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Gemstar Drops KPMG as Auditor

New York (Nov. 5, 2002) TV Guide publisher Gemstar said it has fired KPMG, its outside auditor, following a disagreement over the company’s financial statements.

The dispute centered on a restatement of the company’s financial statements, which was recommended by the board’s audit committee, but rejected as unnecessary by KPMG.

“We were not surprised we were terminated in light of our disagreements with the company over proper application of GAAP,” said KPMG spokesman Robert J. Zeitlinger. “We will detail those disagreements in appropriate filings with the SEC.”

The details should show up as part of an amended 8-k filing by Gemstar within the next few weeks.

Gemstar’s accounting practices are currently being scrutinized by the Securities and Exchange Commission, and the company has hired Ernst & Young to replace KPMG as its outside auditor.

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