Revenue Generating Units Grew by 656,000 –

Best Second Quarter Ever

Revenues Rose 7%, Adjusted OIBDA Grew 9% and Operating Income

Increased 4% over Prior Year Quarter

NEW YORK–(EMWNews)–Time Warner Cable Inc. (NYSE: TWC) today reported financial results for

its second quarter ended June 30, 2008.

Time Warner Cable President and Chief Executive Officer Glenn Britt

said: “We added 20% more RGUs this quarter

than in last year’s second quarter, fueled by

improved net additions in every RGU category, despite a challenging

economic environment. We also increased our Triple Play subscribers by a

net 214,000, demonstrating that the value and simplicity of our bundles

continue to attract consumers. The strength of our subscription business

drove a 7% increase in revenues and a 9% rise in Adjusted OIBDA.”

SECOND-QUARTER RESULTS

Revenues for the second quarter of 2008 increased 7% ($284

million) over the prior year quarter to $4.3 billion. Subscription

revenues grew 7% ($277 million) to $4.1 billion. Video revenues were up

2% ($57 million) to $2.6 billion, driven by continued growth in digital

video services and video price increases, offset in part by a decrease

in pay-per-view event revenues. High-speed data revenues rose 12%

($108 million) to $1.0 billion, as a result of continued year-over-year

high-speed data subscriber growth. Voice revenues were up 39% ($112

million) to $397 million, reflecting a net increase in

Digital Phone subscribers. Advertising revenues grew 3% ($7 million) to

$233 million.

Adjusted Operating Income before Depreciation and Amortization (“Adjusted

OIBDA”), which excludes a noncash pretax

impairment loss of $45 million on cable systems held for sale, rose 9%

($126 million) over the second quarter of 2007 to $1.6 billion,

benefiting from revenue growth, offset partially by higher video

programming, employee, voice and marketing costs. Video programming

expenses increased 6% ($57 million) to $939 million, due to contractual

rate increases and an increase in the percentage of basic video

subscribers who also subscribe to expanded tiers of video services.

Employee costs increased 5% ($40 million), resulting primarily from

headcount and salary increases, offset partly by lower equity-based

compensation expense, due mainly to the timing of 2008 grants. Voice

costs rose 21% ($23 million) reflecting primarily growth in Digital

Phone subscribers, offset partially by a decline in per-subscriber

connectivity costs. Marketing expenses grew 14% ($19 million) to $151

million, resulting from intensified marketing efforts.

Additionally, the prior year period included $6 million of

merger-related and restructuring expenses.

Operating Income was up 4% ($27 million) over the same quarter of

2007 to $738 million, due to higher Adjusted OIBDA, offset partly by

increased depreciation expense ($53 million) and a noncash pretax

impairment loss on cable systems held for sale ($45 million).

Income and Per Share Results

For the second quarter of 2008, net income was $277 million, or $0.28

per basic and diluted common share, compared to net income of $272

million, or $0.28 per basic and diluted common share, for the second

quarter of 2007.

Certain pretax items in the current year quarter affected comparability,

including $47 million of costs associated with the Company’s

planned separation from Time Warner, a $45 million noncash impairment

loss on cable systems held for sale and an $8 million noncash impairment

charge on an equity-method investment. The $47 million of

separation-related costs consisted of $10 million of direct transaction

costs and $37 million of financing costs related to the funding of the

planned $10.9 billion special dividend. On an after-tax basis, these

items reduced net income by $62 million or $0.06 per basic and diluted

common share. Excluding the impact of these items, net income increased

for the second quarter of 2008 as compared to the same quarter of

2007, due primarily to an increase in Operating Income and a

decrease in interest expense offset in part by higher income tax

provision.

Cash Provided by Operating Activities for the first six months of

2008 was $2.5 billion, an increase of $331 million over the first six

months of 2007, driven by an increase in Adjusted OIBDA and a change in

working capital requirements, offset partially by higher pension plan

contributions.

Capital Expenditures for the first six months of 2008 totaled

$1.7 billion, an increase of $157 million compared to the first six

months of 2007, due primarily to higher customer premise equipment

purchases, which rose 16% ($120 million).

Free Cash Flow for the first six months of 2008 was $825 million,

an increase of $234 million over the first six months of 2007, due

mainly to an increase in cash provided by operating activities, offset

in part by an increase in capital expenditures. Net debt and mandatorily

redeemable preferred equity membership units, as of June 30, 2008,

totaled $12.9 billion.

Table 1 Second Quarter Results (Unaudited)
		Three Months Ended									Six Months Ended
		June 30,									June 30,
		2008			2007			% Change			2008			2007			% Change
		(in millions)									(in millions)
Subscription revenues:
Video		$	2,636		$	2,579		2	%		$	5,239		$	5,083		3	%
High-speed data			1,032			924		12	%			2,026			1,818		11	%
Voice			397			285		39	%			763			549		39	%
Total Subscription revenues			4,065			3,788		7	%			8,028			7,450		8	%
Advertising revenues			233			226		3	%			430			415		4	%
Total revenues		$	4,298		$	4,014		7	%		$	8,458		$	7,865		8	%
Adjusted OIBDA		$	1,570		$	1,444		9	%		$	2,972		$	2,751		8	%
Operating Income		$	738		$	711		4	%		$	1,374		$	1,290		7	%

SUBSCRIBER UPDATE

For definitions of certain terms, please refer to Table 2 below, which

presents select subscriber and penetration data.

Highlights

RGUs exceeded 33.6 million – reflecting

net additions of 656,000, a record for any second quarter –

driven by year-over-year improvement in net additions in all RGU

categories. Customer relationships totaled 14.7 million, and Triple

Play subscribers surpassed 2.8 million (or 19% of total

customer relationships), benefiting from 214,000 net additions during

the second quarter.

Table 2 Select Subscriber and Penetration Data
						Net
						Additions
		6/30/08		3/31/08		(Declines)
		(in thousands)
Subscriber Data:
Revenue generating units(a)		33,629		32,973		656
Customer relationships(b)		14,737		14,722		15
Double play subscribers(c)		4,760		4,748		12
Triple play subscribers(d)		2,824		2,610		214
Bundled subscribers(e)		7,584		7,358		226
Homes passed(f)		26,726		26,624		102
Basic video subscribers(g)		13,297		13,306		(9)
Digital video subscribers(h)		8,483		8,283		200
Residential high-speed data subscribers(i)		8,125		7,924		201
Commercial high-speed data subscribers(i)		287		280		7
Residential Digital Phone subscribers(j)		3,421		3,170		251
Commercial Digital Phone subscribers(j)		16		10		6
		6/30/08		3/31/08
Penetration Data:
Basic video(k)		49.8%		50.0%
Digital video(l)		63.8%		62.3%
Residential high-speed data(m)		30.7%		30.1%
Residential Digital Phone(n)		13.4%		12.6%
Double play(o)		32.3%		32.3%
Triple play(p)		19.2%		17.7%
Bundled(q)		51.5%		50.0%

(a)		Revenue generating units represent the total of all basic video, digital video, high-speed data and voice (including circuit-switched telephone service, as applicable) subscribers.
(b)		Customer relationships represent the number of subscribers who receive at least one level of service, encompassing video, high-speed data and voice services, without regard to the number of services purchased. For example, a subscriber who purchases only high-speed data service and no video service will count as one customer relationship, and a subscriber who purchases both video and high-speed data services will also count as only one customer relationship.
(c)		Double play subscriber numbers reflect customers who subscribe to two of the Company’s primary services (video, high-speed data and voice).
(d)		Triple play subscriber numbers reflect customers who subscribe to all three of the Company’s primary services (video, high-speed data and voice).
(e)		Bundled subscriber numbers reflect customers who subscribe to two or more of the Company’s primary services.
(f)		Homes passed represent the estimated number of service-ready single residence homes, apartment and condominium units and commercial establishments passed by the Company’s cable systems without further extending the transmission lines.
(g)		Basic video subscriber numbers reflect billable subscribers who receive at least basic video service.
(h)		Digital video subscriber numbers reflect billable subscribers who receive any level of video service via digital transmissions.
(i)		High-speed data subscriber numbers reflect billable subscribers who receive Road Runner high-speed data service or any of the other high-speed data services offered by the Company.
(j)		Digital Phone subscriber numbers reflect billable subscribers who receive an IP-based telephony service.
(k)		Basic video penetration represents basic video subscribers as a percentage of homes passed.
(l)		Digital video penetration represents digital video subscribers as a percentage of basic video subscribers.
(m)		Residential high-speed data penetration represents residential high-speed data subscribers as a percentage of estimated high-speed data service-ready homes passed.
(n)		Residential Digital Phone penetration represents residential Digital Phone subscribers as a percentage of estimated Digital Phone service-ready homes passed.
(o)		Double play penetration represents double play subscribers as a percentage of customer relationships.
(p)		Triple play penetration represents triple play subscribers as a percentage of customer relationships.
(q)		Bundled penetration represents bundled subscribers as a percentage of customer relationships.

Use of OIBDA, Adjusted OIBDA and Free Cash Flow

Operating Income before Depreciation and Amortization (“OIBDA”)

is a financial measure not calculated and presented in accordance with

U.S. generally accepted accounting principles (“GAAP”).

The Company defines OIBDA as Operating Income before depreciation of

tangible assets and amortization of intangible assets. The Company also

evaluates the performance of its business using OIBDA excluding the

impact of noncash impairments of goodwill, intangible and fixed assets,

as well as gains and losses on asset sales (referred to herein as “Adjusted

OIBDA”). Management utilizes OIBDA and

Adjusted OIBDA, among other measures, in evaluating the performance of

the Company’s business because they eliminate

the uneven effect across its business of considerable amounts of

depreciation of tangible assets and amortization of intangible assets

recognized in business combinations. Additionally, management utilizes

OIBDA and Adjusted OIBDA because it believes these measures provide

valuable insight into the underlying performance of the Company’s

individual cable systems by removing the effects of items that are not

within the control of local personnel charged with managing these

systems such as income tax provision, other income (expense), net,

minority interest expense, net, income from equity investments, net, and

interest expense, net. In this regard, OIBDA and Adjusted OIBDA are

significant measures used in the Company’s

annual incentive compensation programs. OIBDA and Adjusted OIBDA also

are metrics used by the Company’s parent,

Time Warner Inc. (“Time Warner”),

to evaluate the Company’s performance, and

OIBDA is an important measure in the Time Warner reportable segment

disclosures. A limitation of OIBDA and Adjusted OIBDA, however, is that

they do not reflect the periodic costs of certain capitalized tangible

and intangible assets used in generating revenues in the Company’s

business. Moreover, Adjusted OIBDA does not reflect gains and losses on

asset sales or any impairment charge related to goodwill, intangible

assets and fixed assets. To compensate for this limitation, management

evaluates the investments in such tangible and intangible assets through

other financial measures, such as capital expenditure budget variances,

investment spending levels and return on capital analyses. Another

limitation of these measures is that they do not reflect the significant

costs borne by the Company for income taxes, debt servicing costs, the

share of OIBDA and Adjusted OIBDA related to the minority ownership, the

results of the Company’s equity investments

or other non-operational income or expense. Management compensates for

this limitation through other financial measures such as a review of net

income and earnings per share.

Free Cash Flow is a non-GAAP financial measure. The Company defines Free

Cash Flow as cash provided by operating activities (as defined under

GAAP) plus excess tax benefits from the exercise of stock options, less

cash provided by (used by) discontinued operations, capital

expenditures, partnership distributions and principal payments on

capital leases. Management uses Free Cash Flow to evaluate the Company’s

business. The Company believes this measure is an important indicator of

its liquidity, including its ability to reduce net debt and make

strategic investments, because it reflects the Company’s

operating cash flow after considering the significant capital

expenditures required to operate its business. A limitation of this

measure, however, is that it does not reflect payments made in

connection with investments and acquisitions, which reduce liquidity. To

compensate for this limitation, management evaluates such expendi

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