chello broadband Extends Service to Hungary

Chello broadband (www.chello.com) and United Pan-Europe Communications (UPC) ( www.upccorp.com), a Dutch-based cable operator and chello's parent company before the Excite@Home merger, have announced expansion of chello's cable broadband services into Central Europe. The service was launched in Hungary, in association with UPC Magyarorszag, Hungary's largest broadband communications company.

UPC Magyarorszag has already been operating an experimental broadband Internet service in some regions, but states that the addition of chello's content partners will make broadband more attractive for its customers.

Initially the service will be available to business and residential subscribers in four districts of Budapest and Miskolc. Magyarorszag provides cable television services to 35 cities and villages throughout Hungary, and chello intends to begin expanding its high-speed access offering beyond the first two cities beginning in 2001. Uli Neuert, director, chello broadband Central-Europe, believes that chello can reach 400,000 Hungarian homes with two-way capacity by the end of 2001.

Chello believes that they have tapped into a geographical area of high demand growth. Roger Lynch, president and CEO of chello broadband, said: "…the number of Internet accounts in Hungary is expected to grow over 500% from now until 2003, when 6% of the country's population will be users."

The new service in Hungary will feature chello's international, national and localized broadband content from among others, Amtel, Port, Magazix, Netforum, Globopolis, Est FM, Netrider, Warner Music, Sport 1, Universal Music and Sony.