Cox Communications Announces Agreement to Avoid Disruption of Cox@Home Internet Service.

Business Editors

ATLANTA--(BUSINESS WIRE)--Dec. 3, 2001

Pact Ensures Residential Cox@Home Customers and Business Customers

Continue To Receive High-Speed Internet Access During Transition

To New Cox-Managed Network

Cox Communications, Inc. (NYSE: COX) today announced that it has reached an agreement that will allow the company's 555,000 Cox@Home customers and more than 20,000 commercial business customers to maintain Internet access through their broadband connections until the company transitions to its own high-speed network.

The agreement is pending approval by Bankruptcy Court Judge Thomas E. Carlson.

Through the agreement involving Excite@Home, its creditors, and other cable companies, Excite@Home will continue to serve as Cox's supplier of high-speed Internet service while Cox rolls out its own managed network over the next few months. Under the terms of the agreement, Cox will pay $160 million to Excite@Home for three months of uninterrupted service for its Cox@Home subscribers. This amount will be in lieu of the monthly subscriber fees previously paid to Excite@Home.

Excite@Home filed for Chapter 11 bankruptcy protection in September and subsequently was faced with a court ruling that threatened to disrupt high-speed Internet service for approximately 4 million residential cable customers, including those served by Cox. Some customers of Cox's commercial division, Cox Business Services, would also have been impacted. On November 30, a bankruptcy court judge approved a petition filed by Excite@Home giving it the right to terminate its service agreements and cease providing service to its cable affiliates and their customers. However, following Friday's ruling, Cox was successful in negotiating a new temporary agreement with Excite@Home so that service will continue for a brief period of time until Cox's new network is fully deployed and its Internet customers have been transitioned to a new Cox-managed service.

"We are pleased that all parties in this case reached an agreement based on the best interests of our customers," said Dallas Clement, Senior Vice President of Strategy and Development. "This agreement allows an orderly transition of Cox@Home customers to our own high-speed network without the fear of major service disruptions."

The agreement doesn't change Cox Communications' plans to transition its customers to the company's own nationwide high-speed Internet network. That transition will begin in December and will be completed, on a market-by-market basis, by March 2002.

"This agreement means we have been given time to transition our customers in an orderly fashion, without any prolonged service outages or e-mail disruptions," said Pat Esser, Executive Vice President of Operations. "Establishing our own network will give us more control over the quality and reliability of service, the ability to add new features, and allow us to be more responsive. Our new system will be based on the most advanced technology and will be supported by Cox technicians and service representatives who will monitor all aspects of the service and quickly resolve any technical issues. Ultimately, our own network will allow us to provide an improved customer experience, which will increase customer loyalty and attract new customers." Cox Communications currently offers high-speed Internet access through Excite@Home in 18 markets. In addition, Cox provides high-speed Internet access to an additional 230,000 customers under the brands RoadRunner and Cox Express. These customers also will transition to Cox High Speed Internet(sm) service later next year. Cox Business Services Internet customers will simultaneously transition to the Cox-managed data network.

About Cox Communications

Cox Communications, a Fortune 500 company, serves approximately 6.2 million customers nationwide, making it the nation's fifth largest cable television company. A full-service provider of telecommunications products, Cox offers an array of services, including Cox Cable; local and long distance telephone services under the Cox Digital Telephone brand; high-speed Internet access under the brands Cox@Home, RoadRunner and Cox Express; advanced digital video programming services under the Cox Digital Cable brand; and commercial voice and data services via Cox Business Services. Cox is an investor in telecommunications companies including Sprint PCS and Excite@Home, as well as programming networks including Discovery Channel and The Learning Channel. More information about Cox Communications can be accessed on the Internet at www.cox.com.

About Cox Business Services

Cox Business Services is the commercial broadband division of Atlanta-based Cox Communications, Inc. A full-service, facilities-based provider of telecommunications solutions, Cox Business Services serves home offices; small, medium and large-sized businesses; school districts; and hospitality, government and military properties in cities across the nation. Cox offers high-speed Internet services; switched voice services and long-distance; wholesale carrier access; and dedicated voice, data and video transport services. More information about Cox can be accessed on the Internet at www.coxbusiness.com.