Wachovia Securities Conference

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• Wachovia Securities Conference
• June 25, 2003

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Insight Representative
Dinni Jain Chief Financial 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 Communications
Company Overview
Insight Strategy
Product Overview
Bundling Strategy in Action
Financial Results and Guidance
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Insight Communications
Company Overview
Insight Strategy
Product Overview
Bundling Strategy in Action
Financial Results and Guidance
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Company Highlights

• 9th largest MSO serving 1.4 million customers(1)
• Uniquely clustered technically and
  geographically
• 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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Insight Communications
Company Overview
Insight Strategy
Bundling Strategy in Action
Product Overview
Financial Results and Guidance
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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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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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Investment in Technology
92 of Customers served by plant 750Mhz or
higher 100 from1 headend
85 of Customers served by plant 750Mhz or
higher 95 from 6 headends
ILLINOIS
OHIO
INDIANA
99 of Customers served by plant 750Mhz or
higher 99 from 4 headends
KENTUCKY
97 of Customers served by plant 750Mhz or
higher 97 from 3 headends
Note Headend and plant information is estimated
for 3/31/03.
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Insight Communications
Company Overview
Insight Strategy
Product Overview
Bundling Strategy in Action
Financial Results and Guidance
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Digital Strategy

• Not about more channels
• Platform capable of multiple, diverse services
• Maximize appeal beyond movie lovers
• Importance of interactive EPG
• Importance of local stickiness
• New boxes aid retention and growth of customers
• Attractive features enhance competitive
  positioning versus satellite
• HDTV (including local)
• PVR functionality
• Conduit for new products
• Interactive gaming
• Video conferencing

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630 PM Fri., Jan. 5
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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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Digital Penetration Growth
Digital Penetration
Overall CompanyPremium Penetration
Note All data as of 3/31/03 and excludes
managed properties
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VOD Strategy

• 2002 necessitated complete platform overhaul
• TVN content delivery
• Seachange hardware
• New deals with content providers
• Movies TVN, Warner Brothers
• Kids Disney Channel, Turner, Discovery, Sesame
  Street (TVN)
• Other MagRack, HBO/Showtime On Demand
• Correlation between VOD use and propensity to
  continue to buy
• Focus on interactivity

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Digital Results
Exact w 1,259,011 universe 355,356 Dgtl
subs 278,704 VOD enabled

• Available to 1,259,000 customers
• Overall digital customers 355,400
• VOD enabled customers 278,700
• 90 of digital customers to be VOD enabled by end
  of Q2
• Average penetration - 28
• Churn 1.6 downgrade / monthly
• Average incremental revenue per customer 18.50
  monthly
• Revenue opportunities
• Build VOD usage
• SVOD tack-on premium
• PVRs
• 90 of footprint is HDTV capable

Note All data as of 3/31/03 and excludes
managed properties
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HSD Strategy

• Undersold in 2001 and 1st half of 2002
• Plenty of untapped demand
• No need to tier down to grow in medium term
• Focus will be on growing net adds and building
  revenue from high value customers
• Docsis 1.1 conversion
• Tier up to allow higher upstream bandwidth
  package
• Sell fixed IP addresses
• Focus on customer service

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HSD Results
Net HSD Adds Per Quarter
Total at 3/31/03 168,300
Excludes 3,200 bulk adjustment made in 3Q 2002,
excludes managed properties
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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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Telephony Results

• Available to 559,400 households in 4 markets
• Louisville
• Evansville
• Columbus
• Lexington
• Total customers 37,700
• Average penetration 6.7 of marketable
  households
• 90 of telephony customers are bundled

Note All data as of 3/31/03. Homes available
number refers to marketable homes.
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Insight Communications
Company Overview
Insight Strategy
Product Overview
Bundling Strategy in Action
Financial Results and Guidance
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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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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
• Positions Insight for easier deployment of new
  offerings
• Improves retention

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Customer Acceptance
Churn Rates for Bundled vs. Unbundled Customers
Avg. Revenue per Sub
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82 - 117
Note Reflects Louisville market results for
January 2003. Analog only reflects Basic and
classic services customers
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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 ARPU
• Churn Reduction

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Insight Communications
Company Overview
Insight Strategy
Product Overview
Bundling Strategy in Action
Financial Results and Guidance
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Financial Position

• Capital expenditures declining in 2003
• Growth in advanced services driving revenue and
  Operating Cash Flow
• Free Cash Flow positive in second half of 2003
• Fully funded - ample available liquidity
• 255 million unused bank facility
• 65 million cash
• 109 million Intercompany loan

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Investment in Technology
of Total Customers Passed by Upgraded 750 MHz
Network
Estimate
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Capital Expenditures Declining
(Dollars in millions)
18 Annual Decline
325.6
34.8
283.0
27.7
90.8
220.0
21.0
87.7
38.4
36.3
29.4
23.5
33.1
16.8
32.0
128.5
106.1
122.5
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Average Revenue Per Sub

• Average Revenue Per Customer
• Q1 2003 Q1 2002
• Basic 33.67
  31.47
• Digital 4.92 3.97
• Modem 5.21 3.00
• Telephone 0.66
  0.21
• Pay/PPV 3.78 3.96
• Fran. Fees, Other 3.85
  4.02
• Ad Sales 3.23 2.97
• Total 55.34
  49.60
• Increase of 5.74 (12) over Q1 2002
• Over half of the growth coming from digital and
  modem

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Average Revenue Per Sub
Q1 2003 Average Revenue Per Basic Sub

• 39.1 of Revenue per Sub from Non-Basic Services
• Strong Competitive Positioning
• Driving Consumer Choice
• Underpinning Customer Satisfaction

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Q1 2003 Results

• Strong net additions across all products in Q1
• 8,300 basic
• 20,000 digital
• 23,500 data
• 7,100 telephone
• Insight basic subscriber gains during Q1 were
  double that of DBS in the Insight footprint

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Strong RGU Growth
Revenue Generating Units
Growth 10
10
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Q1 2003 Results

• Revenue of 215 million, 12 growth
• OCF of 90 million, 10 growth
• Operating margin of 42
• Capex of 41 million
• Free Cash Flow of 15 million

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Q1 2003 Results Free Cash Flow

• Free Cash Flow positive in Q1

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ICCI - Strong Credit Profile

• Total Debt (in millions)
• Bank 1,490
• High Yield 1,320
• Total 2,810
• Leverage
• MW Holdings Credit Facility 4.47x vs. Covenant
  of 5.25x
• Insight Inc. 7.62x (net of cash)
• Interest Coverage
• MW Holdings Bank Debt - 3.58x vs. Covenant of
  2.25x
• Average Cost of Debt 8.0
• Fixed Rate Debt as a of Total 62

Note All data as of 3/31/03
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2003 Guidance

• OCF growth of 11.5 -13.5
• Capex of 220 million

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