redemption,
exchange, payment, replacement or cancellation, (ii) dispose of cancelled
Exchangeable Preferred Securities as the Trust directs, provided that the
Property Trustee shall not be obligated to destroy Exchangeable Preferred
Securities, (iii) transfer to the Company for cancellation Debentures having an
original principal amount equal to the original liquidation amount of the
cancelled Exchangeable Preferred Securities and (iv) cancel such number of
Common Securities as will result in the Common Securities remaining outstanding
representing 1% of the remaining capital of the Trust and return the stated
liquidation amount thereof to the Company or its designee (unless the Company
shall advise the Property Trustee to cancel a lesser number of Common
Securities). The Trust may not issue new Exchangeable Preferred Securities to
replace Exchangeable Preferred Securities that it has paid or that have been
delivered to the Property Trustee for cancellation or that any holder has
exchanged.

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                                  ARTICLE VIII
                              TERMINATION OF TRUST

Section 8.1    Termination of Trust.

     (a) The Trust shall dissolve:

          (i) upon the bankruptcy of the Sponsor or News Corporation;

          (ii) upon the filing of a certificate of dissolution or its equivalent
     with respect to the Sponsor or News Corporation; the consent of at least a
     Majority in Stated Liquidation Amount of the Securities, voting together as
     a single class, to file a certificate of cancellation with respect to the
     Trust, or the revocation of the charter of the Sponsor or News Corporation
     and the expiration of 90 days after the date of revocation without a
     reinstatement thereof;

          (iii) upon the entry of a decree of judicial dissolution of the
     Sponsor or News Corporation or the Trust;

          (iv) when all of the Debentures shall have been exchanged or called
     for redemption and the amounts necessary for redemption thereof, including
     any Additional Interest, or Registration Interest shall have been paid to
     the Property Trustee and the Property Trustee shall have redeemed the
     Securities in accordance with the terms of the Securities;

          (v) upon the occurrence and continuation of a Tax Event pursuant to
     which the Trust shall have been dissolved in accordance with the terms of
     the Securities and all of the Debentures shall have been distributed to the
     Holders of Securities in exchange for all of the Securities;

          (vi) before the issuance of any Securities, with the consent of all
     the Regular Trustees and the Sponsor;

          (vii) upon the repayment of the Debentures or at such time as no
     Debentures are outstanding;

          (viii) upon written direction to the Property Trustee by News America
     to dissolve the Trust; or

          (ix) upon the expiration of the term of the Trust on March 15, 2024.

     (b) As soon as is practicable after the occurrence of an event referred to
in Section 8.1(a) and upon the completion of the winding up and liquidation of
the Trust, the Trustees (each of which is hereby authorized to take such action)
shall file a certificate of

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cancellation with the Secretary of State of the State of Delaware terminating
the Trust and, upon such filing, the respective obligations and responsibilities
of the Trustees and the Trust created and continued hereby shall terminate.

     (c) The provisions of Section 3.9 and Article X shall survive the
termination of the Trust.

                                   ARTICLE IX
                             TRANSFERS AND EXCHANGE

Section 9.1    General.

     (a) Where Exchangeable Preferred Securities are presented to the Registrar
or a co-registrar with a request to register a transfer or to exchange them for
an equal number of Exchangeable Preferred Securities represented by different
certificates, the Registrar shall register the transfer or make the exchange if
its requirements for such transactions are met. To permit registrations of
transfers and exchanges, the Trust shall issue and the Property Trustee shall
authenticate Exchangeable Preferred Securities at the Registrar's request.

     (b) Securities may only be transferred, in whole or in part, in accordance
with the terms and conditions set forth in this Declaration and in the terms of
the Securities. Any transfer or purported transfer of any Security not made in
accordance with this Declaration shall be null and void.

     (c) Subject to this Article IX, the Sponsor and any Related Party may only
transfer Common Securities to the Sponsor or a Related Party; provided, that any
such transfer is subject to the condition precedent that the transferor obtain
for delivery to the Trust and the Property Trustee the written opinion of
nationally recognized independent counsel experienced in such matters that such
transfer would not cause more than an insubstantial risk that:

          (i) the Trust would not be classified for United States federal income
     tax purposes as a grantor trust; and

          (ii) the Trust would be an Investment Company or the transferee would
     become an Investment Company.

     (d) The Regular Trustees shall provide for the registration of Securities
and of the transfer of Securities, which will be effected without charge but
only upon payment (with such indemnity as the Regular Trustees may require) in
respect of any tax or other governmental charges that may be imposed in relation
to it. Upon surrender for registration of transfer of any Securities, the
Regular Trustees shall cause one or more new Securities to be issued in the name
of the designated transferee or transferees. Every Security surrendered for
registration of transfer shall be accompanied by a written instrument of
transfer in form satisfactory to the Regular Trustees duly executed by the
Holder or such Holder's attorney duly authorized in writing. Each

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<PAGE>

Security surrendered for registration of transfer shall be cancelled by the
Regular Trustees. A transferee of a Security shall be entitled to the rights and
subject to the obligations of a Holder hereunder upon the receipt by such
transferee of a Security. By acceptance of a Security, each transferee shall be
deemed to have agreed to be bound by this Declaration.

Section 9.2    Transfer Procedures and Restrictions.

     (a) General. Except as otherwise provided herein, if Exchangeable Preferred
Securities are issued upon the transfer, exchange or replacement of Exchangeable
Preferred Securities bearing the Restricted Securities Legend, or if a request
is made to remove such Restricted Securities Legend on Exchangeable Preferred
Securities, the Exchangeable Preferred Securities so issued shall bear the
Restricted Securities Legend, or the Restricted Securities Legend shall not be
removed, as the case may be, unless there is delivered to the Trust and the
Property Trustee such satisfactory evidence, which shall include an opinion of
counsel licensed to practice law in the State of New York, as may be reasonably
required by the Company, that neither the legend nor the restrictions on
transfer set forth therein are required to ensure that transfers thereof comply
with the provisions of Rule 144A, Rule 144 or Regulation S under the Securities
Act or, with respect to Restricted Securities, that such Securities are not
"restricted" within the meaning of Rule 144 under the Securities Act. Upon
provision of such satisfactory evidence, the Property Trustee, at the written
direction of the Trust, shall authenticate and deliver Exchangeable Preferred
Securities that do not bear the Restricted Securities Legend.

     (b) Transfers Under Effective Shelf Registration Statement. After the
effectiveness of a shelf registration statement for any Exchangeable Preferred
Securities, all requirements pertaining to legends on such Exchangeable
Preferred Securities will cease to apply, and beneficial interests in an
Exchangeable Preferred Security in global form without legends will be available
to transferees of such Exchangeable Preferred Securities, upon exchange of the
transferring Holder's Restricted Definitive Exchangeable Preferred Securities or
directions to transfer such Holder's beneficial interest in the Restricted
Global Exchangeable Preferred Security, as the case may be. No such transfer or
exchange of a Restricted Exchangeable Preferred Security or interest therein
shall be effective unless the transferor delivers to the Trust a certificate in
a form substantially similar to that attached hereto as the "Form of Assignment"
in Exhibit A-1 as to compliance by such person with the provisions of the
Registration Rights Agreement applicable thereto. After the effectiveness of a
Registration Statement, the Trust shall issue and the Property Trustee, upon
written order of the Trust signed by one Regular Trustee, shall authenticate an
Exchangeable Preferred Security in global form without the Restricted Securities
Legend (the "Global Exchangeable Preferred Security") to deposit with the
Depositary to evidence transfers of beneficial interests in the Restricted
Global Exchangeable Preferred Securities and of Restricted Definitive
Exchangeable Preferred Securities.

     (c) Transfer and Exchange of Definitive Exchangeable Preferred Securities.
When Definitive Exchangeable Preferred Securities are presented to the Registrar
or co-registrar

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<PAGE>

(x) to register the transfer of such Definitive Exchangeable Preferred
Securities or (y) to exchange such Definitive Exchangeable Preferred Securities
which became mutilated, destroyed, defaced, stolen or lost, for an equal number
of Definitive Exchangeable Preferred Securities, the Registrar or co-registrar
shall register the transfer or make the exchange as requested if its reasonable
requirements for such transaction are met; provided, however, that the
Definitive Exchangeable Preferred Securities surrendered for transfer or
exchange:

          (i) shall be duly endorsed or accompanied by a written instrument of
     transfer in form reasonably satisfactory to the Trust and the Registrar or
     co-registrar, duly executed by the Holder thereof or his attorney duly
     authorized in writing; and

          (ii) in the case of Definitive Exchangeable Preferred Securities that
     are Restricted Definitive Exchangeable Preferred Securities:

               (A) if such Restricted Definitive Exchangeable Preferred
          Securities are being delivered to the Registrar by a Holder for
          registration in the name of such Holder, without transfer, a
          certification from such Holder to that effect; or

               (B) if such Restricted Definitive Exchangeable Preferred
          Securities are being transferred a certification and any other
          evidence reasonably satisfactory to the Trust and Registrar as to the
          compliance with the restrictions set forth in the Restricted
          Securities Legend.

If Definitive Exchangeable Preferred Securities are issued, the Sponsor and
Trustees shall adopt procedures from time to time governing the transfer and
exchange of such securities.

     (d) [Intentionally left blank]

     (e) Transfer and Exchange of Global Exchangeable Preferred Securities. The
transfer and exchange of Global Exchangeable Preferred Securities or beneficial
interests therein shall be effected through the Depositary, in accordance with
this Declaration (including applicable restrictions on transfer set forth
herein, if any) and the procedures of the Depositary therefor.

     (f) [Intentionally left blank]

     (g) Restrictions on Transfer and Exchange of Global Exchangeable Preferred
Securities. Notwithstanding any other provisions of this Declaration (other than
the provisions set forth in subsection (i) of this Section 9.2, a Global
Exchangeable Preferred Security may not be transferred as a whole except by the
Depositary to a nominee of the Depositary or another nominee of the Depositary
or by the Depositary or any such nominee to a successor Depositary or a nominee
of such successor Depositary.

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<PAGE>

     (h) [Intentionally left blank]

     (i) Legend.

          (i) Except as permitted by the following paragraph (ii), each
     Exchangeable Preferred Security certificate evidencing the Global
     Exchangeable Preferred Securities and the Definitive Exchangeable Preferred
     Securities (and all Exchangeable Preferred Securities issued in exchange
     therefor or substitution thereof) shall bear a legend (the "Restricted
     Securities Legend") in substantially the following form:

     THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER
     THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR
     ANY STATE OR OTHER SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY
     INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
     ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED
     OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS THE TRANSACTION
     IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
     OF THE SECURITIES ACT. THE HOLDER OF THIS SECURITY BY ITS
     ACCEPTANCE HEREOF (1) REPRESENTS THAT (A) IT IS A "QUALIFIED
     INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE
     SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING
     THIS SECURITY IN AN "OFFSHORE TRANSACTION" PURSUANT TO RULE 904
     OF REGULATION S, (2) AGREES THAT IT WILL NOT PRIOR TO (X) THE
     DATE WHICH IS TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS
     PERMITTED BY RULE 144(k) UNDER THE SECURITIES ACT OR ANY
     SUCCESSOR PROVISION THEREUNDER) AFTER THE LATER OF THE ORIGINAL
     ISSUE DATE HEREOF (OR OF ANY PREDECESSOR OF THIS SECURITY) OR THE
     LAST DAY ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS
     THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF THIS SECURITY)
     AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE
     LAWS (THE "RESALE RESTRICTION TERMINATION DATE"), OFFER, SELL OR
     OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO THE NEWS
     CORPORATION LIMITED OR NEWS AMERICA INCORPORATED, (B) PURSUANT TO
     A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER
     THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE
     ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT
     REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS
     DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR
     ITS OWN ACCOUNT OR FOR

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<PAGE>

     THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
     GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,
     (D) PURSUANT TO OFFERS AND SALES TO NON-US PERSONS THAT OCCUR
     OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S
     UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE
     EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
     ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS
     SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
     THIS LEGEND; PROVIDED THAT THE COMPANY, THE TRUSTEE, THE TRANSFER
     AGENT AND THE REGISTRAR SHALL HAVE THE RIGHT PRIOR TO ANY SUCH
     OFFER, SALE OR TRANSFER (I) PURSUANT TO CLAUSE (D) OR (E) TO
     REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION
     AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (II)
     IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATION
     OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS
     SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE
     TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE
     HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. AS USED
     HEREIN, THE TERMS "OFFSHORE TRANSACTION", "UNITED STATES" AND
     "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S
     UNDER THE SECURITIES ACT.

          (ii) Upon any sale or transfer of a Restricted Exchangeable Preferred
     Security (including any Restricted Exchangeable Preferred Security
     represented by a Global Exchangeable Preferred Security) after such
     Restricted Exchangeable Preferred Security is no longer "restricted" within
     the meaning of Rule 144 under the Securities Act or pursuant to an
     effective registration statement under the Securities Act:

               (A) in the case of any Restricted Exchangeable Preferred Security
          that is a Definitive Exchangeable Preferred Security, the Registrar
          shall permit the Holder thereof to exchange such Restricted
          Exchangeable Preferred Security for a Definitive Exchangeable
          Preferred Security that does not bear the Restricted Securities Legend
          and rescind any restriction on the transfer of such Restricted
          Exchangeable Preferred Security; and

               (B) in the case of any Restricted Exchangeable Preferred Security
          that is represented by a Global Exchangeable Preferred Security, the
          Registrar shall permit the Holder thereof to exchange such Restricted
          Exchangeable Preferred Security for another Global Exchangeable
          Preferred Security that does not bear the Restricted Securities
          Legend.

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<PAGE>

     (j) Cancellation or Adjustment of Global Exchangeable Preferred Security.
At such time as all beneficial interests in a Global Exchangeable Preferred
Security have either been exchanged for Definitive Exchangeable Preferred
Securities to the extent permitted by this Declaration or redeemed, repurchased
or cancelled in accordance with the terms of this Declaration, such Global
Exchangeable Preferred Security shall be returned to the Depositary for
cancellation or retained and cancelled by the Property Trustee. At any time
prior to such cancellation, if any beneficial interest in a Global Exchangeable
Preferred Security is exchanged for Definitive Exchangeable Preferred
Securities, Exchangeable Preferred Securities represented by such Global
Exchangeable Preferred Security shall be reduced and an adjustment shall be made
on the books and records of the Property Trustee (if it is then the custodian
for such Global Exchangeable Preferred Security) with respect to such Global
Exchangeable Preferred Security, by the Property Trustee or the custodian, to
reflect such reduction.

     (k) Obligations with Respect to Transfers and Exchanges of Exchangeable
Preferred Securities.

          (i) To permit registrations of transfers and exchanges, the Trust
     shall execute and the Property Trustee shall authenticate Definitive
     Exchangeable Preferred Securities and Global Exchangeable Preferred
     Securities at the Registrar's or co-registrar's request.

          (ii) Registrations of transfers or exchanges will be effected without
     charge, but only upon payment (with such indemnity as the Trust or the
     Sponsor may require) in respect of any tax or other governmental charge
     that may be imposed in relation to it.

          (iii) The Registrar or co-registrar shall not be required to register
     the transfer of or exchange of (a) any Definitive Exchangeable Preferred
     Exchangeable Security selected for redemption in whole or in part pursuant
     to Annex I attached hereto, except the unredeemed portion of any Definitive
     Exchangeable Preferred Security being redeemed in part, or (b) any
     Exchangeable Preferred Security for a period beginning 15 Business Days
     before the mailing of a notice of an offer to repurchase or redeem
     Exchangeable Preferred Securities or 15 Business Days before a semi-annual
     distribution date, if any.

          (iv) Prior to the due presentation for registrations of transfer of
     any Exchangeable Preferred Security, the Trust, the Property Trustee, the
     Paying Agent, the Registrar or any co-registrar may deem and treat the
     person in whose name an Exchangeable Preferred Security is registered as
     the absolute owner of such Exchangeable Preferred Security for the purpose
     of receiving Distributions, if any, on such Exchangeable Preferred Security
     and for all other purposes whatsoever, and none of the Trust, the Property
     Trustee, the Paying Agent, the Registrar or any co-registrar shall be
     affected by notice to the contrary.

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<PAGE>

          (v) All Exchangeable Preferred Securities issued upon any transfer or
     exchange pursuant to the terms of this Declaration shall evidence the same
     security and shall be entitled to the same benefits under this Declaration
     as the Exchangeable Preferred Securities surrendered upon such transfer or
     exchange.

     (l) No Obligation of the Property Trustee.

          (i) The Property Trustee shall have no responsibility or obligation to
     any beneficial owner of a Global Exchangeable Preferred Security, a
     Participant in the Depositary or other Person with respect to the accuracy
     of the records of the Depositary or its nominee or of any Participant
     thereof, with respect to any ownership interest in the Exchangeable
     Preferred Securities or with respect to the delivery to any Participant,
     beneficial owner or other Person (other than the Depositary) of any notice
     (including any notice of redemption) or the payment of any amount, under or
     with respect to such Exchangeable Preferred Securities. All notices and
     communications to be given to the Holders and all payments to be made to
     Holders under the Exchangeable Preferred Securities shall be given or made
     only to or upon the order of the registered Holders (which shall be the
     Depositary or its nominee in the case of a Global Exchangeable Preferred
     Security). The rights of beneficial owners in any Global Exchangeable
     Preferred Security shall be exercised only through the Depositary subject
     to the applicable rules and procedures of the Depositary. The Property
     Trustee may conclusively rely and shall be fully protected in relying upon
     information furnished by the Depositary or any agent thereof with respect
     to its Participants and any beneficial owners.

          (ii) The Property Trustee and Registrar shall have no obligation or
     duty to monitor, determine or inquire as to compliance with any
     restrictions on transfer imposed under this Declaration or under applicable
     law with respect to any transfer of any interest in any Exchangeable
     Preferred Security (including any transfers between or among Depositary
     Participants or beneficial owners in any Global Exchangeable Preferred
     Security) other than to require delivery of such certificates and other
     documentation or evidence as are expressly required by, and to do so if and
     when expressly required by, the terms of this Declaration, and to examine
     the same to determine substantial compliance as to form with the express
     requirements hereof.

Section 9.3    Deemed Security Holders.

     The Trustees may treat the Person in whose name any Certificate shall be
registered on the books and records of the Trust as the sole holder of such
Certificate and of the Securities represented by such Certificate for purposes
of receiving Distributions, if any, and for all other purposes whatsoever and,
accordingly, shall not be bound to recognize any equitable or other claim to or
interest in such Certificate or in the Securities represented by such
Certificate on the part of any Person, whether or not the Trust shall have
actual or other notice thereof.

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<PAGE>

Section 9.4    Book Entry Interests.

     Global Exchangeable Preferred Securities shall initially be registered on
the books and records of the Trust in the name of Cede & Co., the nominee of the
Depositary, and no Exchangeable Preferred Security Beneficial Owner will receive
a Definitive Exchangeable Preferred Security Certificate representing such
Exchangeable Preferred Security Beneficial Owner's interests in such Global
Exchangeable Preferred Securities, except as provided in Section 9.2. Unless and
until fully registered Definitive Exchangeable Preferred Securities Certificates
have been issued to the Exchangeable Preferred Security Beneficial Owners
pursuant to Section 9.2:

     (a) the provisions of this Section 9.4 shall be in full force and effect;

     (b) the Trust and the Trustees shall be entitled to deal with the
Depositary for all purposes of this Declaration (including the payment of
Distributions on the relevant Global Exchangeable Preferred Securities and
receiving approvals, votes or consents hereunder) as the Holder of the
Exchangeable Preferred Securities and the sole holder of the Global Exchangeable
Preferred Securities and shall have no obligation to the Exchangeable Preferred
Security Beneficial Owners;

     (c) to the extent that the provisions of this Section 9.4 conflict with any
other provisions of this Declaration, the provisions of this Section 9.4 shall
control; and

     (d) the rights of the Exchangeable Preferred Security Beneficial Owners
shall be exercised only through the Depositary and shall be limited to those
established by law and agreements between such Exchangeable Preferred Security
Beneficial Owners and the Depositary and/or the Participants and receive and
transmit payments of Distributions on the Global Certificates to such
Participants. The Depositary will make book entry transfers among the
Participants.

Section 9.5    Notices to Clearing Agency.

     Whenever a notice or other communication to the Exchangeable Preferred
Security Holders is required under this Declaration, the Regular Trustees shall,
in the case of any Global Exchangeable Preferred Security, give all such notices
and communications specified herein to be given to the Exchangeable Preferred
Security Holders to the Depositary, and shall have no notice obligations to the
Preferred Security Beneficial Owners.

Section 9.6    Appointment of Successor Clearing Agency.

     If the Depository elects to discontinue its services as securities
depositary with respect to the Exchangeable Preferred Securities, the Regular
Trustees may, in their sole discretion, appoint a successor Clearing Agency with
respect to such Exchangeable Preferred Securities.

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                                    ARTICLE X
      LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

Section 10.1   Liability.

     (a) Except if and to the extent expressly set forth in this Declaration,
the Preferred Securities Guarantee and the terms of the Securities, the Sponsor
shall not be:

          (i) personally liable for the return of any portion of the capital
     contributions (or any return thereon) of the Holders of the Securities
     which shall be made solely from assets of the Trust; and

          (ii) required to pay to the Trust or to any Holder of Securities any
     deficit upon dissolution of the Trust or otherwise.

     (b) The Holder of the Common Securities shall be liable for all of the
debts and obligations of the Trust (other than with respect to the Securities)
to the extent not satisfied out of the Trust's assets.

     (c) Pursuant to Section 3803(a) of the Statutory Trust Act, the Holders of
the Exchangeable Preferred Securities shall be entitled to the same limitation
of personal liability extended to stockholders of private corporations for
profit organized under the General Corporation Law of the State of Delaware.

Section 10.2   Exculpation.

     (a) No Indemnified Person shall be liable, responsible or accountable in
damages or otherwise to the Trust or any Covered Person for any loss, damage or
claim incurred by reason of any act or omission performed or omitted by such
Indemnified Person in good faith on behalf of the Trust and in a manner such
Indemnified Person reasonably believed to be within the scope of the authority
conferred on such Indemnified Person by this Declaration or by law, except that
an Indemnified Person shall be liable for any such loss, damage or claim
incurred by reason of such Indemnified Person's gross negligence (or, in the
case of the Property Trustee, negligence) or willful misconduct with respect to
such acts or omissions.

     (b) An Indemnified Person shall be fully protected in relying in good faith
upon the records of the Trust and upon such information, opinions, reports or
statements presented to the Trust by any Person as to matters the Indemnified
Person reasonably believes are within such other Person's professional or expert
competence and who has been selected with reasonable care by or on behalf of the
Trust, including information, opinions, reports or statements as to the value
and amount of the assets, liabilities, profits, losses, or any other facts

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pertinent to the existence and amount of assets from which Distributions to
Holders of Securities might properly be paid.

Section 10.3   Fiduciary Duty.

     (a) To the extent that, at law or in equity, an Indemnified Person has
duties (including fiduciary duties) and liabilities relating thereto to the
Trust or to any other Covered Person, an Indemnified Person acting under this
Declaration shall not be liable to the Trust or to any other Covered Person for
its good faith reliance on the provisions of this Declaration. The provisions of
this Declaration, to the extent that they restrict the duties and liabilities of
an Indemnified Person otherwise existing at law or in equity (other than the
duties imposed on the Property Trustee under the Trust Indenture Act), are
agreed by the parties hereto to replace such other duties and liabilities of
such Indemnified Person.

     (b) Unless otherwise expressly provided herein:

          (i) whenever a conflict of interest exists or arises between an
     Indemnified Person and any Covered Person; or

          (ii) whenever this Declaration or any other agreement contemplated
     herein or therein provides that an Indemnified Person shall act in a manner
     that is, or provides terms that are, fair and reasonable to the Trust or
     any Holder of Securities, the Indemnified Person shall resolve such
     conflict of interest, take such action or provide such terms, considering
     in each case the relative interest of each party (including its own
     interest) to such conflict, agreement, transaction or situation and the
     benefits and burdens relating to such interests, any customary or accepted
     industry practices, and any applicable generally accepted accounting
     practices or principles. In the absence of bad faith by the Indemnified
     Person, the resolution, action or term so made, taken or provided by the
     Indemnified Person shall not constitute a breach of this Declaration or any
     other agreement contemplated herein or of any duty or obligation of the
     Indemnified Person at law or in equity or otherwise.

     (c) Whenever in this Declaration an Indemnified Person is permitted or
required to make a decision:

          (i) in its "discretion" or under a grant of similar authority, the
     Indemnified Person shall be entitled to consider such interests and factors
     as it desires, including its own interests, and shall have no duty or
     obligation to give any consideration to any interest of or factors
     affecting the Trust or any other Person; or

          (ii) in its "good faith" or under another express standard, the
     Indemnified Person shall act under such express standard and shall not be
     subject to any other or different standard imposed by this Declaration or
     by applicable law.

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Section 10.4   Indemnification.

     (a) The Debenture Issuer and News Corporation shall indemnify, to the full
extent permitted by law, any Company Indemnified Person who was or is a party or
is threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative
(other than an action by or in the right of the Trust) by reason of the fact
that he is or was a Company Indemnified Person against expenses (including
attorneys' fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred by him in connection with such action, suit or proceeding if
he acted in good faith and in a manner he reasonably believed to be in or not
opposed to the best interests of the Trust, and, with respect to any criminal
action or proceeding, had no reasonable cause to believe his conduct was
unlawful. The termination of any action, suit or proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent,
shall not, of itself, create a presumption that the Company Indemnified Person
did not act in good faith and in a manner which he reasonably believed to be in
or not opposed to the best interests of the Trust, and, with respect to any
criminal action or proceeding, had reasonable cause to believe that his conduct
was unlawful.

     (b) The Debenture Issuer and News Corporation shall indemnify, to the full
extent permitted by law, any Company Indemnified Person who was or is a party or
is threatened to be made a party to any threatened, pending or completed action
or suit by or in the right of the Trust to procure a judgment in its favor by
reason of the fact that he is or was a Company Indemnified Person against
expenses (including attorneys' fees) actually and reasonably incurred by him in
connection with the defense or settlement of such action or suit if he acted in
good faith and in a manner he reasonably believed to be in or not opposed to the
best interests of the Trust and except that no such indemnification shall be
made in respect of any claim, issue or matter as to which such Company
Indemnified Person shall have been adjudged to be liable to the Trust unless and
only to the extent that the Court of Chancery of Delaware or the court in which
such action or suit was brought shall determine upon application that, despite
the adjudication of liability but in view of all the circumstances of the case,
such person is fairly and reasonably entitled to indemnity for such expenses
which such Court of Chancery or such other court shall deem proper.

     (c) To the extent that a Company Indemnified Person shall be successful on
the merits or otherwise (including dismissal of an action without prejudice or
the settlement of an action without admission of liability) in defense of any
action, suit or proceeding referred to in Sections 10.4(a) or 10.4(b), or in
defense of any claim, issue or matter therein, he shall be indemnified, to the
full extent permitted by law, against expenses (including attorneys' fees)
actually and reasonably incurred by him in connection therewith.

     (d) Any indemnification under Sections 10.4(a) or 10.4(b) (unless ordered
by a court) shall be made by the Debenture Issuer and News Corporation only as
authorized in the specific case upon a determination that indemnification of the
Company Indemnified Person is

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proper in the circumstances because he has met the applicable standard of
conduct set forth in Sections 10.4(a) or 10.4(b). Such determination shall be
made (1) by the Regular Trustees by a majority vote of a quorum consisting of
such Regular Trustees who were not parties to such action, suit or proceeding,
(2) if such a quorum is not obtainable, or, even if obtainable, if a quorum of
disinterested Regular Trustees so directs, by independent legal counsel in a
written opinion, or (3) by the Common Security Holder of the Trust.

     (e) Expenses (including attorneys' fees) incurred by a Company Indemnified
Person in defending a civil, criminal, administrative or investigative action,
suit or proceeding referred to in Sections 10.4(a) and 10.4(b) shall be paid by
the Debenture Issuer and News Corporation in advance of the final disposition of
such action, suit or proceeding upon receipt of an undertaking by or on behalf
of such Company Indemnified Person to repay such amount if it shall ultimately
be determined that he is not entitled to be indemnified by the Debenture Issuer
and News Corporation as authorized in this Section 10.4. Notwithstanding the
foregoing, no advance shall be made by the Debenture Issuer and News Corporation
if a determination is reasonably and promptly made (i) by the Regular Trustees
by a majority vote of a quorum of disinterested Regular Trustees, (ii) if such a
quorum is not obtainable, or, even if obtainable, if a quorum of disinterested
Regular Trustees so directs, by independent legal counsel in a written opinion
or (iii) the Common Security Holder of the Trust, that, based upon the facts
known to the Regular Trustees, counsel or the Common Security Holder at the time
such determination is made, such Company Indemnified Person acted in bad faith
or in a manner that such person did not believe to be in or not opposed to the
best interests of the Trust, or, with respect to any criminal proceeding, that
such Company Indemnified Person believed or had reasonable cause to believe his
conduct was unlawful. In no event shall any advance be made in instances where
the Regular Trustees, independent legal counsel or Common Security Holder
reasonably determine that such person deliberately breached his duty to the
Trust or its Common or Exchangeable Preferred Security Holders.

     (f) The indemnification and advancement of expenses provided by, or granted
pursuant to, the other paragraphs of this Section 10.4 shall not be deemed
exclusive of any other rights to which those seeking indemnification and
advancement of expenses may be entitled under any agreement, vote of
stockholders or disinterested directors of the Debenture Issuer and News
Corporation or Exchangeable Preferred Security Holders of the Trust or
otherwise, both as to action in his official capacity and as to action in
another capacity while holding such office. All rights to indemnification under
this Section 10.4 shall be deemed to be provided by a contract between the
Debenture Issuer and News Corporation and each Company Indemnified Person who
serves in such capacity at any time while this Section 10.4 is in effect. Any
repeal or modification of this Section 10.4 shall not affect any rights or
obligations then existing.

     (g) The Debenture Issuer or News Corporation or the Trust may purchase and
maintain insurance on behalf of any person who is or was a Company Indemnified
Person against any liability asserted against him and incurred by him in any
such capacity, or arising out

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of his status as such, whether or not the Debenture Issuer or News Corporation
would have the power to indemnify him against such liability under the
provisions of this Section 10.4.

     (h) For purposes of this Section 10.4, references to "the Trust" shall
include, in addition to the resulting or surviving entity, any constituent
entity (including any constituent of a constituent) absorbed in a consolidation
or merger, so that any person who is or was a director, trustee, officer or
employee of such constituent entity, or is or was serving at the request of such
constituent entity as a director, trustee, officer, employee or agent of another
entity, shall stand in the same position under the provisions of this Section
10.4 with respect to the resulting or surviving entity as he would have with
respect to such constituent entity if its separate existence had continued.

     (i) The indemnification and advancement of expenses provided by, or granted
pursuant to, this Section 10.4 shall, unless otherwise provided when authorized
or ratified, continue as to a person who has ceased to be a Company Indemnified
Person and shall inure to the benefit of the heirs, executors and administrators
of such a person.

     (j) The Debenture Issuer and News Corporation, jointly and severally, agree
to indemnify the (i) Property Trustee, (ii) the Delaware Trustee, (iii) any
Affiliate of the Property Trustee and the Delaware Trustee, and (iv) any
officers, directors, shareholders, members, partners, employees,
representatives, custodians, nominees or agents of the Property Trustee and the
Delaware Trustee (each of the Persons in (i) through (iv) being referred to as a
"Fiduciary Indemnified Person") for, and to hold each Fiduciary Indemnified
Person harmless against, any and all loss, liability claim, damage or expense
including taxes (other than taxes based on the income of such Fiduciary
Indemnified Person) and reasonable legal fees and expenses incurred without
negligence or bad faith on its part, arising out of or in connection with the
acceptance or administration or the trust or trusts hereunder, including the
costs and expenses (including reasonable legal fees and expenses) of defending
itself against or investigating any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder. The obligation
to indemnify as set forth in this Section 10.4(j) shall survive the satisfaction
and discharge of this Declaration and resignation or removal of any Fiduciary
Indemnified Person.

Section 10.5   Outside Businesses.

     Any Covered Person, the Sponsor, the Delaware Trustee and the Property
Trustee may engage in or possess an interest in other business ventures of any
nature or description, independently or with others, similar or dissimilar to
the business of the Trust, and the Trust and the Holders of Securities shall
have no rights by virtue of this Declaration in and to such independent ventures
or the income or profits derived therefrom, and the pursuit of any such venture,
even if competitive with the business of the Trust, shall not be deemed wrongful
or improper. No Covered Person, the Sponsor, the Delaware Trustee, or the
Property Trustee shall be obligated to present any particular investment or
other opportunity to the Trust even if such opportunity is of a character that,
if presented to the Trust, could be taken by the Trust, and any

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Covered Person, the Sponsor, the Delaware Trustee and the Property Trustee shall
have the right to take for its own account (individually or as a partner or
fiduciary) or to recommend to others any such particular investment or other
opportunity. Any Covered Person, the Delaware Trustee and the Property Trustee
may engage or be interested in any financial or other transaction with the
Sponsor or any Affiliate of the Sponsor, or may act as depositary for, trustee
or agent for, or act on any committee or body of holders of, securities or other
obligations of the Sponsor or its Affiliates.

                                   ARTICLE XI
                                   ACCOUNTING

Section 11.1   Fiscal Year.

     The fiscal year ("Fiscal Year") of the Trust shall be the calendar year, or
such other year as is required by the Code.

Section 11.2   Certain Accounting Matters.

     (a) At all times during the existence of the Trust, the Regular Trustees
shall keep, or cause to be kept, full books of account, records and supporting
documents, which shall reflect in reasonable detail, each transaction of the
Trust. The books of account shall be maintained on the accrual method of
accounting, in accordance with generally accepted accounting principles,
consistently applied. The Trust shall use the accrual method of accounting for
United States federal income tax purposes. The books of account and the records
of the Trust shall be examined by and reported upon as of the end of each Fiscal
Year by a firm of independent certified public accountants selected by the
Regular Trustees.

     (b) The Regular Trustees shall cause to be prepared and delivered to each
of the Holders of Securities, within 90 days after the end of each Fiscal Year
of the Trust, annual financial statements of the Trust, including a balance
sheet of the Trust as of the end of such Fiscal Year, and the related statements
of income or loss;

     (c) The Regular Trustees shall cause to be duly prepared and delivered to
each of the Holders of Securities, any annual United States federal income tax
information statement required by the Code, containing such information with
regard to the Securities held by each Holder as is required by the Code and the
Treasury Regulations. Notwithstanding any right under the Code to deliver any
such statement at a later date, the Regular Trustees shall endeavor to deliver
all such statements within 30 days after the end of each Fiscal Year of the
Trust.

     (d) The Regular Trustees shall cause to be duly prepared and filed with the
appropriate taxing authority, an annual United States federal income tax return,
on a Form 1041 or such other form required by United States federal income tax
law, and any other annual

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income tax returns required to be filed by the Regular Trustees on behalf of the
Trust with any state or local taxing authority.

Section 11.3   Banking.

     The Trust shall maintain one or more bank accounts in the name and for the
sole benefit of the Trust; provided, however, that all payments of funds in
respect of the Debentures held by the Property Trustee shall be made directly to
the Property Trustee Account and no other funds of the Trust shall be deposited
in the Property Trustee Account. The sole signatories for such accounts shall be
designated by the Regular Trustees; provided, however, that the Property Trustee
shall designate the signatories for the Property Trustee Account.

Section 11.4   Withholding.

     The Trust and the Regular Trustees shall comply with all withholding
requirements under United States federal, state and local law. The Trust shall
request, and the Holders shall provide to the Trust, such forms or certificates
as are necessary to establish an exemption from withholding with respect to each
Holder, and any representations and forms as shall reasonably be requested by
the Trust to assist it in determining the extent of, and in fulfilling, its
withholding obligations. The Regular Trustees shall file required forms with
applicable jurisdictions and, unless an exemption from withholding is properly
established by a Holder, shall remit amounts withheld with respect to the Holder
to applicable jurisdictions. To the extent that the Trust is required to
withhold and pay over any amounts to any authority with respect to distributions
or allocations to any Holder, the amount withheld shall be deemed to be a
distribution in the amount of the withholding to the Holder. In the event of any
claimed overwithholding, Holders shall be limited to an action against the
applicable jurisdiction. If the amount required to be withheld was not withheld
from actual Distributions made, the Trust may reduce subsequent Distributions by
the amount of such withholding.

                                   ARTICLE XII
                             AMENDMENTS AND MEETINGS

Section 12.1   Amendments.

     (a) Except as otherwise provided in this Declaration or by any applicable
terms of the Securities, this Declaration may only be amended by a written
instrument approved and executed by:

          (i) the Regular Trustees (or, if there are more than two Regular
     Trustees a majority of the Regular Trustees);

          (ii) if the amendment affects the rights, powers, duties, obligations
     or immunities of the Property Trustee, the Property Trustee; and

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          (iii) if the amendment affects the rights, powers, duties, obligations
     or immunities of the Delaware Trustee, the Delaware Trustee;

     (b) No amendment shall be made, and any such purported amendment shall be
void and ineffective:

          (i) unless, in the case of any proposed amendment, the Property
     Trustee shall have first received an Officers' Certificate from each of the
     Trust and the Sponsor that such amendment is permitted by, and conforms to,
     the terms of this Declaration (including the terms of the Securities);

          (ii) unless, in the case of any proposed amendment which affects the
     rights, powers, duties, obligations or immunities of the Property Trustee,
     the Property Trustee shall have first received:

               (A) an Officers' Certificate from each of the Trust and the
          Sponsor that such amendment is permitted by, and conforms to, the
          terms of this Declaration (including the terms of the Securities); and

               (B) an opinion of counsel (who may be counsel to the Sponsor or
          the Trust) that such amendment is permitted by, and conforms to, the
          terms of this Declaration (including the terms of the Securities); and

          (iii) to the extent the result of such amendment would be to:

               (A) cause the Trust to fail to continue to be classified for
          purposes of United States federal income taxation as a grantor trust;

               (B) reduce or otherwise adversely affect the powers of the
          Property Trustee in contravention of the Trust Indenture Act; or

               (C) cause the Trust to be deemed to be an Investment Company that
          is required to be registered under the Investment Company Act;

     (c) at such time after the Trust has issued any Securities that remain
outstanding, any amendment that would adversely affect the rights, privileges or
preferences of any Holder of Securities may be effected only with such
additional requirements as may be set forth in the terms of such Securities;

     (d) Notwithstanding any other provision in this Declaration, no amendment
shall be made to this Declaration and any such purported amendment shall be void
and ineffective, unless upon (i) the consent of Holders representing not less
than a Majority in Stated Liquidation Amount of the Securities or if only one
class will be effected by the amendment, then not less than a Majority in Stated
Liquidation Amount of the Securities (with respect to the

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effected class of Securities only) and (ii) receipt by the Property Trustee an
opinion of counsel to the effect that such amendment or the exercise of power
granted to the Property Trustee in accordance with such amendment will not
affect the Trust's status as a grantor trust for U.S. federal income tax
purposes or the trust exemption from the status of an Investment Company;

     (e) Notwithstanding any other provision in this Declaration, without the
unanimous consent of the Holders of Securities, no amendment shall be made to
this Declaration and any such purported amendment shall be void and ineffective
if such amendment will (i) change the amount or timing of any Distribution or
any other amounts (whether cash or non-cash) required to be delivered and or
paid pursuant to this Declaration, (ii) adversely affect the amount of any
Distribution or any other amounts (whether cash or non-cash) required to be
delivered and or paid pursuant to this Declaration or (iii) restrict the right
of a Holder of Securities to institute suit for the enforcement of any payment
under the Securities;

     (f) Section 9.1(c) and this Section 12.1 shall not be amended without the
consent of all of the Holders of the Securities;

     (g) Article IV shall not be amended without the consent of the Holders of a
majority in liquidation amount of the Common Securities;

     (h) the rights of the Holders of the Common Securities under Article V to
increase or decrease the number of, and appoint and remove Trustees shall not be
amended without the consent of the Holders of a Majority in liquidation amount
of the Common Securities; and

     (i) notwithstanding Section 12.1(c), this Declaration may be amended
without the consent of the Holders of the Securities and become effective upon
notice to Holders of the Securities, if to:

          (i) cure any ambiguity, so long as such amendment does not adversely
     affect in any material respect the interests of any Holder of the
     Securities;

          (ii) correct or supplement any provision in this Declaration that may
     be defective or inconsistent with any other provision of this Declaration,
     so long as such amendment does not adversely affect in any material respect
     the interests of any Holder of the Securities;

          (iii) add to the covenants, restrictions or obligations of the
     Sponsor;

          (iv) modify, eliminate or add to any provision to this Declaration to
     such extent as necessary to ensure that the Trust will be classified for
     U.S. federal income tax purposes as a grantor trust or to ensure that Trust
     will not be required to register as an Investment Company;

          (v) maintain the qualification of this Declaration under the Trust
     Indenture Act; or

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          (vi) conform to any change in Rule 3a-5 or written change in
     interpretation (including any change evidenced by a "no-action" letter
     issued by the staff of the Commission) or application of Rule 3a-5 by any
     legislative body, court, government agency or regulatory authority which
     amendment does not have a material adverse effect on the rights,
     preferences or privileges of the Holders.

Section 12.2   Meetings of the Holders of Securities; Action by Written Consent.

     (a) Meetings of the Holders of any class of Securities may be called at any
time by the Regular Trustees (or as provided in the terms of the Securities) to
consider and act on any matter on which Holders of such class of Securities are
entitled to act under the terms of this Declaration, the terms of the Securities
or the rules of any stock exchange on which the Exchangeable Preferred
Securities are listed or admitted for trading. The Regular Trustees shall call a
meeting of the Holders of such class if directed to do so by the Holders of at
least 10% in liquidation amount of such class of Securities. Such direction
shall be given by delivering to the Regular Trustees one or more calls in a
writing stating that the signing Holders of Securities wish to call a meeting
and indicating the general or specific purpose for which the meeting is to be
called. Any Holders of Securities calling a meeting shall specify in writing the
Certificates held by the Holders of Securities exercising the right to call a
meeting and only those Securities represented by the Certificates so specified
shall be counted for purposes of determining whether the required percentage set
forth in the second sentence of this paragraph has been met.

     (b) Except to the extent otherwise provided in the terms of the Securities
or as may otherwise be required by applicable law, the following provisions
shall apply to meetings of Holders of Securities:

          (i) notice of any such meeting shall be given to all the Holders of
     Securities having a right to vote thereat at least 7 days and not more than
     60 days before the date of such meeting. Whenever a vote, consent or
     approval of the Holders of Securities is permitted or required under this
     Declaration or the rules of any stock exchange or over-the-counter market
     on which the Exchangeable Preferred Securities are listed or admitted for
     trading, such vote, consent or approval may be given at a meeting of the
     Holders of Securities. Any action that may be taken at a meeting of the
     Holders of Securities may be taken without a meeting if a consent in
     writing setting forth the action so taken is signed by the Holders of
     Securities owning not less than the minimum amount of Securities in
     liquidation amount that would be necessary to authorize or take such action
     at a meeting at which all Holders of Securities having a right to vote
     thereon were present and voting. Prompt notice of the taking of action
     without a meeting shall be given to the Holders of Securities entitled to
     vote who have not consented in writing. The Regular Trustees may specify
     that any written ballot submitted to the Security Holders for the purpose
     of taking any action without a meeting shall be returned to the Trust
     within the time specified by the Regular Trustees;

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          (ii) each Holder of a Security may authorize any Person to act for it
     by proxy on all matters in which a Holder of Securities is entitled to
     participate, including waiving notice of any meeting, or voting or
     participating at a meeting. No proxy shall be valid after the expiration of
     11 months from the date thereof unless otherwise provided in the proxy.
     Every proxy shall be revocable at the pleasure of the Holder of Securities
     executing it. Except as otherwise provided herein, all matters relating to
     the giving, voting or validity of proxies shall be governed by the General
     Corporation Law of the State of Delaware relating to proxies, and judicial
     interpretations thereunder, as if the Trust were a Delaware corporation and
     the Holders of the Securities were stockholders of a Delaware corporation;

          (iii) each meeting of the Holders of the Securities shall be conducted
     by the Regular Trustees or by such other Person that the Regular Trustees
     may designate; and

          (iv) unless the Statutory Trust Act, this Declaration, the terms of
     the Securities, the Trust Indenture Act or the listing rules of any stock
     exchange on which the Exchangeable Preferred Securities are then listed or
     trading provide otherwise, the Regular Trustees, in their sole discretion,
     shall establish all other provisions relating to meetings of Holders of
     Securities, including notice of the time, place or purpose of any meeting
     at which any matter is to be voted on by any Holders of Securities, waiver
     of any such notice, action by consent without a meeting, the establishment
     of a record date, quorum requirements, voting in person or by proxy or any
     other matter with respect to the exercise of any such right to vote.

                                  ARTICLE XIII
            REPRESENTATIONS OF PROPERTY TRUSTEE AND DELAWARE TRUSTEE

Section 13.1   Representations and Warranties of Property Trustee.

     The Trustee that acts as initial Property Trustee represents and warrants
to the Trust and to the Sponsor at the date of this Declaration, and each
Successor Property Trustee represents and warrants to the Trust and the Sponsor
at the time of the Successor Property Trustee's acceptance of its appointment as
Property Trustee that:

     (a) The Property Trustee is a banking corporation with trust powers, duly
organized, validly existing and in good standing under the laws of the State of
New York, with trust power and authority to execute and deliver, and to carry
out and perform its obligations under the terms of, this Declaration;

     (b) The execution, delivery and performance by the Property Trustee of the
Declaration has been duly authorized by all necessary corporate action on the
part of the Property Trustee. The Declaration has been duly executed and
delivered by the Property

                                       63

<PAGE>

Trustee, and it constitutes a legal, valid and binding obligation of the
Property Trustee, enforceable against it in accordance with its terms, subject
to applicable bankruptcy, reorganization, moratorium, insolvency, and other
similar laws affecting creditors' rights generally and to general principles of
equity and the discretion of the court (regardless of whether the enforcement of
such remedies is considered in a proceeding in equity or at law);

     (c) The execution, delivery and performance of the Declaration by the
Property Trustee does not conflict with or constitute a breach of the
Organization Certificate or By-laws of the Property Trustee; and

     (d) No consent, approval or authorization of, or registration with or
notice to, any New York State or Federal banking authority is required for the
execution, delivery or performance by the Property Trustee, of the Declaration.

Section 13.2   Representations and Warranties of Delaware Trustee.

     The Trustee that acts as initial Delaware Trustee represents and warrants
to the Trust and to the Sponsor at the date of this Declaration and at the
Closing Date, and each Successor Delaware Trustee represents and warrants to the
Trust and the Sponsor at the time of the Successor Delaware Trustee's acceptance
of its appointment as Delaware Trustee that:

     (a) The Delaware Trustee is a duly organized, validly existing and in good
standing under the laws of the State of Delaware, with trust power and authority
to execute and deliver, and to carry out and perform its obligations under the
terms of, the Declaration;

     (b) The execution, delivery and performance by the Delaware Trustee of the
Declaration has been duly authorized by all necessary corporate action on the
part of the Delaware Trustee. The Declaration has been duly executed and
delivered by the Delaware Trustee, and constitutes a legal, valid and binding
obligation of the Delaware Trustee, enforceable against it in accordance with
its terms, subject to applicable bankruptcy, reorganization, moratorium,
insolvency, and other similar laws affecting creditors' rights generally and to
general principles of equity and the discretion of the court (regardless of
whether the enforcement of such remedies is considered in a proceeding in equity
or at law);

     (c) The execution, delivery and performance of the Declaration by the
Delaware Trustee does not conflict with or constitute a breach of the
Organization Certificate or by-laws of the Delaware Trustee;

     (d) No consent, approval or authorization of, or registration with or
notice to, any Delaware State or Federal banking authority is required for the
execution, delivery or performance by the Delaware Trustee, of the Declaration;

     (e) The Delaware Trustee is an entity which has its principal place of
business in the State of Delaware; and

                                       64

<PAGE>

     (f) The Delaware Trustee has been authorized to perform its obligations
under the Certificate of Trust and the Declaration.

                                   ARTICLE XIV
                               REGISTRATION RIGHTS

Section 14.1   Registration Rights.

     The Holders of the Exchangeable Preferred Securities, the Debentures, the
Preferred Securities Guarantee, the Guarantee and the BSkyB Ordinary Shares are
entitled to the benefits of the Registration Rights Agreement.

                                   ARTICLE XV
                                  MISCELLANEOUS

Section 15.1   Notices.

     All notices provided for in this Declaration shall be in writing, duly
signed by the party giving such notice, and shall be delivered, sent by
facsimile or mailed by first class mail, as follows:

     (a) if given to the Trust, in care of the Regular Trustees at the Trust's
mailing address set forth below (or such other address as the Trust may give
notice of to the Holders of the Securities):

               News Corporation Finance Trust II
               c/o News America Incorporated
               1211 Avenue of the Americas
               New York, NY  10036
               Attention:       Arthur M. Siskind, Esq.

     (b) if given to the Delaware Trustee, at the mailing address set forth
below (or such other address as Delaware Trustee may give notice of to the
Holders of the Securities):

               The Bank of New York (Delaware)
               700 White Clay Centre
               Route 273
               Newark, Delaware  19711

     (c) if given to the Property Trustee, at the mailing address set forth
below (or such other address as the Property Trustee may give notice of to the
Holders of the Securities):

                                       65

<PAGE>

               The Bank of New York
               101 Barclay Street, Fl 8W
               New York, New York  10286
               Attention:  Corporate Trust Administration

     (d) if given to the Holder of the Common Securities, at the mailing address
of the Sponsor set forth below (or such other address as the Holder of the
Common Securities may give notice of to the Trust):

               News America Incorporated
               1211 Avenue of the Americas
               New York, NY  10036
               Attention:  Arthur M. Siskind, Esq.

     (e) if given to any other Holder, at the address set forth in the Security
Register.

     All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid except that if a notice or other document is refused delivery or
cannot be delivered because of a changed address of which no notice was given,
such notice or other document shall be deemed to have been delivered on the date
of such refusal or inability to deliver.

Section 15.2   Governing Law.

     THIS DECLARATION AND THE RIGHTS AND OBLIGATIONS OF HOLDERS, THE TRUST, THE
SPONSOR AND THE TRUSTEES SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF DELAWARE AND ALL RIGHTS AND REMEDIES SHALL BE GOVERNED
BY SUCH LAWS WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS OF THE STATE
OF DELAWARE OR ANY OTHER JURISDICTION THAT WOULD CALL FOR THE APPLICATION OF THE
LAW OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE; PROVIDED, HOWEVER,
THAT THERE SHALL NOT BE APPLICABLE TO THE HOLDERS, THE TRUST, THE SPONSOR, THE
TRUSTEES OR THIS DECLARATION ANY PROVISION OF THE LAWS (STATUTORY OR COMMON) OF
THE STATE OF DELAWARE PERTAINING TO TRUSTS THAT RELATE TO OR REGULATE, IN A
MANNER INCONSISTENT WITH THE TERMS HEREOF, (A) THE FILING WITH ANY COURT OR
GOVERNMENTAL BODY OR AGENCY OF TRUSTEE ACCOUNTS OR SCHEDULES OF TRUSTEE FEES AND
CHARGES, (B) AFFIRMATIVE REQUIREMENTS TO POST BONDS FOR TRUSTEES, OFFICERS,
AGENTS OR EMPLOYEES OF A TRUST, (C) THE NECESSITY FOR OBTAINING COURT OR OTHER
GOVERNMENTAL APPROVAL CONCERNING THE ACQUISITION, HOLDING OR DISPOSITION OF
REALTY OR PERSONAL PROPERTY, (D) FEES OR OTHER SUMS PAYABLE TO

                                       66

<PAGE>

TRUSTEES, OFFICERS, AGENTS OR EMPLOYEES OF A TRUST, (E) THE ALLOCATION OF
RECEIPTS AND EXPENDITURES TO INCOME OR PRINCIPAL, (F) RESTRICTIONS OR
LIMITATIONS ON THE PERMISSIBLE NATURE, AMOUNT OR CONCENTRATION OF TRUST
INVESTMENTS OR REQUIREMENTS RELATING TO THE TITLING, STORAGE OR OTHER MANNER OF
HOLDING OR INVESTING TRUST ASSETS OR (G) THE ESTABLISHMENT OF FIDUCIARY OR OTHER
STANDARDS OF RESPONSIBILITY OR LIMITATIONS ON THE ACTS OR POWERS OF TRUSTEES
THAT ARE INCONSISTENT WITH THE LIMITATIONS OR LIABILITIES OR AUTHORITIES AND
POWERS OF THE TRUSTEES AS SET FORTH OR REFERENCED IN THIS DECLARATION. SECTION
3540 OF TITLE 12 OF THE DELAWARE CODE SHALL NOT APPLY TO THE TRUST.

Section 15.3   Intention of the Parties.

     It is the intention of the parties hereto that the Trust be classified for
United States federal income tax purposes as a grantor trust. The provisions of
this Declaration shall be interpreted to further this intention of the parties.

Section 15.4   Headings.

     Headings contained in this Declaration are inserted for convenience of
reference only and do not affect the interpretation of this Declaration or any
provision hereof.

Section 15.5   Successors and Assigns.

     Whenever in this Declaration any of the parties hereto is named or referred
to, the successors and assigns of such party shall be deemed to be included, and
all covenants and agreements in this Declaration by the Sponsor and the Trustees
shall bind and inure to the benefit of their respective successors and assigns,
whether so expressed.

Section 15.6   Partial Enforceability.

     If any provision of this Declaration, or the application of such provision
to any Person or circumstance, shall be held invalid, the remainder of this
Declaration, or the application of such provision to Persons or circumstances
other than those to which it is held invalid, shall not be affected thereby.

Section 15.7   Counterparts.

     This Declaration may contain more than one counterpart of the signature
page and this Declaration may be executed by the affixing of the signature of
each of the Trustees to one of such counterpart signature pages. All of such
counterpart signature pages shall be read as though one, and they shall have the
same force and effect as though all of the signers had signed a single signature
page.

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<PAGE>

     IN WITNESS WHEREOF, the undersigned has caused these presents to be
executed as of the day and year first above written.

                                       /s/ Arthur M. Siskind
                                       -----------------------------------------
                                       Arthur M. Siskind, as Regular Trustee

                                       /s/ David F. DeVoe
                                       -----------------------------------------
                                       David F. DeVoe, as Regular Trustee

                                       /s/ Paula M. Wardynski
                                       -----------------------------------------
                                       Paula M. Wardynski, as Regular Trustee

                                       THE BANK OF NEW YORK (DELAWARE),
                                       as Delaware Trustee

                                       By: /s/ Patrick J. Burns, Sr.
                                          --------------------------------------

                                       Name:  Patrick J. Burns, Sr.
                                            ------------------------------------

                                       Title: Senior Vice President
                                             -----------------------------------

                                       THE BANK OF NEW YORK, as Property Trustee

                                       By: /s/ Kisha A. Holder
                                          --------------------------------------

                                       Name: Kisha A. Holder
                                            ------------------------------------

                                       Title: Assistant Treasurer
                                             -----------------------------------

<PAGE>

                                       NEWS AMERICA INCORPORATED, as Sponsor

                                       By:    /s/ Arthur M. Siskind
                                              ----------------------------------

                                       Name:  Arthur M. Siskind
                                              ----------------------------------

                                       Title: Senior Executive Vice President
                                              ----------------------------------

<PAGE>

                                     ANNEX I

                               TERMS OF SECURITIES

                Pursuant to Section 7.1 of the Amended and Restated Declaration
of Trust of News Corporation Finance Trust II (the "Trust"), dated as of March
21, 2003 (as amended from time to time, the "Declaration"), the designation,
rights, privileges, restrictions, preferences and other terms and provisions of
the Exchangeable Preferred Securities and the Common Securities are set out
below (for the avoidance of doubt, each capitalized term used but not defined
herein has the meaning set forth in the Declaration or, if not defined in the
Declaration, as defined in the Indenture referred to below):

        1.      Designation and Number.

                (a)     Exchangeable Preferred Securities. Up to 1,750,000
Exchangeable Preferred Securities of the Trust with an aggregate original stated
liquidation preference with respect to the assets of the Trust of up to ONE
BILLION, SEVEN HUNDRED AND FIFTY MILLION UNITED STATES DOLLARS
(US$1,750,000,000), and an original stated liquidation preference with respect
to the assets of the Trust of US$1,000 per exchangeable preferred security (the
"Original Liquidation Preference"), are hereby designated for the purposes of
identification only as 0.75% Senior Exchangeable Preferred Securities (the
"Exchangeable Preferred Securities"). The Exchangeable Preferred Security
Certificates evidencing the Exchangeable Preferred Securities shall be
substantially in the form of Exhibit A-1 to the Declaration, with such changes
and additions thereto or deletions therefrom as may be required by ordinary
usage, custom or practice or to conform to the rules of any stock exchange or
other organization on which the Exchangeable Preferred Securities are listed.

                (b)     Common Securities. Up to 17,677 Common Securities of the
Trust with an aggregate stated original liquidation amount with respect to the
assets of the Trust of up to seventeen million, six hundred and seventy seven
dollars (US$17,677,000), and a stated original liquidation amount with respect
to the assets of the Trust of US$1,000 liquidation amount per common security,
are hereby designated for the purposes of identification only as "0.75% Senior
Exchangeable Common Securities" (the "Common Securities"). The Common Security
Certificates evidencing the Common Securities shall be substantially in the form
of Exhibit A-2 to the Declaration, with such changes and additions thereto or
deletions therefrom as may be required by ordinary usage, custom or practice.
"Original Liquidation Amount" shall mean with respect to (i) an Exchangeable
Preferred Security, the Original Liquidation Preference thereof and (ii) a
Common Security, US$1,000.

        2.      Distributions.

                The sole assets of the Trust will consist of up to
US$1,767,677,000 aggregate Original Principal Amount of 0.75% Senior
Exchangeable Debentures due March 15, 2023 (the "Debentures"), issued by News
America Incorporated, a Delaware corporation ("News America" or the "Company"),
pursuant to an Indenture (the "Indenture"), dated as of March 21, 2003, among
News America, The News Corporation Limited, an Australian corporation ("News
Corporation"), as guarantor of the Debentures, on behalf of itself and certain
of its subsidiaries

                                       1

<PAGE>

which are named in such Indenture as guarantors (News Corporation and such
subsidiaries, the "Guarantors"), and The Bank of New York, as Trustee (the
"Indenture Trustee"). The Indenture is attached hereto as Exhibit 1 to the
Declaration.

                (a)     News America is obligated under the Indenture to pay
interest to the Trust, as holder of the Debentures, in the amounts and at the
times set forth in the Indenture. The Holders of the Securities shall be
entitled to such payments as Distributions on the Securities, pro rata, on the
identical interest payment dates as are set forth in the Indenture for payments
on the Debentures. The record dates for such payments shall also be identical to
the record dates for payment of interest on the Debentures. A Distribution is
payable only to the extent that payments are made in respect of the Debentures
by News America or the Guarantors to the Trust.

                (b)     News America is obligated under the Indenture to pay
Regular Additional Distributions (as defined in the Indenture) to the Trust, as
holder of the Debentures. The Holders of the Securities shall be entitled to be
paid the amounts of such Regular Additional Distributions as Distributions on
the Securities, pro rata, on the payment dates for such Regular Additional
Distributions under the Indenture. The record dates for such Distributions shall
be identical to the record dates for the Regular Additional Distributions. Such
Distributions are payable by the Trust only to the extent the Regular
Distributions are paid to the Trust by News America or the Guarantors.

                (c)     News America is obligated under the Indenture to pay
Extraordinary Additional Distributions (as defined in the Indenture) to the
Trust, as holder of the Debentures. The Holders of the Securities shall be
entitled to be paid the amounts of such Extraordinary Additional Distributions
as Distributions on the Securities, pro rata, on the payment dates for such
Extraordinary Additional Distributions under the Indenture. The record dates
for such Distributions shall be identical to the record dates for the
Extraordinary Additional Distributions. Such Distributions are payable by the
Trust only to the extent the Extraordinary Distributions are paid to the Trust
by News America or the Guarantors.

                (d)     Any of the above Distributions on the Securities will be
payable to the Holders thereof as they appear on the books and records of the
Trust at the close of business on the relevant record date. Subject to any
applicable laws and regulations and the provisions of the Declaration, each such
payment in respect of the Global Exchangeable Preferred Securities will be made
to The Depository Trust Company (the "DTC"), which will credit the relevant
accounts at the DTC on the applicable Distribution Payment Dates or, in the case
of certificated securities, such payments shall be made by check mailed to the
address of the Holder entitled thereto at such address appearing on the register
of the Trust. Distributions payable on any Securities that are not punctually
paid on any Distribution Payment Date, as a result of News America and the
Guarantors having failed to make a payment under the Debentures, will cease to
be payable to the Person in whose name such Securities are registered on the
relevant record date, and such defaulted Distribution will instead be payable to
the Person in whose name such Securities are registered on the special record
date or other specified date determined in accordance with the Declaration and
the Indenture. If any date on which Distributions are payable on the Securities
is not a Business Day, then payment of the Distribution payable on such date
will be made on the next succeeding day that is a Business Day (and without any
interest or other payment in respect of any such delay).

                                       2

<PAGE>

        3.      Liquidation Distribution Upon Dissolution.

                In the event of any voluntary or involuntary dissolution,
winding-up or termination of the Trust (each, a "Liquidation"), the Holders of
the Securities on the date of the Liquidation, as the case may be, will be
entitled to receive out of the assets of the Trust available for distribution to
Holders of Securities after satisfaction of liabilities to creditors of the
Trust pursuant to applicable law, Distributions in an amount equal to the
aggregate of the Adjusted Liquidation Amount (defined below) of the Securities
plus all accrued and unpaid Distributions thereon to the date of payment (such
amount being the "Liquidation Distribution"), unless, in connection with such
Liquidation, Debentures in an aggregate Original Principal Amount equal to the
aggregate Original Liquidation Amount of such Securities shall be distributed on
a pro rata basis in accordance with paragraph 12 below to the Holders of the
Securities.

                Section 2.11 of the Indenture provides that in the event of
payment of an Extraordinary Distribution on the Reference Shares, the Original
Principal Amount of the Debentures will be reduced and may be further reduced as
provided in such Section 2.11 of the Indenture. To the extent these amounts are
distributed to the Holders of Securities as provided above, the Original
Liquidation Amount will also be reduced and the adjusted amount is referred to
herein as the "Adjusted Liquidation Amount."

                If, upon any Liquidation, the Liquidation Distribution can be
paid only in part because the Trust has insufficient assets available to pay in
full the aggregate Liquidation Distribution, then the amounts payable directly
by the Trust on the Securities shall be paid on a pro rata basis to the Holders
of the Securities in accordance with paragraph 12 below.

                On and from the date fixed for any distribution of Debentures
upon dissolution of the Trust: (i) the Securities will no longer be deemed to be
outstanding and (ii) certificates representing Securities will be deemed to
represent beneficial interests in the Liquidation Distribution until such
certificates are presented to the Company or its agent for transfer or
reissuance.

        4.      Redemption at the Option of the Company.

                (a)     The Debentures will not be redeemable prior to March 20,
2010, except under limited circumstances described in the Indenture and in
paragraphs 4(b) and 4(c) hereof. Thereafter, the Debentures will be redeemable,
in whole or in part, at the option of the Company, and if the Debentures are
redeemed, the Trust will redeem Securities having an aggregate Original
Liquidation Amount equal to the aggregate Original Principal Amount of the
Debentures so redeemed, at a redemption price equal to the Adjusted Principal
Amount plus accrued and unpaid interest to but not including the Redemption
Date, plus any Final Period Distribution (as defined in the Indenture) (the
"Redemption Price"). The Company has the right to elect the manner of payment of
the Redemption Price on the Redemption Date. The Debentures (and, therefore, the
Securities) to be redeemed on any Redemption Date may be paid for, at the
election of the Company, in cash, BSkyB Ordinary Shares, or in any combination
thereof (the "Redemption Consideration"), subject to the terms of the Indenture.
The Company shall designate, in a Redemption/Distribution Notice delivered
pursuant to paragraph 4(d) below, whether the Company will redeem the Securities
for cash or BSkyB Ordinary Shares or, if a combination

                                       3

<PAGE>

thereof, the percentages of the Redemption Price which it will pay in each form
of Redemption Consideration; provided that the Company shall pay cash for any
fractional interests in BSkyB Ordinary Shares.

                (b)     Upon the payment of the Debentures in whole or in part,
whether at maturity or upon redemption (either at the option of the Company or
pursuant to a Tax Event or the Company's obligation to pay "Additional Amounts"
described in Section 3.7 of the Indenture), the proceeds from such payment shall
be simultaneously applied to redeem Securities having an aggregate Original
Liquidation Amount equal to the aggregate Original Principal Amount of the
Debentures so repaid or redeemed at the Redemption Price. Holders of Securities
shall be given not less than 30 days nor more than 60 days' notice by the Trust
of such redemption. Upon the payment of the Debentures at maturity or upon any
acceleration, earlier redemption or otherwise, the proceeds from such payment
will be applied to redeem the Securities, in whole, upon not less than 30 days
nor more than 60 days' notice (except in the case of payment at maturity).

                (c)     The Trust may not redeem fewer than all the outstanding
Securities unless all accrued and unpaid Distributions have been paid on all
Securities for all semi-annual distribution periods terminating on or before the
date of redemption.

                (d)     Redemption or Distribution procedures will be as
follows:

                        (i)     Notice of any redemption of, or notice of
distribution of Debentures in exchange, for the Securities (a
"Redemption/Distribution Notice") will be given by the Trust by mail to each
Holder of the Securities to be redeemed or exchanged not fewer than 30 days nor
more than 60 days before the date fixed for redemption or exchange thereof
which, in the case of a redemption, will be the date fixed for redemption of the
Debentures. For purposes of the calculation of the date of redemption or
exchange and the dates on which notices are given pursuant to this paragraph
4(d)(i), a Redemption/Distribution Notice shall be deemed to be given on the day
such notice is first mailed by first-class mail, postage prepaid, to the persons
required in paragraph 4(d)(v) below. Each Redemption/Distribution Notice shall
be addressed to the Holders of the Securities at the address of each such Holder
appearing in the books and records of the Trust. No defect in the
Redemption/Distribution Notice or in the mailing of either thereof with respect
to any Holder shall affect the validity of the redemption or exchange
proceedings with respect to any other Holder. The Redemption/Distribution Notice
shall identify the Securities being redeemed or exchanged and shall state:

        In the event of a redemption:

                (1)     the Redemption Date;

                (2)     the Redemption Price and Redemption Consideration and
        components thereof if necessary;

                (3)     the Exchange Rate (as such term is defined in the
        Indenture) then in effect;

                (4)     the name and address of the Paying Agent and Exchange
        Agent;

                                       4

<PAGE>

                (5)     that Securities called for redemption may be exchanged
        at any time before the close of business on the third Business Day prior
        to the Redemption Date;

                (6)     that Holders who want to exchange Securities must
        satisfy the requirements set forth in paragraph 7 of this Annex I;

                (7)     that Securities called for redemption must be
        surrendered to the Paying Agent to collect the Redemption Price;

                (8)     that if fewer than all the outstanding Securities are to
        be redeemed, the certificate numbers, if any, and Original Liquidation
        Preferences of the particular Securities to be redeemed;

                (9)     that, unless the Company defaults in making payment of
        such Redemption Price, interest on Securities called for redemption will
        cease to accrue on and after the Redemption Date; and

                (10)    the CUSIP number of the Securities.

                Provided that in the event that the Company has elected to pay
        the Redemption Price (or a specified percentage thereof) with a form of
        Redemption Consideration other than cash on the Redemption Date, the
        notice shall also:

                (1)     state that each Holder will receive BSkyB Ordinary
        Shares equal to such specified percentage of the Redemption Price of the
        Securities held by such Holder (except any cash amount to be paid in
        lieu of fractional shares); and

                (2)     set forth the calculation of the number of shares to be
        delivered;

        or in the event of a distribution of the Debentures:

                (1)     the distribution date of the Debentures;

                (2)     that, from and after such date referred to in (i)
        immediately above that the Securities will no longer be outstanding and
        any Securities not surrendered for exchange will be deemed to represent
        the Adjusted Principal Amount of Debentures equal to the aggregate
        Adjusted Liquidation Amount of such Securities; and

                (3)     provide such information with respect to the mechanics
        by which Holders of Securities must exchange Securities for Debentures,
        as the Regular Trustees or Property Trustee deem appropriate.

                        (ii)    In the event that fewer than all the outstanding
Securities are to be redeemed, the Securities to be redeemed shall be redeemed
pro rata from each Holder of Securities, it being understood that, in respect of
Exchangeable Preferred Securities registered in the name of and held of record
by the Depositary or its nominee (or any successor Clearing

                                       5

<PAGE>

Agency or its nominee), the distribution of the proceeds of such redemption will
be made to each Participant (or Person on whose behalf such nominee holds such
securities) in accordance with the procedures applied by such agency or nominee.

                        (iii)   If Securities are to be redeemed and the Trust
gives a Redemption/Distribution Notice, which notice may only be issued if the
Debentures are redeemed as set out in this paragraph 4 (which notice will be
irrevocable), then (A) with respect to Exchangeable Preferred Securities held in
book-entry only form, by 10:00 a.m., New York City time, on the applicable dates
as set forth in the Indenture, provided that the Debenture Issuer has paid to
the Property Trustee the amount of cash or other Redemption Consideration
required by the Indenture in connection with the related redemption or maturity
of the Debentures, the Property Trustee will irrevocably deposit with the
Depositary or its nominee (or any successor Clearing Agency or its nominee) cash
and/or other Redemption Consideration sufficient to pay the applicable
Redemption Price with respect to such Exchangeable Preferred Securities and will
give the Depositary irrevocable instructions and authority to pay the applicable
Redemption Price to the Holders of such Global Exchangeable Preferred Securities
and Restricted Global Exchangeable Preferred Securities, and (B) with respect to
Exchangeable Preferred Securities issued in certificated form and Common
Securities, provided that the Debenture Issuer has paid to the Property Trustee
the amount of cash and/or other Redemption Consideration in connection with the
related redemption or maturity of the Debentures, the Property Trustee will
irrevocably deposit with the Paying Agent cash and/or other Redemption
Consideration sufficient to pay the amount payable on redemption to the Holders
of such Securities upon surrender of their certificates.

                If a Redemption/Distribution Notice shall have been given and
funds deposited as required, then on the date of such deposit, all rights of the
Holders of such Securities so called for redemption will cease, except the right
of the Holders of such Securities to receive the Redemption Price, but without
interest on such Redemption Price. Neither the Regular Trustees nor the Trust
shall be required to register or cause to be registered the transfer of any
Securities that have been so called for redemption. If any date fixed for
redemption of Securities is not a Business Day, then payment of the Redemption
Price payable on such date will be made on the next succeeding day that is a
Business Day (and without any interest or other payment in respect of any such
delay). If payment of the Redemption Price in respect of any Securities is
improperly withheld or refused and not paid either by the Trust or by News
Corporation or by any Guarantor, Distributions on such Securities will continue
to accrue at the then applicable rate, from the original redemption date to the
date of payment, in which case the actual payment date will be considered the
date fixed for redemption for purposes of calculating the amount payable upon
redemption.

                        (iv)    In the event of any redemption in part, the
Trust shall not be required to (i) issue or register the transfer of or exchange
of any Security during a period beginning at the opening of business 15 days
before any selection for redemption of Securities and ending at the close of
business on the earliest date in which the relevant notice of redemption is
deemed to have been given to all Holders of Securities to be so redeemed and
(ii) register the transfer of or exchange of any Securities so selected for
redemption, in whole or in part, except for the unredeemed portion of any
Securities being redeemed in part.

                                       6

<PAGE>

                        (v)     Redemption/Distribution Notices shall be sent by
the Regular Trustees on behalf of the Trust to (A) in the case of the
Exchangeable Preferred Securities held in book-entry form, DTC or its nominee
and, in the case of Securities held in certificated form, to the Holder thereof
and (B) in respect of the Common Securities, to the Holder thereof.

                        (vi)    Subject to the foregoing and applicable law
(including, without limitation, United States federal securities laws), News
Corporation or any of its subsidiaries or nominees may at any time and from time
to time purchase outstanding Exchangeable Preferred Securities by tender, in the
open market or by private agreement. Any such Exchangeable Preferred Securities
held by News Corporation or any of its subsidiaries may be delivered to the
Property Trustee for cancellation in accordance with Section 7.10 of the
Declaration.

                        (vii)   In the event BSkyB Ordinary Shares are delivered
upon a redemption at the option of the Company, the number of shares deliverable
shall be determined by dividing the Redemption Price by the Current Market Value
of BSkyB Ordinary Shares.

        5.      Repurchase Upon Change of Control Triggering Event

                (a)     If there shall have occurred a Change of Control
Triggering Event (as defined in the Indenture), the Company will be required to
make an offer to repurchase the Debentures and the Trust will be required to
make an offer to repurchase the Exchangeable Preferred Securities (the "Change
of Control Offer"). Securities shall be purchased by the Trust, at the option of
the Holder thereof, in whole or in part, on a date that is selected by News
Corporation and is not earlier than 30 days nor later than 60 days after the
date the Change of Control Notice referred to below is given to Holders or such
later date as may be necessary for the Trust to comply with requirements under
the Exchange Act (such date, or such later date, being the "Change of Control
Purchase Date"), at a purchase price in cash (the "Change of Control Purchase
Price") equal to the Adjusted Liquidation Amount as of the Change of Control
Purchase Date plus any accrued and unpaid Distributions to, but in each case
excluding, the Change of Control Purchase Date, plus any Final Period
Distribution subject to satisfaction by or on behalf of the Holder of the
requirements set forth in paragraph 5(c) below.

                (b)     Within 15 Business Days after the occurrence of a Change
of Control Triggering Event, the Company shall given written notice of such
Change of Control Triggering Event (a "Change of Control Notice") to the
Property Trustee, and the Property Trustee shall promptly upon its receipt of
such notice forward a copy of such notice to Holders. The Trustees shall be
under no obligation to ascertain the occurrence of a Change of Control
Triggering Event or to give notice with respect thereto other than as provided
above upon receipt of a Change of Control Notice from the Company. The Change of
Control Notice shall state:

                        (i)     that the Change of Control Offer is being made
pursuant to the terms of Annex I of the Declaration and to the Indenture and
that all Securities validly tendered will be accepted for payment;

                        (ii)    the Change of Control Purchase Price and the
Change of Control Purchase Date;

                                       7

<PAGE>

                        (iii)   that, unless the Company defaults in the payment
of the Change of Control Purchase Price, any Securities accepted for payment
pursuant to the Change of Control Offer shall cease to accrue Distributions on
the Change of Control Purchase Date and that any Security not purchased will
continue to accrue Distributions;

                        (iv)    that Holders electing to have Securities
purchased pursuant to the Change of Control Notice will be required to deliver
notice in the form attached hereto (a "Change of Control Purchase Notice"),
together, if the Security is a Definitive Security, with such Security, to the
Paying Agent at the address specified in the notice prior to the close of
business on the third Business Day prior to the Change of Control Purchase Date;

                        (v)     that Holders will be entitled to withdraw their
tenders of Securities if the Paying Agent receives, not later than the close of
business on the third Business Day prior to the Change of Control Purchase Date,
a notice setting forth the name of the Holder, the certificate number of the
Securities delivered for purchase, in the case of a Definitive Security, the
number of Securities delivered for purchase and a statement that such Holder is
withdrawing his election to have such Securities purchased; and

                        (vi)    that Holders whose Securities represented by one
or more Definitive Securities are purchased only in part will be issued new
Definitive Securities equal in an amount to the unpurchased portion of the
Securities represented by the one or more Definitive Securities surrendered.

                (c)     A Holder may exercise its rights specified herein upon
delivery to any Paying Agent of a Change of Control Purchase Notice properly
completed at any time prior to the close of business on the third Business Day
prior to the Change of Control Purchase Date.

                When Exchangeable Preferred Securities are tendered to the
Property Trustee in acceptance of a Change of Control Offer, the Property
Trustee will tender to the Company Debentures in Original Principal Amount equal
to the Original Liquidation Preference of the Exchangeable Preferred Securities
tendered to it in exchange for the purchase price therefor.

                (d)     On or prior to 10:00 a.m. New York City time on the
Change of Control Purchase Date, the Company shall deposit with the Property
Trustee or with a Paying Agent an amount of money in same day funds sufficient
to pay the Change of Control Purchase Price of, and accrued Distributions on,
all the Securities or portions thereof which are to be purchased on that date.

                (e)     Upon receipt by the Paying Agent of properly tendered
Securities by receipt of a Change of Control Purchase Notice together, if the
Security is a Definitive Security, with such Definitive Security, the Holder of
the Security in respect of which such proper tender was made shall (unless the
tender of such Security is properly withdrawn) thereafter be entitled to receive
solely the Change of Control Purchase Price with respect to such Security. Upon
delivery of a Change of Control Purchase Notice and surrender of any such
Definitive Security, if applicable, for purchase in accordance with the
foregoing provisions, such Security shall be paid by the Company at the Change
of Control Purchase Price on the Change of Control Purchase Date; provided,
however, that Distributions which are due on or prior to the Change of

                                       8

<PAGE>

Control Purchase Date shall be payable to the Holders of such Securities, or one
or more predecessor Securities, registered as such on the relevant record dates
set forth herein. If any Security tendered for purchase shall not be so paid
upon surrender thereof, the Distributions thereon shall, until paid, continue to
accrue from the Change of Control Purchase Date at the rate borne by such
Security.

                (f)     In the case of Definitive Securities, any Security
represented by one or more Certificates that is to be purchased only in part
shall be surrendered to a Paying Agent at the office of such Paying Agent (with,
if the Trust or the Property Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Trust and the
Property Trustee duly executed by, the Holder thereof or such Holder's attorney
duly authorized in writing), and the Trust shall execute and the Property
Trustee shall authenticate and deliver to the Holder of such Security, without
service charge, one or more new certificates representing an aggregate amount
equal to, and in exchange for, the portion of Securities represented by such
certificate or certificates so surrendered that is not purchased.

                (g)     In connection with any offer to purchase or purchase of
Securities under this paragraph 5 (provided that such offer or purchase
constitutes an "issuer tender offer" for purposes of Rule 13e-4 (or any
successor provision thereto) under the Exchange Act at the time of such offer or
purchase), the Company and the Trust shall (i) comply with Rules 13e-4 and 14e-1
under the Exchange Act, if applicable, (ii) file the related Schedule 13E-4 (or
any successor schedule, form or report) under the Exchange Act, if required, and
(iii) otherwise comply with all applicable Federal and state securities laws so
as to permit the rights and obligations under the Indenture to be exercised to
the greatest extent practicable in the time and the manner specified.

        6.      Repurchase at Option of the Holder.

                (a)     The Exchangeable Preferred Securities shall be purchased
by the Trust, at the option of the Holder thereof, in whole or in part, on March
15, 2010, March 15, 2013 or March 15, 2018 (each, a "Purchase Date"), at a
purchase price (the "Purchase Price") equal to: the Adjusted Liquidation
Amount as of the Purchase Date, plus accrued and unpaid Distributions to but
not including the Purchase Date plus any Final Period Distribution. A Holder may
exercise its option upon delivery to the Property Trustee of a Purchase Notice
(in the form appearing in Exhibit A-1 to the Declaration), properly completed at
such time. The Property Trustee shall thereupon notify the Company of the
Holder's election to have such Exchangeable Preferred Securities purchased by
the Trust and exercise the corresponding election to have the Company purchase
such Debentures. If a Holder fails to indicate such Holder's choice with respect
to the election set forth in paragraph (c) of the Purchase Notice, such Holder
shall be deemed to have elected to receive cash in respect of the Purchase Price
for all Securities subject to such Purchase Notice in the circumstances set
forth in such paragraph (c). A Holder shall have the right to withdraw its
Purchase Notice at any time prior to the close of business on the third Business
Day prior to the Purchase Date by delivery of a written notice of withdrawal to
the Property Trustee setting forth the name of the Holder, the certificate
number of the Securities delivered for purchase, in the case of a Definitive
Security, the number of Securities delivered for purchase, the Adjusted
Liquidation Amount of the BUCS being withdrawn and the liquidation preference,
if any, of the BUCS that remain subject to the Purchase Notice and a statement
that such Holder is withdrawing its election to have such Securities purchased.

                                       9

<PAGE>

                (b)     The Securities to be purchased pursuant to this Section
6 may be paid for, at the election of the Company, in cash, BSkyB Ordinary
Shares or News Corporation Preferred ADSs, or in any combination thereof (the
"Purchase Consideration"). The Company shall designate, in a notice (the
"Company Notice") delivered to the Property Trustee not less than 30 nor more
than 60 days prior to each Purchase Date (the "Company Notice Date"), whether
the Company will purchase the Securities for cash or some other form of Purchase
Consideration, or, if a combination thereof, the percentages of the Purchase
Price of Securities in respect of which it will pay in cash or some other form
of Purchase Consideration; provided that the Company will pay cash for
fractional interests in BSkyB Ordinary Shares or News Corporation Preferred
ADSs. The Company Notice shall be delivered to the Holders by the Property
Trustee not less than 30 nor more than 60 days prior to each Purchase Date. For
purposes of determining the existence of potential fractional interests, all
Securities subject to purchase by the Company held by a Holder shall be
considered together (no matter how many separate certificates are to be
presented).

                In the event that the Company is unable to purchase the
Securities for BSkyB Ordinary Shares or News Corporation Preferred ADSs because
of the failure to fulfill any conditions described in the Indenture for such
delivery, including, without limitation, any necessary qualifications or
registrations of the foregoing under applicable Federal or state securities
laws, the Company may purchase the Securities for cash.

                The Company may not change its election with respect to the form
of Purchase Consideration (or components or percentages of components thereof)
to be paid once the Company has delivered its Company Notice to the Property
Trustee except pursuant to this Section 6(b) in the event of a failure to
satisfy, prior to the close of business on the Purchase Date, any condition to
the payment of the Purchase Price, in whole or in part, in BSkyB Ordinary Shares
or News Corporation Preferred ADSs.

                The Company Notice shall state:

                        (i)     the Purchase Price, the form of Purchase
Consideration, and the Exchange Rate (as such term is defined in the Indenture)
then in effect;

                        (ii)    the name and address of the Paying Agent and the
Exchange Agent;

                        (iii)   that Securities as to which a Purchase Notice
has been given may be exchanged if they are otherwise exchangeable only if the
applicable Purchase Notice has been withdrawn in accordance with paragraph 6(a)
of this Annex I;

                        (iv)    that Securities must be surrendered to the
Paying Agent to collect payment;

                        (v)     that the Purchase Price for any security as to
which a Purchase Notice has been given and not withdrawn will be paid promptly
following the later of (1) the Purchase Date and (2) the time of surrender of
such Security;

                                       10

<PAGE>

                        (vi)    the procedures the Holder must follow (including
the timing thereof) to exercise rights under paragraph 6 of this Annex I and a
brief description of those rights;

                        (vii)   briefly, the exchange rights of the Securities;

                        (viii)  the procedures for withdrawing a Purchase
Notice;

                        (ix)    that, unless the Company defaults in making
payment on Securities for which a Purchase Notice has been submitted,
Distributions on such Securities will cease to accrue on the Purchase Date; and

                        (x)     the CUSIP number of the Securities.

                In the event that the Company has elected to pay the Purchase
Price (or a specified percentage thereof) with a form of Purchase Consideration
other than cash on the Purchase Date, the notice shall also:

                (1)     state that each Holder will receive BSkyB Ordinary
        Shares or News Corporation Preferred ADSs, as the case may be, equal to
        such specified percentage of the Purchase Price of the Securities held
        by such Holder (except any cash amount to be paid in lieu of fractional
        shares); and

                (2)     set forth the method of calculating the number of
        securities to be delivered.

                All BSkyB Ordinary Shares or News Corporation Preferred ADSs, as
applicable, delivered upon purchase of the Securities shall be duly authorized,
validly issued, fully paid and nonassessable, and shall be free from preemptive
rights and any lien or adverse claim and otherwise satisfy the requirements of
Section 11.1 of the Indenture.

                Pursuant to the Indenture each of News Corporation and the
Company shall use its best efforts to list or cause to have quoted any News
Corporation Preferred ADSs to be issued to purchase Securities on each national
securities exchange or over-the-counter or other domestic market on which the
News Corporation Preferred ADSs are then listed or quoted.

                (c)     When Exchangeable Preferred Securities are tendered to
the Property Trustee, the Property Trustee will tender to the Company Debentures
in Original Principal Amount equal to the Original Liquidation Preference of the
Exchangeable Preferred Securities tendered to it in exchange for the Purchase
Price thereon and shall tender them for purchase on behalf of the Holder. On or
prior to 10:00 a.m. New York City time on the Purchase Date, the Company shall
deposit cash or such other form of Purchase Consideration, or a combination
thereof, as applicable, with the Property Trustee or the Paying Agent sufficient
to pay the aggregate Purchase Price of all Securities to be purchased pursuant
to this paragraph 6. No payment or adjustment will be made for dividends on the
BSkyB Ordinary Shares or News Corporation Preferred ADSs the record date for
which occurred prior to the Purchase Date.

                                       11

<PAGE>

                (d)     If a Holder of a Security purchased on a Purchase Date
is paid in a form of Purchase Consideration other than cash, the Company shall
pay any documentary, stamp or similar issue or transfer tax due on such issue
and delivery of such consideration. However, the Holder shall pay any such tax
which is due because the Holder requests the Purchase Consideration to be issued
or delivered in a name other than the Holder's name. The Paying Agent may refuse
to deliver the certificates representing the Purchase Consideration being issued
in a name other than the Holder's name until the Paying Agent receives a sum
sufficient to pay any tax which will be due because the Purchase Consideration
is to be issued or delivered in a name other than the Holder's name. Nothing
herein shall preclude any income tax withholding required by law or regulations.

                (e)     Upon receipt by the Paying Agent of properly tendered
Securities by receipt of a Purchase Notice together, if the Security is a
Definitive Security, with such Definitive Security, the Holder of the Security
in respect of which such proper tender was made shall (unless the tender of such
Security is properly withdrawn) thereafter be entitled to receive solely the
Purchase Price with respect to such Security. Upon delivery of a Purchase Notice
and surrender of any such Definitive Security, if applicable, for purchase in
accordance with the foregoing provisions, such Security shall be paid by the
Paying Agent, subject to receipt of funds and/or securities by the Paying Agent,
at the Purchase Price promptly following the later of (x) the Purchase Date and
(y) the time of delivery of such Security to the Paying Agent by the Holder;
provided, however, that Distributions which are due on or prior to the Purchase
Date shall be payable to the Holders of such Securities, or one or more
predecessor Securities, registered as such on the relevant record dates set
forth herein. If any Security tendered for purchase shall not be so paid upon
surrender thereof, Distributions thereon shall, until paid, continue to accrue
from the Purchase Date at the rate borne by such Security.

                (f)     In the case of Definitive Securities, any Security
represented by one or more Certificates that is to be purchased only in part
shall be surrendered to a Paying Agent at the office of such Paying Agent (with,
if the Company or the Property Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the
Property Trustee duly executed by, the Holder thereof or such Holder's attorney
duly authorized in writing), and the Company shall execute and the Property
Trustee shall authenticate and deliver to the Holder of such Security, without
service charge, one or more new certificates representing an aggregate amount
equal to, and in exchange for, the portion of Securities represented by such
certificate or certificates so surrendered that is not purchased.

                (g)     In connection with any purchase of Securities under this
paragraph 6 (provided that such purchase constitutes an "issuer tender offer"
for purposes of Rule 13e-4 (or any successor provision thereto) under the
Exchange Act at the time of such purchase), the Company and the Trust shall (i)
comply with Rules 13e-4 and 14e-1 under the Exchange Act, if applicable, (ii)
file the related Schedule TO (or any successor schedule, form or report) under
the Exchange Act, if required, and (iii) otherwise comply with all applicable
Federal and state securities laws so as to permit the rights and obligations
under the Indenture to be exercised to the greatest extent practicable in the
time and the manner specified.

                                       12

<PAGE>

                (h)     If the Company elects to pay in BSkyB Ordinary Shares or
News Corporation preferred ADSs, the number of securities so delivered shall be
determined by dividing the Purchase Price by the Current Market Value of such
securities.

        7.      Exercise of Exchange Rights.

                The Holders of Securities shall have the right at any time on or
after April 2, 2004 and prior to 5:00 p.m. New York City time, on the third
Business Day immediately preceding the date of repayment or repurchase of such
Securities, whether at maturity or upon redemption (either at the option of the
Company or pursuant to a Tax Event or an obligation to pay Additional Amounts as
described in Section 3.7 of the Indenture), at their option to cause the
Exchange Agent to exchange Securities, on behalf of the exchanging Holders, into
the Exchange Market Value of the Reference Shares, all as described in the
Indenture. The Company shall have the option to pay the Exchange Market Value in
cash or Reference Shares or, if the Company elects to deliver Reference Shares,
at the election of the Holder (to the extent that BSkyB Ordinary Shares would be
delivered to such holders as a part of the Reference Shares), BSkyB ADSs (the
"Exchange Consideration"), or it may pay in any combination thereof, in the
manner described herein and in the Indenture, subject to the following terms and
conditions:

                (a)     The Securities will be exchangeable at the offices of
the Exchange Agent into Exchange Consideration, as set forth in the Indenture,
pursuant to the Holder's direction to the Exchange Agent to exchange such
Securities for a portion of the Debentures theretofore held by the Trust on the
basis of one US$1,000 Original Principal Amount of Debentures for each
Exchangeable Preferred Security with Original Liquidation Preference of US$1,000
being exercised, and immediately exchange such amount of Debentures into
Exchange Consideration as set forth in the Indenture.

                (b)     When a Holder surrenders Securities for exchange with
the Exchange Request and any required cash payments as described below, which
request shall be irrevocable, such day shall be deemed for this Section 7 to be
the "Exchange Day" if completed by 9:30 a.m. New York City time, and if after
9:30 a.m. New York City time, the following Trading Day (as defined in the
Indenture) will be considered the Exchange Day. On the Exchange Day, the
Exchange Agent will, if the Company so requests, cause the Securities to be
offered to a financial institution chosen by the Company (the "Designated
Financial Institution") for exchange into the number of Reference Shares to
which the Holder would be entitled upon an Exchange of such Securities for all
Reference Shares, plus cash for any fractional shares. If the Designated
Financial Institution wishes to accept such offer, it must so notify the
Exchange Agent no later than the close of business on the Exchange Day (unless a
later time is agreed to by the Company) and shall deliver the Reference Shares
to the Exchange Agent no later than the fourth Trading Day after the Exchange
Day. The Securities shall be delivered to the Designated Financial Institution
on such date and shall remain outstanding. If the Designated Financial
Institution does not accept such Securities, the Company shall notify the
Exchange Agent of its election to pay cash or deliver Reference Shares, or a
combination of the foregoing, which shall be irrevocable, by no later than 5:00
pm, New York City time, on the Trading Day next following the applicable
Exchange Day. The Exchange Agent shall notify the exchanging Holder of the
Company's election prior to 10:00am, New York City time, on the second Trading
day after the Exchange Day.

                                       13

<PAGE>

                (c)     In order to exchange Securities, the Holder shall submit
to the Exchange Agent at the office referred to above an irrevocable request in
the form appearing in Schedule A-1 to exchange Securities on behalf of such
Holder (the "Exchange Request"), together, if the Securities are in certificated
form, with such certificates. The Exchange Request shall (i) set forth the
number of Securities to be exchanged and the name or names, if other than the
Holder, to which the Exchange Consideration (if other than cash) should be
delivered and (ii) direct the Exchange Agent (a) to exchange such Securities for
a pro rata portion of the Debentures held by the Trust (at the rate of exchange
specified in the Indenture) and (b) to immediately exchange such Debentures on
behalf of such Holder into the appropriate Exchange Consideration (at the
exchange rate specified in the Indenture). The Exchange Agent shall notify the
Trust of the Holder's election to exchange Securities for a portion of the
Debentures held by the Trust and the Trust shall, upon receipt of such notice,
deliver to the Exchange Agent the appropriate Original Principal Amount at
maturity of Debentures for exchange in accordance with this paragraph. The
Exchange Agent shall thereupon notify News America of the Holder's election to
exchange such Debentures. Holders of Securities at the close of business on a
Distribution record date will be entitled to receive the Distribution payable on
such Securities on the corresponding Distribution Payment Date notwithstanding
the exchange of such Securities following such record date but prior to such
Distribution Payment Date. When such Securities are surrendered for exchange
they must be accompanied by the payment of an amount equal to the Distribution
to be paid on such payment date. Except as provided above, neither the Trust nor
Company will make, or be required to make, any payment, allowance or adjustment
upon any exchange on account of any accumulated and unpaid Distributions accrued
on the Securities surrendered for exchange. Securities shall be deemed to have
been exchanged immediately prior to the close of business on the day on which an
Exchange Request relating to such Securities (together with any certificated
securities and payments required thereby) is received by the Trust in accordance
with the foregoing provision. The Person or Persons entitled to receive the
Exchange Consideration issuable upon exchange of the Debentures shall be treated
for all purposes as the record holder or holders of such Exchange Consideration
(if other than cash) at such time.

                (d)     News America (or the Designated Financial Institution)
shall issue and deliver at the office of the Exchange Agent the appropriate
Exchange Consideration, together with any cash payment in lieu of any fractural
security to the Person or Persons entitled to receive the same, unless otherwise
directed by the Holder in the Notice of Exchange and the Exchange Agent shall
deliver such Exchange Consideration to such Person or Persons as follows:

                        (i)     If News America elects to deliver all cash to
holders surrendering a Debenture for exchange, News America shall pay an amount
of cash in Dollars (as defined in the Indenture) per Debenture equal to the
Exchange Market Value of such Debenture. If News America elects to pay cash,
such cash payment will be made to the holder surrendering such Debentures and by
the Exchange Agent to the Holder surrendering Securities no later than three
Business Days following the end of the measurement period for determining the
amount of cash to be paid, as set forth in the Indenture;

                        (ii)    If News America elects to deliver all Reference
Shares to a holder surrendering a Debenture for exchange, the Reference Shares
shall be delivered to the Holder of

                                       14

<PAGE>

Securities submitted for exchange through the Exchange Agent no later than the
fourth Business Day after the Exchange Day; or

                        (iii)   If News America elects to deliver a combination
of Reference Shares and cash, the cash and Reference Shares shall be delivered
to the holder surrendering such Debentures and by the Exchange Agent to the
Holder surrendering Securities at the same time as if such payment were all
cash, as provided in clause (i) above.

                In the event the Designated Financial Institution referred to
above accepts Securities for exchange and fails to deliver the Reference Shares
it is required to deliver as set forth above, such shares shall be delivered by
the Company within the following five Business Days.

                Notwithstanding the foregoing, if a Holder, in its Notice of
Exchange indicates that it prefers to receive BSkyB ADSs in lieu of BSkyB
Ordinary Shares and the Company (though not the Designated Financial
Institution, which shall only be required to deliver BSkyB Ordinary Shares if it
accepts any Securities) gives notice of its intention to deliver BSkyB Ordinary
Shares upon exchange, instead of delivering such shares to such Holder, the
Company shall deliver the appropriate number of BSkyB ADSs, representing the
number of BSkyB Ordinary Shares to which the Holder would be entitled.

                (e)     Each Holder of a Security by his acceptance thereof
appoints The Bank of New York as "Exchange Agent" for the purpose of effecting
the exchange of Securities in accordance with this Section. In effecting the
exchange and transactions described in this Section, the Exchange Agent shall be
acting as agent of the Holders of Securities directing it to effect such
exchange transactions. The Exchange Agent is hereby authorized (i) to exchange
Securities from time to time for Debentures held by the Trust in connection with
the exchange of such Securities in accordance with this paragraph 7 and (ii) to
exchange all or a portion of the Debentures into the applicable Exchange
Consideration and thereafter to deliver such Exchange Consideration in
accordance with the provisions of this Section and to deliver to the Trust a new
Debenture or Debentures for any resulting unexchanged principal amount.

                (f)     No fractional BSkyB Ordinary Shares or BSkyB ADSs will
be delivered as a result of exchange, but in lieu thereof, such fractional
interest will be paid in cash by News America to the Exchange Agent, which in
turn will make such payment to the Holder or Holders of Securities so exchanged.

                (g)     Any BSkyB Ordinary Shares that are originally delivered
upon exchange of the Debentures shall be duly authorized, validly issued and
fully paid and nonassessable. The Trust shall deliver the appropriate Exchange
Consideration received upon exchange of the Debentures to the exchanging Holder
free and clear of all liens, charges, security interests and encumbrances,
except for United States withholding taxes. News America and the Trust, as
applicable, shall prepare and shall use reasonable best efforts to obtain and
keep in force such governmental regulatory permits or other authorizations as
may be required by law, and shall comply with all applicable requirements as to
registration or qualification of the Exchange Consideration and all
requirements to list the Exchange Consideration issuable upon exchange of the
Debentures (other than cash) that are at the time applicable, in order to enable
BSkyB or

                                       15

<PAGE>

News Corporation to lawfully deliver the appropriate Exchange Consideration to
the Trust upon conversion of the Debentures and the Trust to lawfully deliver
such Exchange Consideration to each Holder upon exchange of the Securities.

                (h)     News America will pay any and all taxes that may be
payable in respect of the issue and delivery of Exchange Consideration other
than cash upon exchange of Debentures and the delivery of such Exchange
Consideration by the Trust upon exchange of the Securities. News America shall
not, however, be required to pay any tax which may be payable in respect of any
transfer involved in the issue and delivery of Exchange Consideration (other
than cash) in a name other than that in which the Securities so exchanged were
registered, and no such issue and delivery shall be made unless and until the
person requesting such issue has paid to the Trust the amount of any such tax,
or has established to the satisfaction of the Trust that such tax has been paid.

                (i)     Nothing in the preceding paragraph (h) shall limit the
requirement of the Trust to withhold taxes pursuant to the terms of the
Securities or set forth in Annex I to the Declaration or in the Declaration
itself or otherwise require the Property Trustee or the Trust to pay any amounts
on account of such withholdings.

        8.      Voting Rights - Exchangeable Preferred Securities.

                (a)     Except as provided under paragraphs 8 and 11 hereof, in
the Statutory Trust Act and as otherwise required by law and the Declaration,
the Holders of the Exchangeable Preferred Securities will have no voting rights.

                (b)     Subject to the requirements set forth in this paragraph,
the Holders of a Majority in Stated Liquidation Amount of the Exchangeable
Preferred Securities, voting separately as a class, may direct the time, method,
and place of conducting any proceeding for any remedy available to the Property
Trustee, or direct the exercise of any trust or power conferred upon the
Property Trustee under the Declaration, including the right to direct the
Property Trustee, as holder of the Debentures, to (i) direct the time, method,
and place of exercising any trust or power conferred upon the Debenture Trustee
with respect to the Debentures or the Guarantees, (ii) waive any past default
and its consequences that is waivable under the Indenture or the Guarantees,
(iii) exercise any right to rescind or annul a declaration that the Debentures
shall be due and payable prior to their maturity, or (iv) consent to any
amendment, modification or termination of the Indenture, the Debentures or the
Guarantees. The Property Trustee shall not revoke any action previously
authorized or approved by a vote of the Holders of the Exchangeable Preferred
Securities. Except with respect to directing the time, method, and place of
conducting a proceeding for a remedy available to the Property Trustee, the
Property Trustee, as holder of the Debentures, shall be under no obligation to
take any action in accordance with the directions of the Holders of the
Exchangeable Preferred Securities under this paragraph unless the Property
Trustee has obtained an opinion of a nationally recognized independent tax
counsel experienced in such matters to the effect that for United States Federal
income tax purposes the Trust will not be classified as other than a grantor
trust on account of such action and each Holder will be treated as owning an
undivided beneficial interest in the Debentures. Except as otherwise expressly
permitted herein, a Holder of Exchangeable Preferred Securities may institute
any action directly against the Debenture Issuer or any of the Guarantors to
enforce

                                       16

<PAGE>

the Property Trustee's rights under the Indenture or Debentures or the
guarantees thereof, only if (i) such Holder previously shall have given the
Property Trustee written notice of an Event of Default and the continuance
thereof, (ii) the Holders of not less than 25% of the aggregate Adjusted
Liquidation Amount of the Exchangeable Preferred Securities then outstanding
shall have requested the Property Trustee to institute such action and shall
have offered the Property Trustee reasonable indemnification and (iii) the
Property Trustee shall not have instituted such action within 90 days of such
request. In such circumstances, such Holder may directly institute a legal
proceeding against the Debenture Issuer and the Guarantors to enforce the
Property Trustee's rights under the Indenture, the Debentures and the Guarantees
without first instituting a legal proceeding against the Property Trustee or any
other Person or entity. If a failure of the Trust to pay distributions on any
Exchangeable Preferred Securities is attributable to the failure of the Company
or a Guarantor to pay any interest, or principal, redemption amounts, Purchase
Price, Change of Control Purchase Price or other amount due on the Debentures on
the date such amount is otherwise payable, then a holder of Exchangeable
Preferred Securities may directly institute a proceeding for enforcement of such
payment to such holder (a "Direct Action"). Except as provided in the preceding
sentence, the Holders of Exchangeable Preferred Securities will not be able to
exercise directly any other remedy available to the holders of the Debentures.
In connection with such Direct Action, the Debenture Issuer will be subrogated
to the rights of such Holder of Exchangeable Preferred Securities under the
Declaration to the extent of any payment made by the Debenture Issuer to such
holder of Exchangeable Preferred Securities in such Direct Action.

                Any required approval or direction of Holders of Exchangeable
Preferred Securities may be given at a separate meeting of Holders of
Exchangeable Preferred Securities convened for such purpose, at a meeting of all
of the Holders of Securities in the Trust or pursuant to written consent. The
Regular Trustees will cause a notice of any meeting at which Holders of
Exchangeable Preferred Securities are entitled to vote, or of any matter upon
which action by written consent of such Holders is to be taken, to be mailed to
each Holder of record of Exchangeable Preferred Securities. Each such notice
will include a statement setting forth (i) the date of such meeting or the date
by which such action is to be taken, (ii) a description of any resolution
proposed for adoption at such meeting on which such Holders are entitled to vote
or of such matter upon which written consent is sought and (iii) instructions
for the delivery of proxies or consents.

                No vote or consent of the Holders of the Exchangeable Preferred
Securities will be required for the Trust to redeem and cancel Exchangeable
Preferred Securities or to distribute the Debentures in accordance with this
Declaration and the terms of the Securities.

                Notwithstanding that Holders of Exchangeable Preferred
Securities are entitled to vote or consent under any of the circumstances
described above, any of the Exchangeable Preferred Securities that are owned by
News Corporation or any Affiliate of News Corporation shall not be entitled to
vote or consent and shall, for purposes of such vote or consent, be treated as
if such Exchangeable Preferred Securities were not outstanding.

                                       17

<PAGE>

        9.      Voting Rights - Common Securities.

                (a)     Except as provided under Sections 9(b), 9(c) and 11, in
the Statutory Trust Act and as otherwise required by law and the Declaration,
the Holders of the Common Securities will have no voting rights.

                (b)     The Holders of the Common Securities are entitled, in
accordance with and subject to Article V of the Declaration, to vote to appoint,
remove or replace any Trustee or to increase or decrease the number of Trustees.

                (c)     Subject to Section 2.6 of the Declaration and only after
the Event of Default with respect to the Exchangeable Preferred Securities has
been cured, waived, or otherwise eliminated and subject to the requirements of
the second to last sentence of this paragraph, the Holders of a Majority in
Stated Liquidation Amount of the Common Securities, voting separately as a
class, may direct the time, method, and place of conducting any proceeding for
any remedy available to the Property Trustee, or direct the exercise of any
trust or power conferred upon the Property Trustee under the Declaration,
including to (i) direct the time, method, and place of exercising any trust or
power conferred upon the Debenture Trustee with respect to the Debentures, (ii)
waive any past default and its consequences that is waivable under the
Indenture, (iii) exercise any right to rescind or annul a declaration that the
principal of all the Debentures shall be due and payable prior to their stated
maturity, or (iv) consent to any amendment, modification or termination of the
Indenture or the Debentures. Pursuant to this paragraph 9(c), the Property
Trustee shall not revoke any action previously authorized or approved by a vote
of the Holders of the Common Securities. Other than with respect to directing
the exercise of any remedy available to the Property Trustee or the Debenture
Trustee as set forth above, the Property Trustee shall be under no obligation to
take any action in accordance with the directions of the Holders of the Common
Securities under this paragraph unless the Property Trustee has obtained an
opinion of independent tax counsel to the effect that for the purposes of United
States federal income tax the Trust will not be classified as other than a
grantor trust on account of such action and each Holder will be treated as
owning an undivided beneficial interest in the Debentures. If the Property
Trustee fails to enforce its rights under the Declaration, any Holder of Common
Securities may institute a legal proceeding directly against the Debenture
Issuer and the Guarantors and any other Person to enforce the Property Trustee's
rights under the Declaration, without first instituting a legal proceeding
against the Property Trustee or any other Person.

                Any approval or direction of Holders of Common Securities may be
given at a separate meeting of Holders of Common Securities convened for such
purpose, at a meeting of all of the Holders of Securities in the Trust or
pursuant to written consent. The Regular Trustees will cause a notice of any
meeting at which Holders of Common Securities are entitled to vote, or of any
matter upon which action by written consent of such Holders is to be taken, to
be mailed to each Holder of record of Common Securities. Each such notice will
include a statement setting forth (i) the date of such meeting or the date by
which such action is to be taken, (ii) a description of any resolution proposed
for adoption at such meeting on which such Holders are entitled to vote or of
such matter upon which written consent is sought and (iii) instructions for the
delivery of proxies or consents.

                                       18

<PAGE>

                No vote or consent of the Holders of the Common Securities will
be required for the Trust to redeem and cancel Common Securities or to
distribute the Debentures in accordance with the Declaration and the terms of
the Securities.

        10.     Registration Rights.

                The Holders of the Exchangeable Preferred Securities, the
Debentures, the Exchangeable Preferred Securities Guarantee and the Guarantee
are entitled to the benefits of a Registration Rights Agreement.

        11.     Amendments to Declaration and Indenture.

                In addition to any requirements under paragraph 12.1 of the
Declaration, if any proposed amendment to the Declaration provides for, or the
Regular Trustees otherwise propose to effect, (i) any action that would
adversely affect the powers, preferences or special rights of the Securities,
whether by way of amendment to the Declaration or otherwise, or (ii) the
dissolution, winding-up or termination of the Trust, other than as described in
Section 8.1 of the Declaration, then the Holders of Exchangeable Preferred
Securities and Common Securities as a class, will be entitled to vote on such
amendment or proposal (but not on any other amendment or proposal) and such
amendment or proposal shall not be effective except with the approval of the
Holders of at least a Majority in Stated Liquidation Amount of the Securities
affected thereby, voting together as a single class.

        12.     References herein to "pro rata".

                A reference in these terms of the Securities to any payment,
distribution or treatment as being "pro rata" shall mean pro rata to each Holder
of Securities according to the aggregate Original Liquidation Amount of the
Securities held by the relevant Holder in relation to the aggregate Original
Liquidation Preference of all Securities outstanding unless, in relation to a
payment, an Event of Default under the Declaration has occurred and is
continuing, in which case any funds available to make such payment shall be paid
first to each Holder of the Exchangeable Preferred Securities pro rata according
to the aggregate Original Liquidation Preference of Exchangeable Preferred
Securities held by the relevant Holder relative to the aggregate Original
Liquidation Preference of all Exchangeable Preferred Securities outstanding, and
only after satisfaction of all amounts owed to the Holders of the Exchangeable
Preferred Securities, to each Holder of Common Securities pro rata according to
the aggregate Original Liquidation Amount of Common Securities held by the
relevant Holder relative to the aggregate Original Liquidation Amount of all
Common Securities outstanding.

        13.     Ranking.

                The Exchangeable Preferred Securities rank pari passu and
payment thereon shall be made pro rata with the Common Securities except that,
where a Declaration Event of Default occurs and is continuing under the
Declaration, the rights of Holders of the Common Securities to payment in
respect of Distributions and payments upon liquidation, redemption and otherwise
are subordinated to the rights to payment of the Holders of the Exchangeable
Preferred Securities.

                                       19

<PAGE>

        14.     Acceptance of Securities Guarantee and Indenture.

                Each Holder of Exchangeable Preferred Securities and Common
Securities, by the acceptance thereof, agrees to the provisions of the
Exchangeable Preferred Securities Guarantee and to the provisions of the
Indenture.

        15.     No Preemptive Rights.

                The Holders of the Securities shall have no preemptive rights to
subscribe for any additional securities.

        16.     Declaration Event of Default.

                An Event of Default under the Indenture shall constitute a
Declaration Event of Default.

        17.     Miscellaneous.

                This Annex I constitutes a part of the Declaration.

                The Company will provide a copy of the Declaration, the
Exchangeable Preferred Securities Guarantee, and the Indenture to a Holder
without charge on written request to the Sponsor at its principal place of
business.

                                       20

<PAGE>

                                   EXHIBIT A-1

               FORM OF EXCHANGEABLE PREFERRED SECURITY CERTIFICATE

                THIS EXCHANGEABLE PREFERRED SECURITY IS A GLOBAL CERTIFICATE
WITHIN THE MEANING OF THE DECLARATION HEREINAFTER REFERRED TO AND IS REGISTERED
IN THE NAME OF THE DEPOSITORY TRUST COMPANY (THE "DEPOSITARY") OR A NOMINEE OF
THE DEPOSITARY. THIS EXCHANGEABLE PREFERRED SECURITY IS EXCHANGEABLE FOR
EXCHANGEABLE PREFERRED SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN
THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
DECLARATION AND NO TRANSFER OF THIS EXCHANGEABLE PREFERRED SECURITY (OTHER THAN
A TRANSFER OF THIS EXCHANGEABLE PREFERRED SECURITY AS A WHOLE BY THE DEPOSITARY
TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN
LIMITED CIRCUMSTANCES.

                UNLESS THIS EXCHANGEABLE PREFERRED SECURITY IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW
YORK, NEW YORK) TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY EXCHANGEABLE PREFERRED SECURITY ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON IS MADE TO
CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A
PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

                THIS SECURITY WAS ISSUED WITH ORIGINAL DISCOUNT FOR U.S. FEDERAL
INCOME TAX PURPOSES. FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED. THE ISSUE PRICE PER US$1,000 PRINCIPAL AMOUNT
OF THIS IS US$1,000, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT IS US$1,627.37 THE
ISSUE DATE IS MARCH 21, 2003 AND THE YIELD TO MATURITY, COMPOUNDED SEMI-ANNUALLY
IS 4.85%. THE SCHEDULE OF

<PAGE>

PROJECTED PAYMENTS CONSISTS OF (A) A PAYMENT OF INTEREST EQUAL TO US$3.625 ON
SEPTEMBER 15, 2003, (B) PAYMENTS OF INTEREST EQUAL TO US$3.75 ON EACH SUBSEQUENT
SEMI-ANNUAL INTEREST PAYMENT DATE (INCLUDING THE MATURITY DATE) AND (C) A
PAYMENT OF A PROJECTED AMOUNT AT THE MATURITY DATE OF THE DEBENTURES (EXCLUDING
THE STATED SEMI-ANNUAL INTEREST ON THE DEBENTURES PAYABLE ON SUCH DATE) EQUAL TO
US$2,627.23.

Certificate Number__              Number of Exchangeable Preferred Securities

                                                       CUSIP NO. 65248V205

            Certificate Evidencing Exchangeable Preferred Securities

                                       of

                        News Corporation Finance Trust II

                 0.75% Senior Exchangeable Preferred Securities
  (Original Liquidation Preference US$1,000 per Exchangeable Preferred Security)

                NEWS CORPORATION FINANCE TRUST II, a statutory trust formed
under the laws of the State of Delaware (the "Trust"), hereby certifies that
CEDE & CO. (the "Holder") is the registered owner of
________________________________________exchangeable preferred securities of the
Trust representing undivided beneficial interests in the assets of the Trust
designated the 0.75% Senior Exchangeable Preferred Securities (the "Exchangeable
Preferred Securities"). The Exchangeable Preferred Securities are transferable
on the books and records of the Trust, in person or by a duly authorized
attorney, upon surrender of this certificate duly endorsed and in proper form
for transfer. The designation, rights, privileges, restrictions, preferences and
other terms and provisions of the Exchangeable Preferred Securities are set
forth in, and this certificate and the Exchangeable Preferred Securities
represented hereby are issued and shall in all respects be subject to, the
provisions of the Amended and Restated Declaration of Trust of the Trust dated
as of March 21, 2003, as the same may be amended from time to time (the
"Declaration"), including the designation of the terms of the Exchangeable
Preferred Securities as set forth in Annex I thereto. Capitalized terms used
herein but not defined shall have the meaning given them in the Declaration. The
Holder is entitled to the benefits of the Exchangeable Preferred Securities
Guarantee to the extent provided therein. The Company will provide a copy of the
Declaration, the Exchangeable Preferred Securities Guarantee and the Indenture
to a Holder without charge upon written request to the Company at its principal
place of business.

                Upon receipt of this certificate, the Holder is bound by the
Declaration and is entitled to the benefits thereunder.

                By acceptance, the Holder agrees to treat, for United States
federal income tax purposes, the Debentures as indebtedness and the Exchangeable
Preferred Securities as evidence of indirect beneficial ownership in the
Debentures.

<PAGE>

                Unless the Property Trustee's Certificate of Authentication
hereon has been properly executed, these Exchangeable Preferred Securities shall
not be entitled to any benefit under the Declaration or be valid or obligatory
for any purpose.

                IN WITNESS WHEREOF, the Trust has executed this certificate as
of this ____ day of March 2003.

                                     NEWS CORPORATION FINANCE TRUST II

                                     ___________________________________
                                     __________________, as Trustee

                                     ___________________________________
                                     __________________, as Trustee

                PROPERTY TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Exchangeable Preferred Securities referred to in the
within-mentioned Declaration.

Dated: As of March __, 2003.

                                            The Bank of New York,
                                            as Property Trustee

                                            By:
                                               -------------------------------
                                                Authorized Signatory

<PAGE>

                                   ----------

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Exchangeable
Preferred Security Certificate to:

________________________________________________________________________________
________________________________________________________________________________
_______________________________________
        (Insert assignee's social security or tax identification number)

________________________________________________________________________________
________________________________________________________________________________
_______________________________
        (Insert address and zip code of assignee)

and irrevocably appoints

____________________________________________________________________
____________________________________________________________________
___________________________________________________________ agent to transfer
this Exchangeable Preferred Security Certificate on the books of the Trust. The
agent may substitute another to act for him or her.

Date:
     -------------------

Signature:
          ---------------------------
(Sign exactly as your name appears on the other side of this Exchangeable
Preferred Security Certificate)

<PAGE>

                    EXCHANGE NOTICE FOR CERTIFICATED SECURITY

To exchange this Security as provided in the Declaration check the box:
                               [ ]

To exchange only part of this Security, state the Original Liquidation
Preference to be exchanged (which must be US$1,000 or an integral multiple of
US$1,000):

        $______________

If the Company elects to deliver BSkyB Ordinary Shares, in whole or in part,
upon exchange indicate whether you would prefer BSkyB Ordinary Shares [ ] BSkyB
ADSs [ ]

Please fill in the form below providing the information requested with respect
to the holder of BSkyB Ordinary Shares or ADSs

________________________________________________________________________________
         (Insert social security
              or tax ID no.)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
            (Print or type other person's name, address and zip code)

________________________________________________________________________________

Date:
     -------------------
Your Signature:
               -----------------------------------------------------------------

--------------------------------------------------------------------------------
 (Sign exactly as your name appears on
    the other side of this Security)

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Trustee, the Exchange Agent, the Security Registrar or the
Transfer Agent, as the case may be, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Trustee, the Exchange Agent, the Security Registrar or the
Transfer Agent, as the case may be, in addition to, or in substitution for,
STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

<PAGE>

                                 PURCHASE NOTICE
                           FOR CERTIFICATED SECURITIES

                To cause the Company to purchase this Security on ________ __,
20__, check the box:
                                       [ ]

                In addition, set forth the following information:

                (a)     The Certificate Number(s) of the Securities that will be
delivered to be purchased;

                (b)     The portion of the Original Liquidation Preference of
the Securities that will be delivered for purchase (which must be US$1,000 or an
integral multiple thereof); and

                (c)     If the Company has elected to pay all or a portion of
the Purchase Price by the delivery of BSkyB Ordinary Shares, but such portion
may not be paid as a result of failure to satisfy one or more required
conditions prior to the Purchase Date, the undersigned elects (select one):

[ ]     to withdraw such Purchase Notice as to US$________ Original Liquidation
        Preference of Securities (Certificate Nos.   ) and to receive cash as to
        the remainder of the Securities referred to in clause (b) above

[ ]     to receive cash in respect of the Purchase Price for all Securities
        subject to such Purchase Notice

                The undersigned acknowledges that this Security will be
delivered pursuant to the terms and conditions specified in the Indenture and
paragraph 6 hereof.

--------------------------------------------------------------------------------

Date:               Your Signature
     --------------               ----------------------------------------------

--------------------------------------------------------------------------------
        (Sign exactly as your name appears on the other side of this Security)

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Trustee, the Exchange Agent, the Security Registrar or the
Transfer Agent, as the case may be, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Trustee, the Exchange Agent, the Security Registrar or the
Transfer Agent, as the case may be, in addition to, or in substitution for,
STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

<PAGE>

                        CHANGE OF CONTROL PURCHASE NOTICE
                           FOR CERTIFICATED SECURITIES

                To cause the Company to purchase this Security in the event of
any Change of Control of News Corporation, check the box:
                                       [ ]

                In addition, set forth the following information:

                (a)     The Certificate Number(s) of the Securities that will be
delivered to be purchased; and

                (b)     The portion of the Original Liquidation Preference of
the Securities that will be delivered for purchase (which must be US$1,000 or an
integral multiple thereof).

                The undersigned acknowledges that this Security will be
delivered pursuant to the terms and conditions specified in the Indenture and
paragraph 6 hereof.

--------------------------------------------------------------------------------

Date:               Your Signature
     --------------

--------------------------------------------------------------------------------
        (Sign exactly as your name appears on the other side of this Security)

-------------------------

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Trustee, the Exchange Agent, the Security Registrar or the
Transfer Agent, as the case may be, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Trustee, the Exchange Agent, the Security Registrar or the
Transfer Agent, as the case may be, in addition to, or in substitution for,
STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

<PAGE>

                                   EXHIBIT A-2

                       FORM OF COMMON SECURITY CERTIFICATE

                          TRANSFER OF THIS CERTIFICATE
                          IS SUBJECT TO THE CONDITIONS
                          SET FORTH IN THE DECLARATION
                                REFERRED TO BELOW

Certificate No.: ____                   Number of Common Securities: ___________

                    Certificate Evidencing Common Securities

                                       of

                        NEWS CORPORATION FINANCE TRUST II

                   0.75% Senior Exchangeable Common Securities
          (Original Liquidation Preference US$1000 per Common Security)

                NEWS CORPORATION FINANCE TRUST II, a statutory trust formed
under the laws of the State of Delaware (the "Trust"), hereby certifies that
News America Incorporated, a Delaware corporation, (the "Holder") is the
registered owner of ________ common securities of the Trust representing
undivided beneficial interests in the assets of the Trust designated the 0.75%
Senior Exchangeable Common Securities (the "Common Securities"). The Common
Securities are transferable on the books and records of the Trust, in person or
by a duly authorized attorney, upon surrender of this certificate duly endorsed
and in proper form for transfer and satisfaction of the other conditions set
forth in the Declaration (as defined below), including, without limitation,
Section 9.1 thereof. The designation, rights, privileges, restrictions,
preferences and other terms and provisions of the Common Securities represented
hereby are issued and shall in all respects be subject to the provisions of the
Amended and Restated Declaration of Trust of the Trust dated as of March 21,
2003, as the same may be amended from time to time (the "Declaration"),
including the designation of the terms of the Common Securities as set forth in
Annex I thereto. Capitalized terms used herein but not defined shall have the
meaning given them in the Declaration.

                Upon receipt of this certificate, the Holder is bound by the
Declaration and is entitled to the benefits thereunder.

<PAGE>

                By acceptance, the Holder agrees to treat, for United States
federal income tax purposes, the Debentures as indebtedness and the Common
Securities as evidence of indirect beneficial ownership in the Debentures.

                Unless the Property Trustee's Certificate of Authentication
hereon has been properly executed, these Common Securities shall not be entitled
to any benefit under the Declaration or be valid or obligatory for any purpose.

        IN WITNESS WHEREOF, the Trust has executed this certificate this ____
day of March, 2003.

                                     NEWS CORPORATION FINANCE TRUST II

                                     _______________________________
                                     _______________, as Trustee

                                     _______________________________
                                     _______________, as Trustee

                PROPERTY TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Common Securities referred to in the within-mentioned
Declaration.

Dated: March __, 2003.

                                     The Bank of New York,
                                     as Property Trustee

                                     By:
                                     Authorized Signatory

<PAGE>

                                   ----------

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Common Security
Certificate to:

________________________________________________________________________________
________________________________________________________________________________
_______________________________________
(Insert assignee's social security or tax identification number)

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
_________________________________________
(Insert address and zip code of assignee)

and irrevocably appoints ___________________________________________
________________________________________________________________________________
_________________________________ agent to transfer this Common Security
Certificate on the books of the Trust. The agent may substitute another to act
for him or her.

Date:
      ------------------------

Signature:
           -------------------
(Sign exactly as your name appears on the other side of this Common Security
Certificate)

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