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S-4
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form S-4 on 01/25/2000
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<PAGE>   49
 
            NOTES TO THE UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
 
     NOTE A:  Pro forma operating results for Charter Holdings, including the
acquisition of us on December 23, 1998 by Mr. Allen and the acquisition of Sonic
Communications, Inc., consist of the following (dollars in thousands):

<TABLE>
<CAPTION>
                                                                                    12/24/98   1/1/98
                                                    1/1/98 THROUGH 12/23/98         THROUGH    THROUGH
                                               ----------------------------------   12/31/98   5/20/98
                                                  CCA      CHARTERCOMM              --------   -------
                                                 GROUP      HOLDINGS      CHARTER HOLDINGS      SONIC    ELIMINATIONS     SUBTOTAL
                                               ---------   -----------   -------------------   -------   ------------     ---------
<S>                                            <C>         <C>           <C>        <C>        <C>       <C>              <C>
Revenues.....................................  $ 324,432    $196,801     $ 49,731   $13,713    $17,276     $    --        $ 601,953
                                               ---------    --------     --------   -------    -------     -------        ---------
Operating expenses:
 Operating, general and
   administrative............................    164,145      98,331       25,952     7,134      8,993          --          304,555
 Depreciation and amortization...............    136,689      86,741       16,864     8,318      2,279          --          250,891
 Stock option compensation expense...........         --          --           --       845         --          --              845
 Management fees/corporate expense charges...     17,392      14,780        6,176       473         --          --           38,821
                                               ---------    --------     --------   -------    -------     -------        ---------
   Total operating expenses..................    318,226     199,852       48,992    16,770     11,272          --          595,112
                                               ---------    --------     --------   -------    -------     -------        ---------
Income (loss) from operations................      6,206      (3,051)         739    (3,057)     6,004          --            6,841
Interest expense.............................   (113,824)    (66,121)     (17,277)   (2,353)    (2,624)      1,900(c)      (200,299)
Other income (expense).......................      4,668      (1,684)        (684)      133        (15)     (1,900)(c)          518
                                               ---------    --------     --------   -------    -------     -------        ---------
Income (loss) before income taxes............   (102,950)    (70,856)     (17,222)   (5,277)     3,365          --         (192,940)
Income tax expense...........................         --          --           --        --      1,346          --            1,346
                                               ---------    --------     --------   -------    -------     -------        ---------
Income (loss) before extraordinary item......  $(102,950)   $(70,856)    $(17,222)  $(5,277)   $ 2,019     $    --        $(194,286)
                                               =========    ========     ========   =======    =======     =======        =========
 
<CAPTION>
 
                                                       PRO FORMA
                                               --------------------------
 
                                               ADJUSTMENTS        TOTAL
                                               -----------      ---------
<S>                                            <C>              <C>
Revenues.....................................   $      --       $ 601,953
                                                ---------       ---------
Operating expenses:
 Operating, general and
   administrative............................          --         304,555
 Depreciation and amortization...............     119,515(a)      370,406
 Stock option compensation expense...........          --             845
 Management fees/corporate expense charges...     (22,328)(b)      16,493
                                                ---------       ---------
   Total operating expenses..................      97,187         692,299
                                                ---------       ---------
Income (loss) from operations................     (97,187)        (90,346)
Interest expense.............................       (495)(d)     (200,794)
Other income (expense).......................          --             518
                                                ---------       ---------
Income (loss) before income taxes............     (97,682)       (290,622)
Income tax expense...........................      (1,346)(e)          --
                                                ---------       ---------
Income (loss) before extraordinary item......   $ (96,336)      $(290,622)
                                                =========       =========
</TABLE>

 
---------------
(a)  Represents additional depreciation and amortization as a result of the
     acquisition of us by Mr. Allen. A large portion of the purchase price was
     allocated to franchises ($3.6 billion) that are amortized over 15 years.
     The adjustment to depreciation and amortization expense consists of the
     following (dollars in millions):
 

<TABLE>
<CAPTION>
                                                                          WEIGHTED AVERAGE       DEPRECIATION/
                                                         FAIR VALUE    USEFUL LIFE (IN YEARS)    AMORTIZATION
                                                         ----------    ----------------------    -------------
    <S>                                                  <C>           <C>                       <C>
    Franchises.........................................   $3,600.0               15                 $240.0
    Cable distribution systems.........................    1,439.2               12                  115.3
    Land, buildings and improvements...................       41.3               11                    3.5
    Vehicles and equipment.............................       61.2                5                   11.6
                                                                                                    ------
      Total depreciation and amortization..............                                              370.4
      Less-historical depreciation and amortization....                                             (250.9)
                                                                                                    ------
         Adjustment....................................                                             $119.5
                                                                                                    ======
</TABLE>

 
(b) Reflects the reduction in corporate expense charges of approximately $7.9
    million to reflect the actual costs incurred. Management fees charged to CCA
    Group and CharterComm Holdings, companies not controlled by Charter
    Investment, Inc. at that time, exceeded the allocated costs incurred by
    Charter Investment, Inc. on behalf of those companies by $7.9 million. Also
    reflects the elimination of approximately $14.4 million of change of control
    payments under the terms of the then-existing equity appreciation rights
    plans. Such payments were triggered by the acquisition of us by Mr. Allen.
    Such payments were made by Charter Investment, Inc. and were not subject to
    reimbursement by us, but were allocated to us for financial reporting
    purposes. The equity appreciation rights plans were terminated in connection
    with the acquisition of us by Mr. Allen, and these costs will not recur.
 
(c)  Represents the elimination of intercompany interest on a note payable from
     Charter Holdings to CCA Group.
 
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