David Pugliese, VP Product Marketing and Management Bundling: Our Competitive Engine Wachovia Securities 13 th Annual Nantucket Equity Conference

Safe Harbor During this presentation, we will be making certain forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, about business strategies and goals, market potential, future financial performance, new service and product launches and other matters. These statements address matters that involve significant risks and uncertainties that could cause actual results to differ materially from such statements, including, without limitation, possible changes in expected market acceptance of new products or services, impact of rate changes, ability of vendors to meet contractual obligations, competitive issues, regulatory issues and continued access to capital on terms acceptable to the Company. Please refer to publicly filed documents of the Company, including the Company’s most recent Form 10-K for additional information about the Company and for additional information about the risks and uncertainties related to the Company.

Use of Non-GAAP Measures This presentation contains certain non-GAAP financial measures including operating cash flow and free cash flow. For full disclosure of the use of these non-GAAP measures and a reconciliation pf these non-GAAP financial measures with the most directly comparable GAAP measures, please see our quarterly earnings press release, which is posted on our website at

Cox Communications Profile 6.5 million customer relationships in 23 states6.5 million customer relationships in 23 states –Larger systems include Phoenix, Orange County, Las Vegas, Omaha, San Diego, New England, etc. 4th largest cable television provider4th largest cable television provider –Nation’s 12th largest phone company and third largest in California Regionally concentrated clustersRegionally concentrated clusters Leading multi-service broadband providerLeading multi-service broadband provider –Video –Voice –High-speed Internet

What Sets Cox Apart? Plant upgrades nearly completePlant upgrades nearly complete –Network is over 90% upgraded to at least 750 MHz –Approximately 96% of homes passed have digital and high-speed Internet availability TODAY! –Ring-in-ring redundant fiber network to the node - crucial for offering life-line phone service Continued demand for basic and advanced servicesContinued demand for basic and advanced services –Well positioned versus competition –3-product offering including telephone service –1 st to make bundling strategy a priority

What Sets Cox Apart? Common platformCommon platform –Only operator with one fully integrated billing and back-office system across all markets Committed to customer satisfactionCommitted to customer satisfaction –Highest customer satisfaction among MSOs Increasing year-over-year growth in revenue and OCF over the past four yearsIncreasing year-over-year growth in revenue and OCF over the past four years Free cash flow positive for the full year 2003Free cash flow positive for the full year 2003 Seasoned and experienced management teamSeasoned and experienced management team

Growth As a Top Priority 1Q03 Highlights Industry leading revenue growth of 16%Industry leading revenue growth of 16% EBITDA (historical) grew 22%EBITDA (historical) grew 22% –EBITDA margins at 35.1% up 180 basis points from 1Q02 $30 million in free cash flow for the quarter$30 million in free cash flow for the quarter –3 rd consecutive quarter of free cash flow

Continue the Growth Sequential Net Gains Per Quarter (in Thousands)

What’s Driving Customer Growth? Bundling = Core of our Competitive Strategy CoxBundlingStrategy NewProductDevelopment CompetitiveMarketing RetailDistributionStrategy CustomerServiceQuality UpgradeCompletion Programming & Content & Content

Simplicity Service Savings Bundled Offer StrategyCustomer-CentricStrategy Value for the customer Value for Cox Cox Bundling Strategy Service, Simplicity and Savings

Key Initiatives Enhancing the Bundle VideoVideo PVRPVR VOD/SVODVOD/SVOD HDTVHDTV Broadband enhancementsBroadband enhancements Cox.Net contentCox.Net content Value-added servicesValue-added services Protection packageProtection package Home networkingHome networking Xbox compatibleXbox compatible Phone enhancementsPhone enhancements Feature developmentFeature development Unlimited plansUnlimited plans VoIPVoIP NewProductDevelopment

The Benefits of Bundling CONVENIENCE of one providerCONVENIENCE of one provider –One-stop-shop for customer service, installation and billing Bundled SAVINGSBundled SAVINGS –Better value for the money –$10 equivalent on 3- product bundle Consumer CHOICEConsumer CHOICE –“Build your own bundle” –1 bill or multiple bills –Discount options Incremental penetrationIncremental penetration Churn reductionChurn reduction Operational efficienciesOperational efficiencies Competitive advantageCompetitive advantage CustomerCox

The Benefits of Bundling CONVENIENCE of one providerCONVENIENCE of one provider –One-stop-shop for customer service, installation and billing Bundled SAVINGSBundled SAVINGS –Better value for the money –$10 equivalent on 3- product bundle Consumer CHOICEConsumer CHOICE –“Build your own bundle” –1 bill or multiple bills –Discount options Incremental penetrationIncremental penetration Churn reductionChurn reduction Operational efficienciesOperational efficiencies Competitive advantageCompetitive advantage CustomerCox

The One-Stop-Shop Customer Service, Billing and Installation COXAlternative RBOC Dial Up or DSL Provider DBS One fully integrated IT platform makes this possible!

Bundling- Not Just About Discounts % Source: Horowitz Associates, Inc. One number to call for customer service 69 One integrated monthly bill 68 For new home, having all the services pre-wired Dealing with just one company 59 A progressive discounting plan: 10% disc. when subscribe to 2 services and 15% with 3 services What is Important to the Consumer? Customers want convenience!

The Benefits of Bundling Incremental penetrationIncremental penetration Churn reductionChurn reduction Operational efficienciesOperational efficiencies Competitive advantageCompetitive advantage CustomerCox CONVENIENCE of one providerCONVENIENCE of one provider –One-stop-shop for customer service, installation and billing Bundled SAVINGSBundled SAVINGS –Better value for the money –$10 equivalent on 3- product bundle Consumer CHOICEConsumer CHOICE –“Build your own bundle” –1 bill or multiple bills –Discount options

Bundling Drives Penetration (In Thousands) Bundled Penetration to Basic Customers 19% 21% 23% 26% 29%

Impact of Bundling on Churn Average Monthly Customer Churn 3.0% 2.3% 1.9% 2.2% 1.4% Video Only Video +HSI HSI + Phone Video + Phone Video + HSI + Phone Bundling reduces churn as much as 50% in 3 product homes!

Bundled Sell-in is Growing 41% 29%

Sell-in Efficiencies One marketing messageOne marketing message –Reduces marketing costs, efforts One call; one saleOne call; one sale One truck rollOne truck roll One BillOne Bill Lower churnLower churn Higher take rate on additional revenue streams (long distance, phone features, digital cable)Higher take rate on additional revenue streams (long distance, phone features, digital cable)

Marketing the Cox Bundle Market The BundleMarket The Bundle TV, Direct Mail, Radio, Web, Etc.TV, Direct Mail, Radio, Web, Etc. Bundled messages drive higher non-customer response ratesBundled messages drive higher non-customer response rates Sell the BundleSell the Bundle Customer contact employees focused on BSI (Bundled Sell-In)Customer contact employees focused on BSI (Bundled Sell-In) Database MarketingDatabase Marketing The right product mix, right offer, etc.The right product mix, right offer, etc.

Cox Bundling Vs. DBS Cox is Competitively Positioned Our fully integrated 3-product bundle provides a competitive advantage versus DBS offeringsOur fully integrated 3-product bundle provides a competitive advantage versus DBS offerings –DBS operators are constrained by bandwidth and lack of two-way capability –DBS penetration in Cox markets grew more in 2001 than in 2002 despite local into local launches and increased promotional activity DBS purchase intent declines by 30% among 3-product bundle customersDBS purchase intent declines by 30% among 3-product bundle customers –1Q03 DBS penetration in our markets was flat versus 4Q02 at nearly half the national average Only Cox can offer video, voice and high-speed Internet services with the option of one bill

Cox Bundling Vs. the RBOCs Cox is Competitively Positioned DSL providers (most notably SBC) have been using aggressive promotions for the past 9-12 monthsDSL providers (most notably SBC) have been using aggressive promotions for the past 9-12 months We have seen no impact on Cox High-Speed Internet run rates - even in CaliforniaWe have seen no impact on Cox High-Speed Internet run rates - even in California Verizon recently reduced DSL pricing to $34.95 raising questions in investors’ mindsVerizon recently reduced DSL pricing to $34.95 raising questions in investors’ minds Cox HSI is very competitively positioned: Cox Verizon Speed - downstream3 Mbps1.5 Mbps*Speed - downstream3 Mbps1.5 Mbps* Speed - upstream256 Kbps128 KbpsSpeed - upstream256 Kbps128 Kbps Availability96%~63%Availability96%~63% * 1.5 Mbps at best depending on distance from central office

Competitively Positioned The Cox Bundle Comes Out Ahead Difference HSI Service $ $ $ (a) Telephone Service (17.00) (b) Telephone Features included Subtotal (HSI + Phone) (1.05) (c) Video Service Bundle Value/Discount (10.00) (10.00) Total $ $ $ (10.04) COXVERIZON (a)$29.95 Verizon offer requires purchase of telephone package and LD (b)Minimum feature requirement for Cox Bundle (c)Verizon Video represents DISH Network Top 100 plus local channels; Cox Video is standard service (bundled discount does not require digital service in this market) RHODE ISLAND

What’s in Store for the Future? Continue the Growth Continued basic subscriber growthContinued basic subscriber growth Driving the new and advanced services penetration higherDriving the new and advanced services penetration higher Double-digit growth in revenue and operating cash flowDouble-digit growth in revenue and operating cash flow Improving marginsImproving margins Continued significant declines in capex leading to significant free cash flow generationContinued significant declines in capex leading to significant free cash flow generation Because of our competitive position and long- term focus, we are well prepared for future growth

David Pugliese, VP Product Marketing and Management Bundling: Our Competitive Engine Wachovia Securities 13 th Annual Nantucket Equity Conference