PrimaCom Takes Over Dutch Cable Network Operator Multikabel; Largest Acquisition in the History of the Company

Business Wire, August 14, 2000

Business Editors

MAINZ, Germany--(BUSINESS WIRE)--Aug. 14, 2000

PrimaCom AG (Neuer Markt Frankfurt, "PRC"/ID No. 625910; Nasdaq: PCAG) has just reported the successful conclusion of contractual negotiations on the purchase of the Dutch cable operator Multikabel (N.V. Kabeltelvisie Kop Noord-Holland domiciled in Alkmaar). With the take-over of Multikabel -- the fourth-largest cable network operator in the Netherlands -- PrimaCom is integrating some 320,000 homes passed by and approximately 300,000 customers in northwestern Holland into its network. Thus, the Mainz-based company has increased the number of homes passed by to 1.67 million and its number of customers to 1.23 million. Furthermore, the third-largest private cable operator in Germany now has a third core region -- following on from Central Germany (Saxony, Saxony-Anhalt and Thurinigia) and the Rhine-Main region -- in which PrimaCom is able to market innovative multimedia services.

The largest take-over in the history of PrimaCom AG is being financed by a revolving credit facility of Euro 1 billion underwritten by Chase Manhattan and the Bank of America. Thus the existing credit line has been increased from DM 900 million. In addition, there will be a bridging loan of Euro 375 million underwritten by Chase Manhattan International Limited.

The cable networks of Multikabel have been virtually upgraded in full with some 800 km of fibre optic cable. In the course of this year the Dutch cable network operator had already begun to supplement its existing cable television offering to include new products and services. Thus, for instance, in May over 5,000 customers were already able to avail of high-speed Internet access with the Multikabel network. In addition, digital television was launched under the product name "Mr. Zap"; this is also marketed through other Dutch cable network operators such as UPC, Casema and Essent.

"The acquisition of Multikabel ensures us a strong market position as a European communication company -- we now have a market share of 5 per cent in Germany and Holland. Moreover, the acquisition is an important step on the road to becoming a multimedia provider. Thanks to its advanced upgrading and development status, the Multikabel network is an ideal supplement to our own innovative network offer. Of our 1,230,000 subscribers, some 30 per cent will now be equipped to avail of new products and services," states Jacques Hackenberg, Chairman of the Board of Management of PrimaCom AG.

The shareholders in Multikabel to date have been N.V. Houdstermaatschappij GKNH, Energie Noord West N.V. as well as a number of local municipalities in Holland. PrimaCom is concluding the purchase through its subsidiary PrimaCom Netherlands Holding B.V., in which the Mainz-based company intends to bundle its activities in Holland in the future.

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because these statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially, including PrimaCom's absence of an operating history for its merged operations, its possible future need for additional financing, competitive factors and restrictions imposed by existing and possible future debt instruments.