Liberty Global Emerges From Q2 2005 Loss

DENVER, August 10: Liberty
Global, which yesterday announced a deal to acquire the Czech cable platform
Karneval, has reported a second quarter profit of $24 million versus last
year’s loss of $114 million.

The Czech deal sees
Liberty Global acquiring Karneval s.r.o. and Forecable s.r.o. for an estimated
purchase price of 322.5 million euros, subject to regulatory approval.

Karneval
offers cable TV and broadband services to residential customers. At June 30,
2006, it had approximately 310,000 revenue generating units (RGUs) including
253,000 video RGUs and 57,000 broadband Internet RGUs. It is the second-largest
cable platform in the Czech Republic. Mike Fries, the president and CEO of
Liberty Global, commented, "Upon closing, the acquisition of Karneval will
consolidate UPC's leadership position in the Czech Republic with approximately
800,000 RGUs. The combined UPC Czech/Karneval will be well positioned to
participate in the rapid growth of advanced broadband services in the region.
Considering that we anticipate closing this transaction towards the end of the
year, the purchase price represents a 9.8 multiple on our estimate of
Karneval's 2007 operating cash flow, before transaction costs, under IFRS
accounting standards including anticipated realized synergies in the first
year. Additionally, we anticipate
significant additional synergies from combining Karneval with our existing UPC
Czech business will be realized over time."

Under
the terms of the agreement, Liberty Global will buy Unite HoldCo III B.V.,
which is jointly owned by Deutsche Bank AG London and JPMorgan. Unite has
entered into an agreement to purchase, Karneval from ICZ Holding B.V. for 322.5
million euros. ICZ Holding B.V. is majority owned by Mid Europa Partners a
leading private equity firm investing in Central and Eastern Europe.

Announcing the company’s
second quarter results, meanwhile, Fries noted, "Consistent with our cable
peers, we continue to demonstrate strong fundamental trends in our core cable
business. Our success in driving bundled products, largely due to recent VoIP
launches and strong broadband Internet sales, drove net organic RGU additions
of 363,000 in the quarter, and we are carrying excellent operating momentum
into the second half of the year."

The company posted
revenues of $1.59 billion, a 46-percent increase on last year. At the UPC
Broadband business in Europe, revenues were up 62 percent to $793.9 million.
J:COM’s revenues in Japan rose by 10.4 percent to $455.9 million and VTR in
Chile recorded a 29.2 percent revenue increase to $141.1 million.

At the end of the quarter,
Liberty Global had 17.8 million RGUs, including 9.4 million at UPC Broadband,
2.1 million at J:COM and 928,1000 at VTR.