Road Runner Reports Strong 2Q Growth

Road Runner reported Tuesday it ended the second quarter with more than 320,000
subscribers in the U.S.

Early in April, Road Runner reported that the company connected more than 250,000 cable modem subscribers at the end of first quarter.

Having added 70,000 new users in the second quarter or about 769 new
subscribers each day, Road Runner has produced 28 percent subscriber-side
growth from the first to second quarter of this year.

@Home Network reported first quarter
results of more than 460,000 subscribers in April with revenue increases
posting 30 percent better than the prior quarter. The company has not
released their second quarter results to date. Based on current trends
@Home may report serving slightly less than 600,000 cable modem customers in
the second quarter.

Although near 30 percent subscriber base growth is no small achievement,
the estimated 100,000 cable modem subscriber base remains a far cry from
America Online’s reported 17 million convention modem users.

Carl Rossetti, Road Runner interim chief executive officer, said the
company was naturally happy with their second quarter growth.

“This has been a busy second quarter,” Rossetti said. “We’re very pleased
with a strong growth pattern that has continued even as we moved into the
summer months.”

Road Runner’s largest cluster of subscribers continues to be in the
northeast region. A data and operations center located in Chelmsford,
Mass., serving about 124 towns in Massachusetts and New Hampshire,
currently boasts almost 70,000 subscribers.

Road Runner access is currently available to approximately 10.4 million
U.S. homes. Network upgrades will make the service eventually able to reach more than 30 million cable homes nationwide.

Road Runner is a joint venture among affiliates of Time Warner Inc., MediaOne Group, Microsoft Corp., Compaq Corp. and Advance/Newhouse.

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