CINCINNATI -- Cincinnati Bell Inc. (NYSE:CBB) announced today that it has sought a 15-day extension to file its 2003 Form 10-K.

As previously disclosed, the Company has been investigating the allegations contained in an amended class action securities lawsuit filed in December 2003. These allegations relate primarily to the manner in which the Company recognized revenue, and wrote down assets, with respect to its former broadband business.

The Audit Committee of the Company's Board of Directors has now completed its investigation of those matters. In connection with that investigation, adjustments have been identified related to the manner that the Company recorded a particular broadband network construction agreement entered into in 2000. These adjustments related to the timing of revenue recognition resulting from the inappropriate inclusion of certain costs that had not been fully incurred and use of estimates regarding the extent to which the construction contract had been completed. The Company intends to restate its financial statements to reflect the revised accounting for this contract. In investigating plaintiffs' other allegations, the Audit Committee did not identify any information that warranted any modification or change to the Company's financial statements.

While the following amounts could change on final review, the Company believes its revenue for the year-to-date period ended September 30, 2003 will remain the same as previously reported, cost of services and products will decrease by approximately $51 million and net income will increase by approximately $51 million; revenue and cost of services and products will likely be unchanged in 2002 and net loss will increase by approximately $18 million due to an increase in income tax expense; revenue for 2001 will decrease by approximately $31 million, cost of services and products for 2001 will increase by approximately $15 million and net loss for 2001 will increase by approximately $30 million; and revenue for 2000 will decrease by approximately $23 million, cost of services and products for 2000 will decrease by approximately $18 million and net loss for 2000 will increase by approximately $3 million. Thus, the Company believes that there will be no cumulative change to net income over the reporting period as a result of this restatement.

While no definitive assurance can be given, the Company believes that the amounts summarized above are an accurate reflection of the effects of the restatement.

Cincinnati Bell