MediaOne Group, Inc. Consolidated Operations Highlights- As Reported (1) (UNAUDITED) Three Mos Ended Nine Mos Ended Sept 30, Sept 30, Dollars in millions 1999 1998 1999 1998 - ------------------------------------------------------------------------------- REVENUES $ 675 $ 626 $ 2,002 $ 2,239 Cost of sales 270 225 804 783 Selling, general and admin. 185 208 549 710 ------ ------ -------- -------- OPERATING CASH FLOW (2) 220 193 649 746 Depreciation & amortization (306) (288) (884) (894) Interest expense, minority guarantee, other (164) (97) (481) (432) Equity losses in unconsolidated ventures (89) (68) (291) (273) Gains on sales of investments (3) 581 3 3,287 3,911 Merger related costs (4) (15) - (1,537) - Other income (expense) 48 13 51 86 Income tax benefit (expense) (127) 60 (933) (1,376) ------ ------ --------- -------- EARNINGS (LOSS) FROM CONTINUING OPERATIONS 148 (184) (139) 1,768 Discontinued operations income, net of tax (5) - - - 25,208 Extraordinary item, net of tax - - 17 (333) ------ ------ --------- -------- NET INCOME (LOSS) 148 (184) (122) 26,643 Loss on redemption of preferred securities (28) - (28) (53) Preferred dividends and accretion (14) (13) (42) (39) ------ ------ --------- -------- EARNINGS (LOSS) AVAILABLE FOR COMMON STOCK $ 106 $ (197) $ (192) $ 26,551 ============================ ======== - ------------------------------------------------------------------------------- (1) Domestic wireless operations were sold in April, 1998. (2) Operating cash flow represents earnings before interest, taxes, depreciation and amortization. (3) Includes a $2,482 gain on the exchange and modification of the AirTouch shares due to the AirTouch Vodafone merger and a $43 one time charge for the wind down of international operations for the nine months ended September 30, 1999. Includes a $3,869 gain on sale of domestic wireless operations for the nine months ended September 30, 1998. (4) Includes $1,500 paid to Comcast as a result of the termination of the merger between Comcast and MediaOne Group in May, 1999. (5) Includes gain on separation from U S WEST Communications (USWC). This also includes income attributable to USW stock of zero for the three months and $589 for the nine months ended September 30, 1998. - ------------------------------------------------------------------------------- -12-