James C. Kennedy Chairman of the Board		James O. Robbins President and Chief Executive Officer

As you are no doubt aware, Cox's long-term strategy has been to transform from a one-service cable television company into a multi-service, broadband communications company. The collective focus of all Cox employees has been aimed squarely at that goal for more than a decade. We are proud to report that, in 2000, the company's progress toward achieving the transformation was unprecedented.

Cox is now a full-service, broadband communications provider. Our multiple advanced services are available to millions of residential and commercial customers. We continue to surpass our goals year after year. We have grown dramatically. And, above all, the company is financially and operationally strong. But no truly successful transformation ever really ends. As our successes propel us toward the finish line, the line continues to advance - pushed ahead by challenges and changes in technology and the marketplace, as well as the evolving expectations of customers and shareholders and the even greater expectations we place on ourselves. Those expectations encourage growth. They ensure long-term strength and viability. They produce results for all Cox stakeholders - customers, employees and shareholders.

2000 Operational Highlights
We entered the year 2000 having set aggressive expectations for ourselves. Early in the year, we closed the final two of four major acquisitions announced in 1999. In doing so, we surpassed the 6 million customer milestone, which further strengthened our base for growth. Throughout the year, we successfully integrated the new operations into the company, continued the rollout of our digital cable, telephone and high-speed Internet access services, and achieved growth in our core cable business.

We had set an ambitious goal to close out the year with between 1.5 and 1.6 million advanced-service subscriptions, or, as we refer to them within our company, advanced-service Revenue Generating Units (RGUs). We met that goal, adding more than 910,000 advanced-service RGUs in the year, for a total of nearly 1.6 million. Each of the three services grew impressively. We more than doubled the availability of Cox Digital Telephone and closed the year with about 245,000 telephone customers. At year-end, one in 10 homes with access to Cox Digital Telephone subscribed to it - an extraordinary achievement after just four years of operation. Cox Digital Cable grew significantly, as well, with about 842,000 subscribers at year-end. The service is now available to more than 76% of our homes passed and is helping us compete successfully with satellite television services and other video providers. At the end of 2000, nearly 482,000 customers subscribed to our high-speed Internet services, delivered via cable modems, which remain unmatched among competing services in speed, capacity and power.

The acquisitions we finalized in 1999 and 2000 increased our customer base by more than 2 million, expanded our presence in several key geographic areas, and provided increased avenues for growth. They also provided tremendous challenges. It is always a monumental task to integrate new operations in a way that maintains Cox's high level of operational excellence, quickly prepares the new operations to deliver advanced services, and creates little or no inconvenience for customers. In 2000, that task was compounded by the sheer number of operations and customers to assimilate. Fortunately, Cox employees have had a great deal of experience in recent years in integrating new operations, and their expertise proved valuable yet again in 2000. The teams in Oklahoma, Texas, Louisiana, Kansas, Virginia and other areas rose to the occasion, working hard to ensure that the integration of new operations yields increased operating efficiencies and enhanced growth potential.