Rupert Murdoch said he was "absolutely shocked, appalled and ashamed" when he heard the News of the World had hacked Milly Dowler's phone.
He said her family had "graciously received" a personal apology from him.
The News Corp chairman and his son, James, its European chief executive, was giving evidence to the parliamentary culture select committee this afternoon.
He said: "I was absolutely shocked, appalled and ashamed when I heard about the Milly Dowler case two weeks ago."
The revelation that murdered Walton schoolgirl Milly Dowler's phone had been hacked led to a tidal wave of public condemnation that closed the News of the World and unleashed a chain of resignations.
The Dowlers falsely believed Milly was alive in 2002 after realising someone was accessing her mobile phone messages and deleting them.
Rupert Murdoch and his son James gave evidence to the select committee this afternoon.
Rupert Murdoch began the meeting by saying it was the "most humble day of my life" while James Murdoch said the company had "not lived up to the standards" it aspired to.
During the hearing Rupert Murdoch said he had "never heard" of News of the World chief reporter Neville Thurlbeck, who lives in Hinchley Wood, despite the reporter being criticised in a high profile case by a judge over a sting on Formula One mogul Max Mosley.
Last week Rupert Murdoch held his head in his hands and said "sorry" to the Dowler family.
The apology came after a week in which Bob, Sally and their daughter Gemma met the Prime Minister, deputy prime Minister and leader of the Labour party to call for a public inquiry.
Days after they said Rebekah Brooks, who was editor at the time of the hacking in 2002, should resign, she was gone.
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