DENVER -- UnitedGlobalCom, Inc. ("UGC") (Nasdaq: UCOMA) announced today that, as expected and as indicated in its announcement of September 30, 2002, its subsidiary United Pan-Europe Communications, NV ("UPC") has initiated the final steps necessary to implement its recapitalization. With the full support of UGC, UPC's largest creditor and shareholder, and an ad hoc committee representing certain non-UGC holders ("Bondholder Committee") of its Senior Notes and Senior Discount Notes, UPC NV commenced a Chapter 11 proceeding in the United States and a Dutch moratorium proceeding in the Netherlands, in order to ensure an efficient and effective recapitalization. On September 30, 2002, UPC publicly announced that UPC, UGC, the members of the Bondholder Committee and New UPC, Inc. ("New UPC"), a newly-formed U.S. company that will become the holding company for UPC, had entered into a restructuring agreement (the "Restructuring Agreement") intended to substantially de-lever UPC's consolidated balance sheet through a judicially supervised conversion of UPC's outstanding indebtedness under its Senior Notes and Senior Discount Notes and the Belmarken Notes into new common stock of New UPC (the "Recapitalization"). Under the Recapitalization, the existing Dutch holding company, UPC N.V., will become a substantially or wholly owned subsidiary of New UPC. In order to ensure an efficient and effective Recapitalization, UPC has chosen to complete the restructuring by means of a Chapter 11 proceeding in the U.S. and a voluntary moratorium proceeding in the Netherlands. As a first step, UPC has filed a voluntary petition under Chapter 11 in a U.S. court and has commenced a suspension of payments proceeding in the Dutch court. In furtherance of those processes, UPC has filed a draft plan of composition, know as an "Akkoord," with the Dutch Court and a proposed plan of reorganization (the "Plan") and draft disclosure statement (the "Disclosure Statement") with the U.S. court. Gene Schneider, Chairman and CEO of UGC, said, "We are very pleased to have reached another important milestone in the recapitalization of UPC. We expect UPC will emerge from this restructuring by the end of March 2003 with one of the strongest balance sheets in the European media and telecom sector. Of course, we believe that this recapitalization plan is a great result for UGC shareholders, with our ownership in UPC expected to increase to approximately 66% from 53% currently." United Pan-Europe Communications NV (UPC)