1999 Results: Csii Maintains Momentum.

Business Editors

MONTREAL--(BUSINESS WIRE)--May 1, 2000

Cable Satisfaction International Inc. (TSE:CSQ.A.)(Csii) announced today its financial results for 1999, which saw its operating revenues nearly double to $24.0 million compared to $12.9 million in 1998. The Company recorded earnings from operations before depreciation and amortization (EBITDA) of $1.7 million in 1999 compared to a loss of $0.5 million in the previous year. On the operations front, Csii is pursuing its accelerated growth, with the scope of its network, the number of homes passed and the number of subscribers increasing significantly in 1999.

"We are very proud of our operating results, which reflects our rapid growth. In fact, since the beginning of 1999, Csii has practically transformed itself. Other figures, such as the nearly 900% growth in our market capitalization at December 31, 1999 and the soon-to-be-completed financings which could reach approximately $600 million, clearly illustrate that Csii will have reached another important milestone by the end of 2000," said Guy Laflamme, Chairman of the Board, President and Chief Executive Officer of Csii.

Csii has already begun to diversify its operations in Portugal by launching high-speed Internet access by cable modem in December 1999 under the Netvisao brand. Seizing the opportunities provided by the deregulation of the Portuguese telecommunications industry, Csii will inaugurate its cable telephone services before the end of 2000, as part of a services agreement with Nortel Networks, a world leader in this sector.

With financial resources of $600 million soon becoming available, following the issue of US$155 million in senior notes on March 9 and the impending conclusion of a credit facility of $260 million euros, Csii will be in a position to build a national fiber optics backbone. This veritable information highway will optimize the regional networks operated by the Portuguese subsidiary, Cabovisao, while enabling it to offer all the services of the new economy throughout Portugal, including point-to-point data exchange and virtual private networks (PVN).

"Portugal is an extremely attractive market, in virtue of both its economic growth--which is significantly higher than the average in the European Union--and its need for telecommunications infrastructure. The fact that margins for telephony are also among the highest in the European Union, proves that the conditions are ripe for us to be very successful in Portugal," added Mr. Laflamme.

Realization of the value of World Satellite Guadeloupe (WSG)

In January 2000, the sale of the Guadeloupe subsidiary, WSG, was completed for proceeds of $36.4 million, representing a gain of approximately $25 million which was reinvested in Portugal. Operating revenues for WSG in 1999 were $14.6 million compared to $9.0 million in 1998. The number of subscribers to basic service increased by 20 %, to 27,915 from 23,330 in the same period.

In Portugal, operating revenues increased by 141 %, to $9.4 million in 1999 from $3.9 million in 1998. The number of subscribers to basic service rose by 138 %, to 55,576 at the end of 1999 from 23,316 at December 31, 1998.

"In 2000, operating revenues will be generated almost exclusively by our Portuguese operations and we are confident that they will be comparable to those of 1999, even without the contribution of WSG," said Mr. Laflamme. The substantial growth of the Portuguese operations continued during the first quarter of 2000, with operating revenues of $3.6 million compared to $1.8 million at March 31, 1999, an increase of 100 %. The increase in subscribers to basic service, which numbered 64,497 compared to 27,786 at March 31, 1999, is even more marked. The same can be said for the number of homes passed, which reached 236,978 at March 31, 2000, out of a potential 1.77 million, compared to 124,831 at the same date in 1999.

Csii builds and operates large bandwidth hybrid fiber coaxial (HFC) networks and, through its subsidiary Cabovisao, provides cable television services and high-speed Internet access in Portugal, where it will also be offering telephony and high-speed data services. In addition, Csii will build a national fiber optics backbone to offer the services of the new economy throughout Portugal.

The statements made in this release and oral statements made by representatives of Csii relating to matters that are not historical facts are forward-looking statements that involve risks and uncertainties, including but not limited to, general business and economic conditions, the condition of the financial markets and the other risks and uncertainties detailed in Csii's permanent information record.

The subordinate voting shares of Csii are listed on the Toronto Stock Exchange.

To have more information and details about Csii's financial statements, please, see our web site www.csii.ca