Charter Reports First Quarter Financial and Operating Results

ST. LOUIS--(BUSINESS WIRE)--May 12, 2008--Charter Communications,
Inc. (NASDAQ: CHTR) (along with its subsidiaries, the "Company" or
"Charter") today reported its first quarter 2008 financial and
operating results.

• First quarter revenue of $1.564 billion grew 10.5%
  year-over-year on a pro forma(1) basis and 9.8% on an actual
  basis, primarily driven by increases in telephone and
  high-speed Internet (HSI) revenues.
• First quarter adjusted EBITDA(2) of $545 million increased
  10.5% year-over-year on a pro forma basis and 9.9% on an
  actual basis.
• Total ARPU(3) for the quarter increased 13.4% year-over-year
  to $100.14, driven by increased sales of The Charter
  Bundle(TM), advanced services growth and rate adjustments.
• Revenue generating units (RGUs) increased 7% year-over-year,
  with 302,300 net additions during the first quarter of 2008,
  primarily driven by continued strong HSI and telephone growth.
• First quarter 2008 marked the highest video RGU net additions
  and video ARPU growth since 2003.

"Our pro forma double digit revenue and adjusted EBITDA growth for
the first quarter was driven by strong RGU additions and ARPU growth,"
said Neil Smit, President and Chief Executive Officer. "Our continued
strong performance into 2008 reflects our focus and execution as we
pursue the right strategies for Charter, including driving bundled
penetration and targeting our operating and capital investments toward
the projects with the highest expected returns."

Key Operating Results

All of the following customer growth and ARPU statistics are
presented on a pro forma basis. Charter added a net 302,300 RGUs
during the first quarter of 2008. As of March 31, 2008, Charter served
approximately 5,598,800 customers and the Company's 12,084,400 RGUs
were comprised of 5,208,000 basic video, 3,023,200 digital video,
2,768,200 HSI, and 1,085,000 telephone customers.

• Telephone customers increased by approximately 125,700 during
  the first quarter of 2008 and nearly doubled year-over-year.
  Telephone penetration is approximately 11% of telephone homes
  passed.
• Video RGUs increased 90,900 during the first quarter and video
  ARPU grew 6.2% - the highest video RGU net additions and video
  ARPU growth since 2003. Digital video customers increased by
  approximately 102,800 and basic video customers decreased by
  11,900.
• HSI customers increased by approximately 85,700 in the first
  quarter of 2008. HSI ARPU increased year-over-year to $40.08.
• First quarter 2008 total ARPU increased 13.4% to $100.14 from
  the same period in 2007, driven primarily by an increase in
  bundled customers, advanced services growth, and upgrading
  customers to higher service tiers.

First Quarter Results - Pro Forma

First quarter revenues were $1.564 billion, a pro forma increase
of $148 million, or 10.5%. The increase resulted primarily from
increases in telephone and HSI revenues.

Telephone revenues nearly doubled to $121 million compared to pro
forma revenue of $63 million in the year-ago quarter. HSI revenues
increased $35 million, up 11.9% year-over-year on a pro forma basis,
due primarily to an increased number of customers. Video revenues
increased $27 million, up 3.2% year-over-year on a pro forma basis,
primarily as a result of digital and advanced services revenue growth
and rate adjustments. Commercial revenues increased $12 million, or
14.8%, on a pro forma basis, as Charter continues to market The
Charter Business Bundle(R). Advertising sales revenue increased $6
million, reflecting a pro forma increase of 9.7% compared to the first
quarter of 2007.

Operating expenses, which include programming, service and
advertising sales costs, increased 8.8% year-over-year on a pro forma
basis, reflecting annual programming rate increases, increased labor
and maintenance costs to support improved service levels, and growth
of the Company's telephone business and other advanced services.
Selling, general, and administrative expenses increased by 13.8% on a
pro forma basis compared to the year-ago quarter, reflecting
expenditures to further improve the customer experience, increases in
bad debt expense, and higher marketing expenditures targeted at
revenue growth and retaining customers.

Adjusted EBITDA totaled $545 million for the first quarter of
2008, a pro forma increase of 10.5% compared to the year-ago quarter.

Net cash flows from operating activities for the first quarter of
2008 were $204 million, compared to a pro forma $263 million for the
first quarter of 2007.

First Quarter Results - Actual

First quarter revenues increased 9.8% and operating costs and
expenses increased 9.7% compared to year-ago results.

Adjusted EBITDA for the first quarter of 2008 grew 9.9% versus the
actual results in the year-ago period.

Income from operations was $205 million in the first quarter of
2008, compared to $156 million in the first quarter of 2007.

Net loss for the first quarter of 2008 was $358 million, or $.97
per common share. For the first quarter of 2007, Charter reported a
net loss of $381 million and net loss per common share of $1.04. The
decrease in reported net loss was primarily related to higher adjusted
EBITDA resulting from higher RGUs and increased ARPU.

Net cash flows from operating activities for the first quarter of
2008 were $204 million, compared to $266 million for the first quarter
of 2007.

Expenditures for property, plant, and equipment for the first
quarter of 2008 were $334 million, compared to first quarter 2007
expenditures of $298 million. The increase in capital expenditures
primarily reflects year-over-year increases in scalable infrastructure
related to network upgrades to support higher HSI speeds and other
advanced services.

As of March 31, 2008, Charter had $20.575 billion in long-term
debt and $467 million of cash on hand. Availability under the
Company's revolving credit facility was approximately $1.4 billion at
March 31, 2008, none of which was limited by covenant restrictions.
Charter expects that cash on hand, cash flows from operating
activities, and amounts available under its credit facilities will be
adequate to meet its projected cash needs through 2009 and will not be
sufficient to fund projected cash needs in 2010 (primarily as a result
of the CCH II, LLC $2.2 billion of senior notes maturing in September
2010) and thereafter.

Use of Non-GAAP Financial Metrics

The Company uses certain measures that are not defined by
Generally Accepted Accounting Principles ("GAAP") to evaluate various
aspects of its business. Adjusted EBITDA, pro forma adjusted EBITDA,
and free cash flow are non-GAAP financial measures and should be
considered in addition to, not as a substitute for, net cash flows
from operating activities reported in accordance with GAAP. These
terms, as defined by Charter, may not be comparable to similarly
titled measures used by other companies.

Adjusted EBITDA is defined as income from operations before
depreciation and amortization, stock compensation expense, and other
operating expenses, such as special charges and loss on sale or
retirement of assets. As such, it eliminates the significant non-cash
depreciation and amortization expense that results from the
capital-intensive nature of the Company's businesses as well as other
non-cash or non-recurring items, and is unaffected by the Company's
capital structure or investment activities. Adjusted EBITDA and pro
forma adjusted EBITDA are liquidity measures used by Company
management and its board of directors to measure the Company's ability
to fund operations and its financing obligations. For this reason, it
is a significant component of Charter's annual incentive compensation
program. However, this measure is limited in that it does not reflect
the periodic costs of certain capitalized tangible and intangible
assets used in generating revenues and the cash cost of financing for
the Company. Company management evaluates these costs through other
financial measures.

Free cash flow is defined as net cash flows from operating
activities, less capital expenditures and changes in accrued expenses
related to capital expenditures.

The Company believes that adjusted EBITDA, pro forma adjusted
EBITDA, and free cash flow provide information useful to investors in
assessing Charter's ability to service its debt, fund operations, and
make additional investments with internally generated funds. In
addition, adjusted EBITDA generally correlates to the leverage ratio
calculation under the Company's credit facilities or outstanding notes
to determine compliance with the covenants contained in the facilities
and notes (all such documents have been previously filed with the
United States Securities and Exchange Commission). Adjusted EBITDA and
pro forma adjusted EBITDA, as presented, include management fee
expenses in the amount of $34 million and $32 million for each of the
three months ended March 31, 2008 and 2007, respectively, which
expense amounts are excluded for the purposes of calculating
compliance with leverage covenants.

In addition to the actual results for the three months ended March
31, 2008 and 2007, we have provided pro forma results in this release
for the three months ended March 31, 2007. We believe these pro forma
results facilitate meaningful analysis of the results of operations.
Pro forma results in this release reflect certain sales and
acquisition of cable systems in 2007 as if they had occurred on
January 1, 2007. Pro forma income statements for the three months
ended March 31, 2007 and pro forma customer statistics as of March 31,
2007 are provided in the addendum of this news release.

Additional Information Available on Website

A slide presentation to accompany the first quarter conference
call will be available on the Investor & News Center of our website at
www.charter.com in the "Presentations/Webcasts" section. Pro forma
data, including disclosure concerning the pro forma data and the basis
upon which it was calculated, for each quarter of 2007 can also be
found on the Investor & News Center in the "Pro Forma Information"
section.

Conference Call

The Company will host a conference call on Monday, May 12, 2008,
at 9:00 a.m. Eastern Time (ET) related to the contents of this
release.

The conference call will be webcast live via the Company's website
at www.charter.com. Access the webcast by clicking on "About Charter"
at the top of the home page. Participants should go to the call link
at least 10 minutes prior to the start time to register. The call will
be archived on the website beginning two hours after its completion.
Accompanying slides will also be available on the site.

Those participating via telephone should dial 888/233-1576 no
later than 10 minutes prior to the call. International participants
should dial 706/643-3458. The passcode for the call is 43490012.

A replay of the call will be available at 800/642-1687 or
706/645-9291 beginning two hours after the completion of the call
through the end of business on May 19, 2008. The passcode for the
replay is 43490012.

About Charter Communications(R)

Charter Communications, Inc. is a leading broadband communications
company and the third-largest publicly traded cable operator in the
United States. Charter provides a full range of advanced broadband
services, including advanced Charter Digital Cable(R) video
entertainment programming, Charter High-Speed(R) Internet access, and
Charter Telephone(R). Charter Business(TM) similarly provides
scalable, tailored, and cost-effective broadband communications
solutions to business organizations, such as business-to-business
Internet access, data networking, video and music entertainment
services, and business telephone. Charter's advertising sales and
production services are sold under the Charter Media(R) brand. More
information about Charter can be found at www.charter.com.

(1) Pro forma results are described below in the "Use of Non-GAAP
Financial Metrics" section and are provided in the addendum of this
news release.

(2) Adjusted EBITDA is defined in the "Use of Non-GAAP Financial
Metrics" section and is reconciled to net cash flows from operating
activities in the addendum of this news release.

(3) Average revenue per basic customer.

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, and
Section 21E of the Securities Exchange Act of 1934, as amended,
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 including, without limitation, the
factors described under "Risk Factors" from time to time in our
filings with the Securities and Exchange Commission ("SEC"). 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," "aim," "on track," "target," "opportunity" 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 other reports or documents that
we file from time to time with the SEC, and include, but are not
limited to:

• the availability, in general, of funds to meet interest
  payment obligations under our debt and to fund our operations
  and necessary capital expenditures, either through cash flows
  from operating activities, further borrowings or other sources
  and, in particular, our ability to fund debt obligations (by
  dividend, investment or otherwise) to the applicable obligor
  of such debt;
• our ability to comply with all covenants in our indentures and
  credit facilities, any violation of which, if not cured in a
  timely manner, could trigger a default of our other
  obligations under cross-default provisions;
• our ability to pay or refinance debt prior to or when it
  becomes due and/or refinance that debt through new issuances,
  exchange offers or otherwise, including restructuring our
  balance sheet and leverage position;
• the impact of competition from other distributors, including
  incumbent telephone companies, direct broadcast satellite
  operators, wireless broadband providers, and digital
  subscriber line ("DSL") providers;
• difficulties in growing, further introducing, and operating
  our telephone services, while adequately meeting customer
  expectations for the reliability of voice services;
• our ability to adequately meet demand for installations and
  customer service;
• our ability to sustain and grow revenues and cash flows from
  operating activities by offering video, high-speed Internet,
  telephone and other services, and to maintain and grow our
  customer base, particularly in the face of increasingly
  aggressive competition;
• our ability to obtain programming at reasonable prices or to
  adequately raise prices to offset the effects of higher
  programming costs;
• general business conditions, economic uncertainty or slowdown,
  including the recent significant slowdown in the new housing
  sector and overall economy; and
• the effects of governmental regulation on our business.

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.