Salomon Smith Barney EMT Conference

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• Salomon Smith Barney EMT Conference
• January 8, 2003

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Insight Representatives
Michael S. Willner Vice Chairman and Chief
Executive Officer
Kim D. Kelly President and Chief Operating Officer
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Safe Harbor

• Any statements in this presentation that are not
  historical facts are forward-looking statements.
  The words plan, believe, expect,
  anticipate, estimate and other expressions
  that indicate future events and trends identify
  forward-looking statements. These
  forward-looking statements are subject to certain
  risks and uncertainties that could cause actual
  results to differ materially from historical
  results or those anticipated. Factors that could
  have a material and adverse impact on actual
  results are identified in the reports and
  documents Insight files from time to time with
  the U.S. Securities and Exchange Commission.
  Insight undertakes no obligation to publicly
  release the results of any revisions to these
  forward-looking statements that may be made
  during this presentation to reflect events or
  circumstances after today or to reflect the
  occurrence of unanticipated events.

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Insight Strategy and Overview
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Company Highlights

• 8th largest MSO serving 1.4 million customers(1)
• Uniquely clustered technically and
  geographically
• 99 of subscribers located in four contiguous
  states
• Average number of subs per headend over 100,000
• Rebuild to 750 MHz two-way, largely complete
• Leader in advanced, value-added services
• Full bundled offering / One bill
• Disciplined capital investment and prudent cost
  management
• Experienced, proven management team

(1) Includes all managed systems.
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Investment in Technology
93 of Customers served by plant 750Mhz or
higher 100 from1 headend
81 of Customers served by plant 750Mhz or
higher 95 from 6 headends
ILLINOIS
OHIO
INDIANA
100 of Customers served by plant 750Mhz or
higher 99 from 4 headends
KENTUCKY
95 of Customers served by plant 750Mhz or
higher 99 from 3 headends
Note Headend and plant information is estimated
for 12/31/02. Illinois statistics include the
Griffin, GA system.
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Attractive Markets

• Extremely well-clustered network
• Second and third tier markets
• Desirable demographics
• Large university populations
• Good housing growth
• Low unemployment

Rockford
Mendota
OH
IN
Peoria
Anderson
Bloomington
Columbus
Champaign
Springfield
K\mapinfo\\531625\Four States.wor
Bloomington
Covington
IL
Evansville
Lexington
Louisville
KY
Bowling Green
Headends
20,000 to 50,000 Subscribers
50,000 to 100,000 Subscribers
Greater Than 100,000 Subscribers
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Operating Strategy




Attractive, market-dominant systems
Invest in, and deploy leading edge technology
Excellence in customer service
Strategy
Bundled service offering
Result
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Full Bundled Offering
Service Offering
Customer Benefits
Insight Benefits

• Convenience
• One call
• One bill
• One installation
• Value

• Multiple revenue drivers
• Churn reduction
• Operating efficiency
• Brand leverage

EntertainmentCommunications
HSD
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Bundled Package Options
Note Prices from packages currently offered in
Louisville assuming modem is not leased.
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Customer Acceptance
Bundled Sales
Monthly Churn
Avg.Revenue
Churn
Sell Through

• Installs 16
• Upgrades 68

• Analog(1)
• Bundled

1.9
41
1.1
82 - 117
Note Reflects Louisville market results. (1)
Basic and classic services
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Interactive Digital

• Digital Gateway 7.95
• Digital converter
• Interactive program guide
• Multiplexing pay TV
• LocalSource
• Video-On-Demand
• 40 channel digital music
• MAGRACK
• Individual programming packages
• Family Pak 5.00
• Sports Pak 5.00 12.00
• Movie Pak 5.00
• 3 Paks and Digital Gateway 19.95

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630 PM Fri., Jan. 5
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High Speed Internet

• Always on
• High speed
• 128 Kbps up
• 1.5 Mbps down
• 6 e-mail addresses
• Advertising free
• Tiering Opportunity
• Ability to price for higher bandwidth offerings

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Telephony

• Leading Brands
• Attractive feature packages
• Primary line service
• Multiple lines
• Customers choice for local phone service
• 10 discount to local exchange carriers
• Option to receive a single bill

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Operational Implications of Bundling

• Maximizes growth of telephony, video and data
  products
• Grows cash flow by increasing revenue and
  controlling expenses
• Limits the numbers of phone calls and truck rolls
  by completing bundled orders
• Simplifies the sale and order entry process
• Improves retention
• Positions Insight for easier deployment of new
  offerings

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Insight Representatives
Kim D. Kelly President and Chief Operating Officer
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Insights Operating Results
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Bundled Offering Returns Analysis
(Per Subscriber)
Capital Expenditures
Cash Flow Opportunity
Note Returns reflect capital investment and
package pricing for Louisville market.
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Benefits of Bundle

• RGU Driver
• Increased RPU
• Churn Reduction

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Strong RGU Growth
Note Alliance acquisition included in Indiana
figures for all periods.
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Revenue Per Customer
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Financial Strategy and Objectives

• Commitment to financial integrity
• Disciplined capital investments
• Future focus on success-based spending
• Focus on financial flexibility and liquidity
• Delivering strong returns to investors

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Financial Position

• Upgrade capital nearing completion in 2002
• Growth in advanced services driving revenue and
  Operating Cash Flow
• Fully funded - ample available liquidity
• Will be Cash Flow Positive in 2003

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Network Upgrade Capital
(Dollars in millions)
325.6
300.4
34.8
31.2
90.8
98.1
38.4
33.0
33.1
22.4
128.5
115.7
Insight has invested the capital to Create
full-service capable homes.
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Investment in Technology
of Total Customers Passed by Upgraded 750 MHz
Network
Upgrade nearing completion by the end of 2002.
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Third Quarter Results
2002 Guidance
Q3 Results

• Basic growth 1.1
• Digital Subs 38.1
• Data Subs 46.8
• OCF growth of 16
• Capex of 66 million

• OCF growth of 14 -16
• Capex of 300 million

2003 Guidance

• OCF growth of 11.5 -13.5
• Capex of 220 million
• Leverage reduced one turn from 7.2x to 6.2x

Growth rates as of 9/30/02 as compared to
9/30/01. Excludes Source Suite
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