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Technology Stocks : Terayon - S CDMA player (TERN) -- Ignore unavailable to you. Want to Upgrade?

To: Manx who wrote (1069)	5/13/2000 2:48:00 PM
From: GOPbabe	Respond to of 1658

Shaw Announces Growth of Internet Customers in Third Quarter CALGARY, Alberta--(BUSINESS WIRE)--May 12, 2000-- (TSE:SJR.B.) (CDNX:SJR.A) (NYSE:SJR) DEMAND REMAINS STRONG, BUT SHORTAGE OF CABLE MODEMS SLOWS DEPLOYMENTS Shaw would like to advise the market on the status of its Internet customer growth in the context of a general shortage of cable modems supplied by Motorola (one of two cable modem suppliers to Shaw) and the recently announced swap of cable assets with Rogers Cablesystems. Although demand for broadband Internet access remains strong, like most North American cable operators, Shaw has been affected by a general shortage of Motorola cable modems. The company expects that the supply of Motorola modems will continue to fall short of requirements into the next quarter. On the positive side the supply of Terayon modems has continued at the previous rate and Shaw is looking at opportunities to increase the deployment of Terayon modems to offset the Motorola modem shortfall. As reported in our second quarter release, we were adding approximately 500 new Internet customers per day or about 30,000 a quarter. As a result of modem shortages, we estimate the quarter will see approximately 20,000 new Internet customers. These circumstances are clearly temporary and Shaw believes it will be able to make up the shortfall over the balance of the calendar year. The financial results for the Internet division for the third quarter will probably still meet or exceed market expectations. As a result of increased efficiencies and lower marketing expenses, it is estimated that the Internet division will generate $10 million of operating income before interest, taxes and depreciation, an increase of 44% over the second quarter. Shaw's core cable television business, which represents the vast majority of the value of Shaw Communications, has not been affected by any of these circumstances. As it concerns the exchange of cable systems with Rogers Communications, both parties have agreed to renew efforts to further grow their respective Internet customer bases during this transitional period. There had been a slow down in marketing efforts in April. Based on information available at this time, it should be noted that Shaw expects to gain approximately 8,000 Internet subscribers as a result of the system swaps. This gain is not included in the anticipated shortages noted above. CONTACT: Shaw Communications Inc. Ron Rogers, 403/750-4500 or Shaw Communications Inc. Michael D'Avella, 403/750-4500 Website: www.shaw.ca