Insight Announces Third Quarter 2007 Results

Business Wire, Nov 6, 2007

NEW YORK -- In the financial table titled "Insight Communications Company, Inc. Operating Statistics (in thousands, except per customer and penetration data)" from the press release dated Nov. 5, 2007, the figure for Basic Cable Penetration under Q3 2007 should read: 54.6% (sted 56.6%).

The corrected release reads:

INSIGHT ANNOUNCES THIRD QUARTER 2007 RESULTS

Insight Communications Company today announced financial results for the quarter ended September 30, 2007.

"The true test of success for any business is its ability to sustain positive financial results over time," said Michael Willner, Insight's chief executive officer. "Our exceedingly strong third quarter results clearly indicate that we have established an operating business model that consistently grows RGUs at a pace that supports ongoing positive financial returns."

Third Quarter Highlights

* Revenue of $362.3 million, an increase of 14% over Q3 2006

* Adjusted Operating Income before Depreciation and Amortization* of $143.6 million, an increase of 15% over Q3 2006

* Capital expenditures of $76.5 million

* Free Cash Flow* of $13.6 million, an increase of $17.9 million over Q3 2006

* Total Customer Relationships of 1,449,400 at September 30, 2007, an increase of 54,000 compared to 1,395,400 at September 30, 2006

* Total Revenue Generating Units ("RGUs") of 2,993,700 at September 30, 2007, an increase of 385,000, or 15%, from September 30, 2006, comprised of:

[TABLE OMITTED]

* As of September 30, 2007, 98% of the company's customers were passed by two-way, 750 MHz or higher capacity upgraded network.

* See explanation of these Non-GAAP measures on p. 7.

(Page 1)

Operating Results for the Three Months Ended September 30, 2007 Compared to the Three Months Ended September 30, 2006

Revenue for the three months ended September 30, 2007, totaled $362.3 million, an increase of 14% over the prior year, due primarily to RGU growth across all of Insight's services, as well as video rate increases. High-speed Internet service revenue increased 28% over the prior year, which was primarily attributable to an increased customer base, partially offset by promotional discounts. Insight added a net 47,900 high-speed Internet customers during the quarter to end at 722,800 customers.

Basic cable service revenue increased 6% due to an increased customer base and video rate increases, partially offset by promotional discounts. In addition, digital service revenue increased 22% over the prior year due to an increased customer base and a $1.23 increase in digital average revenue per customer ("ARPU"). Insight added a net 26,100 digital customers during the quarter to end at 687,600 customers.

Insight has been increasing its customer growth and retention efforts by increasing spending on sales and marketing efforts, emphasizing bundling and enhancing and differentiating its video services with video-on-demand, high-definition television and digital video recorders. The company is also continuing to focus on improving customer satisfaction through higher service levels and increased customer education of product offerings.

To increase its bundling opportunities and extend its growth potential in future years, the company successfully rolled out its telephone product in eight previously unserved districts during the second half of 2006 and in January 2007. As a result, the company added a net 44,000 telephone customers during the quarter to end at 221,200 customers.

(Page 2)

[TABLE OMITTED]

Total Customer Relationships were 1,449,400 as of September 30, 2007, an increase of 54,000 from 1,395,400 as of September 30, 2006. Total Customer Relationships represent the number of customers who receive one or more of Insight's products (i.e., basic cable, high-speed Internet or telephone) without regard to which product they purchase.

In the quarter ended September 30, 2007, Insight added 139,100 RGUs, which represent the sum of basic, digital, high-speed Internet and telephone customers, and as of September 30, 2007, had 2,993,700 RGUs, an increase of 15% from September 30, 2006.

[TABLE OMITTED]

Average monthly revenue per basic customer was $89.36 for the three months ended September 30, 2007, compared to $80.90 for the three months ended September 30, 2006. This primarily reflects the continued growth of high-speed Internet, video and telephone product offerings in all markets, as well as video rate increases.

Programming and other operating costs increased $14.5 million, or 13%. Increases in programming rates, customers and the addition of new programming content were significant drivers of the cost increase for the quarter ended September 30, 2007.

(Page 3)

Other direct operating costs increased due to the increase in telephone cost of service as the company successfully rolled out this product in eight previously unserved districts during the second half of 2006 and in January 2007 and an increase in high-speed Internet service costs due to the increased customer base. Other operating costs increased primarily as a result of an increase in installation labor due to increased customer activity.