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Time Warner Cable Provides 2007 Full-Year Business Outlook


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Time Warner Cable announced that it expects its 2007 full-year percentage growth rates in Revenues and Operating Income before Depreciation and Amortization to be in the mid-to-high thirties, off a base of $11.8 billion and $4.2 billion, respectively.

In addition, Time Warner Cable anticipates its 2007 full-year Free Cash Flow will be in the range of $800 million to $1 billion.

The outlook above does not include the impact of any future merger or unidentified restructuring charges, sales and acquisitions of operating assets, or the related tax impacts that may occur from time to time due to management decisions and changing business circumstances. The outlook above also does not include the impact of any noncash impairments of goodwill, intangible and fixed assets, or the related tax impacts. Time Warner Cable Inc. (together with its subsidiaries, the “Company”) is currently unable to forecast precisely the timing and/or magnitude of any such events.

Use of Operating Income before Depreciation and Amortization and Free Cash Flow
Operating Income before Depreciation and Amortization (“OIBDA”) is a financial measure not calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company defines OIBDA as Operating Income before depreciation of tangible assets and amortization of intangible assets. Management utilizes OIBDA, among other measures, in evaluating the performance of the Company’s business and as a significant component of its annual incentive compensation programs because OIBDA eliminates the uneven effect across its business of considerable amounts of depreciation of tangible assets and amortization of intangible assets recognized in business combinations. OIBDA is also a measure used by the Company’s parent, Time Warner Inc. (“Time Warner”), to evaluate the Company’s performance and is an important metric in the Time Warner reportable segment disclosures. Management also uses OIBDA because it provides an indication of the Company’s ability to service debt and fund capital expenditures, as OIBDA removes the impact of depreciation and amortization. A limitation of this measure, however, is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company’s business. To compensate for this limitation, management evaluates the investments in such tangible and intangible assets through other financial measures, such as capital expenditure budget variances, investment spending levels and return on capital analysis. Additionally, OIBDA should be considered in addition to, and not as a substitute for, Operating Income, net income and other measures of financial performance reported in accordance with GAAP and may not be comparable to similarly titled measures used by other companies.

Free Cash Flow is a non-GAAP financial measure. The Company defines Free Cash Flow as cash provided by operating activities (as defined under GAAP) plus excess tax benefits from the exercise of stock options, less cash provided by (used by) discontinued operations, capital expenditures, partnership distributions and principal payments on capital leases. Management uses Free Cash Flow to evaluate the Company’s business and as a component of its annual incentive compensation programs. The Company believes this measure is an important indicator of its liquidity, including its ability to reduce net debt and make strategic investments, because it reflects the Company’s operating cash flow after considering the significant capital expenditures required to operate its business. A limitation of this measure, however, is that it does not reflect payments made in connection with investments and acquisitions, which reduce liquidity. To compensate for this limitation, management evaluates such expenditures through other financial measures, such as capital expenditure budget variances and return on investment analyses. Free Cash Flow should not be considered as an alternative to net cash provided by operating activities as a measure of liquidity, and may not be comparable to similarly titled measures used by other companies.

Both OIBDA and Free Cash Flow should be considered in addition to, not as a substitute for, the Company’s Operating Income, net income and various cash flow measures (e.g., cash provided by operating activities), as well as other measures of financial performance and liquidity reported in accordance with GAAP.

About Time Warner Cable
Time Warner Cable owns and manages cable systems passing approximately 26 million homes in 33 states. The Company has 14.6 million customers for its various products, including video, high-speed data and residential telephone. This includes approximately 13.4 million basic video subscribers and more than 6 million customers who purchase more than one product as of December 31, 2006. Time Warner Cable includes some of the most technologically advanced and best-clustered cable systems in the country, with approximately 85 percent of the Company’s homes passed located in five geographic regions: New York state, the Carolinas, Ohio, southern California and Texas. It is the largest cable provider in the nation’s two largest cities, Los Angeles and New York. Leveraging its leadership in innovation and quality customer care, Time Warner Cable delivers advanced products and services such as video-on-demand, high-definition television, digital video recorders, high-speed data and Digital Phone.

Information on Business Update Conference Call
Time Warner Cable will host a conference call for investors on Wednesday, February 28, 2007, beginning at 10:00 am ET, to discuss its business and its outlook for 2007. The dialing instructions for the call are: In the United States: 888-677-9025
Outside the United States: 210-835-9584
Passcode: 6200217

You are also invited to listen to the call live on our Web site at www.timewarnercable.com/investors.

Caution Concerning Forward-Looking Statements
This document includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, sales of business assets, and the potential impact of future decisions by management that may result in merger and restructuring charges, as well as the potential impact of any future impairment charges to goodwill or other intangible assets. More detailed information about these factors may be found in filings by Time Warner Cable Inc. with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2006. Time Warner Cable is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.



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