Bush spares Libby from prison term President leaves fine, probation intact for convicted ex-White House aideBREAKING NEWSThe Associated PressUpdated: 2:56 p.m. PT July 2, 2007

WASHINGTON - President Bush commuted the sentence of former aide I. Lewis "Scooter" Libby Monday, sparing him from a 2 1/2-year prison term in the CIA leak case.

Bush left intact a $250,000 fine and two years probation for Libby, according to a senior White House official, who spoke on condition of anonymity because the decision had not been announced.

"My decision to commute his prison sentence leaves in place a harsh punishment for Mr. Libby. The reputation he gained through his years of public service and professional work in the legal community is forever damaged," Bush said in a statement. "I respect the jury's verdict. But I have concluded that the prison sentence given to Mr. Libby is excessive."

Bush's move came hours after a federal appeals panel ruled Libby could not delay his prison term in the CIA leak case. That decision put the pressure on the president, who had been sidestepping calls by Libby's allies to pardon the former chief of staff to Vice President Dick Cheney.

Libby was convicted in March of lying to authorities and obstructing the investigation into the 2003 leak of CIA operative's identity. He was the highest-ranking White House official ordered to prison since the Iran-Contra affair.

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