Virgin Media Reports Third Quarter 2008 Results

LONDON, England — Virgin Media Inc. (NASDAQ: VMED) announces results for the quarter ended September 30, 2008.

Our key strategic objectives are to lead the next generation broadband market in speed and quality and to redefine the mid-market TV experience through video-on-demand (“VOD”). In broadband, our 4Mb to 10Mb speed upgrade program is now complete, we have launched mobile broadband and we are on track to launch 50Mb in the fourth quarter. Despite a slowdown in the overall market, we have seen solid broadband net additions and improved tier mix.

Turning to TV, we are delighted to carry BBC iPlayer on our platform, which achieved 11.7m views on our platform in September. We are the only TV platform in the UK to carry this service and believe this substantially improves our TV offering. We have announced the return of the Sky basic channels to our platform and significantly enhanced the terms for the carriage of our channels on the Sky platform, in each case from November 13, 2008. The additional channels will improve our TV offering for new and existing customers.

Television

Total TV net additions were 37,800 in the quarter (Q2-08: 24,800; Q3-07: 20,400).

Customers are increasingly using our VOD services. On a monthly basis, 1.7m of our digital TV customers are now using VOD, representing a reach of 49%. Average views per user per month in the quarter were 27 compared to 17 a year ago. Average monthly views were 45m in the quarter, up 17% on the previous quarter and up 95% on the same quarter last year.

Virgin Media is currently undertaking its first ever advertising trial on its VOD platform. Advertisements from leading brands including Kelloggs, John Lewis and Royal Mail, are being broadcast around selected on-demand programs from Virgin Media TV, Channel 4 and Warner TV. The three-month trial is taking place across North London.

During the quarter, we added 43,800 V+ DVR subscribers to reach an installed base of 468,700. This represents a penetration level of just 14% of our digital subscribers and so the growth opportunity remains strong. In addition, based on our experience, VOD subscribers and V+ DVR users are less likely to churn.

We have reached an agreement with BSkyB for the return of its basic channels to our platform for a license fee of £30m per annum, plus a capped performance-based adjustment (allowing for maximum additional payments of £6m and £8m in years one and two, respectively, and £7.9m in the final seven months of the term). These channels, which include Sky1, Sky2, Sky3, Sky News, Sky Sports News, Sky Arts 1, Sky Arts 2, Sky Real Lives and Sky Real Lives 2 will be available on our platform from November 13, 2008 and will increase the attractiveness of our TV offerings for new and existing customers. The new carriage agreement expires in June 2011.

Group Residential Operations Statistics (‘000s):

                       Q3 2008   Q2 2008   Q3 2007
                       -------   -------   -------
Group RGUs
  On-net TV            3,576.5   3,538.8   3,417.0
  On-net Digital TV    3,407.9   3,353.5   3,167.0
Net RGU adds
  On-net TV               37.8      24.8      20.4
  On-net Digital TV       54.4      42.1      41.7

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