Liberty Global Reports Fiscal 2005 Results

Liberty Global Reports Fiscal 2005 Results

Record Subscriber Growth Continues

New $250 Million Stock Repurchase Program Announced

DENVER, March 14 /PRNewswire-FirstCall/ -- Liberty Global, Inc. ("Liberty Global") (NASDAQ:LBTYA)(NASDAQ:LBTYB)(NASDAQ:LBTYK), today announces financial and operating results for the fourth quarter and year-ended December 31, 2005. Highlights for the year compared to the results of Liberty Global's predecessor Liberty Media International, Inc. ("LMI") for the same period last year (unless noted) include(1):

* An organic(2) increase of nearly 500,000 RGUs in the fourth quarter to
bring our full year net gain to 1.25 million new RGUs(3), a 50% pro
forma increase in net additions
* Pro forma(4) revenue growth of 28% to $5.15 billion
* Pro forma operating cash flow (OCF) growth of 24% to $1.77 billion(5)
* Net loss from continuing operations increased to $84 million or
$0.20 per share

President and CEO Mike Fries said, "We had a very productive year in 2005 across all fronts. Most importantly, we achieved the aggressive goals that we set for ourselves in our core broadband cable operations, consistent with our full year guidance targets. We added nearly 500,000 organic RGUs in the fourth quarter which brought our full year total organic additions to over 1.25 million new RGUs, a 50% increase from our growth in the prior year. This success was driven in large part by continued strength in our broadband data business and accelerating growth in our voice over IP (VoIP) and digital TV product lines. As a result, our subscriber base at December 31, 2005 consisted of 19.2 million total RGUs and 14.8 million customer relationships, up 42% and 39% over last year, respectively."

"Our financial results were also strong. On a pro forma basis, revenue increased 28% to $5.15 billion for the full year, driven primarily by acquisitions and our success increasing advanced services RGUs. On an organic basis, we continue to grow our revenue at double digit rates. Operating cash flow for the full year was $1.77 billion, an increase of 24% on a pro forma basis over 2004. As foreshadowed, OCF was modestly impacted in the fourth quarter primarily as a result of better than expected RGU additions which affected marketing costs. Excluding results in the Netherlands, where we have a strategic digital TV initiative underway, our pro forma organic operating cash flow growth was approximately 16% for the full year, consistent with our long-term growth target."

"In terms of strategic developments, we had a busy and successful year on the M&A front, in particular during the fourth quarter when we closed the purchases of Cablecom in Switzerland, Astral in Romania, NTL in Ireland, Setamachi (Odakyu) and Kobe in Japan, and took a controlling stake in Austar's pay-TV operation in Australia. Our 2005 acquisitions added over 4.0 million RGUs to our consolidated footprint. We also completed the sale of our Norwegian cable system in January at a very attractive price. We will continue to evaluate rebalancing our operations, specifically exiting sub-scale markets and increasing our presence in existing or new markets that fit our operating business model."

"In terms of product strategy, we are excited about the acceleration of growth in our digital video business. In Japan, we're now at 37% digital penetration driven by strong demand for our high-definition product. In the Netherlands, our 'digital-for-all' (D4A) project is on track and by early March, we had more than 170,000 digital video subscribers in that market, double our total base at the end of December 2005.(6) Later this year we'll be expanding our product offerings in the Netherlands to include video-on-demand (VOD), personal video recorders (PVRs), and high-definition TV services."

"We have been actively repurchasing shares under our pre-existing $200 million stock buyback program, spending a total of $168 million to date. In addition to the $32 million that remains under our previous program, the Liberty Global Board recently authorized an additional $250 million for stock repurchases(7). We believe that our current stock price levels are very attractive and do not reflect the underlying values inherent in our business."

Fiscal 2005 Results

Our consolidated operations in Europe include our broadband cable division with operations in 13 countries, and chellomedia -- our media and programming division. In the Asia/Pacific region, our consolidated operations include J:COM, the largest broadband cable operator in Japan. In the Americas, our primary consolidated operation is VTR, the largest broadband cable operator in Chile. Although we consolidated 100% of their revenue and OCF during 2005, we owned at December 31, 2005, an indirect 80% interest in VTR and through our interest in Super Media, an indirect 36.8% interest in J:COM. Beginning with the first quarter of 2006, we will begin consolidating 100% of Austar's revenue and OCF, a 54% owned pay TV provider in Australia that we acquired in December 2005. Please refer to the appropriate sections herein for additional segment financial information.

Operating Statistics

We had 19.2 million total RGUs at December 31, 2005, including an organic increase of more than 1.25 million RGUs from the end of the prior year. The organic RGU additions represent a 50% improvement from last year's pro forma net additions driven by our success in adding advanced services RGUs. In the fourth quarter alone, we added 491,000 organic RGUs, a record result for the period which is typically our strongest quarter of the year. Including acquisitions, our total subscriber base increased by 42% or 5.7 million RGUs during 2005.

In terms of RGU additions by product, the breakdown of our 1.25 million organic RGU additions for the full year 2005 includes over 600,000 broadband Internet subscribers, 480,000 telephony subscribers and 170,000 net new video subscribers, including 537,000 new digital TV subscribers(8). Our organic broadband Internet, telephony, and digital TV subscriber growth increased 58%, 73% and 48%, respectively, from our pro forma net additions in these categories in the prior year.

The majority of our telephony additions were driven by growth in our VoIP customers as we continue to expand our serviceable footprint across new markets. We have recently launched VoIP services in Austria, Poland, and Romania, expanding our footprint to 7 European markets. As a result, we continue to see steady growth, recently averaging over 9,000 weekly European VoIP RGU additions, an increase of approximately 50% from our run-rate in the middle of last year's fourth quarter. Including our upgraded networks in Japan and the Americas, our total VoIP-ready homes passed now exceeds 11 million worldwide.

Our video subscriber base increased organically by approximately 170,000 video subscribers, primarily as a result of 537,000 digital video RGU additions in 2005. Our digital video growth was driven by our continued success in Japan and by the early efforts of our D4A initiative in the Netherlands. In Japan, J:COM added approximately 350,000 organic digital subscribers during 2005, ending the year with 37% digital penetration. In the Netherlands, we added over 30,000 digital subscribers in Q4 alone, and we've added over 80,000 additional digital RGUs during the first two months of 2006.

Revenue

Revenue for the year ended December 31, 2005 increased 28% on a pro forma basis to $5.15 billion as compared to the same period last year. This increase was principally due to the impact of acquisitions and pro forma organic(9) revenue growth of 11%. Pro forma organic revenue growth was driven primarily by higher average RGUs during the period as well as solid growth in our central and eastern European operations and in Chile. For the three months ended December 31, 2005, revenue increased 24% on a pro forma basis to $1.4 billion compared to the same period last year, with acquisitions and pro forma organic growth of 10% driving this improvement.

In terms of average monthly revenue (ARPU(10)) per RGU and ARPU per customer relationship, Europe Broadband, VTR and J:COM experienced sequential growth over the third quarter in both metrics. For the three months ended December 31, 2005, ARPU per RGU and ARPU per customer relationship for Europe Broadband was 17.98 Euro and 22.11 Euro, reflecting increases of 7.0% and 9.7% sequentially over the third quarter, respectively. Those increases were due, in part, to the acquisition of Cablecom. Similarly, VTR's metrics improved as well as it further integrated the Metropolis acquisition, with ARPU per RGU and ARPU per customer relationship of CLP 16,444 and CLP 25,507, representing improvements of 1.1% and 3.2% over the third quarter, respectively. Additionally, J:COM generated ARPU per RGU and ARPU per customer relationship of 4,907 Yen and 8,429 Yen for the three months ended December 31, 2005, which was an increase of 0.1% and 0.2% over the third quarter, respectively.

Operating Cash Flow

Operating cash flow for the year ended December 31, 2005 increased 24% on a pro forma basis to $1.77 billion as compared to the same period last year. This increase was principally due to acquisitions, including Cablecom and NTL Ireland, and pro forma organic(9) OCF growth of 11% for the year ended December 31, 2005. The pro forma organic figure does not reflect growth rates that would be derived from comparing 2005 and 2004 results, after rebasing both periods for the full year effect of acquisitions. Operating cash flow for the three months ended December 31, 2005 also increased 25% to $471 million compared to the prior year period pro forma for J:COM. A portion of this increase in the fourth quarter was due to organic growth of 11%.

Excluding results of the Netherlands where we have our D4A project underway, our pro forma organic OCF growth rates for the year and the quarter improve to 16% and 18%, respectively. As expected, our D4A initiative has significantly impacted our Netherland's OCF results, particularly in terms of higher operating, marketing and customer care costs as we invest in the roll-out of digital boxes to drive future growth in that market.

Our reported OCF margin(11) for the year ended December 31, 2005 was 34.4%. The margin declined as compared to the pro forma OCF margin of 35.5% for the year ended December 31, 2004. The decline in margin was due primarily to increases in marketing expenses, costs associated with new service launches around digital video and VoIP services, and the impact of acquired businesses, which are generally at an earlier stage of development and have lower margins. The increases in marketing expenses primarily were attributable to our successful efforts to increase RGUs, as evidenced by the fact that our organic additions in 2005 increased 50% year over year.

Net Loss from Continuing Operations

Our net loss from continuing operations for the year ended December 31, 2005 was $84 million or $0.20 per share. The fiscal 2005 loss compares to a net loss from continuing operations of $14 million or $0.04 per share for the same period last year. The increased loss from continuing operations was in large part due to higher interest expense, increased foreign currency transaction losses, and higher minority interests in earnings of subsidiaries, partially offset by positive changes in operating income and realized and unrealized gains on derivative instruments.

Free Cash Flow and Capital Expenditures

Our Free Cash Flow(12) (FCF) for the year-ended ended December 31, 2005 was $207 million, including payments of approximately $75 million relating to the settlement and termination of a Dutch programming contract (MovieCo). Excluding those payments, FCF for the year-ended ended December 31, 2005 would have been approximately $282 million, which compares to FCF for the year ended December 31, 2004 of $235 million.

Capital expenditures and capital lease additions for the year ended December 31, 2005 were $1.35 billion, an increase of 176% compared to last year. The primary reason for the increase was the consolidation of J:COM's results in 2005, as well as an increase in spending on customer premise equipment to support our faster unit growth in the current period.

Balance Sheet, Leverage, and Liquidity

Total debt (including capital lease obligations) was $10.1 billion at December 31, 2005. Our consolidated leverage ratio, defined as gross debt (including capital lease obligations) to Q4 annualized operating cash flow, was 5.4x at December 31, 2005. Based upon reported numbers, our leverage ratio during the period increased in part because of the acquisition of Cablecom in October and the consolidation of Austar, which occurred on December 31, 2005. Giving effect to fourth quarter acquisitions as if they had occurred on October 1, 2005, and to the partial debt repayment with a portion of the proceeds from the Norwegian asset sale, our Q4 2005 leverage ratio would have been approximately 4.7x.

At December 31, 2005, we had $1.2 billion of cash and cash equivalents. Adjusting for the sale of Norway, at December 31, 2005, our cash and cash equivalents would have been approximately $1.5 billion and our consolidated debt would have been approximately $9.9 billion.

In addition to our cash balances at December 31, 2005, we had approximately $271 million (229 million Euro) of availability under our 1.0 billion Euro in revolvers at UPC Broadband Holding B.V., subject to the completion of fourth quarter bank reporting requirements and $254 million (30 billion Yen) of availability under our 30 billion Yen Japanese revolver. Subject to their terms, the undrawn amounts under those revolvers may be borrowed to finance acquisitions.

We have also made good progress in terms of rationalizing our non-strategic investments. We received approximately $326 million in proceeds from the disposition of our ownership interest in SBS Broadcasting during the fourth quarter, and subsequent to December 31, we have received $88 million in proceeds from the sale of our ownership interest in Sky Mexico.

Based on our December 31, 2005 results, the ratio of Senior Debt to Annualized EBITDA (last two quarters annualized) for UPC Broadband Holding B.V., as defined in and calculated in accordance with the UPC Broadband Holding credit facility was 3.83x. The ratio of Total Debt to Annualized EBITDA (last two quarters annualized), as defined and calculated in accordance with the UPC Broadband Holding credit facility was 4.77x.

2006 Guidance

For full year 2006, we are providing consolidated guidance for Liberty Global. In terms of RGU additions, we expect to add 1.6 million RGUs on an organic basis (excluding the impact of acquisitions at closing). The RGU addition forecast assumes continued demand for our broadband Internet, telephony, and digital video products.

Our guidance targets for 2006 consist of consolidated revenue of $6.8 billion and consolidated operating cash flow of $2.4 billion. These financial targets assume full year 2006 average exchange rates of approximately 1.20 dollars per Euro, 115 yen per dollar, 550 Chilean pesos per dollar and 1.28 Swiss Francs per dollar. Our revenue and OCF targets represent growth of approximately 11% and 14%, respectively, over "rebased" 2005 figures which adjust for the full year impact of acquisitions made during 2005 and which assume foreign exchange rates consistent with our 2006 guidance rates noted above.(13) Additionally, we expect flat growth in the Netherlands in local currency, which may be impacted by the pace and success of our D4A roll-out. To the extent that our organic RGU growth exceeds our target range, we would expect to report lower OCF due to the associated increase in marketing and subscriber acquisition costs.

In terms of capital expenditures (including capital lease additions) for 2006, our guidance target is for full year 2006 capital expenditures to be approximately 27% of revenue. The majority of our capital spend is expected to be customer premise and related equipment to support our RGU growth across Europe, Japan, and Chile, as well as network upgrade and rebuild investment.

About Liberty Global

Liberty Global is the leading international cable operator offering advanced video, voice, and Internet-access services to connect our 15 million customers to the world of information, communications and entertainment. The Company operates state-of-the-art broadband communications networks in 19 countries principally located in Europe, Japan, Chile, and Australia. Liberty Global's operations also include significant media and programming businesses such as Jupiter TV in Japan and chellomedia in Europe.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including 2006 guidance for Liberty Global, anticipated product trends and strategy and associated subscriber growth, the level of our anticipated M&A activity, possible activity under our stock repurchase program, and other information and statements that are not historical fact. 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, changes in technology, regulation and competition, our ability to achieve expected operational efficiencies and economies of scale, the long-term success of our D4A program, our ability to generate expected revenue and operating cash flow and achieve assumed margins including, to the extent annualized figures imply forward-looking projections, continued performance comparable with the period annualized, 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.

For more information, please visit www.lgi.com or contact:

Christopher Noyes Hanne Wolf
Investor Relations - Denver Corporate Communications - Denver
303.220.6693 303.220.6678

Ivan Nash Vila Bert Holtkamp
Investor Relations - Europe Corporate Communications - Europe
+41 44 277 97 38 +31 20 778 9447

Liberty Global, Inc.
Consolidated Balance Sheets

December 31,
2005 2004
as adjusted
amounts in thousands
Assets

Current assets:
Cash and cash equivalents $1,202,200 $2,529,115
Trade receivables, net 534,243 203,890
Other receivables, net 112,537 165,631
Current assets of discontinued operations 14,686 --
Other current assets 398,719 293,947
Total current assets 2,262,385 3,192,583

Investments in affiliates, accounted
for using the equity method, and
related receivables 789,066 1,865,642

Other investments 569,059 838,608

Property and equipment, net 7,991,292 4,303,099

Goodwill 9,020,071 2,667,279

Franchise rights and other intangible
assets not subject to amortization 218,002 230,674

Intangible assets subject to
amortization, net 1,601,806 382,599

Long-term assets of discontinued
operations 329,871 --

Other assets, net 596,977 221,879

Total assets $23,378,529 $13,702,363

Liberty Global, Inc.
Consolidated Balance Sheets (Continued)

December 31,
2005 2004
as adjusted
amounts in thousands
Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable $715,599 $363,549
Accrued liabilities and other 669,060 556,015
Deferred revenue and advance payments
from subscribers and others 595,982 353,069
Accrued interest 145,457 89,612
Current liabilities of discontinued
operations 35,266 --
Current portion of debt and capital
lease obligations 269,947 36,827
Total current liabilities 2,431,311 1,399,072

Long-term debt and capital lease
obligations 9,845,025 4,955,919
Deferred tax liabilities 546,049 464,661
Long-term liabilities of discontinued
operations 9,599 --
Other long-term liabilities 933,591 432,018
Total liabilities 13,765,575 7,251,670

Commitments and contingencies

Minority interests in subsidiaries 1,796,508 1,213,610

Stockholders' Equity:
Series A common stock, $.01 par value.
Authorized 500,000,000 shares; issued
232,334,708 and 168,514,962 shares at
December 31, 2005 and 2004, respectively 2,323 1,685
Series B common stock, $.01 par value.
Authorized 50,000,000 shares; issued and
outstanding 7,323,570 and 7,264,300 shares
at December 31, 2005 and 2004, respectively 73 73
Series C common stock, $.01 par value.
Authorized 500,000,000 shares; 239,820,997
and 175,779,262 shares issued at
December 31, 2005 and 2004, respectively 2,398 1,758
Additional paid-in capital 9,992,236 6,999,877
Accumulated deficit (1,732,527) (1,652,430)
Accumulated other comprehensive earnings
(loss), net of taxes (262,889) 14,010
Deferred compensation (15,592) --
Treasury stock, at cost (169,576) (127,890)
Total stockholders' equity 7,816,446 5,237,083

Total liabilities and stockholders' equity $23,378,529 $13,702,363

Liberty Global, Inc.
Consolidated Statements of Operations

Year Ended December 31,
2005 2004
as adjusted
amounts in thousands
except per share amounts

Revenue $5,151,332 $2,531,889

Operating costs and expenses:
Operating (other than depreciation) 2,185,515 1,050,493
Selling, general and administrative (SG&A) 1,194,972 639,609
Stock-based compensation charges -
primarily SG&A 59,231 142,676
Depreciation and amortization 1,454,863 915,748
Impairment of long-lived assets 8,320 69,353
Restructuring and other operating
charges (credits) (2,753) 28,901
4,900,148 2,846,780
Operating income (loss) 251,184 (314,891)

Other income (expense):
Interest expense (433,467) (286,321)
Interest and dividend income 77,649 65,494
Share of earnings (losses) of affiliates, net (22,949) 38,710
Realized and unrealized gains (losses) on
derivative instruments, net 309,973 (35,775)
Foreign currency transaction gains
(losses), net (209,400) 117,514
Gain on exchange of investment securities -- 178,818
Other-than-temporary declines in fair
values of investments (3,403) (18,542)
Gains (losses) on extinguishment of debt (33,700) 27,977
Gains (losses) on disposition of
non-operating assets, net 115,169 43,714
Other income (expense), net (263) (7,931)
(200,391) 123,658
Earnings (loss) before income taxes, minority
interests and discontinued operations 50,793 (191,233)

Income tax benefit (expense) (29,849) 13,800
Minority interests in losses (earnings) of
subsidiaries (104,535) 163,724

Earnings (loss) from continuing operations (83,591) (13,709)

Discontinued operations:
Earnings (loss) from operations, net of tax
expense of $565,000 and $2,874,000 in 2005
and 2004, respectively 3,494 (7,772)
Net earnings (loss) $(80,097) $(21,481)

Historical and pro forma earnings (loss) per
common share, basic and diluted:
Continuing operations $(0.20) $(0.04)
Discontinued operations 0.01 (0.03)
$(0.19) $(0.07)

Liberty Global, Inc.
Consolidated Statements of Cash Flows

Year Ended December 31,
2005 2004
as adjusted
amounts in thousands
Cash flows from operating activities:
Net earnings (loss) $(80,097) $(21,481)
Net loss (earnings) from discontinued
operations (3,494) 7,772
Net earnings (loss) from continuing
operations (83,591) (13,709)
Adjustments to reconcile earnings (loss)
from continuing operations to net
cash provided by operating activities:
Stock-based compensation expense 59,231 142,676
Depreciation and amortization 1,454,863 915,748
Impairment of long-lived assets 8,320 69,353
Restructuring and other charges (credits) (2,753) 28,901
Amortization of deferred financing costs
and non-cash interest 103,800 40,218
Share of losses (earnings) of
affiliates, net 22,949 (38,710)
Realized and unrealized losses (gains) on
derivative instruments, net (309,973) 35,775
Foreign currency transaction losses
(gains), net 209,400 (117,514)
Gain on exchange of investment securities -- (178,818)
Other-than-temporary declines in fair
values of investments 3,403 18,542
Losses (gains) on extinguishment of debt 33,700 (27,977)
Gains on disposition of investments, net (115,169) (43,714)
Deferred income tax expense (benefit) (74,740) (80,500)
Minority interests in earnings (losses) of
subsidiaries 104,535 (163,724)
Non-cash recognition of deferred revenue (30,298) --
Non-cash charges from Liberty Media
Corporation -- 15,490
Other non-cash items 4,152 --
Changes in operating assets and
liabilities, net of the effects of
acquisitions and dispositions:
Receivables and other operating assets 60,409 (61,426)
Payables and accruals 77,886 167,840
Net cash provided by operating activities
of discontinued operations 49,978 34,857
Net cash provided by operating
activities 1,576,102 743,308
Cash flows from investing activities:
Cash paid in connection with LGI Combination (703,535) --
Cash paid in connection with acquisitions,
net of cash acquired (3,584,442) (509,696)
Cash paid for acquisition to be
refunded by seller -- (52,128)
Return of cash previously paid into escrow
in connection with 2004 acquisition 56,883 --
Investments in and loans to affiliates
and others (133,749) (256,959)
Proceeds received upon repayment of
principal amounts loaned to affiliates -- 535,074
Proceeds received upon repayment of
debt securities -- 115,592
Purchases of short-term liquid investments (55,103) (293,734)
Proceeds received from sale of short-term
liquid investments 101,489 246,981
Capital expended for property and equipment (1,194,993) (487,617)
Net cash received (paid) to purchase or
settle derivative instruments 82,414 (158,949)
Proceeds received upon dispositions of
assets 464,501 315,792
Deposits received in connection with
pending asset sales -- 80,264
Change in restricted cash 24,734 (27,335)
Other investing activities, net 29,343 (13,732)
Net cash used by investing activities of
discontinued operations (22,249) (19,833)
Net cash used by investing activities $(4,934,707) $(526,280)

Liberty Global, Inc.
Consolidated Statements of Cash Flows (Continued)

Year Ended December 31,
2005 2004
as adjusted
amounts in thousands
Cash flows from financing activities:
Borrowings of debt $6,968,835 $2,301,211
Repayments of debt and capital lease
obligations (5,413,584) (1,857,184)
Net proceeds received from rights offering -- 735,661
Proceeds from issuance of stock by
subsidiaries 873,554 488,437
Change in cash collateral (57,209) 41,700
Contributions from Liberty Media Corporation -- 704,250
Treasury stock purchase (78,893) (127,890)
Payment of deferred financing costs (101,293) (65,951)
Other financing activities, net 7,876 12,351
Net cash used by financing activities of
discontinued operations (7,444) (7)
Net cash provided by financing activities 2,191,842 2,232,578

Effect of exchange rates on cash (160,152) 66,756

Net increase (decrease) in cash and
cash equivalents:
Continuing operations (1,347,200) 2,501,345
Discontinued operations 20,285 15,017
Net increase (decrease) in cash and
cash equivalents (1,326,915) 2,516,362

Cash and cash equivalents:
Beginning of period 2,529,115 12,753
End of period $1,202,200 $2,529,115

Cash paid for interest $286,656 $280,815
Net cash paid for taxes $35,565 $4,264

Revenue and Operating Cash Flow

The tables presented below provide revenue and operating cash flow, as defined below,(OCF), by reportable segment for the three months and year-ended December 31, 2005, as compared to corresponding prior year periods. In each case, the tables present (i) the amounts reported by each of our reportable segments for the comparative periods, (ii) the U.S. dollar change and percentage change from period to period, (iii) the percentage change from period to period, after removing foreign currency effects (FX), and (iv) the percentage change from period to period, after removing FX and the effects of acquisitions. The comparisons that exclude FX assume that exchange rates remained constant during the periods that are included in each table. The acquisition impact is calculated as the difference between current and prior year amounts that are attributable to the timing of an acquisition. The FX adjustment and acquisition impact, when taken together, yield an organic growth calculation that incorporates the impact of acquisitions only when they are included in both comparable periods. Other Western Europe includes our operating segments in Ireland, Sweden and Belgium. Other Central and Eastern Europe includes our operating segments in Poland, Czech Republic, Slovak Republic, Romania and Slovenia. Our corporate and other category includes (i) certain less significant operating segments that provide direct-to-home satellite services in Australia, video programming and other services in Europe and Argentina and broadband services in Puerto Rico, Brazil and Peru and (ii) our corporate segment.

Revenue

Revenue - Fourth Quarter
Three Months ended Increase Increase (decrease)
December 31, (decrease) excluding
FX and
Acquisit-
2005 2004 $ % FX % ions %
amounts in thousands, except % amounts
Europe (Europe
Broadband)
The
Netherlands $188,021 $200,399 $(12,378) (6.2) 2.1 2.1
Switzerland 122,078 -- 122,078 N.M. N.M. --
France 126,219 129,772 (3,553) (2.7) 4.1 4.1
Austria 76,869 80,268 (3,399) (4.2) 4.5 4.5
Other Western
Europe 92,529 56,187 36,342 64.7 74.7 6.4
Total Western
Europe 605,716 466,626 139,090 29.8 38.0 3.6

Hungary 68,040 61,908 6,132 9.9 22.2 22.2
Other Central
and Eastern
Europe 118,005 71,384 46,621 65.3 66.4 13.8
Total Central
and Eastern
Europe 186,045 133,292 52,753 39.6 45.9 17.7
Total
Europe
(Europe
Broadband) 791,761 599,918 191,843 32.0 39.7 6.7

Japan (J:COM) 424,313 414,233 10,080 2.4 15.7 10.3
Chile (VTR) 130,901 83,414 47,487 56.9 39.5 17.8
Corporate and
other 116,181 76,509 39,672 51.9 60.9 33.2
Intersegment
eliminations (20,051) (12,398) (7,653) (61.7) (76.3) (76.3)
Total LGI before
elimination of
equity
affiliates 1,443,105 1,161,676 281,429 24.2 32.2 9.8
Elimination of
equity
affiliate
(J:COM) -- (414,233) 414,233 -- -- --

Total
consoli-
dated LGI $1,443,105 $747,443 $695,662 93.1 98.0 9.5

N.M. - Not Meaningful

Revenue - Full Year
Year ended Increase Increase (decrease)
December 31, (decrease) excluding
FX and
Acquisit-
2005 2004 $ % FX % ions %
amounts in thousands, except % amounts
Europe (Europe
Broadband)
The
Netherlands $780,934 $730,483 $50,451 6.9 6.9 6.9
Switzerland 122,078 -- 122,078 N.M. N.M. --
France 513,762 312,948 200,814 64.2 64.2 6.5
Austria 322,196 306,479 15,717 5.1 5.0 5.0
Other Western
Europe 321,377 174,389 146,988 84.3 85.1 7.0
Total
Western
Europe 2,060,347 1,524,299 536,048 35.2 35.2 6.4

Hungary 281,707 217,429 64,278 29.6 27.7 27.7
Other Central
and Eastern
Europe 370,560 252,064 118,496 47.0 35.6 13.9
Total Central
and Eastern
Europe 652,267 469,493 182,774 38.9 31.9 20.3
Total
Europe
(Europe
Broad-
band) 2,712,614 1,993,792 718,822 36.1 34.5 9.7

Japan (J:COM) 1,662,105 1,504,709 157,396 10.5 13.5 11.0
Chile (VTR) 444,161 299,951 144,210 48.1 35.6 17.6
Corporate and
other 407,564 285,507 122,057 42.8 43.2 20.7
Intersegment
eliminations (75,112) (47,361) (27,751) (58.6) (58.9) (58.9)
Total LGI before
elimination of
equity
affiliates 5,151,332 4,036,598 1,114,734 27.6 27.1 11.0
Elimination of
equity
affiliate
(J:COM) -- (1,504,709) 1,504,709 -- -- --

Total
consoli-
dated LGI $5,151,332 $2,531,889 $2,619,443 103.5 100.8 11.0

Operating Cash Flow

OCF - Fourth Quarter
Three Months ended Increase Increase (decrease)
December 31, (decrease) excluding
FX and
Acquisit-
2005 2004 $ % FX % ions %
amounts in thousands, except % amounts
Europe (Europe
Broadband)
The
Netherlands $81,936 $98,250 $(16,314) (16.6) (9.4) (9.4)
Switzerland 43,525 -- 43,525 N.M. N.M. --
France(14) 19,297 22,156 (2,859) (12.9) (8.3) (8.3)
Austria 30,964 28,967 1,997 6.9 16.5 16.5
Other Western
Europe 29,588 17,336 12,252 70.7 81.6 13.4
Total Western
Europe 205,310 166,709 38,601 23.2 30.8 (2.4)

Hungary 25,640 22,326 3,314 14.8 27.2 27.2
Other Central
and Eastern
Europe 45,453 22,401 23,052 102.9 104.7 39.6
Total Central
and Eastern
Europe 71,093 44,727 26,366 58.9 66.0 33.4
Total
Europe
(Europe
Broad-
band) 276,403 211,436 64,967 30.7 38.3 5.2

Japan (J:COM) 155,118 156,485 (1,367) (0.9) 12.0 8.6
Chile (VTR) 47,223 33,810 13,413 39.7 24.7 17.7
Corporate and
other (7,388) (23,343) 15,955 68.4 67.2 43.2
Intersegment
eliminations -- -- -- -- -- --
Total LGI before
elimination of
equity
affiliates 471,356 378,388 92,968 24.6 32.7 10.7
Elimination of
equity
affiliate
(J:COM) -- (156,485) 156,485 -- -- --

Total
consoli-
dated LGI $471,356 $221,903 $249,453 112.4 117.2 12.2

OCF - Full Year
Year ended Increase Increase (decrease)
December 31, (decrease) excluding
FX and
Acquisit-
2005 2004 $ % FX % ions %
amounts in thousands, except % amounts
Europe (Europe
Broadband)
The
Netherlands $360,924 $375,738 $(14,814) (3.9) (4.2) (4.2)
Switzerland 43,525 -- 43,525 N.M. N.M. --
France 97,247 45,774 51,473 112.5 111.4 28.8
Austria 137,247 122,307 14,940 12.2 11.9 11.9
Other Western
Europe 111,168 63,680 47,488 74.6 74.9 10.5
Total Western
Europe 750,111 607,499 142,612 23.5 23.2 3.1

Hungary 108,378 82,455 25,923 31.4 29.1 29.1
Other Central
and Eastern
Europe 147,270 94,478 52,792 55.9 43.5 20.1
Total Central
and Eastern
Europe 255,648 176,933 78,715 44.5 36.8 24.3
Total
Europe
(Europe
Broad-
band) 1,005,759 784,432 221,327 28.2 26.3 7.9

Japan (J:COM) 636,297 589,597 46,700 7.9 10.7 9.3
Chile (VTR) 151,450 108,752 42,698 39.3 27.7 20.3
Corporate and
other (22,661) (51,397) 28,736 55.9 55.3 26.6
Total LGI before
elimination of
equity
affiliates 1,770,845 1,431,384 339,461 23.7 22.9 10.6
Elimination of
equity
affiliate
(J:COM) -- (589,597) 589,597 -- -- --

Total
consoli-
dated LGI $1,770,845 $841,787 $929,058 110.4 107.0 11.6

Quarterly Information:

The following table summarizes the Company's revenue and operating cash flow by quarter for 2005. It is important to note that the first three quarters will differ from previously reported figures, since Norway has been classified as a discontinued operation.

Three Months Ended
Dec. 31, 2005 Sept. 30, 2005 June 30, 2005 March 31, 2005
amounts in thousands
Revenue $1,443,105 $1,262,405 $1,242,593 $1,203,229
Operating
Cash Flow 471,356 450,712 413,050 435,727

Operating Cash Flow Definition and Reconciliation

Operating cash flow is not a GAAP measure. Operating cash flow is the primary measure used by our chief operating decision maker to evaluate segment operating performance and to decide how to allocate resources to segments. As we use the term, operating cash flow is defined as revenue less operating and SG&A expenses (excluding depreciation and amortization, stock-based compensation and impairment, restructuring and other operating charges or credits). 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 would distort the 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. A reconciliation of total segment operating cash flow to our consolidated earnings (loss) before income taxes, minority interests and discontinued operations, is presented below. Investors should view operating cash flow as a measure of operating performance that is a supplement to, and not a substitute for, operating income, net earnings, cash flow from operating activities and other GAAP measures of income.

We are unable to provide a reconciliation of forecasted Operating Cash Flow, to the most directly comparable GAAP measure, net income (loss), as applicable, because certain items are out of our control and/or cannot be reasonably predicted. For example, it is impractical to: (1) estimate future fluctuations in interest rates on our variable-rate debt facilities; (2) estimate the fluctuations in exchange rates relative to the U.S. dollar and its impact on our results of operations; (3) estimate the financial results of our non-consolidated affiliates; and (4) estimate changes in circumstances that lead to gains and/or losses such as sales of investments in affiliates and other assets. Any and/or all of these items could be significant to our financial results. The table below highlights the reconciliation of operating cash flow to consolidated earnings (loss) before income taxes, minority interests and discontinued operations for the periods indicated below:

Year ended December 31,
2005 2004
amounts in thousands

Total segment operating cash flow $1,770,845 $841,787
Stock-based compensation (59,231) (142,676)
Depreciation and amortization (1,454,863) (915,748)
Impairment of long-lived assets (8,320) (69,353)
Restructuring and other operating
credits (charges) 2,753 (28,901)
Operating income (loss) 251,184 (314,891)
Interest expense (433,467) (286,321)
Interest and dividend income 77,649 65,494
Share of earnings (losses) of
affiliates, net (22,949) 38,710
Realized and unrealized gains (losses)
on derivative instruments, net 309,973 (35,775)
Foreign currency transaction gains
(losses), net (209,400) 117,514
Gains on exchanges of investment
securities -- 178,818
Other-than-temporary declines in fair
values of investments (3,403) (18,542)
Gains (losses) on extinguishment of debt (33,700) 27,977
Gains (losses) on disposition of
non-operating assets, net 115,169 43,714
Other income (expense), net (263) (7,931)
Earnings (loss) before income taxes,
minority interests and
discontinued operations $50,793 $(191,233)

Three months ended
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
2005 2005 2005 2005 2004
amounts in thousands

Total segment
operating
cash flow $471,356 $450,712 $413,050 $435,727 $221,903
Stock-based
compensation 63,078 (60,784) (42,871) (18,654) (76,556)
Depreciation and
amortization (447,894) (354,273) (335,327) (317,369) (253,577)
Impairment of
long-lived
assets (8,170) 17 (167) -- (26,730)
Restructuring
and other
operating
credits
(charges) 6,313 (947) 2,250 (4,863) (18,277)
Operating
income (loss) 84,683 34,725 36,935 94,841 (153,237)
Interest
expense (130,658) (131,235) (83,673) (87,901) (78,711)
Interest and
dividend
income 16,032 18,827 22,280 20,510 21,490
Share of
earnings
(losses) of
affiliates,
net (8,197) 2,055 4,517 (21,324) (15,808)
Realized and
unrealized
gains (losses)
on derivative
instruments,
net 183,982 (29,178) 69,301 85,868 (122,415)
Foreign
currency
transaction
gains
(losses),
net (15,102) 7,349 (136,885) (64,762) 118,768
Gains on
exchanges
of investment
securities -- -- -- -- 10,517
Other-than-
temporary
declines in
fair values of
investments (3,403) -- -- -- (3,427)
Gains (losses)
on extinguish-
ment of debt (21,069) -- (651) (11,980) (3,567)
Gains (losses)
on disposition
of non-
operating
assets, net 89,314 277 (43,994) 69,572 31,082
Other income
(expense),
net (1,525) 4 583 675 (396)
Earnings
(loss)
before
income
taxes,
minority
interests
and dis-
continued
operations $194,057 $(97,176) $(131,587) $85,499 $(195,704)

Capital Expenditures

The following table highlights capital expenditures by reporting segment:

Year ended December 31,
Capital Expenditures 2005 2004
amounts in thousands
Europe Broadband
The Netherlands $152,575 $84,698
Switzerland 27,001 --
France 128,655 65,435
Austria 48,325 53,660
Other Western Europe 73,544 46,626
Total Western Europe 430,100 250,419

Hungary 70,941 39,833
Other Central and Eastern Europe 84,473 39,776
Total Central and Eastern Europe 155,414 79,609
Total Europe Broadband 585,514 330,028

Japan (J:COM) 354,705 295,914

Chile (VTR) 98,576 41,685

Corporate and other 156,198 115,904

Total LGI before elimination of
equity affiliates 1,194,993 783,531

Elimination of equity affiliates -- (295,914)

Total consolidated LGI $1,194,993 $487,617

Capital Expenditures and Capital Lease Additions

The table below highlights our capital expenditures per NCTA cable
industry guidelines, as well as capital lease additions:

Three months ended Percent Year ended
Dec. 31, 2005 Sept. 30, 2005 Change Dec. 31, 2005
amounts in thousands
Customer Premises
Equipment $121,371 $87,646 38.5% $416,208
Scaleable
Infrastructure 37,419 46,935 (20.3%) 177,306
Line Extensions 56,998 27,472 107.5% 131,206
Upgrade/Rebuild 32,692 40,663 (19.6%) 131,142
Support Capital 80,850 52,495 54.0% 241,527
Cablecom 27,001 0 N.M. 27,001
NTL Ireland 9,572 9,663 (0.9%) 23,740
Other including
chellomedia 11,189 10,846 3.2% 46,863
Total Capital
Expenditures (Capex) $377,092 $275,720 36.8% $1,194,993
Percent of Revenue 26.1% 21.8% 19.6% 23.2%

Add: Capital Lease
Additions(15) 47,043 34,790 35.2% 153,247
Total Capex and
Capital Leases $424,135 $310,510 36.6% $1,348,240
Percent of Revenue 29.4% 24.6% 19.5% 26.2%

N.M. - Not meaningful.

Free Cash Flow Definition and Reconciliation

Free Cash Flow is not a GAAP measure of liquidity. We define Free Cash Flow as net cash provided by operating activities including net cash provided by discontinued operations less capital expenditures and capital lease additions. Our definition of free cash flow includes capital lease additions which are used to finance capital expenditures. From a financial reporting perspective, capital expenditures that are financed by capital lease arrangements are treated as non-cash activities and accordingly are not included in the capital expenditure amounts presented in our consolidated statements of cash flows. 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 to Free Cash Flow:

Three months ended Year ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31,
2005 2005 2005 2004
amounts in thousands
Net cash provided by
operating activities(16) $551,364 $356,610 $1,526,124 $708,451
Capital expenditures (377,092) (275,720) (1,194,993) (487,617)
Free cash flow of
continuing operations 174,272 80,890 331,131 220,834

Free cash flow of
discontinued operations 2,115 4,841 28,992 14,127
Consolidated free cash
flow before capital
lease additions 176,387 85,731 360,123 234,961

Capital lease additions (47,043) (34,790) (153,247) 0
Free cash flow $129,344 $50,941 $206,876 $234,961

Summary of Debt, Capital Lease Obligations and Cash

The following table details the U.S. dollar equivalent balances of our consolidated debt, capital lease obligations and cash at December 31, 2005:

Debt and
Capital Capital
Lease Lease
Debt Obligations Obligations Cash
amounts in thousands
LGI and its non-operating
subsidiaries $1,289,218 $--- $1,289,218 $660,763
Europe Broadband
UPC Holding 946,634 --- 946,634 14,556
UPC Broadband Holding
and its unrestricted
subsidiaries 4,070,948 40,077 4,111,025 48,154
Cablecom Luxembourg and
its unrestricted
subsidiaries 1,380,317 21,707 1,402,024 85,479
J:COM 1,242,931 326,603 1,569,534 299,140
VTR 341,437 18 341,455 41,263
Other operating
subsidiaries 454,708 374 455,082 52,845
LGI Total $9,726,193 $388,779 $10,114,972 $1,202,200

ARPU(17) Table

The following table provides ARPU per RGU and per customer relationship for the three months ended December 31, 2005 and September 30, 2005, respectively.

As of As of Percent
Europe Broadband(18) Dec. 31, 2005 Sept. 30, 2005 Change
ARPU per RGU 17.98 Euro 16.80 Euro 7.0%
ARPU per Customer
Relationship 22.11 Euro 20.15 Euro 9.7%

J:COM
ARPU per RGU 4,907 Yen 4,900 Yen 0.1%
ARPU per Customer
Relationship 8,429 Yen 8,413 Yen 0.2%

VTR
ARPU per RGU CLP 16,444 CLP 16,261 1.1%
ARPU per Customer
Relationship CLP 25,507 CLP 24,720 3.2%

Liberty Global Consolidated
ARPU per RGU $26.15 $26.72 (2.1%)
ARPU per Customer
Relationship $34.05 $35.06 (2.9%)

RGUs per Customer Relationship

The following table highlights RGUs per customer relationship, excluding the impact of Norway from all calculations:

As of As of Percent
Dec. 31, 2005 Dec. 31, 2004 Change

Europe 1.22 1.17 4.3%
J:COM 1.73 1.67 3.6%
VTR 1.58 1.59 (0.6%)
Liberty Global Consolidated 1.30 1.27 2.4%

Jupiter TV Co., Ltd ("Jupiter TV") Supplemental Financial Information

Liberty Global owned 50% of Jupiter TV at December 31, 2005. Jupiter TV is the largest multi-channel pay television programming and content provider in Japan based upon the number of subscribers receiving the channels. Jupiter TV currently owns or has investments in 18 channels. Summary financial information is presented below, as well as a reconciliation of operating cash flow to operating income calculated in accordance with GAAP for the periods presented therein:

Year Ended Year Ended Percent
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Change
2005 2004 2005 2004
amount in millions
Revenue $793 $567 87,644 Yen 60,481 Yen 45%

Operating
Cash Flow $147 $81 16,173 Yen 8,602 Yen 88%
Depreciation,
Amortization
and Impairment (23) (13) (2,584) (1,380) (87%)
Operating Income $124 $68 13,589 Yen 7,222 Yen 88%

Outstanding Net
Debt (Cash)(19)
at year end $(62) $17 (7,352) Yen 1,698 Yen

Cumulative
Subscribers(20)
(in thousands) 56,103 46,307

(1) Results from UPC Norway are treated as a discontinued operation in
the historical financial figures, thus UPC Norway's revenue and
operating cash flow for all historical periods are retroactively
removed from such figures. We have separately identified Norway as a
discontinued operation in our historical subscriber tables and are
reporting subscriber metrics excluding the impact of Norway.
(2) Organic figures exclude RGUs at the date of acquisition but include
the impact of changes in RGUs from the date of acquisition.
(3) Please see footnote 4 on page 21 for more detail on the definition of
Revenue Generating Units.
(4) All pro forma data assumes J:COM was consolidated for the comparable
period in the preceding year.
(5) Please see page 15 for an explanation of operating cash flow and the
required reconciliation.
(6) In our D4A project, we provide a digital interactive television box
and digital service at the analog rate for six months to analog
subscribers who accept the box and agree to accept the service. Upon
acceptance of the box, the subscriber is counted as a digital cable
subscriber rather than an analog cable subscriber. After the six
month promotional period, the subscriber will have the option to
discontinue the digital service or pay an additional amount, on top
of the analog rate, to receive the digital service.
(7) The stock repurchase program may be effected through open market
transactions and/or privately negotiated transactions, which may
include derivative transactions. We may alter or discontinue the
program at any time.
(8) Includes DTH subscribers.
(9) Pro forma organic growth rate is calculated by excluding the effects
of FX movements and acquisitions. The FX adjustment and acquisition
impact, when taken together, yield an organic growth calculation that
incorporates the impact of acquisitions only when they are included
in both comparable periods. For example, the organic growth
calculation shown above, excludes results from Noos in France during
the first six months of 2005 when we owned and managed the asset. The
organic growth calculation as it relates to Noos includes the last
six months of 2005 as compared to the last six months of 2004 for
both periods when we owned the asset.
(10) Average monthly revenue (ARPU) is calculated as follows: average
total monthly revenue from all sources (including non-subscription
revenue such as installation fees or advertising revenue) for the
period as indicated, divided by the average of the opening and
closing RGUs or customer relationships, as applicable, for the
period.
(11) OCF margin is calculated by dividing OCF for the respective period by
total revenue.
(12) Free Cash Flow is defined as net cash provided by operating
activities including net cash provided by discontinued operations
less capital expenditures and capital lease additions. Please see
page 17 for more information and the required GAAP reconciliation.
(13) The 2005 rebased pro forma revenue and operating cash flow have been
adjusted to reflect the following acquisitions, as if they had
occurred on January 1, 2005: Cablecom, NTL Ireland, Astral, IPS,
ZoneVision, Canal+, Metropolis, Telemach, Austar, Chofu, Setamachi
(Odakyu) and Kobe. The pro forma adjustments are based on currently
available information and on estimates and assumptions that
management believes are reasonable. The 2005 rebased pro forma
revenue and operating cash flow have been presented as a basis for
assessing the growth rates implied by our 2006 guidance and are not
necessarily indicative of the revenue or operating cash flow that
would have occurred if these transactions had occurred on January 1,
2005 or the revenue or operating cash flow that will occur in future
periods. We believe the foregoing rebased pro forma data is not a
non-GAAP measure as contemplated by Regulation G or Item 10 of
Regulation S-K.
(14) In July 2004, we acquired an 80% interest in Noos. In April 2005, we
increased our interest in Noos to 100%. As we did not own 100% of
Noos during 2004, the amount of overhead allocated by Europe
Broadband to Noos during the fourth quarter of 2004 is significantly
less than the amount allocated to Noos during the fourth quarter of
2005. Excluding the impact of all overhead allocations and FX, the
operating cash flow of France increased approximately 13.6% during
the fourth quarter of 2005, as compared to the fourth quarter of
2004.
(15) Relates primarily to customer premise equipment for J:COM.
(16) Excludes net cash provided by operating activities of discontinued
operations.
(17) Average monthly revenue (ARPU) is calculated as follows: average
total monthly revenue from all sources (including non-subscription
revenue such as installation fees or advertising revenue) for the
period as indicated, divided by the average of the opening and
closing RGUs or customer relationships, as applicable, for the
period.
(18) Europe Broadband's ARPU excludes Norway in both periods.
(19) Includes shareholder debt of $10 million at December 31, 2004.
(20) Includes subscribers at all consolidated and equity owned Jupiter TV
channels. Shop Channel subscribers are stated on a full-time
equivalent basis. Shop Channel prior year full-time equivalent
subscriber numbers have been restated for comparability with the
current year presentation.

December 31, 2005
---------------------------------------------
Two-way Customer
Homes Homes Relation- Total
Passed(1) Passed(2) ships(3) RGUs(4)
Europe:
The Netherlands 2,645,800 2,521,600 2,239,500 3,009,700
Switzerland (13) 1,802,200 1,710,100 1,571,300 2,043,900
France 4,611,700 3,361,600 1,618,800 1,921,800
Austria 957,500 954,200 584,100 926,100
Ireland 887,200 225,800 576,900 601,800
Sweden 421,600 287,500 298,500 389,100
Belgium 156,600 156,600 146,500 167,800
Total Western Europe 11,482,600 9,217,400 7,035,600 9,060,200
Poland 1,914,800 932,200 1,023,300 1,124,600
Hungary 1,035,700 885,700 996,300 1,145,900
Czech Republic 743,000 402,100 431,400 486,400
Romania 1,913,800 944,100 1,338,100 1,411,600
Slovak Republic 429,200 238,000 305,000 323,300
Slovenia 125,300 79,300 108,300 126,400
Total Central and
Eastern Europe 6,161,800 3,481,400 4,202,400 4,618,200
Total Europe 17,644,400 12,698,800 11,238,000 13,678,400

Japan:
J-Com 7,296,600 7,288,000 2,002,800 3,460,400

The Americas:
Chile 2,171,900 1,285,100 900,400 1,425,700
Puerto Rico 331,000 331,000 114,400 160,700
Brazil 15,100 15,100 15,100 16,600
Peru 66,800 30,300 12,300 14,100
Total The Americas 2,584,800 1,661,500 1,042,200 1,617,100

Australia:
Austar 2,417,500 -- 471,900 474,800

Total Continuing
Operations 29,943,300 21,648,300 14,754,900 19,230,700

Disc Operations - Norway 523,000 270,800 375,700 464,300

Grand Total 30,466,300 21,919,100 15,130,600 19,695,000

December 31, 2005
---------------------------------------------
Video
---------------------------------------------
Analog Digital
Cable Cable DTH MMDS
Subscrib- Subscrib- Subscrib- Subscrib-
ers(5) ers(6) ers(7) ers(8)
Europe:
The Netherlands 2,150,300 85,300 -- --
Switzerland(13) 1,410,900 106,300 -- --
France 928,600 563,800 -- --
Austria 455,900 44,000 -- --
Ireland 321,500 141,000 -- 113,900
Sweden 240,000 58,600 -- --
Belgium 127,000 5,500 -- --
Total Western Europe 5,634,200 1,004,500 -- 113,900
Poland 1,000,900 -- -- --
Hungary 731,400 -- 171,100 --
Czech Republic 298,300 -- 112,500 --
Romania 1,333,900 4,000 -- --
Slovak Republic 256,900 -- 17,300 28,300
Slovenia 108,300 -- -- --
Total Central and
Eastern Europe 3,729,700 4,000 300,900 28,300
Total Europe 9,363,900 1,008,500 300,900 142,200

Japan:
J-Com 1,064,100 620,800 -- --

The Americas:
Chile 751,200 6,800 -- --
Puerto Rico 56,700 55,600 -- --
Brazil -- -- -- 15,100
Peru 10,800 -- -- --
Total The Americas 818,700 62,400 -- 15,100

Australia:
Austar -- 8,000 466,800 --

Total Continuing
Operations 11,246,700 1,699,700 767,700 157,300

Disc Operations - Norway 334,300 31,000 -- --

Grand Total 11,581,000 1,730,700 767,700 157,300

December 31, 2005
---------------------------------------------
Internet Telephone
--------------------- --------------------
Homes Homes
Service- Subscrib- Service- Subscrib-
able(9) ers(10) able(11) ers(12)
Europe:
The Netherlands 2,521,600 478,100 2,396,300 296,000
Switzerland(13) 1,467,400 340,500 1,417,600 186,200
France 3,361,600 295,000 2,370,500 134,400
Austria 954,200 275,900 920,500 150,300
Ireland 225,800 25,000 24,200 400
Sweden 287,500 90,500 -- --
Belgium 156,600 35,300 -- --
Total Western Europe 8,974,700 1,540,300 7,129,100 767,300
Poland 932,200 122,500 825,200 1,200
Hungary 885,700 135,200 888,200 108,200
Czech Republic 402,100 75,600 -- --
Romania 818,800 55,200 661,100 18,500
Slovak Republic 223,200 20,800 -- --
Slovenia 79,300 18,100 -- --
Total Central and
Eastern Europe 3,341,300 427,400 2,374,500 127,900
Total Europe 12,316,000 1,967,700 9,503,600 895,200

Japan:
J-Com 7,288,000 864,200 6,624,200 911,300

The Americas:
Chile 1,285,100 303,000 1,281,700 364,700
Puerto Rico 331,000 32,000 331,000 16,400
Brazil 15,100 1,500 -- --
Peru 30,300 3,300 -- --
Total The Americas 1,661,500 339,800 1,612,700 381,100

Australia:
Austar -- -- -- --

Total Continuing
Operations 21,265,500 3,171,700 17,740,500 2,187,600

Disc Operations - Norway 270,800 69,500 178,200 29,500

Grand Total 21,536,300 3,241,200 17,918,700 2,217,100

December 31, 2005 vs. September 30, 2005
---------------------------------------------
Two-way Customer
Homes Homes Relation- Total
Passed(1) Passed(2) ships(3) RGUs(4)
Europe:
The Netherlands 8,900 7,300 (12,500) 30,600
Switzerland(13) 1,802,200 1,710,100 1,571,300 2,043,900
France 7,800 7,700 5,800 45,800
Austria 3,100 3,100 8,300 16,900
Ireland 559,300 180,900 377,500 400,700
Sweden -- 1,600 1,400 5,800
Belgium 200 200 500 500
Total Western Europe 2,381,500 1,910,900 1,952,300 2,544,200
Poland 19,000 118,800 15,800 39,000
Hungary 11,200 23,300 34,000 65,000
Czech Republic 3,700 19,900 23,500 33,000
Romania 1,344,700 810,400 948,500 1,016,200
Slovak Republic 2,800 9,100 5,900 9,300
Slovenia 400 1,000 900 3,100
Total Central and
Eastern Europe 1,381,800 982,500 1,028,600 1,165,600
Total Europe 3,763,300 2,893,400 2,980,900 3,709,800

Japan:
J-Com 579,500 579,500 137,800 239,900

The Americas:
Chile 150,200 46,300 1,200 59,500
Puerto Rico 1,300 1,300 300 3,600
Brazil 200 200 200 300
Peru -- -- -- (100)
Total The Americas 151,700 47,800 1,700 63,300

Australia:
Austar 2,417,500 -- 471,900 474,800
Total Continuing
Operations 6,912,000 3,520,700 3,592,300 4,487,800

Disc Operations - Norway 1,200 5,100 400 3,900

Grand Total 6,913,200 3,525,800 3,592,700 4,491,700

Organic growth by region
Europe 303,500
Japan 126,500
The Americas 60,500
Australia -
Organic growth from Continuing Operations 490,500
Organic growth from Discontinued Operations 3,900
Total Organic Growth 494,400

Acquisitions and Dispositions and Other (14)
Switzerland (CableCom) 2,033,400
Romania (Astral and RCT) 972,700
Japan (Odakyu and Kobe) 113,400
Chile (Metropolis Adj) 2,800
Ireland (NTL) 400,200
Australia (Austar) 474,800
Subtotal 3,997,300

Net Adds from Continuing Operations 4,487,800
Net Adds from Discontinued Operations 3,900
Total Net Adds 4,491,700

December 31, 2005 vs. September 30, 2005
---------------------------------------------
Video
---------------------------------------------
Analog Digital
Cable Cable DTH MMDS
Subscrib- Subscrib- Subscrib- Subscrib-
ers(5) ers(6) ers(7) ers(8)
Europe:
The Netherlands (45,200) 32,800 -- --
Switzerland(13) 1,410,900 106,300 -- --
France (19,100) 15,800 -- --
Austria (500) 2,400 -- --
Ireland 232,700 119,900 -- 25,100
Sweden (5,800) 7,300 -- --
Belgium (2,400) 2,000 -- --
Total Western Europe 1,570,600 286,500 -- 25,100
Poland 13,000 -- -- --
Hungary 8,600 -- 19,400 --
Czech Republic 7,100 -- 16,500 --
Romania 944,400 4,000 -- --
Slovak Republic 7,000 -- 2,100 (3,800)
Slovenia 900 -- -- --
Total Central and
Eastern Europe 981,000 4,000 38,000 (3,800)
Total Europe 2,551,600 290,500 38,000 21,300

Japan:
J-Com (16,000) 126,500 -- --

The Americas:
Chile 11,700 2,400 -- --
Puerto Rico (4,500) 4,200 -- --
Brazil -- -- -- 200
Peru (100) -- -- --
Total The Americas 7,100 6,600 -- 200

Australia:
Austar -- 8,000 466,800 --

Total Continuing
Operations 2,542,700 431,600 504,800 21,500

Disc Operations - Norway (1,300) 1,200 -- --

Grand Total 2,541,400 432,800 504,800 21,500

Organic growth by region
Europe (19,800) 63,700 38,000 (3,400)
Japan (60,900) 94,200 -- --
The Americas 4,300 6,600 -- 200
Australia -- -- -- --
Organic growth from
Continuing Operations (76,400) 164,500 38,000 (3,200)
Organic growth from
Discontinued Operations (1,300) 1,200 -- --
Total Organic Growth (77,700) 165,700 38,000 (3,200)
Acquisitions and
Dispositions and Other(14)
Switzerland (CableCom) 1,409,000 106,800 -- --
Romania (Astral and RCT) 926,300 2,900 -- --
Japan (Odakyu and Kobe) 44,900 32,300 -- --
Chile (Metropolis Adj) 2,800 -- -- --
Ireland (NTL) 236,100 117,100 -- 24,700
Australia (Austar) -- 8,000 466,800 --
Subtotal 2,619,100 267,100 466,800 24,700

Net Adds from Continuing
Operations 2,542,700 431,600 504,800 21,500
Net Adds from Discontinued
Operations (1,300) 1,200 -- --
Total Net Adds 2,541,400 432,800 504,800 21,500

December 31, 2005 vs. September 30, 2005
---------------------------------------------
Internet Telephone
--------------------- --------------------
Homes Homes
Service- Subscrib- Service- Subscrib-
able(9) ers(10) able(11) ers(12)
Europe:
The Netherlands 7,300 20,400 6,300 22,600
Switzerland (13) 1,467,400 340,500 1,417,600 186,200
France 7,700 16,600 428,600 32,500
Austria 3,100 15,000 2,800 --
Ireland 180,900 23,000 -- --
Sweden 1,600 4,300 -- --
Belgium 200 900 -- --
Total Western Europe 1,668,200 420,700 1,855,300 241,300
Poland 118,800 24,800 825,200 1,200
Hungary 23,300 20,400 29,300 16,600
Czech Republic 19,900 9,400 -- --
Romania 685,100 49,300 661,100 18,500
Slovak Republic 9,200 4,000 -- --
Slovenia 1,000 2,200 -- --
Total Central and
Eastern Europe 857,300 110,100 1,515,600 36,300
Total Europe 2,525,500 530,800 3,370,900 277,600

Japan:
J-Com 579,500 72,500 339,100 56,900

The Americas:
Chile 46,300 23,700 42,900 21,700
Puerto Rico 1,300 2,900 1,300 1,000
Brazil 200 100 -- --
Peru -- -- -- --
Total The Americas 47,800 26,700 44,200 22,700

Australia:
Austar -- -- -- --

Total Continuing
Operations 3,152,800 630,000 3,754,200 357,200

Disc Operations - Norway 5,100 4,400 4,500 (400)

Grand Total 3,157,900 634,400 3,758,700 356,800

Organic growth by region
Europe -- 135,400 -- 89,600
Japan -- 36,300 -- 56,900
The Americas -- 26,700 -- 22,700
Australia -- -- -- --
Organic growth from
Continuing Operations 3,152,800 198,400 3,754,200 169,200
Organic growth from
Discontinued Operations 5,100 4,400 4,500 (400)
Total Organic Growth 3,157,900 202,800 3,758,700 168,800
Acquisitions and
Dispositions and Other(14)
Switzerland (CableCom) -- 338,800 -- 178,800
Romania (Astral and RCT) -- 34,300 -- 9,200
Japan (Odakyu and Kobe) -- 36,200 -- --
Chile (Metropolis Adj) -- -- -- --
Ireland (NTL) -- 22,300 -- --
Australia (Austar) -- -- -- --
Subtotal -- 431,600 -- 188,000

Net Adds from Continuing
Operations 3,152,800 630,000 3,754,200 357,200
Net Adds from Discontinued
Operations 5,100 4,400 4,500 (400)
Total Net Adds 3,157,900 634,400 3,758,700 356,800

Footnotes for the preceding subscriber tables
(1) Homes Passed are homes that can be connected to our networks without
further extending the distribution plant, except for DTH and MMDS
homes. Our Homes Passed counts are based on census data that can
change based on either revisions to the data or from new census
results. With the exception of Austar, we do not count homes passed
for DTH. With respect to Austar, we count all homes in the areas
that Austar is authorized to serve. With respect to MMDS, one home
passed is equal to one MMDS subscriber.
(2) Two-way Homes Passed are homes passed by our networks where customers
can request and receive the installation of a two-way addressable
set-top converter, cable modem, transceiver and/or voice port which,
in most cases, allows for the provision of video and Internet
services and, in some cases, telephone services.
(3) Customer Relationships are the number of customers who receive at
least one level of service without regard to which service(s) they
subscribe. We exclude mobile customers from customer relationships.
(4) Revenue Generating Unit is separately an Analog Cable Subscriber,
Digital Cable Subscriber, DTH Subscriber, MMDS 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 digital cable service, telephone service and high-
speed broadband Internet access service, the customer would
constitute three RGUs. Total RGUs is the sum of Analog, Digital
Cable, DTH, MMDS, Internet and Telephone Subscribers. In some cases,
non-paying subscribers are counted as subscribers during their free
promotional service period. Some of these subscribers choose to
disconnect after their free service period.
(5) Analog Cable Subscriber is comprised of video cable customers that
are counted on a per connection basis. In Europe, we have
1.37 million "lifeline" customers that are counted on a per
connection basis, representing the least expensive regulated tier of
basic cable service, with only a few channels. An analog cable
subscriber is not counted as a digital cable subscriber.
(6) Digital Cable Subscriber is a customer with one or more digital
converter boxes that receives our digital video service. We count a
subscriber with one or more digital converter boxes that receives our
digital video service as just one subscriber. A digital subscriber is
not counted as an analog subscriber. In the Netherlands where our
mass digital migration project is underway, a subscriber is moved
from the analog subscriber count to the digital subscriber count when
such subscriber accepts delivery of our digital converter box and
agrees to accept digital video service regardless of when the
subscriber begins to receive our digital video service. The digital
video service and the digital converter box are provided at the
analog rate for six months after which the subscriber has the option
to discontinue the digital service or pay an additional amount to
continue to receive the digital service.
(7) DTH Subscriber is a home or commercial unit that receives our video
programming broadcast directly to the home via a geosynchronous
satellite.
(8) MMDS Subscriber is a home or commercial unit that receives our video
programming via a multipoint microwave (wireless) distribution
system.
(9) Internet Homes Serviceable are homes that can be connected to our
broadband networks, where customers can request and receive Internet
access services.
(10) Internet Subscriber is a home or commercial unit or EBU with one or
more cable modems connected to our broadband networks, where a
customer has requested and is receiving high-speed Internet access
services. Such numbers do not include customers that receive
services via resale arrangements.
(11) Telephone Homes Serviceable are homes that can be connected to our
networks, where customers can request and receive voice services.
(12) Telephone Subscriber is a home or commercial unit or EBU connected to
our networks, where a customer has requested and is receiving voice
services. Telephone subscribers as of December 31, 2005, exclude an
aggregate of 92,800 mobile telephone subscribers in the Netherlands,
Switzerland and Australia. Mobile telephone services generate a
significantly lower ARPU than broadband or Voice-over-Internet
Protocol or "VoIP" telephone services. Also, such numbers do not
include customers that receive services via resale arrangements.
(13) Included in the subscribers for Switzerland are 25,000 digital cable,
35,800 Internet access and 19,300 telephony subscribers serviced over
partner networks, but for which we have the direct customer billing
relationship.
(14) Subscriber information for recently acquired entities is preliminary
and subject to adjustment until we have completed our review of such
information and determined that it is presented in accordance with
our policies.

Additional General Notes to Tables:

Tables exclude systems owned by affiliates that were not consolidated for financial reporting purposes as of December 31, 2005, or that were acquired after December 31, 2005. Also, excludes 3.1 million households to which J:COM provides only retransmission services of terrestrial television signals.

With respect to Japan, Chile and Puerto Rico, residential multiple dwelling units with a discounted pricing structure for video, Internet or telephony services are counted on an equivalent bulk unit (EBU) basis. Commercial contracts such as hotels and hospitals are counted by all our subsidiaries on an 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.

Source: Liberty Global, Inc.

CONTACT: Investor Relations, Christopher Noyes, Denver, +1-303-220-6693,
or Ivan Nash Vila, Europe, +41 44 277 97 38, or Corporate Communications,
Hanne Wolf, Denver, +1-303-220-6678, or Bert Holtkamp, Europe,
+31 20 778 9447, all of Liberty Global, Inc.

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