ATLANTA, Sept 9, 2002 (BUSINESS WIRE) -- Cox Communications, Inc. this morning announced that the company expects to be free cash flow positive for the entire year 2003.

Today's announcement, made by CEO Jim Robbins at the Morgan Stanley 7th Annual Global Communications Conference in Miami, accelerates the company's previous guidance to reach the free cash flow milestone for the fourth quarter of 2003. During the presentation, Mr. Robbins and Chief Financial Officer Jimmy Hayes discussed how Cox will grow operating cash flow and reduce capital expenditures to be free cash flow positive for the entire year 2003.(1)

Mr. Hayes reported an expected $400 million capital expense reduction for the company next year, from $2 billion in 2002 to $1.6 billion in 2003. Mr. Hayes explained the near completion of network upgrades, with 89 percent of the network upgraded to at least 750 Mhz by year-end 2002, has provided Cox with a robust platform for delivering advanced broadband services and products. Of Cox's network footprint, 95 percent of its homes passed are able to order Cox Digital Cable and Cox High Speed Internet services.

During the 30-minute presentation delivered to investors and analysts this morning, Mr. Robbins and Mr. Hayes highlighted the company's conservative balance sheet, lower churn among customers who purchase Cox's three-product bundle, single integrated IT platform and healthy basic subscriber growth. Cox's second quarter 2002 increase in basic subscribers was 1.6 percent over second quarter last year versus the industry average of 0.3 percent.

"These are all the right ingredients for helping us maximize the investments we've made in our network and people," said Mr. Hayes. "We also continue to harvest success from our continued customer care commitment as our customers not only remain loyal but increasingly purchase multiple products from Cox."

The Cox executives also discussed expectations of expanding operating margins above 35 percent in the coming years as the company turns from an upgrade focus to a concentration on the accelerated delivery of additional advanced broadband services and products more efficiently. "We expect significant savings from our new self-reliant data network and growing returns on switched telephony," Mr. Hayes said. "E-care, customer self-installs and bundling contribute to our cost-savings strategy." Hayes also cited the combined contribution to the company's increasing margins of Cox Business Services, its commercial broadband affiliate, and CableRep, its advertising sales unit.

Media are invited to listen and view the Cox presentation by visiting www.cox.com/investor.

Acerca de Cox Communications

Cox Communications (NYSE: COX), a Fortune 500 company, is a multi-service broadband communications company serving approximately 6.3 million customers nationwide. Cox is the nation's fifth-largest cable television provider, and offers both traditional analog video programming under the Cox Cable brand as well as advanced digital video programming under the Cox Digital Cable brand. Cox provides an array of other communications and entertainment services, including local and long distance telephone under the Cox Digital Telephone brand; high-speed Internet access under the brands Cox High Speed Internet and Cox Express; and commercial voice and data services via Cox Business Services, LLC. Cox is an investor in programming networks including Discovery Channel. More information about Cox Communications can be accessed on the Internet at www.cox.com/espanol.

(1) Free cash flow is defined as operating cash flow less capital expenditures, less cash changes in working capital, less cash paid for interest net of cash paid or refunded for taxes. Free cash flow is not a measure of performance calculated in accordance with generally accepted accounting principles. However, Cox believes that free cash flow is useful to investors in evaluating its performance based on liquidity, operating performance and leverage. Free cash flow should not be considered as an alternative to net income as an indicator of Cox's performance, and may not be comparable to similarly titled measures used by other companies.

Statements in this release, including statements relating to growth opportunities, revenue and cash flow projections and introduction of new products and services, are "forward-looking" statements, which are statements that relate to Cox's future plans, earnings, objectives, expectations, performance and similar projections, as well as any facts or assumptions underlying these statements or projections. Actual results may differ materially from the results expressed or implied in these forward-looking statements, due to various risks, uncertainties or other factors. These factors include competition within the broadband communications industry, our ability to achieve anticipated subscriber and revenue growth, our success in implementing new services and other operating initiatives, our ability to generate sufficient cash flow to meet our debt service obligations and finance operations, and other risk factors described from time to time in Cox's filings with the Securities and Exchange Commission, including Cox's Annual Report on Form 10-K, as amended, for the year ended December 31, 2001. Cox assumes no responsibility to update any forward-looking statements as a result of new information, future events or otherwise.

Cox Communications

CONTACT: Cox Communications Media Bobby Amirshahi, 404/843-7872 bobby.amirshahi@cox.com or Investor Lacey Lewis, 404/269-7608 lacey.lewis@cox.com