Cox Communications Updates Investors On Successful Delivery of Advanced Broadband Communications Services.

Business Editors

SAN DIEGO, Calif.--(BUSINESS WIRE)--June 1, 2000

Company executives outline aggressive growth strategy for the future

Cox Communications, Inc. (NYSE:COX) today conducted an investor conference, during which Cox executives updated the investment community on the company's success in launching advanced communications services and outlined plans for future broadband service delivery.

"We are delighted with the success we've achieved in deploying advanced video, voice and data services for our customers," said Jim Robbins, Cox's President and Chief Executive Officer. "Capitalizing on the momentum we've already created, we look forward to continuing to leverage our state-of-the-art network as we move aggressively ahead with our plans to deploy next-generation broadband services, such as video-on-demand and interactive television."

Held in San Diego, Calif., home of the company's second-largest cable operation, serving more than 520,000 customers, the conference included tours of Cox's local high-tech Customer Care Center and Master Telecommunications Center.

"San Diego is an excellent place to demonstrate, in a real-world setting, our ability to execute on our vision of being the premier provider of advanced video, voice and data services in the communities we serve," Robbins commented. "We've already sold more than 158,000 new-service subscriptions to San Diego residents, and we expect continued strong consumer demand for our services in the future. This serves as a strong testament to our superior network infrastructure, strong emphasis on customer service, and the highly talented management team that leads our local operation."

Accelerated Projections Announced for Advanced Services

Jimmy Hayes, Executive Vice President of Finance and Administration and Chief Financial Officer, announced that Cox expects to achieve new-service subscriptions of 1.5 to 1.6 million by year-end 2000, representing a 20% increase over projections outlined earlier this year.

"We expect the exceptional growth we achieved with new-service subscriptions during the first quarter of 2000 to continue throughout the year as we continue to ready our operations to further accelerate the deployment of advanced services," noted Hayes.

Cox currently provides digital cable service in 16 markets; residential high-speed internet services in 18 markets; residential local and long distance service in eight markets; and commercial voice and high-speed data services in eight markets.

Joe Rooney, Vice President of Marketing, detailed Cox's plans for marketing bundled broadband services, further enhancing the company's ability to attract and retain customers for its advanced communications services.

"Our customers have told us loud and clear through research that they love the simplicity of buying multiple services from one provider," commented Rooney. "We also know that bundles are 'sticky' and these multi-product customers are more likely to stay with Cox.

"Our ability to be a one-stop shop for video, voice and data services over a single network uniquely positions us to give our customers exactly what they're asking for."

Cox's bundling strategy will feature a combination of two or more product categories packaged to enhance value for customers. Customers buying multiple services will receive flexible billing options, featuring a single bill or multiple bills with a summary statement attached.

"Our bundling strategy will focus on choice and convenience," Rooney added. "In our research, customers ranked the ability to build their own bundles from multiple choices more favorably than receiving deep discounts."

Revenue and Operating Cash Flow Projections Announced

Cox announced expected year-end revenue projections for 2000 to exceed 1999 results by 13-15%. Additionally, Cox announced projections of expected operating cash flow (OCF) growth of 11-13% for year-end 2000 over year-end 1999. With increased spending for staffing and marketing planned to continue through the middle of this year, a large portion of this increase is expected to be realized in the third and fourth quarters of 2000.

Cox Outlines Plans for Next-Generation Broadband Service Delivery

Chris Bowick, Vice President of Technology Development, detailed Cox's plans for the delivery of new advanced communications services, including video-on-demand and interactive television. Working with Concurrent Computer Corporation, Bowick said, Cox already has begun the initial deployment of video-on-demand service in employee homes in San Diego utilizing the Scientific-Atlanta Explorer 2000 digital set-top box. The company plans to initiate its first commercial trial of the service for approximately 2,000 local customers during the third quarter of this year. Deployment of video-on-demand for additional customers in San Diego and customers in other Cox locations is expected later this year and in 2001.

Bowick also outlined Cox's plans for an upcoming trial of interactive television (ITV) services, featuring e-mail, interactive starters and web access. Cox's ITV trial will be conducted in San Diego during the second half of this year.

"Having successfully executed on our business plan to provide customers with advanced video, voice and data services, we are eager to move aggressively ahead with our deployment of next-generation broadband services," Bowick said. "We see vast opportunities to leverage our network to generate incremental revenue by delivering new services like video-on-demand and interactive TV."

Cox Communications serves approximately 6 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, Road Runner 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, The Learning Channel, Outdoor Life and Speedvision. More information about Cox Communications can be accessed on the Internet at www.cox.com.

Any statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The words "estimate," "anticipate" and other expressions that indicate future events and trends identify forward-looking statements. These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical results or those Cox anticipates. Factors that could have a material and adverse impact on actual results are described in Cox's current report on Form 8-K, dated January 8, 1999. All forward-looking statements in this press release are qualified by reference to the cautionary statements included in Cox's Form 8-K. Cox undertakes no obligation to publicly release the results of any revisions to these forward-looking statements made in this press release to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.