UGC Acquires Channel Operator and Distributor Zone Vision

UGC Acquires Channel Operator and Distributor Zone Vision DENVER, Jan. 17 /PRNewswire-FirstCall/ -- UnitedGlobalCom, Inc. ("UGC") (NASDAQ:UCOMA) today announced that its European content subsidiary, chellomedia, has acquired an 87.5% interest in Zone Vision Networks Ltd. ("Zone Vision" or the "Company) from its current shareholders, including Advent International Corporation. Zone Vision is an innovative and fast growing programming company focusing on the ownership, management and distribution of pay television channels. Zone Vision owns and operates three thematic channels: Reality TV, Europa Europa and Romantica, which are broadcast in over 125 countries in 18 languages, with over 135 million paying subscribers. In addition, Zone Vision's channel representation business currently represents over 30 international channels from companies such as Discovery, Viacom, Turner, Hallmark and Eurosport, managing over 60 million subscribers. Total consideration for the transaction amounted to $50 million in cash and $15 million in UGC stock. The stock is subject to a five-year vesting period. As part of the transaction chellomedia will also contribute to Zone Vision the 49% shareholding it already holds in Reality TV Ltd. and chellomedia's Club channel business. Zone Vision was represented by CEA International. Mike Fries, President and Chief Executive Officer of UGC, said, "This acquisition represents a unique opportunity to strengthen our programming activities in Europe. As we expand our rollout of digital video and broadband Internet services, the need to develop and control attractive content becomes increasingly more important. Chris Wronski and his team are creative, entrepreneurial and exactly the sort of talented managers of content and media services we need in our business." "Some time ago, we began a search to identify a partner that could help us move our business to the next level," commented Chris Wronski, President and Chairman, Zone Vision. "With the success of our Reality TV channels around the world, as well as the growth we've experienced with channels like Romantica and Europa Europa, we have sought to develop more targeted channels for the international digital cable and satellite market. chellomedia has been a fantastic partner throughout Europe, so it became apparent that they were the most suitable to provide us with the resources to achieve our goals. We are delighted to join forces with UGC and look forward to a prosperous future as Zone Vision Networks." About Zone Vision Since it was first launched in 1991, by Chris Wronski, Zone Vision has grown to become a leading international broadcaster and distributor of thematic television channels. The Company has 18 offices and studios throughout Europe, the United States, Asia and Latin America and employs over 190 local staff. In addition to its channels and representation businesses, Zone Vision's programme distribution arm, Zone Licensing, continues to acquire formats, series and specials from leading producers around the world. About UnitedGlobalCom UGC is a leading international provider of video, voice, and broadband Internet services with operations in 15 countries, including 12 countries in Europe. Based on the Company's operating statistics at September 30, 2004, UGC's networks reached approximately 15.5 million homes passed and served over 11.1 million RGUs, including approximately 9.1 million video subscribers, 761,000 telephone subscribers and 1.3 million broadband Internet subscribers. Forward-Looking Statements: Except for historical information contained herein, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements, including Zone Vision's ability to continue financial and operational growth at historic levels, and the Company's ability to achieve expected operational efficiencies and economies of scale. These forward-looking statements speak only as of the date of this release. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please visit www.unitedglobal.com for further information or contact: Source: UnitedGlobalCom, Inc. CONTACT: Richard S.L. Abbott, Investor Relations of UGC, +1-303-220-6682, ir@unitedglobal.com, or Bert Holtkamp, Corporate Communications of UGC Europe, + 31 (0) 20 778 9447, communications@ugceurope.com, or Claire Appleby, Investor Relations of UGC Europe, +44 20 7 838 2004, ir@ugceurope.com Web site: http://www.unitedglobal.com/ ------- Profile: International Entertainment