Coaxial Communications of Central Ohio Reports First Quarter 2000 Results.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 15, 2000

Coaxial Communications of Central Ohio, Inc. (CCCO) today reported operating results for the three months ended March 31, 2000. The results reflect the impact of the acquisition of the assets of CCCO by Insight Communications of Central Ohio, LLC (Insight Ohio) on August 21, 1998.

For the three months ended March 31, 2000, revenues totaled $11.5 million compared with $11.7 million one year earlier, representing a decrease of 1.4%, reflecting a reduced number of customers served during the period. CCCO served 84,253 customers on average for the three months ended March 31, 2000 compared with 87,129 customers on average a year earlier, representing a decrease of approximately 3.3%.

Despite the 3.3% decrease in customers, the company noted that the revenue decrease of 1.4% was significantly smaller, reflecting the migration of customers billed at deeply discounted promotional rates to rate card. The average monthly revenue per customer rose by $0.89 or 2%, to $45.64, reflecting the aforementioned roll-off of promotional customers, growing digital revenues, and to a lesser extent, increased basic rates attributable to the rebuild. For the quarter, digital revenue totaled $116,400, representing $.46 per month per basic subscriber. In addition, as of March 31, 2000, 19,200 customers were receiving the expanded rebuilt line-up, which costs an additional $1.75 per month. Revenues generated from advertising sales increased 35.2% to $4.27 per average customer for the three months ended March 31, 2000 compared with $3.16 per average customer for the same period one year earlier. Offsetting these increases in monthly revenue per subscriber was pay-per-view performance. Pay-per-view revenue decreased 38% to $1.70 per subscriber per month, reflecting a general lack of events.

Programming costs increased approximately $644,000 or 23.4%, which reflects increased programming rates as discounts previously realized through Insight's affiliation with Media One expired in November 1999, as well as additional channels added in rebuilt areas. On a pro forma basis, giving effect to the pending expansion of Insight's partnership with AT&T Broadband, programming costs would have increased by approximately $267,000, representing a 9.7% increase over the prior period.

As a result, the earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $4.1 million for the three months ended March 31, 2000, compared with $5.0 million one year earlier.

Capital expenditures for the quarter were $6.9 million, primarily for the rebuild of the majority of the network to 870 megahertz. The company funded its capital expenditures primarily through borrowings and cash flow from operations. As of March 31, 2000, the company had borrowed $20.0 million under its $25.0 million revolving credit facility.

"We have proven that we have the winning formula with our signature product, Insight Digital. In our areas where Insight Digital is available, basic subscribers grew 2.5%, or 6% annualized, despite the continued aggressive marketing campaign by Americast," stated Kim D. Kelly, Insight's Executive Vice President and Chief Operating and Financial Officer. "We continue to add over 1,000 digital customers monthly. In addition, we launched Road Runner last month and today have over 1,000 customers. Looking ahead, it is our intention to launch local telephony service as the next component of our bundled suite of interactive services to this area within a year."

                            Three Months ended 3/31
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                           1999                  2000
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Revenue                  $11,696               $11,535
     (000's)
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Expenses                  $6,681                $7,443
     (000's)
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EBITDA                    $5,015                $4,092
     (000's)
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EBITDA                      42.8%                 35.4%
Margin
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Basic Customers           86,620                84,270
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Average
Subscribers               87,129                84,253
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Average Mo.
Revenue per
Subscriber                $44.75                $45.64
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Digital Customers           n/a                  3,428
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Digital Universe            n/a                 19,142
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Insight Communications (Nasdaq: ICCI) is the 8th largest cable operator in the United States with approximately one million subscribers. It became the first cable operator in 14 years to complete an initial public offering in July 1999 when it raised $650 million. The company specializes in offering bundled, state-of-the-art technology in mid-sized communities delivering analog and digital video, high-speed data and, in the near future, voice telephony to its customers.

This report may contain forward-looking statements concerning the Company's operations, economic performance and financial condition, including, in particular, the likelihood of the system's success given its new management by Insight. The statements are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company, and reflect future business decisions, which are subject to change.