RCN Reports Second Quarter 2008 Results

HERNDON, Va. — RCN Corporation (NASDAQ: RCNI), a leading provider of video, data, and voice services to residential, small-medium business and enterprise/carrier customers, today announced its results for the second quarter 2008.

Customers, RGUs and Digital Penetration

RCN had approximately 424,000 residential/small-medium business customers as of June 30, 2008 versus 421,000 as of March 31, 2008, and 409,000 customers as of June 30, 2007. The percentage of customers taking RCN’s triple play remains steady at 38%. Total revenue generating units increased 4% from last year to approximately 909,000, with video, voice and data RGUs all increasing. At quarter-end, RCN’s digital video penetration rate rose to 75% of video customers from 63% in the second quarter of 2007 and 72% in the first quarter of 2008, primarily resulting from continued investments in Project Analog Crush.

Residential/Small Business Segment Operating Results:

                                                    June  March   June
Key Metrics                                          30,    31,    30,
(customers & RGUs in thousands)                     2008   2008   2007
                                                   -----  -----  -----
Video RGUs                                           363    362    355
Data RGUs                                            295    291    270
Voice RGUs                                           250    251    248
                                                   -----  -----  -----
     Total RGUs (Excluding Digital)                  909    904    873

Customers                                            424    421    409
Average Revenue Per Customer                       $ 110  $ 109  $ 109
Digital Penetration                                  75%    72%    63%

More: Earnings Release