UCOMA Unitedglobalcom (MM)

UGC Reaches Agreement to Acquire Premium Content Business From Canal+ in The Netherlands DENVER, Colo., Nov. 16 /PRNewswire-FirstCall/ -- UnitedGlobalCom, Inc. (UGC) (NASDAQ:UCOMA) announced today that it has reached an agreement with Airbridge Investments and Greenfield Capital Partners, two Dutch investment groups, to acquire parts of the Canal+ business in The Netherlands. UGC's European content and services division -- chellomedia -- will acquire all of Canal+'s content activities in The Netherlands. Canal+ currently packages and distributes the best premium sports and movie programming under the Canal+ brand name to over 215,000 customers. chellomedia will pay an acquisition price of EUR 24.75 million on a debt free, cash free basis and assume certain guaranteed output payments to the film studios. Revenue for the businesses to be acquired is anticipated to be EUR 60 million for the calendar year 2004. The transaction is subject to regulatory approval and is expected to close in the second quarter of 2005. Existing Canal+ customers in The Netherlands will continue to receive their current service on an uninterrupted basis. Airbridge and Greenfield will retain CanalDigitaal, the Direct To Home (DTH) satellite pay-TV platform serving the Dutch language market, and will continue to offer the Canal+ channels on this platform as part of a new long-term wholesale distribution agreement. UGC group intends to grow the Canal+ business in 2005 by continuing Airbridge/Greenfield's strategy of entering into new wholesale distribution agreements with existing digital TV platforms in The Netherlands. We will also offer customers the option of subscribing to standalone premium sports and movie services in addition to the existing integrated package. In a separate transaction, UGC's broadband distribution company in The Netherlands, UPC Nederland, agreed to settle all existing litigation with Canal+. As part of this settlement, UPC Nederland has agreed to enter into a new long-term wholesale distribution agreement for the Canal+ premium movie and sports channels. Mike Fries, President and Chief Executive Officer of UGC stated: "This is a very important transaction for us and supports our strategy of providing the best digital programming to UPC customers. It also demonstrates our commitment to the expansion of digital in The Netherlands where we continue to explore new and innovative ways of expanding our consumers enjoyment of digital television." About UnitedGlobalCom UGC is a leading provider of video, voice, and broadband Internet services with operations in 14 countries, including 11 countries in Europe. Based on UGC's operating statistics at September 30, 2004, UGC's networks reached approximately 15.5 million homes passed and served over 11.1 million RGUs, including approximately 9.1 million video subscribers, 761,000 telephone subscribers and 1.3 million broadband Internet subscribers. About chellomedia chellomedia, a division of UGC, is an innovative provider of content and services for European communications and entertainment companies. chellomedia's core activities fall under two main categories: content which includes on demand programming, thematic channels and portal content; and, digital and communication services which consist of broadband Internet access, interactive TV products and applications, an end-to-end enhanced TV delivery solution, and advanced digital production and broadcast facilities. Forward-Looking Statements: Except for historical information contained herein, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the assumed receipt of regulatory approval for the acquisition of the Canal+ business described herein, the expected timing of such closing, and the anticipated benefits to UGC and its customers from the acquisition. 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, including the Canal+ content business to be acquired, changes in technology and competition, our ability to achieve expected operational efficiencies and economies of scale, as well as other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. 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 guidance and other 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. Please visit http://www.unitedglobal.com/ for further information or contact: Richard S.L. Abbott Bert Holtkamp Investor Relations - UGC Corporate Communications - UGC Europe (303) 220-6682 + 31 (0) 20 778 9447 Email: DATASOURCE: UnitedGlobalCom, Inc. CONTACT: Investor Relations, Richard S.L. Abbott of UGC, +1-303-220-6682, , or Corporate Communications, Bert Holtkamp of UGC Europe, + 31 (0) 20 778 9447, Web site: http://www.unitedglobal.com/

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