AUSTAR shines even brighter in 2007; Delivers strong operational and financial results

For the twelve months ended 31 December 2007 (compared to the same period in 2006):
“¢ Revenue increased 13% to $568 million;
“¢ Gross margin increased 12% to $309 million;
“¢ Operating expenses increased only 1% to $135 million;
“¢ EBITDA* increased 23% to $174 million;
“¢ Total subscribers increased 11% to 668,786;
“¢ Net gain of 67,660 subscribers; and
“¢ Residential net gain increased 19%

Austar United Communications (“AUSTAR”, ASX: AUN) today released its audited results for the full year ended 31 December 2007, highlighting a strong operational and financial performance.

In 2007 AUSTAR experienced increasing momentum in subscriber growth across its regional markets, with total television subscribers increasing by 67,660 to 668,786 for the year. While the Company focussed on the promotion of a lower entry price and a discretionary sports tier, ARPU consolidated in the last three quarters of the year to end the fourth quarter at $76.27. Churn, meanwhile, dropped from 1.38% to 1.33% for the fourth quarter when compared with the previous corresponding quarter.

                Subscribers              Subscribers
                As at 31 December 2007   As at 31 December 2006
Television ...  668,786                  601,126

Television Subscribers have increased in the current year by 67,660 from 601,126 as at 31 December 2006. Subscriber Churn averaged 1.23% per month (2006: 1.30% per month).