ST. LOUIS--(BUSINESS WIRE)--Feb. 28, 2001--Charter Communications (Nasdaq:CHTR) today announced a definitive agreement with AT&T Broadband to buy certain cable systems, including the AT&T Broadband-owned systems in the St. Louis metropolitan area. The transaction will give Charter an additional 271,000 customers in St. Louis, bringing its total customer base in this area to 511,000.
When completed, this transaction will result in Charter ownership of AT&T Broadband systems in 62 Missouri cities, including the City of St. Louis, Arnold, Clayton, Ferguson, Maryland Heights, St. Ann, St. Charles, St. Peters and University City. In Illinois, current AT&T Broadband systems in 36 communities would also go to Charter, including Alton, Belleville, East St. Louis, Fairview Heights, O'Fallon and Scott Air Force Base.
"This transaction will help deliver the promise of broadband technology and its many benefits to all of the St. Louis metropolitan region," said Jerry Kent, president and CEO of Charter. "Since our founding here in 1993, Charter has grown to become a national leader in the cable industry. Our goal is to make St. Louis the most technologically advanced area in the country."
In the last two years, Charter has invested more than $120 million to upgrade its broad-band network in the St. Louis metro area to a state-of-the-art, two-way system, Mr. Kent said.
"Charter systems in this region are already allowing our customers to experience the power of our state-of-the-art broadband network through services such as Charter Digital Cable(TM) and Charter Pipeline(TM) high-speed Internet service," Mr. Kent said. "When this transaction is completed, Charter will install the network technology in these newly acquired areas necessary to provide the same services we're now providing to our existing customers as well as future services that Charter will offer."
In addition to the St. Louis-area systems, Charter also announced today that it will acquire AT&T cable systems in Nevada and Alabama. Along with the St. Louis-area systems, the transaction would give Charter an additional 578,500 customers nationwide, bringing its total customer base to 6.9 million.
For its systems, AT&T Broadband will receive $1.79 billion comprised of Charter cable systems valued at $249 million serving 62,000 customers in Miami Beach and Sebastian, Fla.; up to $500 million in Charter common stock; and the balance in cash. The transactions are expected to close in the second or third quarter of 2001, subject to certain closing conditions and regulatory review.
Charter Communications, a Wired World(TM) company, is the fourth-largest St. Louis-based company, with market capitalization of $13 billion. With nearly 6.4 million customers, Charter 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 www.charter.com.
Statements in this press release regarding Charter Communications' business that are not historical facts may be "forward-looking statements." Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from any such forward-looking statements are identified in the reports and documents Charter files from time to time with the U.S. Securities and Exchange Commission.
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|Andy Morgan, 314/543-2217