United Pan-Europe Communications and ENECO enter into exclusive negotiations for ENECO’s cable interests

United Pan-Europe Communications ("UPC") (NASDAQ: "UPCOY") today announced that it has entered into exclusive negotiations with N.V. ENECO ("ENECO") for the possible acquisition of ENECO's cable operations, K&T Group ("K&T"). UPC and ENECO are currently continuing their discussions. As part of this process the parties will seek positive advice from their respective works' councils on the transaction as contemplated, which positive advice is one of the conditions to concluding definitive agreements and to completing the acquisition.

The parties are discussing a purchase price in excess of NLG 2 billion for K&T. K&T owns and operates cable networks in Rotterdam, Dordrecht and the surrounding municipalities, including an extensive glass fibre network. In addition it has a glass fibre network into The Hague area. K&T has approximately 610,000 homes passed, 590,000 residential subscribers and over 40,000 serviceable business customers.

Headquartered in Amsterdam, UPC is one of the most innovative broadband communications companies in Europe and owns and operates the largest pan-European 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 UnitedGlobalCom Inc. (NASDAQ: "UCOMA") and its shares are traded on the Amsterdam Stock Exchange ("UPC") and NASDAQ ("UPCOY").