Cabletel Communications Reports Profitable First Quarter; Backlog More Than Triples To $8.77 Million From $2.8 Million.

Business Editors

MARKHAM, Ontario--(BUSINESS WIRE)--May 14, 2002

Cabletel Communications Corp. (AMEX: TTV, TSE: TTV), the leading distributor of broadband equipment to the Canadian television and telecommunications industries, today reported profitable operating results on lower revenues for the first quarter ended March 31, 2002.

The 2001 slowdown in the growth of the cable industry lingered in the first quarter of 2002. As a result, Cabletel's net sales for the first quarter were $13,183,686, down 9.3 % from $14,536,333 for the first quarter of 2001 (all figures are in Canadian dollars). The major portion of that decrease was attributable to a downturn in the manufacturing and foreign sales segments of the Company's business. Cabletel noted it has taken positive action to increase its business in the United States by establishing offices and warehousing facilities in Indiana to facilitate distribution of products. As previously reported the Company has taken over the U.S. distribution from its U.S. distributor.

Recording its second consecutive profitable quarter, despite lower net sales, Cabletel reported net earnings of $60,951, or $0.01 per share, for the three months ended March 31, 2002 as compared to a loss of $214,914, or a loss of $0.03 per share, for the first quarter ended March 31, 2001. The Company's backlog at the close of the current first quarter was $8.77 million, more than triple the $2.8 million backlog as of March 31, 2001.

Greg Walling, Cabletel's President and Chief Executive Officer, commented, "Our continuing profitability on lower sales than the same period last year is a gratifying reflection of the cost saving measures we developed to ensure the stability of our infrastructure. Selling, general and administrative expenses were reduced by $383,692 as compared to the same period last year. Although sales for the quarter were 9% lower than last year, gross margin was up to 19% as compared to 17% in the same quarter a year ago, resulting in an increase in gross profit." Walling added, "We are hopeful that capital spending by our customers will increase as the economy recovers and that the Company's efforts will result in continued and enhanced profitability."

Cabletel Communications offers a wide variety of products to the Canadian television and telecommunications industries required to construct, build, maintain and upgrade systems. The Company's engineering division offers technical advice and integration support to customers. Stirling Connectors, Cabletel's manufacturing division supplies national and international clients with proprietary products for deployment in cable, DBS and other wireless distribution systems. More information about Cabletel can be found at www.cabletelgroup.com.

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations through either acquisitions or internal growth, to attract and retain qualified professionals, and to expand commercial relationships; technological obsolescence; general economic conditions; and other risks detailed time to time in the Company's filings with the Securities and Exchange Commission (SEC).

                     CABLETEL COMMUNICATIONS CORP.
           CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
                           (Canadian Funds)

                 FOR THE THREE MONTHS ENDED MARCH 31,

                                           2002           2001
                                           ----           ----

SALES                                  $ 13,183,686    $ 14,536,333

COST OF SALES                            10,735,672      12,118,557
                                       ------------  --------------
GROSS PROFIT                              2,448,014       2,417,776
                                       ------------  --------------
EXPENSES
   Selling, general and
    administrative                        2,147,769       2,531,461
   Amortization                              65,085          59,421
   Interest - bank
    indebtedness                            147,524         256,796
   Interest - long-term
    debt                                     17,685          24,705
                                       ------------  --------------
                                          2,378,063       2,872,383
                                       ------------  --------------
EARNINGS (LOSS) BEFORE INCOME TAXES          69,951        (454,607)

   Income taxes (recovery)                    9,000        (239,693)
                                       ------------  --------------
NET EARNINGS (LOSS) FOR THE PERIOD           60,951        (214,914)

DEFICIT, beginning of period            (10,066,426)     (7,160,308)
                                       ------------  --------------
DEFICIT, end of period                 $(10,005,475)   $ (7,375,222)
                                       ============  ==============
Earnings (loss) per share
   Basic                                  $    0.01       ($   0.03)
                                       ============  ==============
   Diluted                                $    0.01       ($   0.03)
                                       ============  ==============
Weighted Average Number of Shares
    Basic                                 7,167,612       7,070,973
                                       ============  ==============
    Diluted                               7,623,211       7,217,865
                                       ============  ==============