Atlantic Broadband Finance, LLC Reports 2005 Fourth Quarter Financial Results and Conference Call.

QUINCY, Mass. -- Atlantic Broadband Finance, LLC ("Atlantic Broadband") reported today financial results for the period ended December 31, 2005.

Atlantic Broadband's total revenue for the three months ended December 31, 2005 was $48.7 million as compared to $46.1 million for the three months ended December 31, 2004. The increase in revenue was mainly the result of a $1.8 million increase in high speed data revenues resulting from significant consumer demand driven mainly by the Company's marketing focus on this product line. All other revenue components experienced modest gains.

For the three months ended December 31, 2005, the Company's operating and selling, general and administrative expenses were $31.3 million, compared to $29.2 million for the same period in 2004. This increase is mainly the result of $1.2 million in repair costs in our Miami system as a result of the hurricane damage incurred during the fourth quarter 2005, contractual increases in programming costs and $.3 million in external service fees spent on due diligence costs for potential acquisitions in 2005.

For the year ended December 31, 2005, total revenue was $189.9 million as compared to $151.0 million for the year ended December 31, 2004. This increase was the result of twelve full months of operations in 2005, compared to only ten months in 2004. The Company completed its acquisition of its cable television systems from affiliates of Charter Communications, Inc. on March 1, 2004. The results for the year ended December 31, 2004, therefore, include only ten months of operations for the systems. As a percentage of revenue, our video revenue decreased from 70.2% of total revenue in 2004 to 67.2% of total revenue in 2005. This decrease corresponds with the decrease in EBUs, basic subscribers and digital subscribers from December 31, 2004 to December 31, 2005. The EBU and basic subscriber reductions were mainly the result of increased competition for video services from satellite video providers. The decrease in digital subscribers was mainly the result of increased churn of customers with discounted packages inherited from Charter as we raised the package rates to levels more comparable to our main digital tier offering. These basic and digital subscriber losses occurred only in our Pennsylvania system, while the Miami Beach and Delmar systems experienced net gains in subscribers. These lower overall subscriber levels were offset by increases in HSD subscribers during 2005 of 37.1%. This increase in HSD subscribers was driven by our marketing focus in this area, coupled with the increase in HSD homes passed in 2005 as we completed the planned Delmar system upgrade.

Total operating and selling, general and administrative expenses for the year ended December 31, 2005 were $120.0 million as compared to $96.3 million for the same period in 2004. This increase was the result of twelve full months of operations in 2005, compared to only ten months of operations in 2004. As a percent of revenue, these expenses were reduced from 63.7% of revenue in 2004 to 63.2% of total revenue in 2005. These expenses included the elimination of $4.2 million in transition related costs associated with the Company's initial acquisition of the systems spent in 2004, which were mostly offset in 2005 by $1.3 million in hurricane damage repairs, increased sales and marketing spending levels, $.6 million in administrative costs incurred in conjunction with our Senior Subordinated Notes exchange offer and $.6 million in due diligence related costs for potential acquisition reviews.

Summary Financial Results:

The following tables summarize financial results for the three month period and year ended December 31, 2005 and 2004:

Subscriber information

                                                  12/31/04   12/31/05
                                                 ---------- ----------

EBU's                                              217,206    213,396
Digital Subscribers                                 76,380     73,985
HSD Subscribers                                     50,342     69,018
Homes Passed                                       430,341    438,404
Internet-ready Homes Passed                        381,947    424,253
Basic Subscribers                                  252,699    249,754

Basic Penetration of Homes Passed                    58.7%      57.0%
Digital Penetration of Basic Subscribers             30.2%      29.6%
HSD Penetration of Internet-ready Homes Passed       13.2%      16.3%
Operating results

                                Three Months Ended December 31.
                           ------------------------------------------
                                    2004                    2005
                              Amount          %       Amount        %
                           ---------------------   -------------------
                                     (dollars in thousands)
Revenue:

 Video                          $31,787   69.0%      $32,056    65.8%
 High Speed Data                  4,473    9.7         6,245    12.8
 Advertising Sales                1,450    3.1         1,717     3.5
 Commercial                       3,916    8.5         4,090     8.4
 Other                            4,453    9.7         4,620     9.5
                           ---------------------   -------------------

Total revenue                   $46,079  100.0%      $48,728   100.0%

Costs and expenses:

 Operating (excluding
  depreciation and
    amortization and other
     items listed below)         21,376   46.4%       23,289    47.8%
 Selling, general and
  administrative                  7,845   17.0%        8,000    16.4%
 Depreciation and
  amortization                    9,598   20.8%       11,385    23.4%
                           -------------           ----------

    Income from operations        7,260                6,054

Other Income (expenses):

 Gain (loss) from
  derivative instruments            826                 (360)
 Interest expense, net           (7,906)              (8,763)
                           -------------           ----------

 Net Income (loss)                  180               (3,069)
                           -------------           ----------


                                     Year Ended December 31.
                           -------------------------------------------
                                    2004                   2005
                              Amount           %     Amount          %
                           ---------------------   -------------------
                                     (dollars in thousands)
Revenue:

 Video                         $106,054    70.2%      $127,471   67.1%
 High Speed Data                 14,562     9.6         22,824   12.0
 Advertising Sales                4,381     2.9          6,088    3.2
 Commercial                      12,148     8.0         15,687    8.3
 Other                           13,856     9.2         17,820    9.4
                           ---------------------   -------------------

Total revenue                  $151,001   100.0%      $189,890  100.0%

Costs and expenses:

 Operating (excluding
  depreciation and
    amortization and other
     items listed below)         71,116    47.1%        89,390   47.1%
 Selling, general and
  administrative                 25,134    16.6%        30,593   16.1%
 Depreciation and
  amortization                   30,496    20.2%        42,373   22.3%
                           -------------           ------------

    Income from operations       24,255                 27,534

Other Income (expenses):

 Gain (loss) from
  derivative instruments          3,547                    536
 Interest expense, net          (27,366)               (33,941)
                           -------------           ------------

 Net Income (loss)                  436                 (5,871)
                           -------------           ------------
Reconciliation of Income from operations to EBITDA (in thousands):

                                     Three Months          Year
                                        Ended             Ended
                                  December 31, 2005  December 31, 2005
                                  -----------------  -----------------

Income from operations                $       6,054      $      27,534
Plus:  Depreciation and amortization         11,385             42,373
                                      -------------      -------------
EBITDA                                $      17,439      $      69,907
                                      -------------      -------------

Liquidity and Cash Flow:

Total debt outstanding at December 31, 2005 was $482.1 million and cash balances were $6.6 million at quarter end. On an annualized basis, EBITDA for the trailing six months ended December 31, 2005, adjusted for certain expenditures as defined in the Company's credit agreement totaling $2.4 million (including hurricane damage repairs), resulted in a total leverage ratio as defined in said credit agreement of approximately 6.5x.

Conference Call:

The Company will host a conference call at 2:00 ET on Monday April 3, 2006 to discuss the financial results. To access the conference call, interested parties may dial [phone] and provide the conference ID "Atlantic" to the attendant. A replay will be available through April 17, 2006 by dialing [phone] (no access code is necessary).

Note Regarding Forward-Looking Statements:

Statements in this release that are "forward-looking statements" are based upon current expectations and assumptions, and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation reform Act of 1995. Words of expressions such as "intends", "expects", "expected", "anticipates" or variations of such words and similar expressions are intended to identify such forward-looking statements. Key risks are described in the Company's report filed with the Securities and Exchange Commission (SEC).