Following Bankruptcy Court Sale Procedures Approval, Adelphia Executes Amended Sale Transaction Agreements With Buyers and Files Modified Plan of Reorganization for Certain Debtors to Facilitate Sale

Following Bankruptcy Court Sale Procedures Approval, Adelphia Executes Amended Sale Transaction Agreements With Buyers and Files Modified Plan of Reorganization for Certain Debtors to Facilitate Sale

GREENWOOD VILLAGE, Colo., June 22 /PRNewswire-FirstCall/ -- Adelphia Communications Corporation (OTC: ADELQ) today announced it has executed amendments to its purchase agreements with Time Warner NY Cable and Comcast and is filing a modified Chapter 11 bankruptcy Plan of Reorganization with the U.S. Bankruptcy Court for the Southern District of New York relating to the two joint ventures it holds with Comcast Corporation. Adelphia's Third Modified Fourth Amended Joint Plan of Reorganization includes changes intended to facilitate confirmation by addressing certain concerns expressed by various bankruptcy constituents of the joint ventures, including their prepetition lenders and the Creditors' Committee. The execution of the amendments to the purchase agreements and the filing of the modified Plan are a further step in facilitating completion of the sale of substantially all of Adelphia's assets to Time Warner NY Cable and Comcast as expeditiously as possible. Under the expedited sale process announced by Adelphia on May 26, 2006, Adelphia's majority interests in the joint ventures, Parnassos and Century- TCI, will be sold to Comcast in connection with a confirmed Chapter 11 Plan of Reorganization that provides for payment in full to the creditors of the joint ventures, while substantially all of Adelphia's remaining cable assets will be sold to Comcast and Time Warner NY Cable under a court-approved asset sale under Section 363 of the Bankruptcy Code. The sales of both the joint venture interests and the remaining Adelphia assets are conditioned on one another and expected to occur contemporaneously. In a ruling on June 16, 2006, the Bankruptcy Court approved amended sale procedures relating to the Section 363 sale process. On June 21, 2006, Adelphia, Time Warner NY Cable and Comcast entered into amendments to their respective purchase agreement, as well as a Registration Rights Letter Agreement substantially in the forms previously filed with the Bankruptcy Court. These agreements provide for certain amended terms required under the expedited sale transaction process. The termination and breakup fee provisions included in the amendments to the purchase agreements were approved in the June 16 ruling. Other terms in these amendments, including the sale of the assets under Section 363 of the Bankruptcy Code, must be approved by the Bankruptcy Court. The hearings to approve such terms, and to confirm the modified Plan of reorganization relating to the two joint ventures, are expected to be held in late June 2006. Distributions to creditors of Adelphia entities outside the Parnassos and Century-TCI joint ventures will not occur until after the confirmation of separate plans of reorganization relating to those entities, which Adelphia intends to seek following completion of the sales. Until confirmation of such separate plans of reorganization, the non-joint venture Adelphia entities will remain in bankruptcy. More information on the process to consummate the Comcast / Time Warner NY Cable transactions pursuant to the joint venture plan of reorganization / Section 363 approved sale can be found in the press release issued by Adelphia on May 26, 2006 in connection with Adelphia's announcement of the expedited sales process. Copies of the modified plan and executed transaction agreements are available in the investor relations section of the Adelphia corporate web site http://www.adelphia.com. About Adelphia Adelphia Communications Corporation is the fifth largest cable television company in the country. It serves customers in 31 states and offers analog and digital video services, high-speed Internet access and other advanced services over Adelphia's broadband networks. Cautionary Statement Regarding Forward-Looking Statements This press release includes forward-looking statements. All statements regarding the Company's and its subsidiaries' and affiliates' expected future financial position, results of operations, cash flows, sale of the Company, settlements with the Securities and Exchange Commission (the "SEC") and the United States Attorney's Office for the Southern District of New York (the "U.S. Attorney"), restructuring and financing plans, expected emergence from bankruptcy, business strategy, budgets, projected costs, capital expenditures, network upgrades, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will" and other similar expressions are forward-looking statements. Such forward- looking statements are inherently uncertain, and readers must recognize that actual results may differ materially from the Company's expectations. The Company does not undertake a duty to update such forward-looking statements. Factors that may cause actual results to differ materially from those in the forward-looking statements include whether the proposed sale of the Company's assets to Time Warner NY Cable LLC ("Time Warner") and Comcast Corporation ("Comcast") is approved and consummated, whether the Third Modified Fourth Amended Joint Plan of Reorganization, filed with the Bankruptcy Court on June 22, 2006, for the Comcast joint ventures, will be approved and consummated in time to close the sale of such assets to Time Warner and Comcast, the potential costs and impacts of the transactions contemplated by the proposed modifications, whether the debtors' Modified Fourth Amended Joint Plan of Reorganization, filed with the Bankruptcy Court on April 28, 2006, is confirmed and consummated in time to close the sale of such assets to Time Warner and Comcast in the event the contemplated modifications to such sale transactions are not timely consummated, whether the transactions contemplated by the settlements with the SEC and the U.S. Attorney and any other agreements needed to effect those transactions are consummated, the Company's pending bankruptcy proceeding, results of litigation against the Company, results and impacts of the proposed sale of the Company's assets, the effects of government regulation including the actions of local cable franchising authorities, the availability of financing, actions of the Company's competitors, pricing and availability of programming, equipment, supplies and other inputs, the Company's ability to upgrade its broadband network, technological developments, changes in general economic conditions, and those discussed under Items 1A, "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2005 and Quarterly Report on Form 10-Q for the period ended March 31, 2006 and in the debtors' supplement to the Fourth Amended Disclosure Statement, filed with the Bankruptcy Court on April 28, 2006, which is available in the investor relations section of the Company's website at http://www.adelphia.com. Information contained on the Company's Internet website is not incorporated by reference into this press release. Many of these factors are outside of the Company's control.