UGC to Acquire Largest Broadband Operator in Slovenia; Adds New Country to European Footprint

UGC to Acquire Largest Broadband Operator in Slovenia; Adds New Country to European Footprint

DENVER and LONDON, Dec. 22 /PRNewswire-FirstCall/ -- UnitedGlobalCom, Inc. ("UGC") (NASDAQ:UCOMA) today announced that, through one of its affiliates, it reached an agreement with EMP Europe, a leading private equity firm dedicated to Central and Eastern Europe, and several other Slovenian shareholders to acquire their interests in Telemach d.o.o. ("Telemach"). Telemach is the largest broadband communications provider in Slovenia with over 100,000 cable TV subscribers and 10,000 broadband Internet customers.

Since its foundation in 1999, Telemach has realized significant financial and operational growth. Revenue has grown over 25% per annum over the last three years and more than 85% of its network has been upgraded to 862 MHz. In addition, approximately two-thirds of Telemach's network supports broadband Internet and digital television services.

UGC will acquire a 100% interest in Telemach based on a total enterprise value of euro 74 million, which represents a multiple of approximately 8.2 times expected 2004 fourth quarter annualized normalized EBITDA. UGC will pay cash of approximately euro 71 million for its 100% interest.

The transaction is subject to review by the Slovenian competition authorities and expected to close in the first quarter of 2005.

Mike Fries, President and Chief Executive Officer of UGC, said, "This acquisition represents a unique opportunity to take a leadership position in a new Central and Eastern European market for UGC. Slovenia, which recently joined the EU, has the highest GDP per capita in the region and is adjacent to Austria and Hungary where we currently have large operations. Telemach has upgraded most of its network and, as the largest operator in the country, has achieved good scale and profitability."

Thierry Baudon, Chief Executive Officer of EMP Europe, said "Since EMP became the majority shareholder of Telemach in 2000, Telemach developed from a small cable operator with less than 20,000 subscribers, into Slovenia's undisputed market leader with more than 100,000 video subscribers and operating margins in excess of 45%. Over the last five years, Telemach upgraded its network, introduced new services such as high-speed Internet access and digital video services, thereby changing the public's perception of cable services from a utility-type operator to an innovative company providing a wide range of value-added products and services. We are delighted to have successfully developed the company and wish Telemach and its new owners well for the future."

Rothschild advised EMP Europe on this transaction.

About UnitedGlobalCom


UGC is a leading international provider of video, voice, and broadband Internet services with operations in 14 countries, including 11 countries in Europe. Based on the Company'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 EMP

EMP Europe is the leading private equity firm in Central and Eastern Europe with investments in CATV, fixed and mobile telephony and other infrastructure related industries. EMP Europe invested around USD 500 million in the Region over the last five years. The sale of Telemach follows a successful sale of EMP Europe's other CATV investment -- Aster in Poland to Hicks Muse as well as roll-up of its stakes in Mobifon and Cesky Mobile into the parent -- TIW.

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 targeted closing date for the Telemach 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, including the receipt and timing of necessary regulatory approval, Telemach's ability to continue financial and operational growth at historic levels, the Company's ability to successfully operate and integrate the Telemach system, continued use by subscribers and potential subscribers of the Telemach services, and the Company's ability to achieve expected operational efficiencies and economies of scale. 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.


Source: UnitedGlobalCom, Inc.

CONTACT: Richard S.L. Abbott, Investor Relations - UGC Denver,
+1-303-220-6682, ir@unitedglobal.com, or Claire Appleby, Investor Relations -
UGC Europe, +44 20 7 838 2004, ir@ugceurope.com, or Bert Holtkamp, Corporate
Communications - UGC Europe, + 31 (0) 20 778 9447, corpcomms@upccorp.com; or
Thierry Baudon, CEO & Managing Director - EMP Europe, +44 20 7886 3600,
tbaudon@emplondon.com


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