NEW YORK --

ntl Incorporated (NASDAQ: NTLI) announced today its second quarter 2004 results. Commenting on the results, Simon Duffy, Chief Executive Officer of ntl, said:

"ntl continues to achieve substantial progress on its stated objectives of increased market penetration, revenue growth, margin expansion, and enhanced cash flow. The progress in the second quarter is particularly satisfying given the continued execution on major initiatives such as our call centre consolidation and Harmony implementation.

"For the fourth consecutive quarter, ntl: Home delivered net customer additions (of 60,500) in excess of the 50,000 per quarter needed to achieve its goal of around 50 per cent customer penetration of marketable homes by the end of 2008.

"ntl: Home continued on its growth path, although offsetting the growth this quarter were one-time adjustments to analogue television and off-net revenues, the seasonally lower telephony usage and the impact of a BT change in interconnect pricing. Together, these factors reduced ntl: Home revenue by approximately GBP 7.0 million ($12.8 million).

"ntl: Business revenues were also affected by seasonality quarter over quarter, where traditionally high first quarter public sector spend was not repeated in the second quarter. ntl: Business revenues were also unfavourably impacted by the delayed timing of project work.

"The growth in customers and RGUs, combined with gains in efficiency, resulted in a 130 basis point expansion in margins over Q1 2004, and a 330 basis point expansion in margins over Q2 2003, to 34.6 per cent.

"The financial results achieved are particularly noteworthy given the continued progress towards delivery of our restructuring initiatives. During the second quarter we closed a second operations centre and announced two further call centre closures as well as the outsourcing of our technical service bureau.

"As I look to the second half of 2004, I expect continued progress on all four of our stated objectives. This reflects an improving sales pipeline, the expected delivery of product enhancements, the already announced price increases in ntl: Home and the continued execution of our key restructuring initiatives."

NTL Group Ltd.