Unitymedia Strong New Services Growth Continues

COLOGNE — Unitymedia, Europe’s third largest cable-based services provider, set another quarterly growth record for New Services in the fourth quarter of 2008, growing Internet, Telephony and Digital TV Pay RGUs by 204,000 in the quarter to a total of 1.6 million New Services RGUs as of December 31, 2008.

The Digital TV Pay subscriber base grew 37,000 in the quarter to 568,000, up 25% year-on-year, driven by increasing digitisation of the basic cable subscriber base and enhanced pay TV packages. Basic cable subscribers declined by 36,000 in the quarter to 4.62 million in line with expectations, primarily as a result of the recent price increases.

Operational data (in ‘000):

                                        Q4 2007  Q3 2008  Q4 2008  YoY Change
                                        -------  -------  -------  ----------
Basic Cable
  Analogue                                3,973    3,539    3,391      -14.6%
  Digital                                   789    1,116    1,228       55.6%
  Total Basic Cable                       4,762    4,655    4,619       -3.0%
Penetration
  BCS in % of Homes Passed                  55%      54%      53%      -1.9pp
  Digital in % of BCS                       17%      24%      27%      10.0pp
  Digital (w/Premiere) in % of BCS (2)      N/A      29%      31%         N/A
New Service RGUs
  Digital TV Pay (3)                        456      531      568       24.6%
  Retail Broadband Internet                 199      326      377       89.7%
  Wholesale MMA Internet (4)                112      193      253      125.9%
  Telephony                                 175      308      363      106.9%
  Total New Service RGUs                    942    1,357    1,561       65.7%

(1) Revenue generating units, or “RGUs”, relate to sources of revenue, which may not always be the same as subscriber numbers. For example, one person may subscribe to two different services, thereby accounting for only one subscriber but for two RGUs
(2) Includes cable based Premiere customers in NRW/Hesse not subscribing to a separate Unitymedia digital package
(3) Customers subscribing to one or more Digital TV Pay packages including second smartcards; excluding BCS customers who take Digital TV Basic only
(4) Multimedia Anschluss (MMA) wholesale Internet product for landlords, excluding units which upgrade to retail broadband Internet

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