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|Charter Communications Announces Agreement to Sell Systems Serving Approximately 43,700 Customers; Subsidiaries of Orange Broadband Holding Company, LLC to Purchase Charter Assets|
ST. LOUIS--(BUSINESS WIRE)--March 22, 2006--Charter Communications, Inc. (Nasdaq: CHTR) (the "Company" or "Charter") today announced the signing of a definitive agreement to sell certain cable television systems serving a total of approximately 69,400 revenue generating units, including 43,700 analog video customers, 12,300 digital video and 13,400 high-speed Internet customers in northern and southeastern Nevada, Colorado, New Mexico and Utah to subsidiaries of Orange Broadband Holding Company, LLC. Terms of the agreement were not disclosed.
"As with our recently announced sale agreements to Cebridge and New Wave Communications, this transaction is consistent with our strategy to divest geographically non-strategic assets," said Charter President and CEO Neil Smit. "As we've said previously, we will continue to assess opportunities to optimize our portfolio to enhance overall operating efficiency."
Proceeds from this sale will also enhance liquidity and will be used to pay down, but not permanently reduce, amounts outstanding under Charter's revolver. The closing is expected to occur in the third quarter of 2006. Daniels & Associates and JPMorgan Securities Inc. are serving as advisors to Charter for this transaction.
About Charter Communications
Charter Communications, Inc., a broadband communications company, provides a full range of advanced broadband services to the home, including cable television on an advanced digital video programming platform via Charter Digital(TM), Charter High-Speed(TM) Internet service and Charter Telephone(TM). Charter Business(TM) provides scalable, tailored and cost-effective broadband communications solutions to organizations of all sizes through business-to-business Internet, data networking, video and music services. Advertising sales and production services are sold under the Charter Media(R) brand. More information about Charter can be found at www.charter.com.
About Orange Broadband
Orange Broadband was formed by M/C Venture Partners, a Boston, MA-based private equity firm, Oak Investment Partners, a Palo Alto, CA-based private equity firm and Columbia Capital, an Arlington, VA-based private equity firm, to acquire and operate cable television systems offering video and high-speed data services to residential and commercial customers. Headquartered in Charlotte, NC, Orange Broadband's management team includes seasoned executives with over 60 years of experience in operating, financing, engineering, constructing, selling, marketing, and developing cable television, broadband, telecommunications, and data services.
Cautionary Statement Regarding Forward-Looking Statements:
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated" and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this release are set forth in reports or documents that we file from time to time with the SEC.
All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this release.
CONTACT: Charter Communications, Inc.