MediaOne Group, Inc. Consolidated Operations Highlights - As Reported (UNAUDITED) Three Months Ended March 31, Dollars in millions 2000 1999 - - -------------------------------------------------------------------------- REVENUES $ 706 $ 665 Cost of sales 296 269 Selling, general and admin. 171 185 -------- -------- OPERATING CASH FLOW (1) 239 211 Depreciation & amortization (379) (250) Interest expense, minority guarantee, other (196) (145) Equity gains (losses) in unconsolidated ventures (71) (115) Gains on sales of investments (2) 2,184 194 Merger related costs (19) (15) Other income (expense) 155 (28) Income tax benefit (expense) (755) 37 -------- -------- NET INCOME (LOSS) 1,158 (111) Preferred dividends and accretion (1) (14) -------- -------- EARNINGS (LOSS) AVAILABLE FOR COMMON STOCK $ 1,157 $ (125) ======== ======== - - -------------------------------------------------------------------------- (1) Operating cash flow represents earnings before interest, taxes, depreciation and amortization. (2) Includes gains of $1,993 and $124 on the sale of various international investments for the three months ended March 31, 2000 and 1999, respectively. - - -------------------------------------------------------------------------- -9-