RCN Posts Q1

HERNDON, Va. -- RCN Corporation (NasdaqGS:RCNI - News), a leading provider of all-digital and high-definition video, high-speed internet, and premium voice services to residential and small-medium business customers, as well as high-capacity data transport services to carrier and large enterprise customers, today announced its first quarter 2009 results.

"RCN achieved solid first quarter results, despite challenging economic conditions, growing revenue, EBITDA, and customers from last year and delivering positive free cash flow," stated Peter D. Aquino, President and Chief Executive Officer. "In our Resi/SMB segment, we increased customers and RGUs from last year, with demand for data, all-digital video, including RCN Global Passport(SM), our best-in-class international tier, and video-on-demand driving growth. This segment also benefited from gains at RCN Business Services, our small-medium business unit, particularly in the hospitality vertical. Further, the RCN Metro segment showed robust results as growth in revenue and EBITDA expanded EBITDA margin to nearly 32%. The two segments' performance, combined with a more modest capital program, produced over $7 million in free cash flow in the quarter. We are very pleased with this overall result. We remain focused on driving growth and positive free cash flow by continuing to execute and compete effectively, using our solid liquidity position and capital flexibility to stay responsive to business development opportunities."

First Quarter Review

Following are highlights of first quarter 2009 results for consolidated RCN and for the company's two reporting segments: Residential/Small-Medium Business, comprised of the RCN and RCN Business Services business units; and RCN Metro Optical Networks.

Consolidated Results

RCN Corp.