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Knology Announces Acquisition of the Assets of Private Cable Co., LLC for $7.5 Million Cash

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WEST POINT, Ga. - (BUSINESS WIRE) - Knology, Inc. (Nasdaq: KNOL) today announced that it has closed on the acquisition of the assets of Private Cable Co., LLC ("PCL Cable" ) for $7.5 million in cash. PCL Cable, a provider of video, voice and data services to residential and business customers in Athens and Decatur, Alabama, generates approximately $5 million in annualized revenue and $1.5 million in annualized EBITDA, before considering potential synergies. M. Todd Holt, Knology's President and Chief Financial Officer, said, "We are very excited to welcome the employees of PCL to the Knology family. This transaction is a nice fit with Knology both from an operational and financial perspective. The PCL Cable business will operate as an extension of our existing Knology operation in Huntsville, Alabama. The transaction will be immediately accretive, before synergies, to EBITDA per share, levered free cash flow per share and overall enterprise value. Although a smaller transaction relative to our past acquisitions, we continue to take a disciplined approach to M&A activity in an effort to drive increased shareholder value."

About Knology

Knology Inc., headquartered in West Point, Georgia, is a leading provider of interactive communications and entertainment services in the Southeast and in the South Dakota region. Knology serves both residential and business customers with one of the most technologically advanced broadband networks in the country. Innovative offerings include over 200 channels of digital cable TV, local and long distance digital telephone service with the latest enhanced voice messaging features, and high-speed Internet access, which enables consumers to quickly download video, audio and graphic files using a cable modem. Knology's fiber-based business products include iPlex, which delivers Ethernet connections to an IP-PBX using Session Initiated Protocol (SIP) technology, Passive Optical Network (PON), which supplies IP architecture with segmented voice and data bandwidth, and Managed Integrated Network Solutions (MATRIX), an integrated IP-based technology which converges data and voice. For more information, please visit www.knology.com.

Information about Forward-Looking Statements

This press release includes "forward-looking" statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, that are subject to future events, risks and uncertainties that could cause our actual results to differ materially from those expressed or implied. In addition, our revenues and earnings and our ability to achieve our planned business objectives are subject to a number of factors that make estimates of future operating results uncertain, including, without limitation, (1) that we will not retain or grow our customer base, (2) that we will fail to be competitive with existing and new competitors, (3) that we will not adequately respond to technological developments that impact our industry and markets, (4) that needed financing will not be available to us if and as needed, (5) that a significant change in the growth rate of the overall U.S. economy will occur such that there is a material impact on consumer and corporate spending, (6) that we will not be able to complete future acquisitions, that we may have difficulties integrating acquired businesses, or that the cost of such integration will be greater than we expect, and (7) that some other unforeseen difficulties occur, as well as those risks set forth in our Annual Report on Form 10-K for the year ended December 31, 2008, and our other filings with the SEC. This list is intended to identify only certain of the principal factors that could cause actual results to differ materially from those described in the forward-looking statements included herein. Investors are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements relating to expectations about future results or events are based upon information available to us as of today's date, and we do not assume any obligation to update any of these statements, except as required by law.

Knology, Inc.
M. Todd Holt, President and Chief Financial Officer
706-645-8752
todd.holt@knology.com


 
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