"With a solid first six months of 2009 behind us, we remain committed to strengthening our competitive advantages and optimizing our businesses to generate free cash flow," stated Peter D. Aquino, President and Chief Executive Officer. "Our second quarter results demonstrate continued growth and margin expansion despite the impacts of normal seasonality and the broader economic downturn. Our business units continue to compete effectively, demonstrated by solid revenue and EBITDA growth in both our Resi/SMB and RCN Metro segments, which combined with reduced capital spending generated growth in free cash flow. In addition, we recently launched Project Analog Crush(SM) in our Lehigh Valley market, capturing the benefit of the FCC's extension of our set-top box waiver, and announced plans to roll out DOCSIS 3.0."

Second Quarter Review

Following are highlights of second quarter 2009 results for consolidated RCN and for the company's two reporting segments: Residential/Small-Medium Business, comprised of the RCN and RCN Business Services business units; and RCN Metro Optical Networks.

Consolidated Results

 --  Revenue. Total revenue of $192 million increased 4% from $184 million     in the second quarter of 2008 and increased 2% from $189 million in the     first quarter of 2009. --  EBITDA. EBITDA of $56 million increased 18% from $47 million in the     second quarter of 2008 and increased 6% from $52 million in the first     quarter of 2009.  EBITDA margin of 29% increased by over 300 basis points     from the second quarter of 2008 and by over 100 basis points from the first     quarter of 2009.  EBITDA is a non-GAAP financial measure -- see "Non-GAAP     Measures" below. --  Capital Expenditures. Capital expenditures were $25 million compared     to $32 million in the second quarter of 2008 and $26 million in the first     quarter of 2009. --  Free Cash Flow.  Free cash flow was $10 million compared to negative     $300 thousand in the second quarter of 2008 and $8 million in the first     quarter of 2009.  Free cash flow is a non-GAAP financial measure -- see     "Non-GAAP Measures" below. --  Share Repurchases. RCN repurchased approximately 755,000 shares of     common stock during the second quarter at an average price of $5.13, or an     aggregate value of $3.9 million.  To date, RCN has repurchased nearly 2.4     million shares under its $25 million repurchase authorization, for an     aggregate value of approximately $16 million, leaving approximately $9     million remaining under the program.      

Residential/Small-Medium Business Segment

 --  Revenue. Residential/Small-Medium Business revenue of $145 million     increased 2% from $142 million in the second quarter of 2008 and increased     1% from $144 million in the first quarter of 2009.  Year-over-year revenue     growth was driven by the addition of approximately 6,000 new customers and     2,000 revenue generating units ("RGUs") as well as the implementation of     customer rate increases to offset programming cost increases. Average     revenue per customer ("ARPC") was $111 compared to $110 last year and last     quarter. --  EBITDA. Residential/Small-Medium Business EBITDA of $40 million     increased 13% from $35 million in the second quarter of 2008, and 6% from     $38 million in the first quarter of 2009.  EBITDA margin of 28% grew by     over 200 basis points from the second quarter of 2008 and over 100 basis     points from the first quarter of 2009, as a result of continued margin     expansion initiatives. --  Capital Expenditures. Residential/Small-Medium Business capital     expenditures were $16 million, down from $25 million in the second quarter     of 2008 and $19 million in the first quarter of 2009, as a result of the     completion of Project Analog Crush(SM). --  Customers, RGUs and Digital Penetration. Compared to the second     quarter of 2008, Residential/Small-Medium Business customers increased to     approximately 430,000 and total revenue generating units increased to     approximately 911,000, as continued growth in video and data RGU's was     partially offset by a reduction in voice RGU's, consistent with trends for     highly-penetrated landline voice providers.  Bundle rate decreased slightly     to 67%, and digital video penetration rate remained flat at 91% of video     customers, with metro markets maintaining 100% digital penetration through     the completion of Project Analog Crush(SM).      

RCN Metro Optical Networks Segment

 --  Revenue. RCN Metro revenue of $47 million increased 11% from $42     million in the second quarter of 2008, and 4% from $46 million in the first     quarter of 2009, driven primarily by continued strength in transport     services as well as growth in colocation services. --  EBITDA. RCN Metro EBITDA of $16 million increased 33% from $12 million     in the second quarter of 2008 and 8% from $14 million in the first quarter     of 2009.  EBITDA margin of 33% grew by over 500 basis points from the     second quarter of 2008 and over 100 basis points from the first quarter of     2009.  EBITDA and EBITDA margin increased primarily as a result of revenue     growth and continued realization of synergies. --  Capital Expenditures. RCN Metro capital expenditures were $9 million     compared to $7 million in the second quarter of 2008 and $8 million in the     first quarter of 2009.      

Reported Results

Revenue increased to $192 million in the second quarter of 2009, compared to $184 million in the second quarter of 2008 and $189 million in the first quarter of 2009. Net loss was $9 million in the second quarter of 2009, compared to $17 million in the second quarter of 2008 and $10 million in the first quarter of 2009.

Michael T. Sicoli, Chief Financial Officer of RCN, stated, "RCN's consistent execution, combined with our resilient business model, balanced geographic and customer segment portfolio, and proactive cost control drove increased profitability and free cash flow in the second quarter, giving us greater flexibility in the current economic environment. For 2009, we remain focused on delivering solid free cash flow through continued revenue and EBITDA growth combined with a capital expenditure program of approximately $125 million, a slight increase from our prior target of approximately $120 million as we accelerate Analog Crush in Lehigh Valley to make use of our set top box waiver extension."

Non-GAAP Measures

In addition to the results presented in accordance with Generally Accepted Accounting Principles ("GAAP") throughout this press release, RCN has presented non-GAAP financial measures, such as EBITDA, EBITDA Margin, Free Cash Flow and ARPC. RCN believes that these non-GAAP measures, viewed in addition to and not in lieu of its reported GAAP results, provide useful information to investors because they are an integral part of RCN's internal evaluation of operating performance. In addition, they are measures that RCN uses to evaluate management's effectiveness. Reconciliations to comparable GAAP measures as well as definitions begin on page 8. RCN's non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies.

Second Quarter Conference Call

Management will conduct a conference call to discuss second quarter 2009 results today at 08:30 AM Eastern time. Please be sure to dial into the call 10 to 15 minutes before start time. The dial in number for the call is (877) 866-5534, conference ID: 17961262. The call is also being webcast with an accompanying slide presentation, which can be accessed at http://investor.rcn.com/events.cfm.

A replay of this conference call will be available from 9:30 AM today until 11:59 PM Eastern time on August 11. The dial in number for the replay is 706-645-9291; the conference ID is the same as above. The webcast and slides will also be archived on RCN's website.

About RCN Corporation

RCN Corporation (NASDAQ: RCNI), http://www.rcn.com, is a competitive broadband services provider delivering all-digital and high-definition video, high-speed internet and premium voice services to residential and small-medium business customers under the brand names of RCN and RCN Business Services, respectively. In addition, through its RCN Metro Optical Networks business unit, RCN delivers fiber-based high-capacity data transport services to large commercial customers, primarily large enterprises and carriers, targeting the metropolitan central business districts in the company's geographic markets. RCN's primary service areas include Washington, D.C., Philadelphia, Lehigh Valley (PA), New York City, Boston and Chicago. (RCNI-Q)

RCN Forward-Looking Statements

This press release contains forward-looking statements regarding future events and future performance of RCN that involve risks and uncertainties that could materially affect actual results. This information is qualified in its entirety by cautionary statements and risk factors disclosure contained in certain of RCN's Securities and Exchange Commission filings.