From 2000 to 2002, Cox's operating cash flow (OCF)* increased 13.7% on an annual compound growth rate basis - which is even more notable considering the economic uncertainty during the period. That achievement has been the result of solid customer growth, success in providing new advanced services and operational efficiencies. As a result of this OCF growth, as well as declining capital expenditures as we complete the upgrade of our broadband networks, Cox expects to be free cash flow^* positive for the full year 2003. This underscores our fundamental financial strength and stability, as well as financial flexibility that will allow us to continue creating value and to capitalize on future growth opportunities.

^* Operating cash flow and free cash flow are not measures of performance calculated in accordance with accounting principles generally accepted in the United States; see Financial Highlights on the inside front cover for a reconciliation of operating cash flow to operating income.