MediaOne And Time Warner Cable
Announce System Trades Totaling Nearly 700,000
Customers
MediaOne Gets Massachusetts, Georgia, New Hampshire Systems; Time
Warner Cable Receives Ohio, California, Maine Properties
DENVER and NEW YORK, Feb. 2 /PRNewswire/ -- MediaOne®, the Broadband services unit
of MediaOne Group (NYSE: UMG - news), and Time Warner Cable, a division of Time Warner
Entertainment and Time Warner Inc. (NYSE: TWX - news), have signed definitive agreements to
trade cable systems in the Northeast, Southeast, Midwest and West, the companies said today.
Time Warner Cable will receive systems from MediaOne with about 350,000 customers in Ohio,
Maine and California. MediaOne will receive systems from Time Warner Cable with about 310,000
customers in Massachusetts, New Hampshire and Georgia, and an undisclosed amount of cash.
MediaOne is Massachusetts' largest Broadband services provider with 800,000 customers. The
company currently has about 550,000 customers in Atlanta. MediaOne will receive an additional
240,000 customers in Massachusetts and New Hampshire, and an additional 71,000 customers in
Atlanta. Time Warner Cable is Ohio's largest cable provider, with more than 900,000 current
customers. The trade will add nearly 270,000 customers to that total and also enhance the
company's clusters in Southern California by nearly 70,000 and in Maine by almost 10,000.
''This transaction, combined with our recent major trade with TCI, moves us closer to achieving our
goals for market-level clustering,'' said Jan Peters, President and CEO of MediaOne. ''When this
deal is closed, more than half of our subscribers will be in markets where we will have more than a
fifty percent share of the designated market area, and more than two-thirds of our customers will be
in markets where we will have more than 250,000 customers. This will be a great opportunity for us
to reduce costs and capture market- level efficiencies. This transaction is another example of how
MediaOne and Time Warner are continuing to work together in the best interests of their
shareholders, customers and the TWE partnership.''
''This transaction substantially strengthens our presence in Ohio and other key areas,'' said Glenn A.
Britt, president of Time Warner Cable. ''It is an important step in improving our already highly
clustered portfolio of broadband networks across the country. This, in turn, positions us to offer
more efficient service in our core cable business, and to be the provider of choice of a whole new
range of digital communications products. The trades with MediaOne, when combined with our
recent transactions with TCI, have substantially bolstered our operations, not only in Ohio and
Maine, but in key states like New York, Texas and Florida.''
The trade is expected to close later this year.
Time Warner Cable owns and manages the world's most advanced, best clustered cable television
operations, with 80 percent of its more than 12 million customers in systems of 100,000 subscribers
or more. It is a division of Time Warner Entertainment.
Waller Capital Corporation assisted both companies in arranging the transaction.
MediaOne, the nation's leading Broadband services company, provides entertainment, information,
and communications services to about 5 million customers. MediaOne Group (NYSE: UMG -
news) is one of the world's largest broadband communications companies, bringing the power of
broadband and the Internet to more than seven million 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., serving more than three million customers. For 1997, the businesses
now part of MediaOne Group produced $6.6 billion in proportionate revenue.
SOURCE: MediaOne; Time Warner Cable
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