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Comcast Buys Susquehanna Communications

Susquehanna Pfaltzgraff Co. and Comcast Corp. announced that they have signed a definitive agreement to sell Susquehanna Communications (SusCom), the cable television and broadband services division of Susquehanna Pfaltzgraff, to Comcast. Susquehanna Pfaltzgraff announced earlier this year that it would sell the business, citing changes in corporate and family circumstances.

"We are extremely proud of the state-of-the-art systems and exceptional customer care that SusCom and its outstanding people deliver to the marketplace today," said Louis J. Appell, Jr., chairman of the privately owned Susquehanna Pfaltzgraff Co. "We were a pioneer in cable television 40 years ago and have continually sought to provide our customers with leading-edge communications services."

William H. Simpson, president/ceo of Susquehanna Pfaltzgraff, said, "Technological innovation is occurring rapidly in the cable and telecommunications industries, providing the ability for large companies like Comcast to cost-effectively deliver more traditional cable channels, as well as advanced services like Video on Demand and Voice over Internet Protocol telephony."

Comcast chairman/ceo Brian L. Roberts said, "These cable systems have been well run and are very complimentary to Comcast's service areas. We look forward to introducing Comcast's advanced suite of broadband services in these markets soon."

Comcast owned approximately 30% of SusCom prior to the announcement. SusCom serves 225,000 basic cable subscribers primarily in Pennsylvania, New York, Maine and Mississippi, many of which are in close proximity to systems already served by Comcast. Consumers in these markets will benefit from the accelerated deployment of advanced video, high-speed data and voice services.

The total transaction value is $775 million and will result in Comcast consolidating the operations of SusCom for a net cash investment of approximately $540 million or $440 million after taking into account certain tax benefits. The transaction is expected to close in the first half of 2006 subject to various regulatory and customary closing conditions.

UBS Investment Bank acted as exclusive financial advisor to Susquehanna Pfaltzgraff Co. and Goldman, Sachs & Co. acted as exclusive financial advisor to Comcast. Separately it was also announced that Susquehanna Pfaltzgraff agreed to sell Susquehanna Radio's operations to a partnership led by Cumulus Media, Inc.

Comcast Corp. (www.comcast.com/) is the nation's leading provider of cable, entertainment and communications products and services. With 21.4 million cable customers, 7.7 million high-speed Internet customers and 1.2 million voice customers, Comcast is principally involved in the development, management and operation of broadband cable networks and in the delivery of programming content.

The company's content networks and investments include E! Entertainment Television, Style Network, The Golf Channel, OLN, G4, AZN Television, PBS KIDS Sprout, TV One and four regional Comcast SportsNets. The company also has a majority ownership in Comcast-Spectacor, whose major holdings include the Philadelphia Flyers NHL hockey team, the Philadelphia 76ers NBA basketball team and two large multipurpose arenas in Philadelphia.

Founded in 1965 as a division of Susquehanna Broadcasting Co. (now Susquehanna Pfaltzgraff Co.), SusCom now ranks among the top 20 cable and broadband providers in the country. The company name was changed to Susquehanna Communications in 1999, reflecting its change from a provider of traditional cable television to a provider of a variety of advanced, interactive, digital communications products. SusCom has been a leader in delivering advanced technologies to customers in the communities it serves. Today, the company offers a variety of analog and digital video services, HDTV, DVRs and high-speed Internet access, as well as telephone service in its Carmel, New York system.

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