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News Release

Charter Communications Reports First Quarter 2003 Operating Results

ST. LOUIS, May 7, 2003 (BUSINESS WIRE) -- Charter Communications, Inc. (Nasdaq:CHTR) today reported operating results for the quarter ended March 31, 2003.

For the 2003 first quarter, Charter generated revenue of $1.178 billion, an increase of 9.7% over last year's first quarter revenue of $1.074 billion. This year's first quarter adjusted EBITDA was $458 million, up 7.5% over adjusted EBITDA of $426 million for the year ago quarter.

Net cash flows provided by operating activities for the first quarter of 2003 totaled $162 million, an increase of $60 million, or 59%, as compared to amounts reported in the first quarter of 2002. Cash flows from investing activities totaled $231 million in the first quarter of 2003, which is one third of the $604 million reported in the first quarter of 2002, a decrease of $373 million. Cash required for all operating and investing activities totaled $69 million in the first quarter of 2003 as compared to $502 million for the same period a year ago. This significant reduction in cash requirements is a direct result of increasing revenue and a substantial reduction in capital expenditures in the first quarter of 2003. At March 31, 2003, the Company had $446 million in cash on hand.

Charter recorded special charges in the first quarter of 2003 of approximately $7 million for severance and related costs of its on-going initiative to reduce its workforce, partially offset by a $5 million credit from a settlement related to the conversion of about 145,000 high-speed data customers from the Internet service provider @Home to Charter Pipeline(R) in 2001. The Company expects to record additional special charges throughout 2003 related to the strategic restructuring of its operations and litigation related costs.

Net loss applicable to common stock and loss per share for the quarter ended March 31, 2003 were $182 million and $0.62, respectively. For the restated 2002 first quarter, Charter reported net loss applicable to common stock and loss per share of $317 million and $1.08, respectively.

Revenue generating units totaled approximately 10,474,400 at March 31, 2003, an increase of 51,900 in the first quarter of 2003 and of approximately 813,200 units for the trailing twelve months.

Carl Vogel, President and CEO said, "Charter made steady progress operationally. Our increase in revenues for the quarter as compared to last year is principally the result of our aggressive efforts to build our base of high-speed data customers, while also increasing service and package prices for our video and data product offerings, and reducing customer churn in all product categories."

Analog and digital service revenues totaled $898 million for the three months ended March 31, 2003, an increase of $42 million, or 5%, from the same period a year ago. During the first quarter of 2003, the Company lost approximately 50,600 analog video customers as compared to a loss of approximately 157,500 analog video customers in the first quarter of 2002, and 68,800 analog video customers in the fourth quarter of 2002. Included in the loss for the first quarter of 2003 were approximately 13,000 customers previously served by the Company's transitional satellite service outside its broadband footprint, Charter Anywhere. Due to the failure of the Company's service provider for this product, Charter discontinued this offering, which resulted in this one-time loss of customers. Excluding the effect of these one-time losses, analog video customer losses were approximately 37,600, which is approximately half the analog video customer loss experienced in the fourth quarter of 2002, despite the price increases described earlier.

As a result of Charter's previously announced strategy to focus on customers that are more likely to buy higher revenue and margin products, a plan to repackage some digital service offerings and the discontinuance of its transitional satellite service, the Company lost 31,700 digital customers during the first quarter of 2003 but experienced a 2% increase in the average revenue for digital service.

"We plan to remain focused on improving the profitability of our digital product, but we do not expect the customer growth rates of the past, given the market penetration in excess of 40% that we have already achieved," Mr Vogel said.

Mr. Vogel emphasized revenue from high-speed data services totaled $122 million, an increase of $58 million, or 91%, in the first quarter of 2003 compared to the first quarter of 2002. "We nearly doubled our high-speed data customer base in the last year, growing to 1,272,300 customers at March 31, 2003, from 657,900 a year ago. Charter Pipeline, our own branded high-speed data service, is the Company's most profitable product with the lowest capital cost to deploy. Having added 134,200 data customers during the first quarter, we are continuing to actively market data services in an effort to increase the penetration and profitability of Charter Pipeline in residential and commercial markets.

"With the recent restatements of prior results, Charter has a financial baseline against which to measure operational performance and key recurring financial metrics of our business," Mr. Vogel said. "The results of the strategic restructuring of our operations are beginning to show positive trends, as evidenced by our improving revenue, cash flows from operations and adjusted EBITDA, as well as the decline in our capital expenditures as we focus principally on our goal of generating cash flow from all operating and investing activities."

Mr. Vogel said the year 2003 is one of transition for the Company as it moves towards its goals of enhanced operational efficiencies and productivity, solid financial discipline, and growth in the revenues from all products and services. "We plan to maintain a heightened focus on meeting customer needs in order to stabilize our customer base, especially as it relates to analog video customers, and improve our financial performance and return on invested capital."

Use of non-GAAP Financial Metrics

The Company believes that adjusted EBITDA traditionally has provided additional information useful in analyzing the underlying business results and allows a standardized peer company comparison, while minimizing the differences from depreciation policies, financial leverage and tax strategies. However, adjusted EBITDA is a non-GAAP (Generally Accepted Accounting Principles) financial metric and should be considered in addition to, not as a substitute for, net loss, earnings per share or net cash flows from operating activities. Adjusted EBITDA is defined as income from operations before special charges, non-cash depreciation and amortization and option compensation expense. A reconciliation of adjusted EBITDA to net cash flows from operating activities and operating income is included in the following Addendum. Interest on cash pay obligations excludes accretion of original issue discounts on certain debt securities and amortization of deferred financing costs that are reflected as interest expense in our statement of operations.

Conference Call

The Company will host a conference call Wednesday, May 7, 2003 at 11:00 a.m. Eastern Time (ET) related to the contents of this release.

The conference call will be broadcast live via the Company's website at www.charter.com. The call can be accessed through the "Investor Center" portion of the website, via the "About Us" heading at the top of the page. Participants should go to the call link at least 10 minutes prior to the start time to register. The call will be archived on the website beginning two hours after completion of the call.

Those parties interested in participating via telephone should dial 888-233-1576. International participants should dial 706-643-3458.

A replay of the call will be available at 800-642-1687 or 706-645-9291 beginning two hours after the completion of the call through midnight May 12, 2003. The passcode for the replay is 259520.

About Charter Communications

Charter Communications, A Wired World Company(TM), is the nation's third-largest broadband communications company. Charter provides a full range of advanced broadband services to the home, including cable television on an advanced digital video programming platform via Charter Digital Cable(R) brand and high-speed Internet access marketed under the Charter Pipeline(R) brand. Commercial high-speed data, video and Internet solutions are provided under the Charter Business Networks(R) brand. Advertising sales and production services are sold under the Charter Media(R) brand. More information about Charter can be found at www.charter.com.

Cautionary Statement Regarding Forward-Looking Statements:

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release are set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission, or the SEC, and include, but are not limited to:

    --  our ability to sustain and grow revenues and cash from
        operations by offering video and data services and to maintain
        a stable customer base, particularly in the face of
        increasingly aggressive competition from other service
        providers;

    --  our ability to comply with all covenants in our credit
        facilities and indentures, any violation of which would result
        in a violation of the applicable facility or indenture and
        could trigger a default of other obligations under cross
        default provisions;

    --  availability of funds to meet interest payment obligations
        under our debt and to fund our operations and necessary
        capital expenditures, either through cash from operations,
        further borrowings or other sources;

    --  any adverse consequences arising out of the recent restatement
        of our financial statements;

    --  the results of the pending grand jury investigation by the
        United States Attorney's Office for the Eastern District of
        Missouri, the pending SEC investigation and the putative class
        action and derivative shareholders litigation against us;

    --  the cost and availability of funding to refinance the existing
        debt that becomes due commencing in 2005;

    --  our ability to achieve free cash flow;

    --  our ability to obtain programming at reasonable prices;

    --  general business conditions, economic uncertainty or slowdown
        and potential international conflict;

    --  the impact of any armed conflict, including loss of customers
        in areas with large numbers of military personnel; and

    --  the effects of governmental regulation on our business.

All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no obligation to update any of the forward looking statements after the date of this news release to conform these statements to actual results or to changes in our expectations.

             CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
            UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
               (DOLLARS IN MILLIONS, EXCEPT SHARE DATA)



                                                 Three Months Ended
                                                      March 31,
                                            --------------------------
                                               2003          2002
                                            ------------  ------------
                                                           (restated)
REVENUES:
   Analog video                            $        719  $        691
   Digital video                                    179           165
   High-speed data                                  122            64
   Advertising sales                                 57            58
   Other                                            101            96
                                            ------------  ------------
      Total revenues                              1,178         1,074
                                            ------------  ------------

COSTS AND EXPENSES:
   Programming costs                                314           283
   Advertising sales                                 21            19
   Service                                          150           124
   General and administrative                       215           194
   Marketing                                         20            28
   Depreciation and amortization                    370           326
   Option compensation expense, net                   -             2
   Special charges, net                               2             1
                                            ------------  ------------
      Total costs and expenses                    1,092           977
                                            ------------  ------------

      Income from operations                         86            97

OTHER EXPENSES
   Interest, net                                   (390)         (362)
   Other, net                                         3            31
                                            ------------  ------------
                                                   (387)         (331)
                                            ------------  ------------

Loss before minority interest, income taxes
 and cumulative effect of accounting change        (301)         (234)

Minority interest                                   160           124
                                            ------------  ------------

Loss before income taxes and cumulative
 effect of accounting change                       (141)         (110)

Income tax expense                                  (40)            -
                                            ------------  ------------

Loss before cumulative effect of accounting
 change                                            (181)         (110)

Cumulative effect of accounting change, net
 of tax                                               -          (206)
                                            ------------  ------------

Net loss                                           (181)         (316)

Dividends on preferred stock - redeemable            (1)           (1)
                                            ------------  ------------

Net loss applicable to common stock        $       (182) $       (317)
                                            ============  ============

Basic and diluted loss per share           $      (0.62) $      (1.08)
                                            ============  ============

Weighted average common shares outstanding  294,466,137   294,394,939
                                            ============  ============

	   NOTE: Certain 2002 amounts have been reclassified to conform with
    the 2003 presentation.


             CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
                 UNAUDITED CONSOLIDATED BALANCE SHEETS
                         (DOLLARS IN MILLIONS)


                                                March 31, December 31,
                                                  2003       2002
                                                --------- -----------

                        ASSETS

CURRENT ASSETS:
   Cash and cash equivalents                     $   446  $    321
   Accounts receivable, net of allowance for
    doubtful accounts                                233       259
   Receivables from related party                      -         8
   Prepaid expenses and other current assets          46        45
                                                  -------  --------
         Total current assets                        725       633
                                                  -------  --------

INVESTMENT IN CABLE PROPERTIES:
   Property, plant and equipment, net              7,408     7,679
   Franchises, net                                13,725    13,727
                                                  -------  --------
         Total investment in cable
          properties, net                         21,133    21,406
                                                  -------  --------

OTHER ASSETS                                         337       345
                                                  -------  --------
        Total assets                             $22,195  $ 22,384
                                                  =======  ========

   LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES:
   Accounts payable and accrued expenses         $ 1,253  $  1,405
                                                  -------  --------
         Total current liabilities                 1,253     1,405
                                                  -------  --------

LONG-TERM DEBT                                    18,961    18,671

DEFERRED MANAGEMENT FEES - RELATED PARTY              14        14

OTHER LONG-TERM LIABILITIES                        1,181     1,177

MINORITY INTEREST                                    869     1,025

PREFERRED STOCK - REDEEMABLE                          55        51

SHAREHOLDERS' EQUITY (DEFICIT)                      (138)       41
                                                  -------  --------
         Total liabilities and shareholders'
          equity (deficit)                       $22,195  $ 22,384
                                                  =======  ========


             CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
            UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
                         (DOLLARS IN MILLIONS)

                                                     Three Month Ended
                                                         March 31,
                                                     -----------------
                                                     2003        2002
                                                     -----  ----------
                                                            (restated)
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                         $(181)     $ (316)
   Adjustments to reconcile net loss to net cash
    flows from operating activities:
      Minority interest                              (160)       (124)
      Depreciation and amortization                   370         326
      Noncash interest expense                        106          94
      Gain on derivative instruments and hedging
       activities                                     (14)        (33)
      Deferred income taxes                            40           -
      Change in accounting principle                    -         206
      Other, net                                       11           4
   Changes in operating assets and liabilities, net
    of effects from acquisitions:
      Accounts receivable                              26          64
      Prepaid expenses and other assets                (3)         (3)
      Accounts payable and accrued expenses           (41)       (114)
      Receivables from and payables to related
       party,
       including deferred management fees               8          (2)
                                                     -----  ----------
          Net cash flows from operating activities    162         102
                                                     -----  ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchases of property, plant and equipment        (104)       (435)
   Change in accounts payable and accrued expenses
    related to capital expenditures                  (124)        (87)
   Payments for acquisitions, net of cash acquired      -         (78)
   Purchases of investments                            (3)         (4)
                                                     -----  ----------
          Net cash flows from investing activities   (231)       (604)
                                                     -----  ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Borrowings of long-term debt                       346       1,868
   Repayments of long-term debt                      (152)     (1,311)
   Payments for debt issuance costs                     -         (40)
                                                     -----  ----------
          Net cash flows from financing activities    194         517
                                                     -----  ----------
NET INCREASE IN CASH AND CASH EQUIVALENTS             125          15
CASH AND CASH EQUIVALENTS, beginning of period        321           2
                                                     -----  ----------
CASH AND CASH EQUIVALENTS, end of period            $ 446      $   17
                                                     =====  ==========

CASH PAID FOR INTEREST                              $ 160      $  144
                                                     =====  ==========


             CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
               UNAUDITED SUMMARY OF OPERATING STATISTICS


                                             Approximate
                                                 as of
                                  ------------------------------------
                                   March 31,   December 31, March 31,
                                    2003 (a)     2002 (a)    2002 (a)
                                  -----------  ----------- -----------
Video Services:
  Analog Video:
    Estimated homes passed (b)    11,925,300   11,925,000  11,777,300

    Residential (non-bulk)
     analog video customers (c)    6,277,300    6,328,900   6,540,800
    Multi-dwelling (bulk) and
     commercial unit customers (c)   250,900      249,900     237,900
                                  -----------  ----------- -----------
          Total analog video
           customers (c)           6,528,200    6,578,800   6,778,700
                                  -----------  ----------- -----------

  Estimated penetration of analog
    video homes passed (b) (c) (d)        55%          55%         58%

Digital Video:
      Estimated digital homes
       passed (b)                 11,547,000   11,547,000  10,894,000
      Digital customers (e)        2,651,100    2,682,800   2,208,900
      Estimated penetration of
       digital homes passed (b)
       (d) (e)                            23%          23%         20%
      Digital percentage of
       analog video customers
       (c) (e) (f)                        41%          41%         33%
      Digital set-top terminals
       deployed                    3,749,400    3,772,600   3,055,900
      Estimated video-on-demand
       homes passed (b)            3,279,000    3,195,000   1,994,700

High-Speed Data Services:
     Estimated cable modem homes
      passed (b)                   9,970,000    9,826,000   8,180,300
     Residential cable modem
      customers (g) (h)            1,272,300    1,138,100     657,900
     Estimated penetration of
      cable modem homes passed
      (b) (d) (g) (h)                     13%          12%          8%

     Dial-up customers                12,700       14,200      32,500

Revenue Generating Units (i):
  Analog video customers (c)       6,528,200    6,578,800   6,778,700
  Digital customers (e)            2,651,100    2,682,800   2,208,900
  Cable modem customers (g) (h)    1,272,300    1,138,100     657,900
  Telephony customers (j)             22,800       22,800      15,700
                                  -----------  ----------- -----------
      Total revenue generating
       units (i)                  10,474,400   10,422,500   9,661,200
                                  ===========  =========== ===========

  Customer relationships (k)       6,584,900    6,634,700   6,804,800

    (a) "Customers" include all persons corporate billing records show
        as receiving service, regardless of their payment status,
        except for complimentary accounts (such as Charter employees).
        The adequacy of previously reported customer reductions, our
        disconnect policies, the application of those policies and
        their effect on the customer totals reported by us during 2001
        and prior periods are currently under investigation by the
        United States Attorney's Office for the Eastern District of
        Missouri and the Securities and Exchange Commission. Those
        investigations are not complete. Upon the completion of such
        investigations, and depending on their outcome, we may make
        additional adjustments in the 2001 or prior periods customer
        numbers if such adjustments are appropriate. When we publicly
        announced our 2001 results on February 11, 2002, we also
        announced that we expected the number of customers to decline
        by 120,000 during the first quarter of 2002. We ultimately
        reported a loss of 145,000 customers in that quarter.

    (b) Homes passed represents the estimated number of living units,
        such as single family homes, apartments units and condominium
        units passed by the cable distribution network in a given area
        to which we offer the service indicated. Homes passed excludes
        commercial units passed by the cable distribution network.

    (c) Analog video customers include all customers who receive video
        services (including those who also purchase cable modem and
        telephony services), but exclude approximately 56,700, 55,900
        and 26,100 customer relationships, respectively, who pay for
        cable modem service only and who are only counted as cable
        modem customers. This represents a change in our methodology
        from prior reports through September 30, 2002, in which cable
        modem only customer relationships were included within our
        analog video customers in light of the fact that they were
        entitled to receive our most basic level of analog video
        service. We made this change because we determined that most
        of these customers were unable to receive our most basic level
        of analog service because this service was physically secured
        or blocked, was unavailable in certain areas or the customers
        were unaware that this service was available to them.
        Commercial and multi- dwelling structures are calculated on an
        equivalent bulk unit ("EBU") basis. EBU is calcu to non-bulk
        residential customers in that market for the comparable tier
        of service. The EBU method of estimating analog video
        customers is consistent with the methodology used in
        determining costs paid to programmers and has been
        consistently applied year over year. As we increase our
        effective analog prices to residential customers without a
        corresponding increase in the prices charged to commercial
        service or multi-dwelling customers, our EBU count will
        decline even if there is no real loss in commercial service or
        multi-dwelling customers. Our policy is not to count
        complimentary accounts (such as Charter employees) as
        customers.

    (d) Penetration represents customers as a percentage of homes
        passed.

    (e) Digital video customers include all households that have one
        or more digital set-top terminals. Included in digital video
        customers at March 31, 2003, December 31, 2002 and March 31,
        2002 are 15,000, 27,500 and 31,000 customers, respectively,
        that receive digital video service directly through satellite
        transmission.

    (f) Represents the number of digital video customers as a
        percentage of analog video customers.

    (g) As noted above, all of these customers also receive video
        service and are included in the video statistics above, except
        that the video statistics do not include approximately 56,700,
        55,900 and 26,100 customers at March 31, 2003, December 31,
        2002 and March 31, 2002, respectively, who were cable modem
        only customers and were entitled to receive only our most
        basic analog video service.

    (h) During the first three quarters of 2002, commercial cable
        modem or data customers were calculated on an Equivalent Modem
        Unit or EMU basis, which involves converting commercial
        revenues to residential customer counts. Given the growth
        plans for our commercial data business, we do not believe that
        converting commercial revenues to residential customer counts
        is the most meaningful way to disclose or describe this
        growing business. We, therefore, excluded 63,700 EMUs that
        were previously reported in our March 31, 2002 customer totals
        for comparative purposes.

    (i) Revenue generating units represent the sum total of all
        primary analog video, digital video, high-speed data and
        telephony customers, not counting additional outlets within
        one household. For example, a customer who receives two types
        of services (such as analog video and digital video) would be
        treated as two revenue generating units, and if that customer
        added on cable modem service, the customer would be treated as
        three revenue generating units. This statistic is computed in
        accordance with the guidelines of the National Cable &
        Telecommunications Association (NCTA) that have been adopted
        by eleven publicly traded cable operators (including Charter
        Communications, Inc.) as an industry standard.

    (j) Telephony customers include all households purchasing
        telephone service.

    (k) Customer relationships include the number of customers that
        receive at least one level of service encompassing video, data
        and telephony services, without regard to which service(s)
        customers purchase. This statistic is computed in accordance
        with the guidelines of the NCTA that have been adopted by
        eleven publicly traded cable operators (including Charter
        Communications, Inc.) as an industry standard.
             CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
     UNAUDITED RECONCILIATION OF ADJUSTED EBITDA TO GAAP MEASURES
                         (DOLLARS IN MILLIONS)

                                                           Three
                                                           Months
                                                            Ended
                                                          March 31,
                                                         -----------
                                                         2003  2002
                                                         ----- -----

Income from operations                                    $86   $97
Depreciation and amortization                             370   326
Option compensation expense                                 -     2
Special charge, net                                         2     1
                                                         ----- -----

Adjusted EBITDA                                           458   426

Interest on cash pay obligations                         (284) (268)
Special charges                                            (2)   (1)
Change in operating assets and liabilities                (10)  (55)
                                                         ----- -----

Net cash flows from operating activities                 $162  $102
                                                         ===== =====

The above schedule is presented in order to reconcile adjusted EBITDA, a non-GAAP measure, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act.

SOURCE: Charter Communications, Inc.

Charter Communications, Inc., St. Louis
Media Relations
Deb Seidel, 314/543-5703
dseidel@chartercom.com
or
Analysts' Contact
Mary Jo Moehle, 314/543-2397
mmoehle@chartercom.com
www.charter.com
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