MediaOne and Time Warner Cable Close System Trades Totalling Nearly 620,000 Customers

Business Wire, August 2, 1999

COLUMBUS, Ohio--(BUSINESS WIRE)--Aug. 2, 1999--

MediaOne Gets Massachusetts, New Hampshire Systems;

Time Warner Cable Receives Ohio, Maine Properties

Additional Trade to Close Later this Summer

MediaOne(R), the Broadband services unit of MediaOne Group, and Time Warner Cable, a division of Time Warner Entertainment and Time Warner Inc., have closed the majority of a previously announced agreement to trade cable properties in the Northeast, Southeast, Midwest, and West, the companies said today.

Time Warner has received systems from MediaOne with about 270,000 customers in Ohio and 10,000 customers in Maine. Time Warner Cable is Ohio's largest cable provider with more than 1.2 million current customers prior to the close of the trade.

Of Time Warner's four Ohio divisions, the Columbus Division gains about 40,000 customers from MediaOne. The trade expands the division's service area to more than 40 new communities, including Athens, Lancaster, Circleville, Galion and Crestline. Time Warner Communications Columbus Division now serves nearly 305,000 customers in 290 communities.

MediaOne has received systems from Time Warner Cable with about 240,000 customers in Massachusetts and New Hampshire, plus an undisclosed amount of cash. MediaOne is New England's largest Broadband services provider with 1.5 million customers after the close of the trade.

The companies signed a definitive agreement in February as part of ongoing strategies to cluster cable systems in the most operationally efficient manner possible.

The February agreement also included the trade of MediaOne's system serving about 70,000 customers in Palm Desert, Calif., for Time Warner's system in suburban Atlanta, GA., serving about 71,000 customers. The close of that portion of the trade will occur later this summer.

Time Warner Cable owns and manages the world's most advanced, best clustered cable television operations, with 80 percent of its more than 12.9 million customers in systems of 100,000 subscribers or more. It is a division of Time Warner Entertainment.

MediaOne, the nation's leading Broadband services company, provides entertainment, information, and communications services to about 5 million customers. MediaOne Group (NYSE:UMG) is one of the world's largest broadband communications companies, bringing the power of broadband and the Internet to customers in the United States, Europe and Asia. The company also has interests in some of the fastest-growing wireless communications businesses outside the U.S. For 1998, the businesses that comprise MediaOne Group produced $7.1 billion in proportionate revenue. On May 6, 1999, the company entered into an agreement to merge with AT&T.

Waller Capital Corporation assisted both companies in arranging the transaction.