Cox, FCC reach agreement on CPS rate complaints.

ATLANTA--(BUSINESS WIRE)--Sept. 14, 1995--Cox Communications, Inc., and the Federal Communications Commission have reached a proposed Resolution Agreement that will resolve all valid cable programming service (CPS) rate complaints against Cox cable television systems, according to both parties. This action does not constitute an admission by Cox of any violation, or failure to conform to, any law, rule or policy.

In acknowledgement of the proposed Resolution, James A. Hatcher, Cox's Vice President of Legal and Regulatory Affairs, said, "The Resolution Agreement is a settlement of all outstanding CPS rate complaints against Cox and does not require future rate regulation for unregulated communities or capital expenditure commitments. All current CPS rates reviewed by the FCC were found to be in compliance with its rules."

Mr. Hatcher said Cox will issue refunds in the amount of approximately $1.20 per customer to 102,000 customers in eight franchise areas in connection with rates charged during the time period from September 30, 1993, to May 14, 1994. Refunds in the approximate amount of $9 per customer will be awarded to 854,000 customers in 42 franchise areas formerly owned by Times Mirror Cable Television and acquired by Cox on February 1, 1995.

Mr. Hatcher said all refunds will be issued as one-time bill credits during the January 1996 billing cycle. Additionally, Cox agreed to eliminate the charge for CPS services on additional outlets in all of its systems effective with the January 1996 billing cycle. However, if the FCC does not formally approve the agreement by November 1, 1995, the refunds and elimination of additional outlet charges may be delayed until the first billing cycle beginning 60 days after that approval is obtained.

Cox also will be allowed, in certain systems, to move up to four programming services to a Migrated Product Tier (MPT), which will be provided at regulated rates. After March 1, 1997, Cox can convert any MPT to an unregulated New Product Tier.

"We're happy to have reached this comprehensive resolution and appreciate the pragmatic and constructive approach taken by the FCC's Cable Services Bureau," Mr. Hatcher said. "This agreement will result in reduced administrative costs for the FCC and for Cox, and expedite refunds to our customers. It also will provide rate stability for our systems and allow us to move forward in responding to customer requests for new services."

Jimmy Hayes, Cox's Senior Vice President, Finance, and Chief Financial Officer, said, "I am pleased with the settlement from a financial perspective. The refunds will have no impact on our income statement as the full amount of the refunds have been accrued previously. Additionally, we are not required to roll back any current CPS rates and we have resolved any potential liability for CPS rates in effect through June 30, 1995."

The agreement does not affect the rates for the basic tier of service or equipment, which will continue to be subject to regulation by the local franchising authority.

Under established FCC procedures, copies of the proposed agreement are being forwarded to those who filed rate complaints. The FCC has given these parties 30 days to provide comments, and will assess those comments before approving a final agreement.

Cox Communications, Inc., (NYSE: COX) is a fully integrated, diversified broadband communications company with interests in domestic and international cable distribution systems, programming networks, and telecommunications technology. Headquartered in Atlanta, Cox is the nation's fourth largest operator of cable television systems, serving 3.2 million customers.

CONTACT: Cox Communications, Inc., Atlanta

Ellen East, 404/843-5854