WEST POINT,Knology Inc. reported increased losses in the third quarter of 2002, as well as the closing of its previously announced $39 million equity investment in the company and debt restructuring transaction.

Net loss was $37.5 million during the third quarter 2002 compared with $24.3 million during the second quarter 2002 and $1.6 million during the third quarter 2001, which included a gain on debt extinguishment of $29.4 million.

The increase in net loss compared with the second quarter 2002 resulted primarily from a $9.5 million asset impairment charge related to construction and franchise activity and a $3.2 million charge for transaction costs associated with the debt restructuring.

Revenues for the third quarter 2002 were $36.1 million, up 4 percent compared with the second quarter 2002 and 32 percent compared with the third quarter 2001.

Subsequent to quarter end, on Nov. 6, Knology closed a $39 million private placement transaction, and together with Knology’s subsidiary, Knology Broadband Inc., completed a debt restructuring transaction that eliminated approximately $250 million of principal debt obligation.

Knology expects to record a gain related to the reorganization of approximately $110 million during the fourth quarter 2002.

“It was a significant accomplishment for Knology to deliver favorable operating results — while simultaneously working diligently through the restructuring process,” Rodger Johnson, president and chief executive officer, said in a statement. “We are pleased that the reorganization activity was completed in a timely manner and that we can now focus more attention on operational aspects of our business.”

Knology: www.knology.com