1
EXHIBIT 99.1
[AT&T BROADBAND LOGO] [CHARTER LOGO]
FOR RELEASE: FEBRUARY 28, 2001
AT&T BROADBAND AND CHARTER COMMUNICATIONS
AGREE TO CABLE SYSTEM TRANSACTIONS
ENGLEWOOD, COLO., AND ST. LOUIS - AT&T Broadband and Charter
Communications, Inc., have signed definitive agreements involving several
strategic cable-system transactions that will result in a net addition of about
512,000 customers for Charter, the companies said today.
When the transactions are completed, Charter will receive cable systems
from AT&T serving some 574,000 customers in the St. Louis area; areas of Auburn,
Birmingham, Montgomery and Selma, Alabama; and the Reno area of Nevada and
California. AT&T Broadband will receive $1.79 billion composed of Charter cable
systems valued at $249 million serving 62,000 customers in Miami Beach and
Sebastian, Florida; up to $500 million in Charter common stock; and the balance
in cash.
"With this transaction, Charter will realize significant operational
and technical efficiencies in the St. Louis metropolitan area, a top 20 ranked
U.S. cable market, and in Alabama as well," said Xxxxx Xxxx, president and chief
executive officer of Charter. "These additional customers in St. Louis will give
us the opportunity to provide service to nearly all of our headquarters
marketplace. And the customers we gain in Alabama will make us the leading
provider in Birmingham, a top 40 market. As we interconnect existing Charter
markets throughout Alabama with those we're acquiring from AT&T Broadband, we'll
be able to reduce the number of acquired headends from 13 to three.
"With significant residential growth and pent-up demand for broadband
services, Reno, the 111th ranked market, is an excellent addition to Charter,"
Xx. Xxxx added. "The current 150,000 customer base there is presently served by
multiple headends. With completion of a rebuild, a single headend will serve
that entire marketplace."
-MORE-
2
CHARTER & AT&T BROADBAND, PAGE TWO...
"These transactions will further our strategy of clustering in larger
markets," said Xxx Xxxxxx, president and chief executive officer of AT&T
Broadband. "The south Florida systems we're getting will complement our current
cluster there quite well."
The transactions are expected to close in the second or third quarter
of 2001, subject to certain closing conditions and regulatory review.
Xxxxxxx & Associates represented AT&T Broadband in the sales process.
AT&T Broadband (xxx.xxxxxxxxxxxx.xxx), a business unit of AT&T, is the
nation's largest broadband services company, providing television entertainment
services to about 16 million customers across the nation. The company also
provides advanced services, such as digital cable, high-speed cable Internet
services and competitive local phone service. AT&T Corp. (NYSE:T) is the world's
leader in telecommunications services and technology.
With nearly 6.4 million customers, Charter Communications (NASDAQ:
CHTR), a Wired World(TM) company, is among the nation's largest broadband
communications companies. Charter offers a full range of advanced broadband
services to the home, including cable television under the Charter Cable TV
brand; advanced digital video programming services under the Charter Digital
Cable(TM) brand; and high-speed Internet access via Charter Pipeline(TM).
Charter is the 2001 recipient of the Outstanding Corporate Growth Award from the
Association for Corporate Growth and the 2000 Innovator Award for Technology
from Cablevision Magazine. More information about Charter can be found at
xxx.xxxxxxxxxx.xxx.
# # #
This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These include, but are not
limited to, statements regarding the Companies' plans, intentions and
expectations. Such statements are inherently subject to a variety of risks and
uncertainties that could cause actual results to differ materially from those
projected. These risks include increased levels of competition, shortages key
equipment, restrictions on the Companies' abilities to finance their growth and
other factors. A more extensive discussion of the risk factors that could impact
these areas and the Companies' overall business and financial performance can be
found in the Companies' reports filed with the Securities and Exchange
Commission. Given these concerns, investors and analysts should not place undue
reliance on forward-looking statements.
3
CONTACTS:
Charter Communications AT&T Broadband
News Media: Xxxx Xxxxxx Xxxxx Xxxx
000-000-0000 000-000-0000
xxxxxxx@xxxxxxxxxx.xxx xxxx.xxxxx@xxxxxxxxx.xxx.xxx
Analysts: Xxxx Xx Xxxxxx AT&T
000-000-0000 Xxxxxx Xxxxxxxx
xxxxxxx@xxxxxxxxxx.xxx 000-000-0000
xxxxxxxxx@xxx.xxx
