UPC Finalises $1.6 Billion High Yield Offering

United Pan - Europe Communications (UPC) (NASDAQ: UPCOY) today announced it has priced its $1.6 billion equivalent bond offering. The offering consists of four tranches: $600 million and 200 million euros of ten year Senior Notes due 2010 with a 11 ¼% coupon; $300 million of ten year Senior Notes due 2010 with a coupon of 11 ½%; and $1,000 million aggregate principal amount of ten year 13 ¾% Senior Discount Notes due 2010. The Senior Discount Notes were sold at 51.224% of the face amount yielding gross proceeds of $512 million and will accrue but not pay interest until 2005. Total gross proceeds from the sale of the Senior Notes and Senior Discount Notes are approximately $1.6 billion upsized from the $1.5 billion previously announced. Settlement is to occur on January 20, 2000.

Headquartered in Amsterdam, UPC is one of the most innovative broadband communications companies in Europe and owns and operates one of the largest pan Europe groups of broadband communication networks. UPC provides cable television, telephony, high-speed Internet access and programming services close to 6 million cable subscribers in twelve countries across Europe and in Israel. UPC is a consolidated subsidiary of Denver based UnitedGlobalCom Inc (NASDAQ: UCOMA). Microsoft has an interest of approximately 7.0% in UPC.