UGC Reports First Quarter 2004 Results

UGC Reports First Quarter 2004 Results 


DENVER, May 10  /PRNewswire-FirstCall/ -- UnitedGlobalCom, Inc. ("UGC")(1) ,
today announces operating and financial results for the first quarter ended
March 31, 2004. Highlights for the first quarter compared to the same period in
the prior year include:

   *  Revenue increase of 26% to $547 million

   *  Operating Cash Flow(2) increase of 67% to $204 million

   *  Operating Cash Flow margin of 37% compared to 28%

   *  Net loss of $(150) million compared to net income of $17 million

   *  Net RGU increase of 92,300, a 90% increase compared to first quarter
      2003 RGU growth

   *  Free Cash Flow(3) increase of 111% to $36 million

  Executive Summary


We are pleased to announce results for the quarter ended March 31, 2004.
Revenue increased 26% to $547 million compared to the same period last year and
Operating Cash Flow reached a new high of $204 million in the first quarter, a
year-over-year increase of 67%. Net loss was $(150) million for the first
quarter ended 2004 compared to net income of $17 million for the same period
last year, primarily as a result of less favorable foreign currency exchange
movements on fewer U.S. dollar denominated debt securities.

Subscriber growth was robust in the first quarter 2004 as we added 92,300 net
new RGUs, including 60,600 Internet subscribers. This represents a 90% increase
from our net gain during last year's first quarter. In Europe, Internet
subscribers during the period increased by 50,800 or 22% sequentially from the
seasonally strong fourth quarter. At March 31, 2004, total RGUs exceeded 9.2
million.

Mike Fries, President and Chief Executive Officer of UGC said, "This was a
strong first quarter for us financially, operationally and strategically.  We
made good progress on our key priority of driving top-line growth.  Revenue
increased 26% year-on-year, and while the majority of this increase was
attributable to the strong euro, we demonstrated good organic growth at the
operating company level. Our rate increase initiatives in the Netherlands are
moving in the right direction and customer growth was ahead of budget in nearly
every country and product. In particular, Internet subscriber growth
accelerated from the seasonally strong fourth quarter as a result of our
aggressive tiering and pricing campaigns.  While the European high-speed
Internet market remains very competitive, we continue to see higher than
expected demand as dial-up customers convert to broadband."

"We are also making good progress on launching new services across all of our
core product groups.  Earlier this year we expanded our digital TV reach in
France with a head end-in-the-sky (or HITS) service, which has significantly
outperformed our sales expectations.  We are live with our VOIP trial in the
Netherlands and have moved up our commercial launch dates to late summer. And
our recent bundling initiatives continue to drive RGUs and ARPU per customer. 
As of March 31, our ARPU per customer in Europe ranged from a high of more than
EUR 35.00 per month in Austria to an average of EUR 16.78 across the entire
platform."

"Operating Cash Flow reached a record $204 million for the quarter which,
despite a slightly stronger euro than forecasted, puts us well on track to meet
our full-year guidance of $800 million.  We continue to benefit from
organizational, operating and network efficiencies, all of which helped to push
our Operating Cash Flow margins to 37%, up from 28% one year ago."

"To help fund these initiatives and accelerate our broader goal of prudently
expanding our footprint in Europe, we recently completed the issuance of a EUR
500 million convertible bond with a coupon of 1.75% and an effective conversion
price at the issue date of $12.00 per share.  Together with the $1.0 billion of
rights offering proceeds received in February, we now have cash and equivalents
of more than $1.9 billion and a net debt to annualized operating cash flow
ratio of 3.1x.  As previously announced, we propose to use a portion of this
cash to facilitate a partial refinancing of our bank debt in Europe which will,
among other benefits, reduce our borrowing costs and improve our free cash
flow."

Recent Events

Update On Dutch Analog Video Rate Increase: Recently we announced that we would
increase rates for analog video customers in The Netherlands towards a standard
rate, effective January 1, 2004. As previously reported, we have been enjoined
from, or have voluntarily waived, implementing these rate increases in certain
cities within The Netherlands. Thus far, we have reached agreement with several
municipalities including the municipality of Amsterdam, allowing us to increase
our standard cable tariffs from EUR 11.36 to EUR 15.20 throughout the course of
the year. We are currently negotiating with other municipalities and expect a
satisfactory resolution.

UGC Completes EUR 500 million Convertible Debt Offering: On April 6, 2004, we
successfully completed the sale of EUR 500 million aggregate principal amount
of 1 3/4% Convertible Senior Notes due April 15, 2024 (the "Notes"), for gross
proceeds of EUR 500 million. The Notes are convertible into shares of UGC's
Class A common stock at an initial conversion price of EUR 9.7561 per share,
which was equivalent to a conversion price of $12.00 per share on the date of
issue.

European Bank Facility Refinancing:  On April 19, 2004, we announced that we
are in discussions with our lenders about refinancing a portion of the
outstanding amount under the UPC Distribution Bank Facility. We have proposed
to use up to EUR 450 million of our cash on hand to facilitate a refinancing
that would, among other things, reduce interest rates on the indebtedness under
the facility and provide us with additional flexibility to finance a portion of
the Noos acquisition and other potential acquisitions with debt.

First Quarter 2004 Results

Our significant and consolidated operating subsidiaries in Europe include UPC
Broadband -- our cable television and broadband division with operations in 11
countries, and chellomedia -- our media and programming division, which also
includes our CLEC, Priority Telecom. In Latin America, our primary operation is
VTR GlobalCom (VTR), our cable television and broadband provider in Chile.
Please refer to the Financial Highlights and Consolidated Financial Statements
section at the end of this press release for additional segment information.

Revenue

Revenue for the three months ended March 31, 2004 was $547 million, an increase
of 26% or $111 million compared to the same period in the prior year.
Approximately 74% of the full year sales increase was due to foreign exchange
rate fluctuations (primarily the appreciation of the Euro vs. the US$).
Excluding the impact of foreign exchange rates, organic year-over-year revenue
growth was 6.7% for the first quarter of 2004 driven primarily by higher
average monthly revenue per subscriber (ARPU) and RGU growth.  This is below
our long-term growth target of 10% organic revenue growth due to several
factors. First, and most important, UPC Broadband revenue growth was reduced by
2.4% due to the negative impact of foreign currency movements, particularly the
depreciation of Eastern European currencies against the euro. Other reasons for
the shortfall include the lack of RGU growth during the first 9 months of 2003
and the corresponding impact of annualizing those customer additions, the
delayed analog video rate increase in The Netherlands, a sequential decline in
our Chilean broadband revenue due to seasonality, and a 10% sales decline at
our CLEC, Priority Telecom.

ARPU per RGU for the three months ended March 31, 2004 was $18.66 an increase
of 22% compared to the prior year. A significant portion of the ARPU increase
was due to foreign exchange rate fluctuations (primarily the appreciation of
the Euro vs. the US$). Our overall European ARPU per RGU increased 4% to EUR
14.23 from last year's first quarter, while ARPU per customer relationship was
EUR 16.78 at March 31, 2004. Excluding the impact of foreign exchange rates,
the ARPU increase was driven by higher rates for analog video service, offset
by declining ARPUs for our Internet and telephone services.

Operating Cash Flow

Operating Cash Flow for the three months ended March 31, 2004 was $204 million,
an increase of 67% compared to the same period in the prior year. Excluding the
impact of foreign exchange rate fluctuations, our organic Operating Cash Flow
growth was 42% for the period. In addition, we continue to benefit from
organizational, operating, and network efficiencies, as our consolidated
Operating Cash Flow margin improved to 37% for first quarter 2004 compared to
28% for the same period last year. On a functional currency basis, European
operating expenses decreased 6.7% for the three months ended March 31, 2004
compared to the same period in the prior year. The decrease in operating
expense resulted from continued improvement in operational cost control, more
effective procurement of support services and lower customer care and billing
and collection charges, particularly in The Netherlands. In addition, European
selling, general and administrative (SG&A) expense decreased 10% for the three
months ended March 31, 2004 compared to the same period in the prior year. The
decrease SG&A expense reflects continued improvement in cost control, reduced
infrastructure cost, a reduction in outsourced support and translation effects,
offset by an increase in marketing expenditures.

Net Income (Loss)

Net loss was $(150) million for the three months ended March 31, 2004, which
compares with net income of $17 million for the same period in 2003. The larger
loss in first quarter 2004 is primarily due to a $(22) million foreign currency
exchange loss in the period compared to a gain of $151 million in last year's
first quarter as a result of less favorable foreign currency exchange movements
on few U.S. dollar denominated securities.

Free Cash Flow and Capital Expenditures

We remain focused on improving the underlying cash flow generation of our
business. Free Cash Flow for the three months ended March 31, 2004 was $36
million, a 111% improvement compared to the same period last year. The increase
was driven by a 56% improvement in cash flow from operating activities, offset
by a 39% increase in capital expenditures.

Capital expenditures increased to $80 million for the three months ended March
31, 2004, compared to $58 million for same period last year. The primary reason
for the increase was higher spending on customer premise equipment (CPE) due to
the significant increase in RGU growth in the first quarter 2004 compared to
the same period last year.

Operating Statistics

As of March 31, 2004, total RGUs were 9,274,100, an increase of 4.0%, or
359,800 compared to the prior year. Since December 31, 2003, we added 92,300
net new RGUs, of which 60,600 were Internet subscribers. Our net gain in the
first quarter 2004 represents an increase of 90% from our net gain in the same
period last year. Due to the seasonality of our business, we believe that our
first quarter net gain in RGUs puts us on track to meet our guidance of 500,000
net new RGUs in 2004.

In Europe we added 50,800 new Internet subscribers during the quarter, a 22%
sequential improvement from the 41,700 additions in the seasonally strong
fourth quarter as a result of our tiering strategy. We now offer tiered
services across all of our European markets where we offer the Internet
product. Offsetting the higher than expected customer additions, most of our
new Internet customers are taking lower-priced, lower-speed tiers of service
which, in turn, is causing ARPUs to decline. Currently, our blended average
ARPU for Internet across all countries in Europe is approximately EUR 36.50
($43.00).

About UnitedGlobalCom

UGC is the leading international broadband communications provider of video,
voice, and Internet services with operations in 14 countries. Based on UGC's
operating statistics at March 31, 2004, the Company's networks reached
approximately 12.8 million homes and had over 9.2 million RGUs, including
approximately 7.5 million video subscribers, 742,000 telephone subscribers and
984,300 Internet access subscribers.

Forward-Looking Statements: Except for historical information contained herein,
this press release contains forward-looking statements, including guidance
given for 2004. The Company's plans with respect to refinancing the senior bank
facility and the intended effects of such refinancing, if any, such as a
reduction of interest rates, elimination or loosening of covenants and
potential acquisitions are forward looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995.  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, obtaining regulatory
approval for the previously announced Noos Transaction, our ability to
successfully integrate the French systems, continued use by subscribers and
potential subscribers of the Company's services, changes in the technology and
competition, our ability to achieve expected operational efficiencies and
economies of scale, our ability to generate expected 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. 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.

   (1) Including the "Company", "we, "us", "our", and similar terms.

   (2) Previously disclosed as Adjusted EBITDA. Please see pages 4 and 5 of
       this press release for a full explanation of Operating Cash Flow,
       more detail on Operating Cash Flow by company, and a reconciliation
       of Operating Cash Flow to Net Income (Loss).

   (3) Please see page 5 of this press release for an explanation of Free
       Cash Flow.


   Financial Highlights:

   Revenue

   The table below highlights Revenue by segment:

                 3 months      3 months    Year/Year   3 months   Sequential
   (thousands)   Q1 2004       Q1 2003       Change    Q4 2003      Change
   UPC
    Broadband   $441,447     $356,102        24%    $411,867          7%
   Chellomedia    59,707       50,840        17%      57,741          3%
   VTR            71,683       49,087        46%      68,168          5%
   Other (1)     (25,495)     (19,987)       28%     (21,912)        16%
   UGC
    Consolidated $547,342     $436,042       26%     $515,864         6%

   (1) Includes primarily intercompany eliminations and other Latin America
       Broadband.




The following is provided for informational purposes to highlight revenues in
the functional currency of UGC Europe (Euros) and VTR (Chilean Pesos), as
follows:

   (thousands,
    except           3 months      3 months  Year/Year  3 months  Sequential
    for VTR)         Q1 2004       Q1 2003    Change    Q4 2003     Change
   UPC
    Broadband     euro 352,733   euro 331,994   6%    euro 346,323    2%
   Chellomedia          47,708         47,398   1%          48,514   -2%
   Other (1)           (21,997)       (20,292)  8%         (20,048)  10%
   UGC Europe
    - Total       euro 378,444   euro 359,100   5%    euro 374,789    1%

   VTR (millions)     CP42,103       CP36,168  16%        CP42,547   -1%

   (1) Includes primarily intercompany eliminations.


   Operating Cash Flow

   The table below highlights Operating Cash Flow ("OCF") by segment:

                     3 months    3 months   Year/Year  3 months   Sequential
   (thousands)       Q1 2004      Q1 2003    Change    Q4 2003      Change
   UPC
    Broadband       $186,108    $122,620     52%    $163,656      14%
   Chellomedia        11,532       5,252    120%       9,830      17%
   VTR                25,030      12,459    101%      22,067      13%
   Other (1)         (18,386)    (18,260)     1%      (9,539)      93%
   UGC Consolidated
    OCF             $204,284    $122,071     67%    $186,014      10%
   OCF Margin
   (% of
    revenues)            37%         28%     33%         36%       4%

   (1) Includes primarily intercompany eliminations and other Latin America
       Broadband.




The following is provided for informational purposes to highlight Operating
Cash Flow in the functional currency of UGC Europe (Euros) and VTR (Chilean
Pesos), as follows:

   (thousands,
    except for       3 months      3 months  Year/Year  3 months  Sequential
    VTR)             Q1 2004       Q1 2003    Change    Q4 2003     Change
   UPC Broadband euro 148,687  euro 114,314   30%  euro 137,268        8%
   Chellomedia           9,212         4,896   88%         8,223       12%
   Other (1)           (11,699)      (12,722)  -8%        (5,065)     131%
   UGC Europe
    - Total OCF   euro 146,200  euro 106,488   37%  euro 140,426        4%
   OCF Margin
   (% of revenues)       38.6%         29.7%               37.5%

   VTR (in
    millions)         CP14,683       CP9,182   60%      CP13,815        6%
   OCF Margin
    (% of
     revenues)           34.9%         25.4%               32.5%

   (1) Includes primarily intercompany eliminations.


  Use of Operating Cash Flow


Operating Cash Flow is the primary measure used by our chief operating decision
makers to evaluate segment-operating performance and to decide how to allocate
resources to segments. We previously referred to this measure as Adjusted
EBITDA.  As we use the term, Operating Cash Flow is defined as revenue less
operating, selling, general and administrative expense (excluding depreciation
and amortization, impairment of long-lived assets, restructuring charges and
other and stock-based compensation). 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 readily view operating
trends, perform analytical comparisons and benchmarking between segments in the
different countries in which we operate and identify strategies to improve
operating performance. For example, our internal decision makers believe that
the inclusion of impairment and restructuring charges within Operating Cash
Flow distorts their 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. We reconcile
the total of the reportable segments' Operating Cash Flow to our consolidated
net income as presented in the accompanying condensed consolidated statements
of operations, because we believe consolidated net income is the most directly
comparable financial measure to total segment operating performance. Investors
should view Operating Cash Flow as a supplement to, and not a substitute for,
operating income, net income, cash flow from operating activities and other
GAAP measures of income as a measure of operating performance.

Operating Cash Flow Reconciliation

The table below highlights the reconciliation of Operating Cash Flow to Net
income (loss):

                                 3 months        3 months       3 months
     (thousands)                 Q1 2004         Q1 2003        Q4 2003
     Total Segment Operating
      Cash Flow                 $204,284        $122,071       $186,014
     Depreciation and
      amortization              (217,694)       (194,718)     (210,456)
     Impairment of long-lived
      assets                        (512)             --      (403,667)
     Restructuring charges
      and other                   (3,902)             --       (28,097)
     Stock-based compensation    (61,852)         (6,111)       (9,377)
     Operating income (loss)     (79,676)        (78,758)     (465,583)
     Interest expense, net       (68,405)        (89,586)      (60,868)
     Foreign currency exchange
      gain (loss), net           (21,852)        150,960       (16,270)
     Gain on extinguishment
      of debt                     31,916          74,401             0
   Other expense, net             (4,304)         (2,894)       (1,616)
     Income (loss) before
      income taxes and
      other items               (142,321)         54,123      (544,337)
     Other, net                   (7,344)        (37,184)      163,643
     Net income (loss)         ($149,665)        $16,939     ($380,694)


  Free Cash Flow Definition and Reconciliation


Free Cash Flow is not a GAAP measure of liquidity. We define Free Cash Flow as
net cash flows from operating activities less capital expenditures. We believe
our presentation of free cash flow provides useful information to our investors
because it can be used to gauge our ability to service debt and fund new
investment opportunities. Investors should view free cash flow as a supplement
to, and not a substitute for, GAAP cash flows from operating, investing and
financing activities as a measure of liquidity.

The table below highlights the reconciliation of net cash flows from operating
activities and Free Cash Flow:

                  3 months   3 months     Year/Year   3 months    Sequential
   (thousands)    Q1 2004    Q1 2003       Change      Q4 2003        Change
   Net cash
    flows from
    operating
    activities  $115,771     $74,427        56%      $118,651         -2%
   Capital
    expenditures (80,210)    (57,598)       39%      (105,426)       -24%
   Free cash
    flow         $35,561     $16,829       111%       $13,225        169%


   Capital Expenditures Update



The table below highlights our capital expenditures per NCTA cable industry
guidelines:

                 3 months    3 months    Year/Year    3 months   Sequential
   (thousands)    Q1 2004     Q1 2003      Change      Q4 2003      Change
   Customer
    Premises
    Equipment     $28,182    $20,349       38%       $21,112         33%
   Commercial          --         --        --            --          --
   Scaleable
    Infrastructure 11,989     10,329       16%        18,634        -36%
   Line Extensions 11,797     10,578       12%        15,638        -25%
   Upgrade/Rebuild  5,386      3,122       73%        12,923        -58%
   Support Capital 17,221     12,578       37%        20,137        -14%
   Intangibles &
    Other           5,635        641      779%        16,982        -67%
   Total Capital
    Expenditures  $80,210    $57,597       39%      $105,426        -24%


   Consolidated Operating Statistics



The table below shows operating statistics for UGC on a consolidated basis:

                  As of       As of      Year/Year     As of      Sequential
                  Mar-04      Mar-03       Change      Dec-03       Change

  Homes
   Passed      12,750,500  12,519,900    230,600  12,693,500      57,000
  Two-Way
   Homes
   Passed       7,639,400   6,992,000    647,400   7,536,000     103,400
  Customer
   Relationships 7,633,900        n.a.       n.a.   7,633,200        n.a.

  RGUs by product:
  Internet        984,300     790,700    193,600     923,700      60,600
  Telephone       742,000     695,600     46,400     733,000       9,000
  DTH             204,500     157,500     47,000     197,300       7,200
  Digital         168,100     137,000     31,100     145,700      22,400
  Analog Cable  7,148,200   7,106,500     41,700   7,155,100     (6,900)
  Total RGUs    9,247,100   8,887,300    359,800   9,154,800      92,300

  RGUs by company:
  UGC Europe    8,300,900   8,068,500    232,400   8,229,600      71,300
  VTR             914,600     787,200    127,400     894,000      20,600
  Other            31,600      31,600         --      31,200         400
  Total RGUs    9,247,100   8,887,300    359,800   9,154,800      92,300




The table below highlights UGC's average revenue per RGU and Customer
Relationship per month ("ARPU"):

                      3 months      3 months  Year/Year  3 months Sequential
                       Q1 2004       Q1 2003   Change    Q4 2003    Change
   ARPU per RGU (1)

   UGC Consolidated     $18.66        $15.31     22%       $17.69      5%
   UGC Europe:
   Western Europe   euro 16.84    euro 16.26      4%   euro 16.85      0%
   Eastern Europe    euro 9.59     euro 9.21      4%    euro 9.27      3%
   Total            euro 14.23    euro 13.74      4%   euro 14.13      1%
   VTR GlobalCom
    (Pesos)           CP15,520      CP15,505      0%     CP16,174     -4%
   VTR GlobalCom
    (US$'s)             $26.42        $21.04     26%       $25.91      2%
   ARPU per Customer
    Relationship (2)
   UGC Consolidated     $22.50          n.a.    n.a.         n.a.    n.a.
   UGC Europe:
   Western Europe   euro 21.46          n.a.    n.a.         n.a.    n.a.
   Eastern Europe   euro 10.00          n.a.    n.a.         n.a.    n.a.
   Total            euro 16.78          n.a.    n.a.         n.a.    n.a.
   VTR GlobalCom
    (Pesos)           CP23,499          n.a.    n.a.         n.a.    n.a.
   VTR GlobalCom
    (US$'s)             $39.92          n.a.    n.a.         n.a.    n.a.

   (1) ARPU per RGU calculations are calculated as follows: average monthly
       broadband revenue for the period as indicated, divided by the average
       of the opening and closing RGUs for the period.

   (2) ARPU per Customer Relationship calculations are calculated as
       follows: average monthly broadband revenue for the period as
       indicated, divided by the average of the opening and closing Customer
       Relationships for the period.

  New Basis of Accounting Effective January 1, 2004


On January 5, 2004, Liberty Media Corporation (together with its subsidiaries
"Liberty") acquired approximately 8.2 million shares of Class B common stock
from our founding stockholders in exchange for securities of Liberty and cash
(the "Founders Transaction"). Upon completion of this transaction, the
restriction on Liberty's right to exercise its voting power over us was
terminated. Liberty now has the ability to elect our entire board of directors
and otherwise to control us. Liberty acquired its cumulative interest in us
over a period of several years in separate transactions. Liberty's largest
acquisition of us occurred in January 2002 whereby its economic and voting
interests increased from approximately 11% and 37%, respectively, to
approximately 73% and 94%, respectively. Because of certain voting and
standstill agreements entered into between Liberty and our founding
stockholders in connection with this January 2002 transaction, Liberty was
unable to control us and therefore accounted for its investment in us under the
equity method of accounting. Upon completion of the Founders Transaction, our
financial statements changed to reflect the push down of Liberty's basis and,
as a result, we have a new basis of accounting effective January 1, 2004.
Accordingly, for periods prior to January 1, 2004 the assets and liabilities of
UnitedGlobalCom, Inc and the related consolidated financial statements are
sometimes referred to herein as "UGC Pre-Founders Transaction" and for periods
subsequent to January 1, 2004 the assets and liabilities of UnitedGlobalCom,
Inc and the related consolidated financial statements are sometimes referred to
herein as "UGC Post-Founders Transaction."

                          UnitedGlobalCom, Inc.
                  Condensed Consolidated Balance Sheets
          (In thousands, except par value and number of shares)
                               (Unaudited)
                                                   UGC             UGC
                                              Post-Founders    Pre-Founders
                                                Transaction    Transaction
                                                 March 31,     December 31,
                                                   2004            2003

   Assets
   Current assets
     Cash and cash equivalents                  $1,275,785       $310,361
     Restricted cash                                18,169         25,052
     Short-term liquid investments                  19,621          2,134
     Trade and other receivables, net              204,733        203,502
     Related party receivables                       1,379          1,730
     Other current assets, net                      89,797         79,542
         Total current assets                    1,609,484        622,321
   Long-term assets
     Property, plant and equipment, net          3,143,864      3,342,743
     Goodwill                                    1,917,855      2,519,831
     Intangible assets, net                        413,808        252,236
     Other assets, net                             411,205        362,540
         Total assets                           $7,496,216     $7,099,671

   Liabilities and Stockholders' Equity
   Current liabilities
     Not subject to compromise:
       Accounts payable                           $219,342       $224,092
       Accounts payable, related party                 209          1,448
       Accrued liabilities                         319,959        405,546
       Subscriber prepayments and deposits         201,916        141,108
       Notes payable, related party                     --        102,728
       Current portion of long-term debt           258,105        310,804
       Other current liabilities                    15,193         82,149
         Total current liabilities not
          subject to compromise                  1,014,724      1,267,875
     Subject to compromise:
       Current portion of long-term debt            24,627        317,372
       Other liabilities                             4,691         19,544
         Total current liabilities subject
          to compromise                             29,318        336,916
   Long-term liabilities
     Long-term debt                              3,595,264      3,615,902
     Deferred taxes                                139,199        124,232
     Other long-term liabilities                   315,138        259,493
         Total long-term liabilities             4,049,601      3,999,627

   Minority interests in subsidiaries               22,124         22,761
   Stockholders' equity
     Preferred stock, $0.01 par value,
      10,000,000 shares authorized,
      nil shares issued and outstanding
     Class A common stock, $0.01 par value,
      1,000,000,000 shares authorized,
      400,354,385 and 287,350,970 shares issued,
      respectively                                   4,004          2,873
     Class B common stock, $0.01 par value,
      1,000,000,000 shares authorized,
      11,165,777 and 8,870,332 shares issued,
      respectively                                     112             89
     Class C common stock, $0.01 par value,
      400,000,000 shares authorized,
      385,828,203 and 303,123,542 shares
      issued and outstanding, respectively           3,858          3,031
     Additional paid-in capital                  2,621,288      5,852,896
     Treasury stock, at cost                      (70,495)       (70,495)
     Accumulated deficit                         (149,665)    (3,372,737)
     Accumulated other comprehensive
      income (loss)                               (28,653)      (943,165)
        Total stockholders' equity               2,380,449      1,472,492
        Total liabilities and
         stockholders' equity                   $7,496,216     $7,099,671


                          UnitedGlobalCom, Inc.
           Condensed Consolidated Statements of Operations and
                       Comprehensive Income (Loss)
                  (In thousands, except per share data)
                               (Unaudited)

                                                   UGC             UGC
                                              Post-Founders    Pre-Founders
                                                Transaction    Transaction
                                               Three Months    Three Months
                                                   Ended          Ended
                                                 March 31,       March 31,
                                                   2004            2003

   Statements of Operations
     Revenue                                     $547,342       $436,042
     Operating expense                           (209,173)      (190,269)
     Selling, general and administrative
      expense                                    (133,885)      (123,702)
     Depreciation and amortization               (217,694)      (194,718)
     Impairment of long-lived assets                 (512)           --
     Restructuring charges and other               (3,902)           --
     Stock-based compensation                     (61,852)        (6,111)

         Operating income (loss)                  (79,676)       (78,758)
     Interest income                                 3,328        5,403
     Interest expense                             (71,733)       (94,989)
     Foreign currency exchange (loss) gain, net   (21,852)       150,960
     Gain on extinguishment of debt                31,916         74,401
     Other expense, net                            (4,304)        (2,894)

         Income (loss) before income taxes and
          other items                            (142,321)        54,123
     Reorganization expense, net                   (6,894)        (8,196)
     Income tax benefit (expense), net              1,293        (26,752)
     Minority interests in subsidiaries, net          470            463
     Share in results of affiliates, net           (2,213)        (2,699)

         Net income (loss)                      $(149,665)       $16,939

   Earnings per share:
     Basic and diluted net income (loss)
      per share                                    $(0.21)         $1.37

   Statements of Comprehensive Income
     Net income (loss)                          $(149,665)       $16,939
     Other comprehensive income, net of tax:
       Foreign currency translation adjustments   (48,091)      (222,970)
       Change in fair value of derivative assets    6,558
       Change in unrealized gain on
        available-for-sale securities              19,438             33

         Comprehensive income (loss)            $(178,318)     $(199,440)


                          UnitedGlobalCom, Inc.
             Condensed Consolidated Statements of Cash Flows
                              (In thousands)
                               (Unaudited)
                                                   UGC             UGC
                                              Post-Founders    Pre-Founders
                                                Transaction    Transaction

                                               Three Months    Three Months
                                                   Ended          Ended
                                                 March 31,       March 31,
                                                   2004            2003

   Cash Flows from Operating Activities
   Net income (loss)                            $(149,665)        $16,939
   Adjustments to reconcile net income (loss)
    to net cash flows from operating activities:
     Stock-based compensation                       61,852          6,111
     Depreciation and amortization                 217,694        194,718
     Impairment of long-lived assets,
      restructuring charges and other                4,414             --
     Accretion of interest on senior notes
      and amortization of deferred financing costs   3,186         17,985
     Unrealized foreign exchange (gains)
      losses, net                                   13,100      (145,402)
     Loss on derivative securities                   4,025          4,701
     Gain on extinguishment of debt               (31,916)      (74,401)
     Reorganization expenses, net                    6,894          8,196
     Deferred tax provision                        (5,247)        26,752
     Minority interests in subsidiaries, net         (470)          (463)
     Share in results of affiliates, net             2,213          2,699
   Change in assets and liabilities:
     Change in receivables and other assets       (17,679)        (7,499)
     Change in accounts payable,
      accrued liabilities and other                  7,370         24,091
       Net cash flows from operating activities    115,771         74,427
   Cash Flows from Investing Activities
   Purchase of short-term liquid investments      (17,487)          (957)
   Proceeds from sale of short-term
    liquid investments                                  --         44,555
   Restricted cash (deposited) released, net         6,105      (130,169)
   Capital expenditures                           (80,210)       (57,598)
   Purchase of interest rate caps                 (14,198)        (9,750)
   Dividends received and other                      4,775            736
       Net cash flows from investing activities  (101,015)      (153,183)
   Cash Flows from Financing Activities
   Issuance of common stock                      1,076,264             --
   Proceeds from short-term and
    long-term borrowings                            18,773          1,481
   Repayments of short-term and
    long-term borrowings                         (113,557)       (10,354)
   Financing costs                                (21,071)            --
       Net cash flows from financing activities    960,409        (8,873)
   Effect of Exchange Rates on Cash                (9,741)         4,817
   Decrease in Cash and Cash Equivalents           965,424       (82,812)
   Cash and Cash Equivalents,
    Beginning of Period                            310,361        410,185
   Cash and Cash Equivalents, End of Period     $1,275,785       $327,373

   Supplemental Cash Flow Disclosures:
     Cash paid for reorganization expenses          $6,894         $3,076

     Cash paid for interest                       $106,809        $71,895

     Cash paid for income taxes                     $1,756           $327

   Non-cash Investing and Financing Activities:
     Issuance of common stock for financial
      assets, settlement of liabilities and other  $36,574       $612,836


              Summary of Operating Data as of March 31, 2004

                  Homes in                 Two-way    Customer
                  Service      Homes        Homes     Relation-     Total
                  Area(1)    Passed(2)    Passed(3)  ships(4)(13)   RGUs(5)

   Europe:
    The
     Netherlands 2,634,600  2,606,100  2,405,500   2,311,200   2,866,700
    Austria     1,081,400     925,300    922,000     566,800     896,300
    France      2,656,600   1,393,100    701,400     500,100     576,500
    Norway        529,000     485,100    226,700     339,000     436,200
    Sweden        770,000     421,600    272,300     282,600     379,800
    Belgium       530,000     154,600    154,600     145,000     160,300
      Total
       Western
       Europe   8,201,600   5,985,800  4,682,500   4,144,700   5,315,800


    Poland      1,876,000   1,876,000    407,200     989,500   1,021,100
    Hungary     1,170,400    991,200     613,500     856,100     930,400
    Czech
     Republic     913,000     722,800    289,600     382,600     400,700
    Romania       659,600     458,400      2,600     337,700     337,700
    Slovak
     Republic     517,800     400,900     86,300     292,700     295,200
      Total
       Central
       and
       Eastern
       Europe   5,136,800   4,449,300  1,399,200   2,858,600   2,985,100

      Total
        Europe 13,338,400  10,435,100  6,081,700   7,003,300   8,300,900

   Latin America:
    Chile       2,350,000   1,757,300  1,036,100     600,900     914,600
    Brazil        746,300     491,300    491,300      15,800      16,400
    Peru          202,800      66,800     30,300      13,900      15,200
      Total
       Latin
       America  3,299,100   2,315,400  1,557,700     630,600     946,200
      Grand
        Total  16,637,500  12,750,500  7,639,400   7,633,900   9,247,100


                               Video                        Internet
                  Analog                  Digital
                   Cable        DTH        Cable       Homes
                  Subscri-    Subscri-    Subscri-    Service-    Subscri-
                   bers(6)     bers(7)     bers(8)     able(9)     bers(10)

   Europe
    The
     Netherlands 2,307,600         --     53,500   2,405,500    345,500
    Austria       496,500          --     26,600     922,000    218,900
    France        467,500          --     22,200     701,400     28,000
    Norway        339,000          --     33,100     226,700     40,400
    Sweden        282,600          --     26,300     272,300     70,900
    Belgium       132,400          --         --     154,600     27,900
      Total
       Western
       Europe   4,025,600          --    161,700   4,682,500     731,600

    Poland        987,400          --         --     407,200     33,700
    Hungary       710,100     108,900         --     583,100      46,700
    Czech
     Republic     296,200      77,800         --     289,600     26,700
    Romania       337,700          --         --          --          --
    Slovak
     Republic     279,400      12,600         --      82,000       3,200
      Total
       Central
       and
       Eastern
       Europe   2,610,800     199,300         --   1,361,900     110,300
      Total
       Europe   6,636,400     199,300    161,700   6,044,400     841,900

   Latin America:
    Chile         490,200       5,200         --   1,036,100    138,800
    Brazil          9,200          --      6,400     491,300         800
    Peru           12,400          --         --      30,300      2,800
      Total
       Latin
       America    511,800       5,200      6,400   1,557,700     142,400
      Grand
       Total    7,148,200     204,500    168,100   7,602,100     984,300


                                                        Telephone
                                                Homes
                                            Serviceable(11)  Subscribers(12)
   Europe
    The Netherlands                              1,607,800        160,100
    Austria                                        901,500        154,300
    France                                         701,400         58,800
    Norway                                         143,600         23,700
    Sweden                                              --             --
    Belgium                                             --             --
      Total Western Europe                       3,354,300        396,900

    Poland                                              --             --
    Hungary                                         87,200         64,700
    Czech Republic                                      --             --
    Romania                                             --             --
    Slovak Republic                                     --             --
      Total Central and Eastern Europe              87,200         64,700
      Total Europe                               3,441,500        461,600

   Latin America:
    Chile                                        1,026,200        280,400
    Brazil                                              --             --
    Peru                                                --             --
      Total Latin America                        1,026,200        280,400
      Grand Total                                4,467,700        742,000


    (1) "Homes in Service Area" are homes in our franchise areas that can
        potentially be served, based on census data and other market
        information.

    (2) "Homes Passed" are homes that can be connected to our broadband
        network without further extending the distribution plant.

    (3) "Two-way Homes Passed" are homes passed by our network where
        customers can request and receive the installation of a two-way
        addressable set-top computer, cable modem, transceiver and/or voice
        port which, in most cases, allows for the provision of video,
        telephone and Internet services.

    (4) "Customer Relationships" are the number of customers who receive at
        least one level of service (video/telephone/Internet) without regard
        to which service(s) they subscribe.

    (5) "Revenue Generating Unit" is separately an Analog Cable Subscriber,
        DTH Subscriber, Digital Cable Subscriber, Internet Subscriber or
        Telephone Subscriber. A home may contain one or more RGUs. For
        example, if a residential customer in our Austrian system subscribed
        to our analog cable service, digital cable service, telephone
        service and high-speed Internet access service, the customer would
        constitute four RGUs. "Total RGUs" is the sum of Analog, DTH,
        Digital Cable, Internet and Telephone Subscribers.

    (6) "Analog Cable Subscriber" is comprised of basic analog customers and
        lifeline customers that are counted on a per connection basis.
        Commercial contracts such as hotels and hospitals are counted on an
        equivalent bulk unit ("EBU") 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. Non-paying subscribers are counted
        as subscribers during their free promotional or service period. Some
        of these customers may choose to disconnect after their free service
        period.

    (7) "DTH Subscriber" is a home or commercial unit that receives our
        video programming broadcast directly to the home via geosynchronous
        satellites.

    (8) "Digital Cable Subscriber" is a home or commercial unit connected to
        our distribution network with one or more digital converter boxes
        that receives our digital video service. A Digital Cable Subscriber
        is also counted as an Analog Cable Subscriber.

    (9) "Internet Homes Serviceable" are homes that can be connected to our
        broadband network where customers can request and receive Internet
        access services.

    (10) "Internet Subscriber" is a home or commercial unit with one or more
         cable modems connected to our broadband network, where a customer
         has requested and is receiving high-speed Internet access services.

    (11) "Telephone Homes Serviceable" are homes that can be connected to
         our broadband network (or twisted pair network in Hungary), where
         customers can request and receive voice services.

    (12) "Telephone Subscriber" is a home or commercial unit connected to
         our broadband network (or twisted pair network in Hungary), where a
         customer has requested and is receiving voice services.

    (13) As of December 31, 2003, certain analog cable customers in The
         Netherlands that also received our Internet services were counted
         as two separate customer relationships, due to the nature of our
         billing arrangement (cable through the local utility company and
         Internet directly by UGC Europe). As of March 31, 2004, we count
         customers in this situation as one customer relationship. Had this
         methodology been applied to the December 31, 2003 data, the
         previously reported 2,403,000 customer relationships in The
         Netherlands would have been 2,316,900.


DATASOURCE: UnitedGlobalCom, Inc.



CONTACT:  Richard S.L. Abbott, Investor Relations - Denver,

[phone], , or Bert Holtkamp, Corporate

Communications - Europe, + 31 (0) 20 778 9447, ,

both of UnitedGlobalCom, Inc.

Copyright