Cox's New Approach on Customer Acquisition Pays Off.

Marketing to Non-Video Subscribers Contributes to 3 Percent Customer Growth

ATLANTA -- Nine months after implementing a new acquisition strategy targeting non-video subscribers, Cox Communications, Inc., today announced that the approach is paying off with accelerated growth of customers who only purchase telephone and/or Internet services. Today, Cox leads the industry with more than 432,000 non-video subscribers; a figure that grew by 21 percent over the same period a year ago.

"Our world is changing, and we needed to change our marketing strategies too," said Patrick Esser, president. "Our 'line into every home' strategy maximizes our return on the $16 billion investment we've made in our network since 1996. We're pursuing business out of every home passed, even if that home is only interested in telephone service, or perhaps values their connection to the Internet more highly than a multi-channel video service."

Supporting the growth in non-video subscribers was a strong quarter for both Cox High Speed Internet and Cox Digital Telephone. The company now has more than 3.2 million broadband subscribers, an 18 percent increase over the same period a year ago. With telephone service now ubiquitous in its availability across Cox, the company saw subscriptions rise to 1.9 million, an increase of 24 percent.

Even with the emphasis on new services, the company's performance in video remained outstanding. Basic video subscriptions grew by 1.6 percent to 5.4 million and Digital Cable subscriptions grew by 14 percent to 2.7 million. Spurred by new features such as high definition, DVR and On DEMAND, Digital-to-Basic penetration now exceeds 50 percent.

The highlight of Cox's quarter was 2.8 percent growth in total residential customer relationships to more than 5.8 million. Penetration of total customer relationships to homes passed stands at greater than 63 percent. "While our telephone competitors work feverishly to string fiber through neighborhoods and learn how to deliver a competitive video service, we're reaping the benefits of ten years of vision, investment and experience, solidifying our customer relationships with proven products and customer service," Esser said.

Cox ended the quarter with more than 3.3 million bundled customers, representing 57 percent of total residential customers and 16 percent growth over the same period a year ago. About 24 percent of customers elect to take all three services from Cox. Bundled sell-in continues to improve, with 18 percent of new customers opting for the triple play of video, voice and data. In Cox's most mature bundled markets, triple play sell-in has exceeded 30 percent of new subscribers.

In the third quarter, Cox was distinguished with numerous honors. In July, Cox received J.D. Power and Associates' Highest Honors in Telephone Customer Satisfaction in the Northeast, Southwest and Western Regions; in August, it received the Highest Honor in the West in J.D. Power and Associates' 2006 Residential Cable/Satellite TV Customer Satisfaction Study(SM). Cox is now the only company to receive highest honors for video, telephone and high-speed Internet services.

"We are focused on sustainable, consistent growth and are thrilled to have delivered yet another quarter of outstanding results by deepening our reach to consumers in our footprint," Esser said. "Cox employees deliver the best bundle of services available and support it with unparalleled customer service; this positions us as the trusted provider in our markets."

Historical subscriber data presented in this press release has been adjusted for Cox's May 2006 sale of certain cable systems that had approximately 940,000 basic cable subscribers. Data presented includes customers in New Orleans, but New Orleans data has been excluded for purposes of calculating growth rates.

About Cox Communications

Cox Communications, a Fortune 500 company, is a multi-service broadband communications and entertainment company with more than 6 million total residential and commercial customers. Cox offers an array of advanced digital video, high-speed Internet and telephony services over its own nationwide IP network. Cox Business Services is a full-service, facilities-based provider of communications solutions for commercial customers, providing high-speed Internet, voice and long-distance services, as well as data and video transport services for small to large-sized businesses. Cox Media offers national and local cable advertising in traditional spot and new media formats, along with promotional opportunities and production services. More information about the services of Cox Communications, a wholly owned subsidiary of Cox Enterprises, is available at www.cox.com, www.coxbusiness.com, and www.coxmedia.com