Cable Satisfaction International Inc. Files Preliminary Prospectus and Receives Commitment for Private Equity Offering and Approval for Amendments to its Existing Credit Facility.

Business Editors

MONTREAL--(BUSINESS WIRE)--June 22, 2001

Cable Satisfaction International Inc. ("Csii") (TSE:CSQ.A.) announced today that it has filed a preliminary short form prospectus in all the provinces of Canada for the issuance of subordinate voting shares.

This offering is subject to regulatory approvals.

Csii proposes to enter into an agreement with a syndicate of underwriters jointly-led by Canaccord Capital Corporation, CIBC World Markets Inc. and TD Securities Inc., and including National Bank Financial Inc., to raise approximately C$55 million. Csii has also granted the underwriters an over-allotment option to purchase up to an additional 15% of the shares issued pursuant to the offering, exercisable, in whole or in part, within 60 days following the date of closing. The offering is anticipated to close on or about July 25, 2001.

Csii received a binding commitment letter from Capital Communications CDPQ Inc. ("CDP"), a subsidiary of the Caisse de depot et placement du Quebec, to purchase, at the request of Csii, upon closing of the above mentioned offering, subordinate voting shares at the offering price for an amount of up to $37.5 million.

Csii also received approval from its lenders regarding certain amendments to its 260 million Euro (approximately C$339 million) credit facility. These amendments include the revision of financial covenants to reflect its revised business plan.

Finally, Csii has secured bridge financing from TD Securities Limited in an amount of up to 100 million Euros (approximately C$130.2 million). Certain covenants with respect to Csii's credit facility have been modified to permit such bridge financing. The bridge financing and the credit facility cannot be drawn at the same time.

The net proceeds of the offering, the borrowings under the bridge financing and, following reimbursement of the bridge financing, under the credit facility, together with the net proceeds of the concurrent private placement will be used to fund the development and construction of Csii's national fibre-optic backbone, its regional hybrid fibre-optic coaxial ("HFC") networks and the related infrastructure in Portugal.

Csii builds and operates broadband HFC networks, and through its subsidiary, Cabovisao - Televisao Por Cabo, S.A., provides cable television, high-speed Internet and telephony services in Portugal.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The subordinate voting shares offered by the short form prospectus have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

The statements in this release and oral statements made by representatives of Csii relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of any financing undertaken by Csii) 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, the ability of Csii to obtain financing on favourable terms and the other risks and uncertainties detailed in the preliminary short form prospectus and Csii's permanent information record.

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