Liberty Global Reports Second Quarter 2008 Results

Continued OCF Growth and Margin Expansion

Substantial Improvement in Free Cash Flow

New $500 Million Stock Repurchase Program Announced
ENGLEWOOD, Colo.--(Business Wire)--
Liberty Global, Inc. ("Liberty Global," "LGI," or the "Company")
(NASDAQ:LBTYA) (NASDAQ:LBTYB) (NASDAQ:LBTYK), today announces
financial and operating results for the second quarter ("Q2") ended
June 30, 2008. Highlights for the quarter compared to the results for
the same period last year (unless noted), include:

-- Revenue increased 25% to $2.73 billion

-- Operating Cash Flow ("OCF")(1) increased 34% to $1.15 billion

-- OCF margin(2) expanded to 42.3% in Q2, a 280 basis point
improvement

-- Organic telephony and broadband internet adds totaled 320,000,
in-line with Q2 '07

-- Total organic RGU(3) additions of 249,000 in Q2

-- Net earnings of $428 million as compared to a loss in Q2 '07

-- Free Cash Flow ("FCF")(4) improved to $318 million from $42
million in Q2 '07

-- Repurchased $1.6 billion of equity YTD, resulting in a 12%
decrease in shares outstanding this year, and a reduction of
approximately 35% over the last three years

President and CEO Mike Fries said, "Our results reflect a number
of positive trends but also the continuation of certain operational
challenges, particularly in some of our European markets. For the
first six months of 2008, we achieved rebased(5) revenue and OCF
growth rates of 6% and 14%, respectively. Our OCF growth for the
period was consistent with our expectation, however, our revenue
growth was below forecast. We are actively working on certain
competitive challenges, particularly in Austria, Hungary and Romania.
Excluding those markets, our year-to-date rebased revenue and OCF
growth would have improved to over 7% and 16%, respectively. Recent
operational initiatives are expected to show positive effects over the
coming quarters. On the back of UPC Broadband's ("UPC") increased
digital cable revenue and consistent levels of voice and data
additions, we are seeing signs of revenue stabilization at UPC.
Despite these positive developments, we believe it is prudent to lower
our 2008 financial targets by 1%, resulting in guidance for full year
rebased revenue growth of 6-8% and rebased OCF growth of 13-15%."

"During the second quarter, we repurchased approximately $845
million of our equity, bringing our 2008 total to $1.6 billion. Over
the last three years, we have returned over $5.2 billion to our
shareholders through buybacks and, as a result, our shares outstanding
have been reduced by approximately 35%. Supporting our conviction to
repurchase our equity is our growth in operating cash flow and also
free cash flow, the latter of which was $445 million through the six
months ended June 30, up nearly 350% over the comparable 2007 period.
Our continued prospects for OCF and FCF growth provide us with the
confidence to pursue our leveraged equity strategy. As a result, our
Board of Directors recently authorized a new $500 million share
repurchase program. We remain committed to our equity and to the
extent that the market continues to undervalue our company, we look
forward to capitalizing on that opportunity for the benefit of
shareholders."

Subscriber Statistics

At June 30, 2008, we had 16.1 million customers subscribing to
24.7 million total services. Of our total RGU base, video accounts for
59% or 14.7 million RGUs, broadband internet accounts for 23% or 5.7
million RGUs, and telephony accounts for the remaining 17% or 4.3
million RGUs. We continue to experience strong growth in our advanced
services(6), adding over 2.9 million RGUs in the last twelve months.
As a result, advanced services now represent 15.2 million or 62% of
our total subscription base at June 30, 2008. Similarly, we have
increased our bundled customers in the last year by 17% to 5.8 million
or 36% of our customer base. This reflects an increase in our bundled
customers of over 800,000 since June 30, 2007.

For the quarter ended June 30, 2008, we added 249,000 RGUs on an
organic basis, representing a 7% decrease from our 266,000 organic
subscriber gain in the quarter ended June 30, 2007. Specifically, our
249,000 organic additions in the second quarter reflect combined
subscriber additions from telephony and broadband internet of 320,000
and video subscriber losses of 71,000.

In terms of our second quarter organic telephony additions, we
experienced a gain of 166,000, a 3% increase over the quarter ended
June 30, 2007. Our Western European operations experienced an organic
gain of 20,000 telephony subscribers over last year's second quarter,
led largely by contributions from Austria and Switzerland. With
respect to broadband internet, we added 154,000 organic subscribers,
which conversely were down 3% or 5,000 from last year's second
quarter, due in large part to lower additions from VTR. In the
quarter, our broadband additions were positively impacted by J:COM's
further roll-out of DOCSIS 3.0, which helped fuel a record gain for
J:COM of 38,000 organic internet additions. J:COM finished the quarter
with over 55,000 subscribers taking its 160 Mbps product.

At June 30, 2008, our 14.7 million video subscriber base consisted
of 9.5 million analog cable and MMDS(7) and 5.2 million digital cable
and DTH subscribers. Our organic loss of 71,000 video subscribers in
the quarter resulted from an organic loss of 119,000 video subscribers
at our European operations (UPC and Telenet) offset by organic video
additions of 48,000 at our Japanese, Chilean and Australian
operations. Similar to our first quarter, we continue to experience
heightened competition for analog subscribers in many of our European
markets. Over 75% of our European video loss was attributable to the
Netherlands, Romania, Ireland and the Czech Republic, although both
the Netherlands and the Czech Republic did demonstrate modest
improvements sequentially from the first quarter of 2008, partially as
a result of strong digital cable additions and churn reduction
initiatives.

The video highlight of the second quarter was our digital cable
business, which experienced record quarterly organic additions of
336,000 RGUs, which represents 74% growth over the quarter ended June
30, 2007, and a 24% sequential increase over the quarter ended March
31, 2008. Contributing to our totals in the second quarter were our
newest digital markets, Hungary and Poland, which added a combined
59,000 digital cable subscribers. Additionally, several other markets
experienced improvements on both a year-over-year and a sequential
basis, including the Netherlands, Austria, and VTR. With a digital
product now offered in all markets, we are focused on driving
consolidated digital penetration(8) beyond its current level of 30%
and are well-positioned to upsell ARPU(9) enhancing products, such as
the digital video recorder, high definition and video-on-demand,
across our digital customer base.

Revenue

For the three and six months ended June 30, 2008, revenue
increased by 25% to reach $2.73 billion and $5.34 billion, as compared
to $2.18 billion and $4.29 billion, respectively. Our reported revenue
has been favorably impacted by the weakening U.S. dollar relative to
most of our international currencies and reflects our diversified base
of operating assets. Excluding the impact of foreign exchange
movements on our revenue, our growth for both the three and six months
ended June 30, 2008 was 8%, as compared to the prior year periods.

In terms of rebased growth, revenue increased 6% for both the
three and six months ended June 30, 2008. This organic growth is
directly related to higher subscriber volumes, particularly those
related to advanced services. In terms of second quarter performance,
we achieved rebased growth in our key segments of 13% for VTR, 7% for
J:COM, 6% for Telenet, and 4% for UPC. VTR's growth rate represents a
290 basis point improvement over its corresponding rebased revenue
growth rate in the first quarter of 2008. UPC's rebased revenue growth
rate stabilized in the second quarter as compared to the first quarter
of 2008, aided in part by increased contribution from digital cable
revenue. However, UPC's revenue growth rate continues to be impacted
by internet and telephony ARPU compression in most markets, as well as
analog video churn.

Average revenue per customer relationship continues to
meaningfully expand as we drive our bundled penetrations higher. For
the three months ended June 30, 2008, our aggregate ARPU per customer
increased 23% to $47.34, as compared to the same period last year.
This growth was directly related to a combination of the weakening
U.S. dollar against our local currencies on a year-over-year basis and
segment level improvement. On a local currency basis, our key
reporting segments, UPC, Telenet, VTR and J:COM, all experienced ARPU
per customer increases in the second quarter, as compared to the prior
year quarter, with UPC, Telenet and VTR achieving ARPU per customer
increases ranging between 8% and 10%. Overall, these results reflect
the success of our bundling initiatives which have increased our
bundled ratio by 6% to 1.53 at June 30, 2008 from 1.44 at June 30,
2007. Underlying this growth has been the continued emergence of the
triple play bundle, as we finished the second quarter with 2.8 million
triple play customers, an increase of 31% since June 30, 2007.

Operating Cash Flow

Operating cash flow increased to $1.15 billion and $2.26 billion
for the three and six months ended June 30, 2008, respectively, a 34%
increase during both periods, as compared to the corresponding periods
of last year. Excluding the impact of foreign exchange movements, OCF
yielded mid-teens growth of 15% and 16% for the three and six months
ended June 30, 2008, as compared to the three and six months ended
June 30, 2007. On an organic basis, our OCF results reflect rebased
growth of 13% for the second quarter and 14% on a year-to-date basis,
with all four key reporting segments (UPC, Telenet, J:COM and VTR)
maintaining double-digit year-to-date rebased growth levels. In the
second quarter, our rebased OCF growth was supported by our operations
in Ireland, Poland, Chile, Slovakia, and Australia, all of which
generated rebased growth rates above 20%.

OCF margin expansion remains a core focus and key measure of our
operational progress. For the three and six months ended June 30,
2008, our OCF margin reached 42.3% and 42.2%, respectively. These OCF
margins represent 280 and 290 basis point improvements over the
comparable periods in 2007. With respect to year-to-date segment
performance, UPC, Telenet, J:COM, and VTR all reported OCF margins in
excess of 40%. Additionally, each of these segments generated OCF
margin increases for the six months ended June 30, 2008 as compared to
the prior year period, with particularly impressive year-over-year
expansion reported by UPC and VTR with 390 and 330 basis point
improvements, respectively.

Net Earnings

For the three and six months ended June 30, 2008, we realized net
earnings of $428 million and $273 million, respectively, or $1.11 and
$0.55 per diluted share. This compares favorably to our net loss of
$130 million and $266 million or $0.34 and $0.69 per share for the
three and six months ended June 30, 2007. The net earnings that we
reported during the 2008 periods is primarily attributable to the fact
that our operating income and our gains on derivative instruments and
movements in foreign currency exchange rates more than offset
increases in our interest and income tax expenses.

Capital Expenditures and Free Cash Flow

Capital expenditures for the three and six months ended June 30,
2008 were $562 million and $1,081 million, as compared to $447 million
and $952 million for the three and six months ended June 30, 2007,
respectively. Most of the increase in capital spending during the 2008
periods, as compared to the corresponding 2007 periods, was due to
foreign currency exchange rate movements. As a percentage of revenue,
capital expenditures were 21% and 20% for the three and six months
ended June 30, 2008, as compared to 21% and 22% for the corresponding
prior year periods, respectively. Of our capital expenditures for the
six months ended June 30, 2008, approximately 58% related to customer
premise equipment and scalable infrastructure, 23% related to line
extensions and upgrade and rebuild activity, and the remaining 19%
related primarily to support capital.

With respect to Free Cash Flow, we reported $318 million and $445
million of FCF for the three and six months ended June 30, 2008,
respectively. These amounts represent improvements of $276 million and
$346 million, as compared to our FCF of $42 million and $99 million
for the three and six months ended June 30, 2007, respectively. The
improvement in FCF over the first half of 2008 as compared to the
prior year period in 2007 was a result of a $476 million increase in
cash provided by operating activities partially offset by a $130
million increase in capital expenditures during the six month period
in 2008.

Leverage and Liquidity

At June 30, 2008, total debt was $19.8 billion and cash and cash
equivalents (including restricted cash related to our debt
instruments) totaled $1.7 billion, resulting in net debt of $18.1
billion.(10) As compared to December 31, 2007, our net debt balance
has increased by approximately $2.3 billion. This increase results
primarily from the impact of our stock repurchase program, the
translation impact of a depreciating dollar on our non-dollar
denominated debt and incremental borrowings. Despite the increase in
our debt since December 31, 2007, our underlying OCF growth has
enabled us to report lower gross and net leverage ratios(11) of 4.3x
and 3.9x, respectively, as compared to 4.8x and 4.1x at December 31,
2007, respectively. We continue to maintain a relatively low borrowing
cost, as our weighted average interest rate(12) on our debt borrowings
at June 30, 2008 was approximately 5.6%, as compared to 5.9% at
December 31, 2007. In addition, our near-term maturities are
negligible, as less than 2% of our total debt is due within the next
twelve months.

In addition to our existing cash on hand, we maintain incremental
liquidity through our revolving and/or redrawable credit facilities.
At June 30, 2008, our aggregate unused borrowing capacity, as
represented by the maximum undrawn commitment under each of our
applicable facilities (including those at UPC Broadband Holding,
Telenet, J:COM and Austar), without regard to covenant compliance
calculations, was approximately $2.6 billion.(13) Of this amount, our
redrawable term loans I and L under our UPC Broadband Holding credit
facility account for approximately EUR 855 million ($1.3 billion), of
which we expect to be able to borrow approximately EUR 732 million
($1.2 billion), upon completion of our second quarter bank reporting
requirements. It should be noted that during the second quarter, we
rolled our EUR 250 million UPC Holding facility into Facility M under
the UPC Broadband Holding credit facility. As a result of the roll-in,
we reduced our borrowing cost on this EUR 250 million to EURIBOR plus
2.0% and extended the maturity to 2014.

About Liberty Global

Liberty Global is the leading international cable operator
offering advanced video, voice and broadband internet services to
connect its customers to the world of entertainment, communications
and information. As of June 30, 2008, Liberty Global operated
state-of-the-art networks that served approximately 16 million
customers across 15 countries principally located in Europe, Japan,
Chile, and Australia. Liberty Global's operations also include
significant programming businesses such as Chellomedia in Europe.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including our expectations with respect to our 2008 guidance targets,
our future growth prospects, the timing and impact of our roll-out of
digital and broadband products and services, and our borrowing
availability; our insight and expectations regarding competition in
our markets; the impact of our M&A activity on our operations and
financial performance; our expectations concerning future repurchases
of our stock; and other information and statements that are not
historical fact. These forward-looking statements involve certain
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by these statements. These
risks and uncertainties include the continued use by subscribers and
potential subscribers of the Company's services and willingness to
upgrade to our more advanced offerings, our ability to meet
competitive challenges, continued growth in services for digital
television at a reasonable cost, the effects of changes in technology
and regulation, our ability to achieve expected operational
efficiencies and economies of scale, and our ability to generate
expected revenue and operating cash flow, control capital expenditures
as measured by percentage of revenue and achieve assumed margins, as
well as other factors detailed from time to time in the Company's
filings with the Securities and Exchange Commission including our most
recently filed Forms 10-K and 10-Q. These forward-looking statements
speak only as of the date of this release. The Company expressly
disclaims any obligation or undertaking to disseminate any updates or
revisions to any forward-looking statement contained herein to reflect
any change in the Company's expectations with regard thereto or any
change in events, conditions or circumstances on which any such
statement is based.

For more information, please visit www.lgi.com or contact:

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Investor Relations Corporate Communications
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Christopher Noyes +1 303.220.6693 Hanne Wolf +1 303.220.6678
Molly Bruce +1 303.220.4202 Bert Holtkamp +31 20.778.9447
K.C. Dolan +1 303.220.6686
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(1) Please see page 12 for our operating cash flow definition and the
required reconciliation.
(2) OCF margin is calculated by dividing OCF by total revenue for the
applicable period.
(3) Please see page 19 for definition of revenue generating units
("RGUs"). Organic figures exclude RGUs of acquired entities at the
date of acquisition but include the impact of changes in RGUs from
the date of acquisition. Organic figures represent additions on a net
basis.
(4) Free cash flow or FCF is defined as net cash provided by operating
activities less capital expenditures, each as reported in our
condensed consolidated statements of cash flows. See page 14 for more
information on FCF and the required reconciliation.
(5) For purposes of calculating rebased growth rates on a comparable
basis for all businesses that we owned during the respective period
in 2008, we have adjusted our historical 2007 revenue and OCF to (i)
include the pre-acquisition revenue and OCF of certain entities
acquired during 2007 and 2008 in the respective 2007 rebased amounts
to the same extent that the revenue and OCF of such entities are
included in our 2008 results, (ii) exclude the pre-disposition
revenue and OCF of certain entities that were disposed of during 2007
and 2008 from our rebased amounts to the same extent that such
entities were excluded from our results in 2008 and (iii) reflect the
translation of our 2007 rebased amounts at the applicable average
exchange rates that were used to translate our 2008 results. Please
see page 9 for supplemental information.
(6) Advanced services represent our services related to digital video,
including digital cable and direct-to-home ("DTH"), broadband
internet and telephony.
(7) MMDS refers to multi-channel multipoint (microwave) distribution
system subscribers.
(8) Digital penetration is calculated by dividing digital cable RGUs
by the total of digital and analog cable RGUs.
(9) ARPU refers to the average monthly subscription revenue per
average RGU. ARPU per customer relationship refers to the average
monthly subscription revenue per average customer relationship. In
both cases, the amounts are calculated by dividing the average
monthly subscription revenue (excluding installation, late fees and
mobile telephony revenue) for the indicated period, by the average of
the opening and closing balances for RGUs or customer relationships,
as the case may be, for the period.
(10) Total debt includes capital lease obligations. Total cash and
cash equivalents includes $480 million of restricted cash that is
related to our debt instruments. Net debt is defined as total debt
less cash and cash equivalents including our restricted cash balances
related to our debt instruments.
(11) Our gross and net leverage ratios are defined as total debt and
net debt to last quarter annualized operating cash flow.
(12) The weighted average interest rate excludes capital lease
obligations and the impact of our interest rate derivative
agreements, deferred financing costs and commitment fees, all of
which affect our overall cost of borrowing.
(13) The $2.6 billion amount reflects the aggregate unused borrowing
capacity, as represented by the maximum undrawn commitments under
each of our applicable facilities without regard to covenant
compliance calculations. This amount excludes approximately $260
million related to unused borrowing capacity associated with the VTR
Bank Facility. Pursuant to the deposit arrangements with the lender
in relation to the VTR Bank Facility, we are required to fund a cash
collateral account in an amount equal to the outstanding principal
and interest under the VTR Bank Facility.
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Liberty Global, Inc.
Condensed Consolidated Balance Sheets

June 30, December 31,
2008 2007
---------- ------------
in millions
ASSETS
Current assets:
Cash and cash equivalents $ 1,210.9 $ 2,035.5
Trade receivables, net 867.7 1,003.7
Deferred income taxes 322.9 319.1
Derivative instruments 279.1 230.5
Other current assets 333.4 335.8
---------- ------------
Total current assets 3,014.0 3,924.6

Restricted cash 475.5 475.5
Investments 1,394.8 1,171.5
Property and equipment, net 11,395.5 10,608.5
Goodwill 13,657.4 12,626.8
Intangible assets subject to amortization, net 2,542.9 2,504.9
Other assets, net 1,411.0 1,306.8
---------- ------------

Total assets $ 33,891.1 $ 32,618.6
========== ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 684.1 $ 804.9
Deferred revenue and advance payments from
subscribers and others 870.6 933.8
Current portion of debt and capital lease
obligations 310.8 383.2
Derivative instruments 303.4 116.2
Accrued interest 165.2 341.2
Accrued capital expenditures 172.3 194.1
Other accrued and current liabilities 1,208.9 1,084.1
---------- ------------
Total current liabilities 3,715.3 3,857.5

Long-term debt and capital lease obligations 19,475.0 17,970.2
Other long-term liabilities 2,852.3 2,508.8
---------- ------------
Total liabilities 26,042.6 24,336.5
---------- ------------

Commitments and contingencies

Minority interests in subsidiaries 2,698.2 2,446.0
---------- ------------

Stockholders' equity 5,150.3 5,836.1
---------- ------------

Total liabilities and stockholders' equity $ 33,891.1 $ 32,618.6
========== ============
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Liberty Global, Inc.
Condensed Consolidated Statements of Operations

Three months ended Six months ended
June 30, June 30,
------------------- -------------------
2008 2007 2008 2007
--------- --------- --------- ---------
in millions, except per share amounts

Revenue $2,729.9 $2,180.6 $5,340.9 $4,286.6
--------- --------- --------- ---------

Operating costs and expenses:
Operating (other than
depreciation and
amortization) (including
stock-based compensation) 1,063.1 906.1 2,091.8 1,783.5
Selling, general and
administrative (SG&A)
(including stock-based
compensation) 555.0 453.5 1,076.9 901.0
Depreciation and amortization 744.0 610.2 1,448.1 1,204.2
Impairment, restructuring and
other operating charges, net 3.3 0.6 1.8 5.9
--------- --------- --------- ---------
2,365.4 1,970.4 4,618.6 3,894.6
--------- --------- --------- ---------
Operating income 364.5 210.2 722.3 392.0
--------- --------- --------- ---------

Non-operating income
(expense):
Interest expense (290.7) (226.3) (570.3) (459.3)
Interest and dividend income 17.1 24.1 51.9 48.5
Share of results of
affiliates, net 0.3 9.5 2.8 23.1
Realized and unrealized gains
on derivative instruments,
net 406.4 73.9 71.0 63.6
Foreign currency transaction
gains, net 210.4 49.0 383.0 73.3
Unrealized gains (losses) due
to changes in fair values of
certain investments and
debt, net 22.8 (158.6) 44.8 (230.2)
Losses on extinguishment of
debt, net -- (23.3) -- (23.3)
Other income (expense), net 1.3 (1.3) 0.9 (4.3)
--------- --------- --------- ---------
367.6 (253.0) (15.9) (508.6)
--------- --------- --------- ---------
Earnings (loss) before
income taxes and minority
interests 732.1 (42.8) 706.4 (116.6)

Income tax benefit (expense) (189.9) 60.9 (290.8) 54.6
Minority interests in earnings
of subsidiaries, net (114.0) (147.8) (143.0) (203.8)
--------- --------- --------- ---------

Net earnings (loss) $ 428.2 $ (129.7) $ 272.6 $ (265.8)
========= ========= ========= =========

Basic earnings (loss) per
share $ 1.33 $ (0.34) $ 0.82 $ (0.69)
========= ========= ========= =========
Diluted earnings (loss) per
share $ 1.11 $ (0.34) $ 0.55 $ (0.69)
========= ========= ========= =========
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Liberty Global, Inc.
Condensed Consolidated Statements of Cash Flows

Six months ended June 30,
-------------------------
2008 2007
------------ ------------
in millions
Cash flows from operating activities:
Net earnings (loss) $ 272.6 $ (265.8)
Net adjustments to reconcile net earnings
(loss) to net cash provided by operating
activities 1,254.1 1,317.0
------------ ------------
Net cash provided by operating activities 1,526.7 1,051.2
------------ ------------

Cash flows from investing activities:
Capital expended for property and equipment (1,081.4) (951.8)
Cash paid in connection with acquisitions,
net of cash acquired (136.6) (111.0)
Other investing activities, net 16.8 (31.0)
------------ ------------
Net cash used by investing activities (1,201.2) (1,093.8)
------------ ------------

Cash flows from financing activities:
Repurchase of LGI common stock (1,613.7) (645.5)
Repayments of debt and capital lease
obligations (446.3) (1,008.2)
Borrowings of debt 853.7 2,209.4
Other financing activities, net (11.4) 91.2
------------ ------------
Net cash provided (used) by financing
activities (1,217.7) 646.9
------------ ------------

Effect of exchange rates on cash 67.6 29.8
------------ ------------

Net increase (decrease) in cash and cash
equivalents (824.6) 634.1

Cash and cash equivalents:
Beginning of period 2,035.5 1,880.5
------------ ------------
End of period $ 1,210.9 $ 2,514.6
============ ============

Cash paid for interest $ 725.5 $ 591.5
============ ============
Net cash paid for taxes $ 73.7 $ 31.6
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Revenue and Operating Cash Flow

The following tables present revenue and operating cash flow by
reportable segment for the three and six months ended June 30, 2008,
as compared to the corresponding prior year period. All of the
reportable segments derive their revenue primarily from broadband
communications services, including video, voice and broadband internet
services. Certain segments also provide competitive local exchange
carrier and other business-to-business communications services and
J:COM provides certain programming services. At June 30, 2008, our
operating segments in the UPC Broadband Division provided services in
10 European countries. Our Other Central and Eastern Europe segment
includes our operating segments in Czech Republic, Poland, Romania,
Slovakia and Slovenia. Telenet, J:COM and VTR provide broadband
communications services in Belgium, Japan and Chile, respectively. Our
corporate and other category includes (i) Austar, (ii) other less
significant consolidated operating segments that provide broadband
communications services in Puerto Rico and video programming and other
services in Europe and Argentina and (iii) our corporate category.
Intersegment eliminations primarily represent the elimination of
intercompany transactions between our broadband communications and
programming operations, primarily in Europe.

For purposes of calculating rebased growth rates on a comparable
basis for all businesses that we owned during 2008, we have adjusted
our historical revenue and OCF for the three and six months ended June
30, 2007, respectively, to (i) include the pre-acquisition revenue and
OCF of certain entities acquired during 2007 and 2008 in our rebased
amounts for the three and six months ended June 30, 2007 to the same
extent that the revenue and OCF of such entities are included in our
results for the three and six months ended June 30, 2008, (ii) exclude
the pre-disposition revenue and OCF of certain entities that were
disposed of during 2007 and 2008 from our rebased amounts for the
three and six months ended June 30, 2007 to the same extent that such
entities were excluded from our results for the three and six months
ended June 30, 2008, and (iii) reflect the translation of our rebased
amounts for the three and six months ended June 30, 2007 at the
applicable average exchange rates that were used to translate our
results for the three and six months ended June 30, 2008. The acquired
entities that have been included in whole or in part in the
determination of our rebased revenue and OCF for the three months
ended June 30, 2007 include JTV Thematics, Telesystems Tirol, nine
small acquisitions in Europe and three small acquisitions in Japan.
The acquired entities that have been included in whole or in part in
the determination of our rebased revenue and OCF for the six months
ended June 30, 2007 include JTV Thematics, Telesystems Tirol, twelve
small acquisitions in Europe and three small acquisitions in Japan.
Additionally, the disposed entities that were excluded in whole or in
part in the determination of our rebased revenue and OCF for the three
and six months ended June 30, 2007 include our broadband
communications operations in Brazil and Peru and our Liveshop
operations in the Netherlands. In terms of acquired entities, we have
reflected the revenue and OCF of these acquired entities in our 2007
rebased amounts based on what we believe to be the most reliable
information that is currently available to us (generally
pre-acquisition financial statements), as adjusted for the estimated
effects of (i) any significant differences between generally accepted
accounting principles in the U.S. ("GAAP") and local generally
accepted accounting principles, (ii) any significant effects of
post-acquisition purchase accounting adjustments, (iii) any
significant differences between our accounting policies and those of
the acquired entities and (iv) other items we deem appropriate. As we
did not own or operate the acquired businesses during the
pre-acquisition periods, no assurance can be given that we have
identified all adjustments necessary to present the revenue and OCF of
these entities on a basis that is comparable to the corresponding
post-acquisition amounts that are included in our historical 2008
results or that the pre-acquisition financial statements we have
relied upon do not contain undetected errors. The adjustments
reflected in our 2007 rebased amounts have not been prepared with a
view towards complying with Article 11 of the SEC's Regulation S-X. In
addition, the rebased growth percentages are not necessarily
indicative of the revenue and OCF that would have occurred if these
transactions had occurred on the dates assumed for purposes of
calculating our rebased 2007 amounts or the revenue and OCF that will
occur in the future. The rebased growth percentages have been
presented as a basis for assessing 2008 growth rates on a comparable
basis, and are not presented as a measure of our pro forma financial
performance for 2007. Therefore, we believe our rebased data is not a
non-GAAP measure as contemplated by Regulation G or Item 10 of
Regulation S-K.

In each case, the tables present (i) the amounts reported by each
of our reportable segments for the comparative period, (ii) the U.S.
dollar change and percentage change from period to period, (iii) the
percentage change from period to period, after removing foreign
currency effects ("FX"), and (iv) the percentage change from period to
period, on a rebased basis. The comparisons that exclude FX assume
that exchange rates remained constant during the periods that are
included in each table.

-0-
*T
Revenue
Increase
(decrease)
Three months ended Increase excluding Increase
June 30, (decrease) FX (decrease)
------------------ --------------- ---------- ----------
2008 2007 $ % % Rebased %
-------- --------- -------- ------ ---------- ----------
in millions, except % amounts
UPC Broadband
Division:
The
Netherlands $310.6 $260.6 $50.0 19.2 2.8 --
Switzerland 268.5 212.3 56.2 26.5 6.8 --
Austria 143.9 122.2 21.7 17.8 1.5 --
Ireland 95.6 74.7 20.9 28.0 10.5 --
-------- --------- -------- ------ ---------- ----------
Total
Western
Europe 818.6 669.8 148.8 22.2 4.7 3.7
-------- --------- -------- ------ ---------- ----------
Hungary 108.5 93.9 14.6 15.5 (0.4) --
Other Central
and Eastern
Europe 253.7 195.7 58.0 29.6 6.2 --
-------- --------- -------- ------ ---------- ----------
Total
Central and
Eastern
Europe 362.2 289.6 72.6 25.1 4.1 3.6
-------- --------- -------- ------ ---------- ----------
Central and
corporate
operations 2.9 1.8 1.1 61.1 50.0 --
-------- --------- -------- ------ ---------- ----------
Total UPC
Broadband
Division 1,183.7 961.2 222.5 23.1 4.6 3.7

Telenet
(Belgium) 387.9 313.2 74.7 23.9 6.8 6.3
J:COM (Japan) 691.1 533.4 157.7 29.6 12.2 6.5
VTR (Chile) 194.6 154.5 40.1 26.0 12.7 12.7
Corporate and
other 294.7 237.9 56.8 23.9 9.9 --
Intersegment
eliminations (22.1) (19.6) (2.5)(12.8) 2.7 --
------------------ --------------- ---------- ----------

Total
consolidated
LGI $2,729.9 $2,180.6 $549.3 25.2 8.0 6.0
======== ========= ======== ====== ========== ==========

Increase
(decrease)
Six months ended Increase excluding Increase
June 30, (decrease) FX (decrease)
------------------ --------------- ---------- ----------
2008 2007 $ % % Rebased %
-------- --------- -------- ------ ---------- ----------
in millions, except % amounts
UPC Broadband
Division:
The
Netherlands $611.7 $512.6 $99.1 19.3 3.6 --
Switzerland 520.9 419.6 101.3 24.1 6.0 --
Austria 283.7 242.2 41.5 17.1 1.7 --
Ireland 184.0 148.4 35.6 24.0 7.6 --
-------- --------- -------- ------ ---------- ----------
Total
Western
Europe 1,600.3 1,322.8 277.5 21.0 4.5 3.5
-------- --------- -------- ------ ---------- ----------
Hungary 208.5 183.9 24.6 13.4 (0.3) --
Other Central
and Eastern
Europe 488.6 379.2 109.4 28.9 7.2 --
-------- --------- -------- ------ ---------- ----------
Total
Central and
Eastern
Europe 697.1 563.1 134.0 23.8 4.8 3.9
-------- --------- -------- ------ ---------- ----------
Central
and
corporate
operations 5.6 7.2 (1.6)(22.2) (32.7) --
-------- --------- --------------- ---------- ----------
Total UPC
Broadband
Division 2,303.0 1,893.1 409.9 21.7 4.4 3.5

Telenet
(Belgium) 762.3 613.3 149.0 24.3 7.9 7.5
J:COM (Japan) 1,370.4 1,066.7 303.7 28.5 12.3 6.6
VTR (Chile) 381.1 299.9 81.2 27.1 11.3 11.3
Corporate and
other 569.9 453.7 116.2 25.6 11.4 --
Intersegment
eliminations (45.8) (40.1) (5.7)(14.2) 0.7 --
------------------ --------------- ---------- ----------

Total
consolidated
LGI $5,340.9 $4,286.6 $1,054.3 24.6 8.1 6.1
======== ========= ======== ====== ========== ==========
*T

-0-
*T
Operating Cash Flow
Increase
(decrease)
Three months ended Increase excluding Increase
June 30, (decrease) FX (decrease)
------------------- ------------- ----------- ----------
2008 2007 $ % % Rebased %
--------- --------- ------- ----- ----------- ----------
in millions, except % amounts
UPC Broadband
Division:
The
Netherlands $ 171.2 $ 132.6 $ 38.6 29.1 11.4 --
Switzerland 138.0 102.5 35.5 34.6 13.9 --
Austria 76.4 59.5 16.9 28.4 10.9 --
Ireland 35.7 24.1 11.6 48.1 28.1 --
--------- --------- ------- ----- ----------- ----------
Total
Western
Europe 421.3 318.7 102.6 32.2 13.4 12.2
--------- --------- ------- ----- ----------- ----------
Hungary 55.1 48.8 6.3 12.9 (2.8) --
Other
Central and
Eastern
Europe 132.0 98.8 33.2 33.6 7.8 --
--------- --------- ------- ----- ----------- ----------
Total
Central
and
Eastern
Europe 187.1 147.6 39.5 26.8 4.3 4.7
--------- --------- ------- ----- ----------- ----------
Central and
corporate
operations (61.9) (59.0) (2.9) (4.9) 10.3 --
--------- --------- ------- ----- ----------- ----------
Total UPC
Broadband
Division 546.5 407.3 139.2 34.2 13.5 12.6

Telenet
(Belgium) 189.9 147.3 42.6 28.9 11.4 11.2
J:COM (Japan) 275.8 213.4 62.4 29.2 11.9 9.1
VTR (Chile) 81.9 59.5 22.4 37.6 23.3 23.3
Corporate and
other 60.7 33.5 27.2 81.2 60.2 --
--------- --------- ------- ----- ----------- ----------

Total $1,154.8 $ 861.0 $293.8 34.1 15.2 13.3
========= ========= ======= ===== =========== ==========

Increase
(decrease)
Six months ended Increase excluding Increase
June 30, (decrease) FX (decrease)
------------------- ------------- ----------- ----------
2008 2007 $ % % Rebased %
--------- --------- ------- ----- ----------- ----------
in millions, except % amounts
UPC Broadband
Division:
The
Netherlands $ 339.8 $ 260.6 $ 79.2 30.4 13.3 --
Switzerland 270.6 205.8 64.8 31.5 12.4 --
Austria 145.1 117.2 27.9 23.8 7.4 --
Ireland 69.6 46.7 22.9 49.0 29.3 --
--------- --------- ------- ----- ----------- ----------
Total
Western
Europe 825.1 630.3 194.8 30.9 13.1 12.0
--------- --------- ------- ----- ----------- ----------
Hungary 106.2 93.2 13.0 13.9 0.4 --
Other
Central and
Eastern
Europe 250.9 187.4 63.5 33.9 10.1 --
--------- --------- ------- ----- ----------- ----------
Total
Central
and
Eastern
Europe 357.1 280.6 76.5 27.3 6.8 6.6
--------- --------- ------- ----- ----------- ----------
Central and
corporate
operations (121.8) (114.2) (7.6) (6.7) 7.5 --
--------- --------- ------- ----- ----------- ----------
Total UPC
Broadband
Division 1,060.4 796.7 263.7 33.1 13.8 12.8

Telenet
(Belgium) 364.8 284.2 80.6 28.4 11.5 11.6
J:COM (Japan) 559.4 431.7 127.7 29.6 13.2 10.0
VTR (Chile) 157.5 114.0 43.5 38.2 20.9 20.9
Corporate and
other 113.4 59.0 54.4 92.2 67.1 --
--------- --------- ------- ----- ----------- ----------

Total $2,255.5 $1,685.6 $569.9 33.8 15.6 13.7
========= ========= ======= ===== =========== ==========
*T

Operating Cash Flow Definition and Reconciliation

Operating cash flow is not a GAAP measure. Operating cash flow is
the primary measure used by our chief operating decision maker to
evaluate segment operating performance and to decide how to allocate
resources to segments. As we use the term, operating cash flow is
defined as revenue less operating and SG&A expenses (excluding
stock-based compensation, depreciation and amortization, provisions
for litigation, and impairment, restructuring and other operating
charges or credits). We believe operating cash flow is meaningful
because it provides investors a means to evaluate the operating
performance of our segments and our company on an ongoing basis using
criteria that is used by our internal decision makers. Our internal
decision makers believe operating cash flow is a meaningful measure
and is superior to other available GAAP measures because it represents
a transparent view of our recurring operating performance and allows
management to (i) readily view operating trends, (ii) perform
analytical comparisons and benchmarking between segments and (iii)
identify strategies to improve operating performance in the different
countries in which we operate. For example, our internal decision
makers believe that the inclusion of impairment and restructuring
charges within operating cash flow would distort the ability to
efficiently assess and view the core operating trends in our segments.
In addition, our internal decision makers believe our measure of
operating cash flow is important because analysts and investors use it
to compare our performance to other companies in our industry.
However, our definition of operating cash flow may differ from cash
flow measurements provided by other public companies. A reconciliation
of total segment operating cash flow to our earnings (loss) before
income taxes and minority interests is presented below. Operating cash
flow should be viewed as a measure of operating performance that is a
supplement to, and not a substitute for, operating income, net
earnings (loss), cash flow from operating activities and other GAAP
measures of income or cash flows.

-0-
*T
Three months ended Six months ended
June 30, June 30,
------------------ ---------------------
2008 2007 2008 2007
--------- -------- ---------- ----------
in millions

Total segment operating cash
flow $1,154.8 $ 861.0 $ 2,255.5 $ 1,685.6
Stock-based compensation
expense (43.0) (40.0) (83.3) (83.5)
Depreciation and amortization (744.0) (610.2) (1,448.1) (1,204.2)
Impairment, restructuring and
other operating charges, net (3.3) (0.6) (1.8) (5.9)
--------- -------- ---------- ----------
Operating income 364.5 210.2 722.3 392.0
Interest expense (290.7) (226.3) (570.3) (459.3)
Interest and dividend income 17.1 24.1 51.9 48.5
Share of results of
affiliates, net 0.3 9.5 2.8 23.1
Realized and unrealized gains
on derivative instruments,
net 406.4 73.9 71.0 63.6
Foreign currency transaction
gains, net 210.4 49.0 383.0 73.3
Unrealized gains (losses) due
to changes in fair values of
certain investments and
debt, net 22.8 (158.6) 44.8 (230.2)
Losses on extinguishment of
debt, net -- (23.3) -- (23.3)
Other income (expense), net 1.3 (1.3) 0.9 (4.3)
--------- -------- ---------- ----------
Earnings (loss) before
income taxes and minority
interests $ 732.1 $ (42.8) $ 706.4 $ (116.6)
========= ======== ========== ==========
*T

Summary of Debt, Capital Lease Obligations and Cash and Cash
Equivalents

The following table(1) details the U.S. dollar equivalent balances
of our consolidated debt, capital lease obligations and cash and cash
equivalents at June 30, 2008:

-0-
*T
Debt and
Capital Capital Cash
Lease Lease and Cash
Debt Obligations Obligations Equivalents(2)
--------- ----------- ----------- --------------
in millions
LGI and its non-
operating
subsidiaries $ 2,692.1 $ -- $ 2,692.1 $ 419.9
UPC Holding
(excluding VTR) 10,110.1 32.8 10,142.9 139.4
J:COM 1,495.1 525.5 2,020.6 303.9
Telenet 3,118.1 79.9 3,198.0 231.8
VTR 470.3 1.0 471.3 91.2
Austar 746.0 -- 746.0 7.6
Chellomedia 346.4 -- 346.4 10.1
Liberty Puerto Rico 168.5 -- 168.5 4.5
Other operating
subsidiaries -- -- -- 2.5
--------- ----------- ----------- --------------
Total LGI $19,146.6 $ 639.2 $ 19,785.8 $ 1,210.9
========= =========== =========== ==============

(1) Except as otherwise indicated, the amounts reported in the table
include the named entity and its subsidiaries.
(2) Excludes $480 million of restricted cash related to our debt
instruments.
*T

Capital Expenditures and Capital Lease Additions

The table below highlights our capital expenditures per category,
as well as capital lease additions for the three and six months ended
June 30, 2008 and 2007:

-0-
*T
Three months ended Six months ended
June 30, June 30
------------------ -------------------
2008 2007 2008 2007
--------- -------- --------- ---------
in millions
Customer premises equipment $ 235.8 $ 184.5 $ 467.6 $ 430.3
Scalable infrastructure 94.0 50.3 155.5 117.8
Line extensions 39.2 31.3 80.4 74.5
Upgrade/rebuild 96.2 95.6 173.9 158.9
Support capital 91.7 79.7 192.6 156.5
Other including Chellomedia 4.7 5.2 11.4 13.8
--------- -------- --------- ---------
Total capital expenditures
("capex") $ 561.6 $ 446.6 $1,081.4 $ 951.8
========= ======== ========= =========

Capital expenditures $ 561.6 $ 446.6 $1,081.4 $ 951.8
Capital lease additions 30.2 40.5 71.6 88.8
--------- -------- --------- ---------
Total capex and capital
leases $ 591.8 $ 487.1 $1,153.0 $1,040.6
========= ======== ========= =========

As % of revenue
-------------------------------
Capital expenditures 20.6% 20.5% 20.2% 22.2%
Capex and capital leases 21.7% 22.3% 21.6% 24.3%
*T

Free Cash Flow Definition and Reconciliation

FCF is defined as net cash provided by operating activities less
capital expenditures, each as reported in our condensed consolidated
statements of cash flows. Adjusted FCF represents FCF less non-cash
capital lease additions. FCF and Adjusted FCF are not GAAP measures of
liquidity.

We believe that our presentation of FCF and Adjusted FCF provides
useful information to our investors because these measures can be used
to gauge our ability to service debt and fund new investment
opportunities. FCF should not be understood to represent our ability
to fund discretionary amounts, as we have various mandatory and
contractual obligations, including debt repayments, which are not
deducted to arrive at this amount. Investors should view FCF as a
supplement to, and not a substitute for, GAAP measures of liquidity
included in our consolidated cash flow statements. The table below
highlights the reconciliation of net cash provided by operating
activities to FCF and FCF to Adjusted FCF for the three and six months
ended June 30, 2008 and 2007, respectively:

-0-
*T
Three months ended Six months ended
June 30, June 30,
-------------------- --------------------
2008 2007(3) 2008 2007
---------- --------- ---------- ---------
in millions
Net cash provided by
operating activities $ 879.2 $ 488.5 $ 1,526.7 $1,051.2
Capital expenditures (561.6) (446.6) (1,081.4) (951.8)
---------- --------- ---------- ---------
FCF $ 317.6 $ 41.9 $ 445.3 $ 99.4
========== ========= ========== =========

FCF $ 317.6 $ 41.9 $ 445.3 $ 99.4
Capital lease additions (30.2) (40.5) (71.6) (88.8)
---------- --------- ---------- ---------
Adjusted FCF $ 287.4 $ 1.4 $ 373.7 $ 10.6
========== ========= ========== =========

(3) Our cash provided by operations for the three and six months ended
June 30, 2007 differs from the previously reported amounts due to the
reclassification of cash flows related to derivative instruments to
align with the classification of the applicable underlying cash
flows.
*T

ARPU per Customer Relationship Table(4)

The following table provides ARPU per customer relationship for
the three months ended June 30, 2008 and 2007:

-0-
*T
Three months ended June 30,
---------------------------
2008 2007 % Change
------------ -------------- ---------
UPC Broadband EUR 23.29 EUR 21.46 8.5%

Telenet EUR 35.81 EUR 32.54 10.0%

J:COM Yen 7,426 Yen 7,354 1.0%

VTR CLP 26,528 CLP 24,486 8.3%

Liberty Global Consolidated $ 47.34 $ 38.43 23.2%
*T

-0-
*T
(4) ARPU per customer relationship refers to the average monthly
subscription revenue per average customer relationship and is
calculated by dividing the average monthly subscription revenue
(excluding installation, late fees and mobile telephony revenue) for
the indicated period, by the average of the opening and closing
balances for customer relationships for the period. Customer
relationships of entities acquired during the period are normalized.
ARPU per customer relationship for UPC Broadband and Liberty Global
Consolidated are not adjusted for currency impacts.
*T

Customer Breakdown and Bundling

The following table provides information on the geography of our
customer base and highlights our customer bundling metrics at June 30,
2008, March 31, 2008 and June 30, 2007:

-0-
*T
Q2'08 / Q2'08 /
Q1'08 Q2'07
June 30, March 31, June 30, (% (%
2008 2008 2007 Change) Change)
----------- ----------- ----------- -------- --------
Total Customers
UPC Broadband 9,575,200 9,631,400 9,673,100 (0.6)% (1.0)%
Telenet 1,977,400 1,979,400 2,041,700 (0.1)% (3.1)%
J:COM 2,759,600 2,714,700 2,582,100 1.7% 6.9%
VTR 1,017,700 1,002,400 968,800 1.5% 5.0%
Other 811,700 795,300 784,300 2.1% 3.5%
----------- ----------- ----------- -------- --------
Liberty Global
Consolidated 16,141,600 16,123,200 16,050,000 0.1% 0.6%

Total Single-
Play Customers 10,368,300 10,506,500 11,100,700 (1.3)% (6.6)%
Total Double-
Play Customers 3,017,000 2,974,200 2,839,500 1.4% 6.3%
Total Triple-
Play Customers 2,756,300 2,642,500 2,109,800 4.3% 30.6%

% Double-Play
Customers
UPC Broadband 16.0% 15.8% 15.1% 1.3% 6.0%
Telenet 26.1% 25.8% 23.6% 1.2% 10.6%
J:COM 27.4% 27.4% 27.6% 0.0% (0.7)%
VTR 18.5% 16.8% 15.9% 10.1% 16.4%
Liberty Global
Consolidated 18.7% 18.4% 17.7% 1.6% 5.6%

% Triple-Play
Customers
UPC Broadband 13.3% 12.5% 9.1% 6.4% 46.2%
Telenet 18.2% 17.5% 13.3% 4.0% 36.8%
J:COM 25.7% 25.1% 23.5% 2.4% 9.4%
VTR 39.6% 39.5% 35.0% 0.3% 13.1%
Liberty Global
Consolidated 17.1% 16.4% 13.1% 4.3% 30.5%

RGUs per
Customer
Relationship
UPC Broadband 1.43 1.41 1.33 1.4% 7.5%
Telenet 1.62 1.61 1.50 0.6% 8.0%
J:COM 1.79 1.78 1.75 0.6% 2.3%
VTR 1.98 1.96 1.86 1.0% 6.5%
Liberty Global
Consolidated 1.53 1.51 1.44 1.3% 6.3%
*T

Fixed Income Overview

The following tables provide preliminary financial information for
UPC Holding B.V. ("UPC Holding") and Chellomedia Programming Financing
HoldCo B.V. ("Chellomedia Programming") and are subject to completion
of the respective financial statements and to finalization of the
respective compliance certificates for the second quarter of 2008.

-0-
*T
Three Months Ended June 30, Six Months Ended June 30,
---------------------------- -------------------------
2008 2007 2008 2007
--------------- ------------ ------------ ------------
in millions
UPC Holding:
Revenue EUR 881.8 EUR 827.2 EUR 1,751.9 EUR 1,648.9
OCF 402.1 346.9 795.1 685.8
Chellomedia
Programming(5):
Revenue EUR 55.1 EUR 45.6 EUR 103.8 EUR 86.6
OCF 14.0 12.6 27.1 23.7

Debt, Cash and Leverage at June 30, 2008(6)
------------------------------------------------------

Total Debt and Cash and
Capital Lease Cash Senior Total
Obligations(7) Equivalents Leverage Leverage
--------------- ------------ ------------ ------------
in millions
UPC Holding EUR 6,745.1 EUR 146.6 3.55x 4.23x
Chellomedia 3.78x 3.78x
Programming 220.1 6.2
*T

Operating Cash Flow Definition and Reconciliations

Operating cash flow is not a GAAP measure. Operating cash flow is
the primary measure used by our chief operating decision makers to
evaluate operating performance and to decide how to allocate
resources. As we use the term, operating cash flow is defined as
revenue less operating and SG&A expenses (excluding stock-based
compensation, depreciation and amortization, and other charges or
credits outlined in the respective tables below). Investors should
view operating cash flow as a measure of operating performance that is
a supplement to, and not a substitute for, operating income, net
earnings, cash flow from operating activities and other GAAP measures
of income or cash flows. The following tables provide the appropriate
reconciliations:

-0-
*T
Three months ended Six months ended June
June 30, 30,
--------------------- ---------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
UPC Holding in millions
Total segment operating
cash flow EUR 402.1 EUR 346.9 EUR 795.1 EUR 685.8
Stock-based compensation
expense (9.8) (13.7) (18.2) (27.8)
Depreciation and
amortization (276.2) (270.7) (546.5) (541.2)
Related party fees and
allocations, net 7.4 5.6 8.1 10.3
Impairment, restructuring
and other operating
charges, net (2.3) (1.5) (5.0) (4.1)
------- ------- ------- -------
Operating income EUR 121.2 EUR 66.6 EUR 233.5 EUR 123.0
======= ======= ======= ======
Chellomedia Programming
(5)
Total segment operating
cash flow EUR 14.0 EUR 12.6 EUR 27.1 EUR 23.7
Stock-based compensation
expense (0.1) (1.0) (0.2) (1.9)
Depreciation and
amortization (4.3) (4.1) (8.4) (7.9)
Related party management
fees (1.2) (1.6) (1.2) (3.2)
Impairment, restructuring
and other operating
charges (0.3) -- (0.3) (0.2)
------- ------- ------- -------
Operating income EUR 8.1 EUR 5.9 EUR 17.0 EUR 10.5
======= ======= ======= ======
*T

-0-
*T
(5) The figures for the three and six months ended June 30, 2007
reflect transfers between entities under common control as if the
transfers had occurred on January 1, 2007.
(6) In the covenant calculations for UPC Holding, we utilize debt
figures that take into account currency swaps. Reported OCF and debt
may differ from what is used in the calculation of the respective
covenants. The ratios for each of the two entities are based on June
30, 2008 results, and are subject to completion of our second quarter
bank reporting requirements. The ratios for each entity are defined
and calculated in accordance with the applicable credit agreement. As
defined and calculated in accordance with the UPC Broadband Holding
Bank Facility, senior leverage refers to Senior Debt to Annualized
EBITDA (last two quarters annualized) and total leverage refers to
Total Debt to Annualized EBITDA (last two quarters annualized) for
UPC Holding. For Chellomedia Programming, senior leverage refers to
Senior Net Debt to Annualized EBITDA (last two quarters annualized)
and total leverage refers to Total Net Debt to Annualized EBITDA
(last two quarters annualized).
(7) Debt for UPC Holding reflects only third party debt. Debt for
Chellomedia Programming reflects third party debt and a loan payable
to a related party of EUR 9 million.
*T

-0-
*T
Consolidated Operating Data - June 30, 2008
--------------------------------------------------------------------

Two-way Customer
Homes Homes Relationships Total
Passed (1) Passed (2) (3) RGUs (4)
---------- ---------- ------------- ----------
UPC Broadband Division:
The Netherlands 2,723,500 2,616,800 2,091,700 3,273,500
Switzerland(13) 1,866,000 1,325,000 1,562,800 2,350,800
Austria 1,109,200 1,109,200 758,700 1,196,000
Ireland 863,300 448,400 575,400 670,400
---------- ---------- ------------- ----------
Total Western Europe 6,562,000 5,499,400 4,988,600 7,490,700
---------- ---------- ------------- ----------
Hungary 1,178,600 1,135,500 974,000 1,382,100
Romania(14) 2,061,700 1,610,300 1,314,300 1,651,400
Poland 1,979,100 1,629,500 1,070,700 1,491,800
Czech Republic 1,285,300 1,137,700 783,500 1,071,400
Slovakia 465,900 354,500 294,800 348,300
Slovenia 199,100 145,100 149,300 210,900
---------- ---------- ------------- ----------
Total Central and
Eastern Europe 7,169,700 6,012,600 4,586,600 6,155,900
---------- ---------- ------------- ----------
Total UPC
Broadband
Division 13,731,700 11,512,000 9,575,200 13,646,600
---------- ---------- ------------- ----------

Telenet (Belgium)(15) 1,928,700 1,928,700 1,977,400 3,212,200
---------- ---------- ------------- ----------

J:COM (Japan) 9,940,100 9,940,100 2,759,600 4,931,000
---------- ---------- ------------- ----------

The Americas:
VTR (Chile) 2,464,300 1,690,200 1,017,700 2,011,800
Puerto Rico 342,200 342,200 116,300 174,200
---------- ---------- ------------- ----------
Total The Americas 2,806,500 2,032,400 1,134,000 2,186,000
---------- ---------- ------------- ----------

Austar (Australia) 2,474,500 -- 695,400 695,400
---------- ---------- ------------- ----------

Grand Total 30,881,500 25,413,200 16,141,600 24,671,200
========== ========== ============= ==========

Video
-------------------------------------------------
Analog Digital
Cable Cable DTH MMDS
Sub- Sub- Sub- Sub-
scribers scribers scribers scribers Total
(5) (6) (7) (8) Video
--------- --------- --------- -------- ----------
UPC Broadband
Division:
The Netherlands 1,496,600 592,100 -- -- 2,088,700
Switzerland(13) 1,240,300 321,300 -- -- 1,561,600
Austria 451,600 106,100 -- -- 557,700
Ireland 239,800 226,500 -- 96,300 562,600
--------- --------- --------- -------- ----------
Total Western
Europe 3,428,300 1,246,000 -- 96,300 4,770,600
--------- --------- --------- -------- ----------
Hungary 640,500 48,100 173,500 -- 862,100
Romania(14) 1,131,600 52,800 130,000 -- 1,314,400
Poland 1,002,000 11,300 -- -- 1,013,300
Czech Republic 373,600 186,400 119,900 -- 679,900
Slovakia 240,100 11,000 30,000 6,700 287,800
Slovenia 144,100 1,300 -- 3,900 149,300
--------- --------- --------- -------- ----------
Total Central
and Eastern
Europe 3,531,900 310,900 453,400 10,600 4,306,800
--------- --------- --------- -------- ----------
Total UPC
Broadband
Division 6,960,200 1,556,900 453,400 106,900 9,077,400
--------- --------- --------- -------- ----------

Telenet
(Belgium)(15) 1,209,900 478,500 -- -- 1,688,400
--------- --------- --------- -------- ----------

J:COM (Japan) 605,200 1,640,300 -- -- 2,245,500
--------- --------- --------- -------- ----------

The Americas:
VTR (Chile) 602,900 267,200 -- -- 870,100
Puerto Rico -- 84,800 -- -- 84,800
--------- --------- --------- -------- ----------
Total The Americas 602,900 352,000 -- -- 954,900
--------- --------- --------- -------- ----------

Austar (Australia) -- 6,200 688,900 -- 695,100
--------- --------- --------- -------- ----------

Grand Total 9,378,200 4,033,900 1,142,300 106,900 14,661,300
========= ========= ========= ======== ==========

Internet Telephony
----------------------- -----------------------
Homes Homes
Serviceable Subscribers Serviceable Subscribers
(9) (10) (11) (12)
----------- ----------- ----------- -----------
UPC Broadband
Division:
The Netherlands 2,616,800 658,700 2,554,100 526,100
Switzerland(13) 1,515,000 479,700 1,513,000 309,500
Austria 1,109,200 433,700 1,109,200 204,600
Ireland 448,400 89,300 298,100 18,500
----------- ----------- ----------- -----------
Total Western Europe 5,689,400 1,661,400 5,474,400 1,058,700
----------- ----------- ----------- -----------
Hungary 1,135,500 305,500 1,138,000 214,500
Romania(14) 1,485,000 218,200 1,423,100 118,800
Poland 1,629,500 343,000 1,583,900 135,500
Czech Republic 1,137,700 283,700 1,113,900 107,800
Slovakia 325,300 46,800 233,800 13,700
Slovenia 145,100 45,900 145,100 15,700
----------- ----------- ----------- -----------
Total Central and
Eastern Europe 5,858,100 1,243,100 5,637,800 606,000
----------- ----------- ----------- -----------
Total UPC
Broadband
Division 11,547,500 2,904,500 11,112,200 1,664,700
----------- ----------- ----------- -----------

Telenet (Belgium)(15) 2,756,300 934,800 2,756,300 589,000
----------- ----------- ----------- -----------

J:COM (Japan) 9,939,500 1,280,600 9,562,500 1,404,900
----------- ----------- ----------- -----------

The Americas:
VTR (Chile) 1,690,200 564,000 1,668,100 577,700
Puerto Rico 342,200 64,100 342,200 25,300
----------- ----------- ----------- -----------
Total The Americas 2,032,400 628,100 2,010,300 603,000
----------- ----------- ----------- -----------

Austar (Australia) 30,400 300 -- --
----------- ----------- ----------- -----------

Grand Total 26,306,100 5,748,300 25,441,300 4,261,600
=========== =========== =========== ===========
*T

-0-
*T
Subscriber Variance Table - June 30, 2008 vs. March 31, 2008
-------------------------------------------------------------------

Two-way
Homes Homes Customer
Passed Passed Relationships Total
(1) (2) (3) RGUs (4)
-------- ------- ------------- --------
UPC Broadband Division:
The Netherlands 9,000 8,600 (30,100) (900)
Switzerland(13) 8,900 9,000 4,200 27,700
Austria 29,000 29,000 17,700 27,300
Ireland (1,100) 26,300 (13,500) (8,600)
-------- ------- ------------- --------
Total Western Europe 45,800 72,900 (21,700) 45,500
-------- ------- ------------- --------
Hungary 7,700 12,300 (4,200) 3,900
Romania(14) 2,800 33,000 (27,100) (9,700)
Poland 9,200 41,500 400 23,700
Czech Republic 29,900 54,300 10,300 24,700
Slovakia 1,200 12,900 (10,500) (7,700)
Slovenia 1,100 2,100 (3,400) (500)
-------- ------- ------------- --------
Total Central and Eastern
Europe 51,900 156,100 (34,500) 34,400
-------- ------- ------------- --------
Total UPC Broadband
Division 97,700 229,000 (56,200) 79,900
-------- ------- ------------- --------

Telenet (Belgium)(15) 4,400 4,400 (2,000) 30,900
-------- ------- ------------- --------

J:COM (Japan) 65,900 65,900 44,900 108,500
-------- ------- ------------- --------

The Americas:
VTR (Chile) 11,700 27,800 15,300 47,900
Puerto Rico 700 700 (500) 4,500
-------- ------- ------------- --------
Total The Americas 12,400 28,500 14,800 52,400
-------- ------- ------------- --------

Austar (Australia) 6,100 -- 16,900 16,900
-------- ------- ------------- --------

Grand Total 186,500 327,800 18,400 288,600
======== ======= ============= ========

ORGANIC GROWTH SUMMARY:
------------------------------
UPC Broadband Division 50,500 182,800 (94,200) 39,800
Telenet (Belgium) 4,400 4,400 (2,000) 30,900
J:COM (Japan) 65,900 65,900 44,900 108,500
The Americas 12,400 28,500 14,800 52,400
Austar (Australia) 6,100 -- 16,900 16,900
-------- ------- ------------- --------
Total Organic Change 139,300 281,600 (19,600) 248,500
======== ======= ============= ========

ADJUSTMENTS FOR M&A AND OTHER:
------------------------------
Acquisition - Forcomnet (Czech
Republic) 21,900 20,900 8,300 10,400
Acquisition - UpperAustria
(Austria) 25,300 25,300 26,200 26,200
-------- ------- ------------- --------
Total Q2 acquisitions 47,200 46,200 34,500 36,600
-------- ------- ------------- --------

Q2 2008 Ireland adjustment -- -- 3,500 3,500
-------- ------- ------------- --------
Net adjustments for M&A and
other 47,200 46,200 38,000 40,100
-------- ------- ------------- --------

Total Net Adds (Reductions) 186,500 327,800 18,400 288,600
======== ======= ============= ========

Video
----------------------------------------------
Analog Digital
Cable Cable DTH MMDS
Sub- Sub- Sub- Sub-
scribers scribers scribers scribers Total
(5) (6) (7) (8) Video
--------- -------- -------- -------- ---------
UPC Broadband Division:
The Netherlands (59,300) 29,400 -- -- (29,900)
Switzerland(13) (17,300) 21,600 -- -- 4,300
Austria (12,800) 29,100 -- -- 16,300
Ireland (7,700) (2,900) -- (5,400) (16,000)
--------- -------- -------- -------- ---------
Total Western Europe (97,100) 77,200 -- (5,400) (25,300)
--------- -------- -------- -------- ---------
Hungary (55,900) 48,100 500 -- (7,300)
Romania(14) (36,300) 4,000 5,300 -- (27,000)
Poland (11,600) 11,300 -- -- (300)
Czech Republic (35,000) 30,900 (3,000) -- (7,100)
Slovakia (15,300) 4,900 100 (500) (10,800)
Slovenia (3,700) 200 -- 100 (3,400)
--------- -------- -------- -------- ---------
Total Central and
Eastern Europe (157,800) 99,400 2,900 (400) (55,900)
--------- -------- -------- -------- ---------
Total UPC
Broadband
Division (254,900) 176,600 2,900 (5,800) (81,200)
--------- -------- -------- -------- ---------

Telenet (Belgium)(15) (47,200) 40,300 -- -- (6,900)
--------- -------- -------- -------- ---------

J:COM (Japan) (55,600) 76,800 -- -- 21,200
--------- -------- -------- -------- ---------

The Americas:
VTR (Chile) (35,800) 45,900 -- -- 10,100
Puerto Rico -- (300) -- -- (300)
--------- -------- -------- -------- ---------
Total The Americas (35,800) 45,600 -- -- 9,800
--------- -------- -------- -------- ---------

Austar (Australia) -- (2,600) 19,500 -- 16,900
--------- -------- -------- -------- ---------

Grand Total (393,500) 336,700 22,400 (5,800) (40,200)
========= ======== ======== ======== =========

ORGANIC GROWTH SUMMARY:
-----------------------
UPC Broadband Division (284,800) 176,000 2,900 (6,100) (112,000)
Telenet (Belgium) (47,200) 40,300 -- -- (6,900)
J:COM (Japan) (55,600) 76,800 -- -- 21,200
The Americas (35,800) 45,600 -- -- 9,800
Austar (Australia) -- (2,600) 19,500 -- 16,900
--------- -------- -------- -------- ---------
Total Organic Change (423,400) 336,100 22,400 (6,100) (71,000)
========= ======== ======== ======== =========

ADJUSTMENTS FOR M&A AND
OTHER:
-----------------------
Acquisition - Forcomnet
(Czech Republic) 6,700 -- -- -- 6,700
Acquisition -
UpperAustria (Austria) 20,600 -- -- -- 20,600
--------- -------- -------- -------- ---------
Total Q2 acquisitions 27,300 -- -- -- 27,300
--------- -------- -------- -------- ---------

Q2 2008 Ireland
adjustment 2,600 600 -- 300 3,500
--------- -------- -------- -------- ---------
Net adjustments for
M&A and other 29,900 600 -- 300 30,800
--------- -------- -------- -------- ---------

Total Net Adds
(Reductions) (393,500) 336,700 22,400 (5,800) (40,200)
========= ======== ======== ======== =========

Internet Telephony
----------------------- -----------------------
Homes Homes
Serviceable Subscribers Serviceable Subscribers
(9) (10) (11) (12)
----------- ----------- ----------- -----------
UPC Broadband
Division:
The Netherlands 8,600 8,400 8,700 20,600
Switzerland(13) 9,000 11,900 9,000 11,500
Austria 29,000 600 29,000 10,400
Ireland 26,300 2,800 49,400 4,600
----------- ----------- ----------- -----------
Total Western
Europe 72,900 23,700 96,100 47,100
----------- ----------- ----------- -----------
Hungary 12,300 6,100 12,400 5,100
Romania(14) 33,000 10,700 33,000 6,600
Poland 41,500 16,800 35,700 7,200
Czech Republic 54,300 15,700 33,500 16,100
Slovakia 12,500 1,800 64,700 1,300
Slovenia 2,100 600 2,100 2,300
----------- ----------- ----------- -----------
Total Central and
Eastern Europe 155,700 51,700 181,400 38,600
----------- ----------- ----------- -----------
Total UPC
Broadband
Division 228,600 75,400 277,500 85,700
----------- ----------- ----------- -----------

Telenet (Belgium)(15) 6,200 21,200 6,200 16,600
----------- ----------- ----------- -----------

J:COM (Japan) 65,300 38,400 66,900 48,900
----------- ----------- ----------- -----------

The Americas:
VTR (Chile) 27,800 25,300 28,100 12,500
Puerto Rico 700 2,100 700 2,700
----------- ----------- ----------- -----------
Total The Americas 28,500 27,400 28,800 15,200
----------- ----------- ----------- -----------

Austar (Australia) -- -- -- --
----------- ----------- ----------- -----------

Grand Total 328,600 162,400 379,400 166,400
=========== =========== =========== ===========

ORGANIC GROWTH
SUMMARY:
---------------------
UPC Broadband
Division 182,400 66,900 252,200 84,900
Telenet (Belgium) 6,200 21,200 6,200 16,600
J:COM (Japan) 65,300 38,400 66,900 48,900
The Americas 28,500 27,400 28,800 15,200
Austar (Australia) -- -- -- --
----------- ----------- ----------- -----------
Total Organic Change 282,400 153,900 354,100 165,600
=========== =========== =========== ===========

ADJUSTMENTS FOR M&A
AND OTHER:
---------------------
Acquisition -
Forcomnet (Czech
Republic) 20,900 3,700 -- --
Acquisition -
UpperAustria
(Austria) 25,300 4,800 25,300 800
----------- ----------- ----------- -----------
Total Q2
acquisitions 46,200 8,500 25,300 800
----------- ----------- ----------- -----------

Q2 2008 Ireland
adjustment -- -- -- --
----------- ----------- ----------- -----------
Net adjustments for
M&A and other 46,200 8,500 25,300 800
----------- ----------- ----------- -----------

Total Net Adds
(Reductions) 328,600 162,400 379,400 166,400
=========== =========== =========== ===========
*T

Footnotes for pages 17 - 18

(1) Homes Passed are homes that can be connected to our networks
without further extending the distribution plant, except for
direct-to-home (DTH) and Multi-channel Multipoint (microwave)
Distribution System (MMDS) homes. Our Homes Passed counts are based on
census data that can change based on either revisions to the data or
from new census results. With the exception of Austar, we do not count
homes passed for DTH. With respect to Austar, we count all homes in
the areas that Austar is authorized to serve as Homes Passed. With
respect to MMDS, one MMDS subscriber is equal to one Home Passed. Due
to the fact that we do not own the partner networks (defined below)
used by Cablecom in Switzerland (see note 13) and Telenet in Belgium
(see note 15), or the unbundled loop and shared access network used by
one of our Austrian subsidiaries, UPC Austria GmbH (Austria GmbH), we
do not report homes passed for Cablecom's and Telenet's partner
networks or for Austria GmbH's unbundled loop and shared access
network.

(2) Two-way Homes Passed are Homes Passed by our networks where
customers can request and receive the installation of a two-way
addressable set-top converter, cable modem, transceiver and/or voice
port which, in most cases, allows for the provision of video and
internet services and, in some cases, telephony services. Due to the
fact that we do not own the partner networks used by Cablecom in
Switzerland and Telenet in Belgium or the unbundled loop and shared
access network used by Austria GmbH, we do not report two-way homes
passed for Cablecom's and Telenet's partner networks or for Austria
GmbH's unbundled loop and shared access network.

(3) Customer Relationships are the number of customers who receive
at least one of our video, internet or voice services that we count as
Revenue Generating Units (RGUs), without regard to which, or to how
many services they subscribe. To the extent that RGU counts include
equivalent billing unit (EBU) adjustments, we reflect corresponding
adjustments to our Customer Relationship counts. Customer
Relationships generally are counted on a unique premise basis.
Accordingly, if an individual receives our services in two premises
(e.g. primary home and vacation home), that individual will count as
two Customer Relationships. We exclude mobile customers from Customer
Relationships.

(4) Revenue Generating Unit is separately an Analog Cable
Subscriber, Digital Cable Subscriber, DTH Subscriber, MMDS Subscriber,
Internet Subscriber or Telephony Subscriber. A home, residential
multiple dwelling unit, or commercial unit may contain one or more
RGUs. For example, if a residential customer in our Austrian system
subscribed to our digital cable service, telephony service and
broadband internet service, the customer would constitute three RGUs.
Total RGUs is the sum of Analog Cable, Digital Cable, DTH, MMDS,
Internet and Telephony Subscribers. RGUs generally are counted on a
unique premise basis such that a given premise does not count as more
than one RGU for any given service. On the other hand, if an
individual receives our service in two premises (e.g., a primary home
and a vacation home), that individual will count as two RGUs.
Non-paying subscribers are counted as subscribers during their free
promotional service period. Some of these subscribers choose to
disconnect after their free service period. Services offered without
charge on a permanent basis (e.g. VIP subscribers, free service to
employees) are not counted as RGUs.

(5) Analog Cable Subscriber is a home, residential multiple
dwelling unit or commercial unit that receives our analog cable
service over our broadband network. In Europe, we have approximately
598,400 "lifeline" customers that are counted on a per connection
basis, representing the least expensive regulated tier of basic cable
service, with only a few channels. Telenet's Analog Cable Subscribers
at June 30, 2008, include 21,000 subscribers who receive Telenet's
premium video service on a stand alone basis over the Telenet partner
network. Each such premium video subscriber is assumed to represent
one customer relationship.

(6) Digital Cable Subscriber is a home, residential multiple
dwelling unit or commercial unit that receives our digital cable
service over our broadband network or through a partner network. We
count a subscriber with one or more digital converter boxes that
receives our digital cable service as just one subscriber. A Digital
Cable Subscriber is not counted as an Analog Cable Subscriber. As we
migrate customers from analog to digital cable services, we report a
decrease in our Analog Cable Subscribers equal to the increase in our
Digital Cable Subscribers. Individuals who receive digital cable
service through a purchased digital set-top box but do not pay a
monthly digital service fee are only counted as Digital Cable
Subscribers to the extent we can verify that such individuals are
subscribing to our analog cable service. We include this group of
subscribers in Telenet's and Cablecom's Digital Cable Subscribers.
Subscribers to digital cable services provided by Cablecom and Telenet
over partner networks receive analog cable services from the partner
networks as opposed to Cablecom and Telenet.

(7) DTH Subscriber is a home, residential multiple dwelling unit
or commercial unit that receives our video programming broadcast
directly via a geosynchronous satellite.

(8) MMDS Subscriber is a home, residential multiple dwelling unit
or commercial unit that receives our video programming via a
multi-channel multipoint (microwave) distribution system.

(9) Internet Homes Serviceable is a home, residential multiple
dwelling unit or commercial unit that can be connected to our
networks, or a partner network with which we have a service agreement,
where customers can request and receive broadband internet services.
With respect to Austria GmbH, we do not report as Internet Homes
Serviceable those homes served either over an unbundled loop or over a
shared access network.

(10) Internet Subscriber is a home, residential multiple dwelling
unit or commercial unit that receives internet services over our
networks, or that we service through a partner network. Our Internet
Subscribers in Austria include residential digital subscriber line
(DSL) subscribers of Austria GmbH that are not serviced over our
networks. Our Internet Subscribers do not include customers that
receive services via resale arrangements or from dial-up connections.

(11) Telephony Homes Serviceable is a home, residential multiple
dwelling unit or commercial unit that can be connected to our
networks, or a partner network with which we have a service agreement,
where customers can request and receive voice services. With respect
to Austria GmbH, we do not report as Telephony Homes Serviceable those
homes served over an unbundled loop rather than our network.

(12) Telephony Subscriber is a home, residential multiple dwelling
unit or commercial unit that receives voice services over our
networks, or that we service through a partner network. Telephony
Subscribers as of June 30, 2008 exclude an aggregate of 153,800 mobile
telephony subscribers in the Netherlands, Australia and Belgium. Also,
our Telephony Subscribers do not include customers that receive
services via resale arrangements. Our Telephony Subscribers in Austria
include residential subscribers served by Austria GmbH through an
unbundled loop.

(13) Pursuant to service agreements, Cablecom offers digital
cable, broadband internet and telephony services over networks owned
by third party cable operators (partner networks). A partner network
RGU is only recognized if Cablecom has a direct billing relationship
with the customer. Homes Serviceable for partner networks represent
the estimated number of homes that are technologically capable of
receiving the applicable service within the geographic regions covered
by Cablecom's service agreements. Internet and Telephony Homes
Serviceable and Customer Relationships with respect to partner
networks have been estimated by Cablecom. These estimates may change
in future periods as more accurate information becomes available.
Cablecom's partner network information generally is presented one
quarter in arrears such that information included in our June 30, 2008
subscriber table is based on March 31, 2008 data. In our June 30, 2008
subscriber table, Cablecom's partner networks account for 66,000
Customer Relationships, 99,500 RGUs, 37,700 Digital Cable Subscribers,
190,000 Internet Homes Serviceable, 188,000 Telephony Homes
Serviceable, 37,700 Internet Subscribers, and 24,100 Telephony
Subscribers. In addition, partner networks account for 373,800 digital
cable homes serviceable that are not included in Homes Passed or
Two-way Homes Passed in our June 30, 2008 subscriber table.

(14) As previously reported, we did not disconnect any non-paying
subscribers in Romania during the first quarter of 2008 due to an
ongoing conversion to a new billing system. Following the completion
of the billing system conversion during the second quarter of 2008, we
reinitiated Romania's non-pay disconnect procedures and processed the
backlog of non-pay disconnects and the normal disconnect activity for
the quarter.

(15) Pursuant to certain agreements, Telenet offers premium video,
broadband internet and telephony services over a Telenet partner
network. A partner network RGU is only recognized if Telenet has a
direct billing relationship with the customer. Homes Serviceable for
partner networks represent the estimated number of homes that are
technologically capable of receiving the applicable service within the
geographic regions covered by the Telenet partner network. In our June
30, 2008 subscriber table, Telenet's partner network accounts for
460,500 RGUs, 827,600 Internet Homes Serviceable and Telephony Homes
Serviceable, 21,000 premium video subscribers (included in our Analog
Cable Subscribers), 272,400 Internet Subscribers and 167,100 Telephony
Subscribers. In addition, Telenet's partner network accounts for
827,600 Homes Passed and Two-way Homes Passed that are not included in
our June 30, 2008 subscriber table.

Additional General Notes to Tables:

With respect to Chile, Japan and Puerto Rico, residential multiple
dwelling units with a discounted pricing structure for video,
broadband internet or telephony services are counted on an EBU basis.
With respect to commercial establishments, such as bars, hotels and
hospitals, to which we provide video and other services primarily for
the patrons of such establishments, the subscriber count is generally
calculated on an EBU basis by our subsidiaries (with the exception of
Telenet, which counts commercial establishments on a per connection
basis). EBU is calculated by dividing the bulk price charged to
accounts in an area by the most prevalent price charged to non-bulk
residential customers in that market for the comparable tier of
service. On a business-to-business basis, certain of our subsidiaries
provide data, telephony and other services to businesses, primarily in
the Netherlands, Switzerland, Austria, Ireland, Belgium and Romania.
We generally do not count customers of these services as subscribers,
customers or RGUs.

While we take appropriate steps to ensure that subscriber
statistics are presented on a consistent and accurate basis at any
given balance sheet date, the variability from country to country in
(i) the nature and pricing of products and services, (ii) the
distribution platform, (iii) billing systems, (iv) bad debt collection
experience and (v) other factors adds complexity to the subscriber
counting process. We periodically review our subscriber counting
policies and underlying systems to improve the accuracy and
consistency of the data reported. Accordingly, we may from time to
time make appropriate adjustments to our subscriber statistics based
on those reviews.

Subscriber information for acquired entities is preliminary and
subject to adjustment until we have completed our review of such
information and determined that it is presented in accordance with our
policies.

Liberty Global, Inc.
Investor Relations:
Christopher Noyes, +1-303-220-6693
Molly Bruce, +1-303-220-4202
K.C. Dolan, +1-303-220-6686
Corporate Communications:
Hanne Wolf, +1-303-220-6678
Bert Holtkamp, +31-20-778-9447
www.lgi.com

Copyright Business Wire 2008