Business Services Industry

Cox Communications to Acquire Multimedia Cable TV Assets from Gannett

Business Wire, July 27, 1999

ATLANTA--(BUSINESS WIRE)--July 27, 1999--

Cox reaches 6 million customer milestone

Cox Communications, Inc. (NYSE: COX) announced today that it has signed a definitive agreement with Gannett Co., Inc. to acquire its cable television operations serving 522,000 customers in Kansas, Oklahoma and North Carolina for $2.7 billion in cash.

The transaction has been structured as a purchase of assets which will generate approximately $350 million in tax benefits to Cox. Net of these benefits and including synergies, the $2.35 billion value represents $4,500 per subscriber or 15.6 times estimated 2000 operating cash flow.

The agreement was approved today by the Board of Directors of Gannett, and will be subject to necessary government and regulatory approvals. It is expected to close by the end of the first quarter of 2000.

By year-end 1999, the systems, operated under the name Multimedia Cablevision, are expected to serve 303,000 customers in Kansas, including Wichita, Topeka and Manhattan; 122,000 customers in Oklahoma City, OK; and 97,000 customers in North Carolina, including Greenville and Rocky Mount.

"Gannett's cable properties are a natural fit with our growth strategy of adding large, technologically advanced properties in stand-alone markets and in markets contiguous to our existing operations. This acquisition will allow us to establish a large presence in Kansas and will significantly enhance our already strong presence in Oklahoma," commented Jim Robbins, Cox Communications President and CEO. "These systems are also highly advanced technologically. Nearly 90% of the Oklahoma and Kansas systems are already upgraded to 750MHz. This will allow us to expedite the introduction of the full-service package of video, voice and high-speed data services that Cox already offers in many of its largest markets."

In addition to this transaction, Cox has recently announced plans to acquire 495,000 customers from AT&T and 883,000 customers from TCA Cable. Following closing of these transactions, Cox will serve more than 2.4 million customers in a six-state region in the central U.S., including Oklahoma, Arkansas, Louisiana, Texas, Kansas and Nebraska. Additionally, Cox announced in April plans to acquire 264,000 customers from Media General Inc., pushing its total anticipated number of customers served to 6 million in 18 states.

According to Robbins, the Gannett transaction marks a milestone for Cox's mergers and acquisitions activity and for the company's growth strategy. "Four rapid-fire acquisitions announced since the end of the first quarter will allow us to boost our customer base by more than 50 percent -- or 2 million customers -- and will expand our footprint in highly-clustered geographic regions.

"We believe that 6 million customers is a formidable size in today's environment. Our recent acquisitions provide us the size and scale that will enable us to remain a significant player in the broadband communications industry."

Morgan Stanley Dean Witter and Daniels & Associates served as financial advisors to Cox in the transaction.

Following the close of pending cable system acquisitions, Cox will serve approximately 6 million customers nationwide, making it the nation's fifth largest cable company. A full-service provider of telecommunications products, Cox offers an array of services, including cable television under the Cox Cable brand; local and long distance telephone services under the Cox Digital Telephone brand; high-speed Internet access via Cox@Home; advanced digital video programming services under the Cox Digital TV brand; and commercial voice and data services via Cox Business Services. Cox is an investor in telecommunications companies including Sprint PCS and Excite@Home, as well as programming networks including Discovery Channel, The Learning Channel, Outdoor Life and Speedvision. More information about Cox Communications can be accessed on the Internet at www.cox.com.

Any statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The words "estimate," "anticipate" and other expressions that indicate future events and trends identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical results or those Cox anticipates. Factors that could have a material and adverse impact on actual results are described in Cox's current report on Form 10-K, dated March 29, 1999. All forward-looking statements in this press release are qualified by reference to the cautionary statements included in Cox's Form 10-K.

NOTE TO EDITORS: For more information about this transaction, please access the Cox Communications web site at www.cox.com/investor.>