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Insight Announces Third Quarter 2010 Results

NEW YORK, Nov 12, 2010 (BUSINESS WIRE) -- Insight Communications Company today announced financial and operating results for the quarter ended September 30, 2010.

Third Quarter Highlights Revenue of $262.1 million, a 7% increase over Q3 2009 Adjusted Operating Income before Depreciation and Amortization* of $85.5 million, a 15% increase over Q3 2009 Capital expenditures of $49.2 million Free Cash Flow** of $32.4 million Total Customer Relationships of 766,200 at September 30, 2010, a decrease of 9,500 from September 30, 2009 Total Revenue Generating Units ("RGUs") of 2,089,100 at September 30, 2010, an increase of 70,500, or 3%, from September 30, 2009, and a 9,800 total RGU net gain during the quarter comprising: Basic customer net loss of 12,100. Total basic customers at quarter end were 698,700, a 52% penetration to homes passed. Digital customer net gain of 21,800. Total digital customers at quarter end were 562,800, an 81% penetration of the Company's basic cable customers. HSI customer net gain of 4,000. Total HSI customers at quarter end were 521,500, a 39% penetration of HSI homes passed.

Telephone customer net loss of 3,900. Total telephone customers at quarter end were 306,100, a 23% penetration of the Company's telephone universe. As of September 30, 2010, 99% of the Company's customers were passed by two-way, 750 MHz or higher capacity upgraded network.

The Quarterly Report for the quarter ended September 30, 2010 will be posted in the Investor Relations section of the Company's website: www.myinsight.com.

Conference Call The Company will host a conference call to discuss its third quarter results at 9:30 a.m. ET on Friday, November 12, 2010. Information that has not been previously disclosed may be discussed during the call. The dial-in information for the conference call is as follows: Domestic: 866-730-5766 International: 857-350-1590 Access Code: 40351455 * Defined as operating income before depreciation, amortization and adjusted for non-cash stock-based compensation expense and other one-time items. ** Defined as net cash provided by operating activities less capital expenditures. About Insight Communications Insight Communications is currently the ninth largest cable operator in the United States with approximately 766,200 customer relationships in the three contiguous states of Kentucky, Indiana and Ohio. Insight offers bundled, state-of-the-art video, high-speed Internet and voice telephony services to residential and business customers and delivers cn|2, a new kind of news and information network, to all of its Kentucky customers.

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Insight Communications Company, Inc.

Operating Statistics

(in thousands, except per customer and penetration data)

Q3 Q2 Q3

2010 2010 2009

-------- -------- --------

Customer Relationships 766.2 775.6 775.7 Revenue Generating Units ("RGUs") 2,089.1 2,079.3 2,018.6 Total Average Monthly Revenue per Basic Customer $124.01 $123.25 $114.08

Basic Cable

-------------------------------------------------- Homes Passed 1,342.1 1,337.8 1,325.5 Basic Cable Customers 698.7 710.8 718.2 Basic Cable Penetration 52.1% 53.1% 54.2%

Cable Revenue $96,108 $97,964 $94,872 Average Monthly Cable Revenue per Basic Customer $45.48 $45.48 $44.00

Digital Cable

-------------------------------------------------- Digital Customers 562.8 540.9 495.7 Digital Penetration of Basic Cable Customers 80.6% 76.1% 69.0%

Digital Revenue $33,346 $34,545 $31,357 Average Monthly Digital Revenue per Basic Customer $15.78 $16.04 $14.54 Average Monthly Digital Rev. per Digital Customer $20.25 $21.42 $21.38

High-Speed Internet ("HSI")

-------------------------------------------------- HSI Homes Passed 1,326.0 1,321.8 1,309.4 HSI Customers 521.5 517.5 493.4 HSI Penetration 39.3% 39.2% 37.7%

HSI Revenue $64,640 $63,840 $57,545 Average Monthly HSI Revenue per Basic Customer $30.59 $29.64 $26.69 Average Monthly HSI Revenue per HSI Customer $41.48 $41.11 $39.38

Telephone

-------------------------------------------------- Telephone Universe (marketable homes) 1,314.3 1,298.0 1,267.2 Telephone Customers 306.1 310.0 311.4 Telephone Penetration 23.3% 23.9% 24.6%

Telephone Revenue $41,477 $42,195 $38,622 Average Monthly Telephone Rev. per Basic Customer $19.63 $19.59 $17.91 Average Monthly Telephone Rev. per Telephone Cust. $44.90 $44.91 $41.63

Advertising Revenue

-------------------------------------------------- Advertising Revenue $10,487 $10,402 $8,454 Average Monthly Advertising Rev. per Basic Cust. $4.96 $4.83 $3.92

Other Revenue

-------------------------------------------------- Other Revenue $16,000 $16,507 $15,148 Average Monthly Other Revenue per Basic Customer $7.57 $7.66 $7.02

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Insight Communications Company, Inc.

NCTA Standard Reporting Categories

(in thousands)

Three Months Three Months

Ended Ended

September September

30, 2010 30, 2009

------------ ------------ Customer Premise Equipment $26,701 $22,600 Scalable Infrastructure 14,122 5,677 Line Extensions 3,224 3,160 Upgrade/Rebuild 2,093 1,581 Support Capital 3,078 3,013

------------ ------------

Total Capital Expenditures $49,218 $36,031

============ ============

Nine Months Nine Months

Ended Ended

September September

30, 2010 30, 2009

------------ ------------ Customer Premise Equipment $64,579 $89,500 Scalable Infrastructure 31,206 25,928 Line Extensions 8,303 9,718 Upgrade/Rebuild 6,551 6,950 Support Capital 10,668 10,498

------------ ------------

Total Capital Expenditures $121,307 $142,594

============ ============ SOURCE: Insight Communications Company CONTACT: Insight Communications Sandy Colony, 917-286-2300 SVP, Corporate Communications Copyright Business Wire 2010 -0- KEYWORD: United States

North America

New York INDUSTRY KEYWORD: Entertainment

TV and Radio

Technology

Consumer Electronics SUBJECT CODE: Earnings