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Cincinnati Bell Inc. Reports First Quarter Results; DSL Subscriber and ``Super Bundle'' Growth Contribute To Strong Cash Flow Performance

05/03/05

CINCINNATI--(BUSINESS WIRE)--May 3, 2005--Cincinnati Bell Inc. (NYSE:CBB) today announced solid first quarter results driven by bundling performance and cost reductions. For the quarter, revenue was $289 million with operating income of $55 million and a net loss of $3 million, or 2 cents per diluted share. Reported results reflect the impact of three non-cash special items: a $23 million asset write-down in the Wireless segment resulting from faster than expected customer migration to its GSM network; an $8 million loss on the extinguishment of debt related to the company's refinancing plan; and a $3 million deferred tax asset write-down related to a change in state income tax rates. Excluding these items, operating income for the quarter was $78 million with net income of $16 million, or 5 cents per diluted share.

"Cincinnati Bell has met the new challenge of intense local market competition," said Jack Cassidy, president and chief executive officer. "In the first quarter, we successfully defended our access line business while at the same time achieving near-record adds in 'super bundles' and DSL service."

    First Quarter Highlights

    --  Bundling of services drove strong net DSL additions of 10,000,
        with more than 80 percent of activations coming through a
        bundle. As a result, DSL penetration of in-territory primary
        consumer access lines was 21 percent at quarter end, up from
        16 percent at the same time a year ago. DSL penetration of
        total in-territory access lines increased to 15 percent, up
        from 11 percent in the first quarter of 2004.

    --  Net "super bundle" subscriber additions were 14,000, the
        highest level since first quarter 2004 and a 37 percent
        increase from fourth quarter 2004. Cincinnati Bell now has
        137,000 "super bundle" subscribers, up 52 percent from a year
        ago and representing a 23 percent penetration of in-territory
        households. Bundling success also continued to drive Revenue
        per Household served, which increased 5 percent versus the
        first quarter of 2004, to a record $78 per month.

    --  Total lines to the customer, a combination of access lines and
        DSL subscribers, increased by 9,000 units versus the end of
        the first quarter of 2004, as increases in DSL subscribers and
        out-of-territory access lines offset lower in-territory access
        lines.

    --  Wireless churn continued to trend downward reflecting improved
        GSM network quality. Postpaid churn in the first quarter was
        2.64 percent, compared with 2.78 percent in the fourth quarter
        of 2004.

    --  The successful use of bundling to defend the core franchise
        helped produce free cash flow(1) of $14 million. Free cash
        flow increased 26 percent versus the first quarter of 2004
        when excluding $21 million in financing fees and a $23 million
        interest payment on senior subordinated debt, both of which
        occurred in the first quarter of 2005 but not in the prior
        year quarter.

    --  Cincinnati Bell completed the first stage of its debt
        refinancing plan by issuing $350 million of new notes and
        establishing a new $250 million bank credit facility. The
        company used the proceeds from these activities to extinguish
        its previous credit facility and, as a result, recorded an $8
        million non-cash loss. The company expects to complete the
        refinancing plan in March of 2006 by purchasing its 16% Notes
        using borrowings under the new credit facility. Based on a
        likely range of interest rates, this will increase free cash
        flow by $20 million to $30 million on an annualized basis.

    Financial and Operations Review

"This quarter's results clearly demonstrate that our strategy to 'de-lever, defend and grow' is working. Revenues, when adjusted for sold assets, are up slightly and now generate a more profitable mix. Our cost structure is more competitive, and positions us for improved profitability and cash flow in the future," said Brian Ross, chief financial officer.

Cincinnati Bell recorded quarterly revenue of $289 million, an increase of $2 million over the first quarter of 2004 after normalizing for $16 million in revenue recorded in the first quarter of 2004 associated with low-margin assets which were sold in 2004. Revenue increased as stronger equipment, DSL and wireless data revenue offset lower wireless and local voice revenue.

EBITDA(2) (earnings before interest, taxes, depreciation and amortization) was $121 million, up 6 percent from the first quarter of 2004 when normalizing for a $5 million increase in non-cash post-retirement medical expenses. Lower long distance, operating tax and roaming costs contributed to the EBITDA increase. Cincinnati Bell also reduced net debt(3) by $8 million in the quarter and recorded capital expenditures of $28 million, or 10 percent of revenue.

Local Communications Services

Quarterly revenue from the Local segment, which includes the operations of Cincinnati Bell Telephone (CBT), was $190 million, essentially unchanged from a year ago as a 23 percent increase in DSL revenue helped offset a decline in voice revenue. EBITDA was $97 million, approximately flat to the first quarter of 2004 excluding a $5 million increase in non-cash post-retirement medical expenses.

Total access lines declined 2.1 percent from the same time a year ago, a substantial improvement compared to the 2.8 percent annual decline reported in the first quarter of 2004. On a sequential quarter basis, the rate of in-territory access line loss improved moderately for both residential and business customers. The decline of 11,000 in-territory lines in the first quarter of 2005 compared favorably to the 12,000 line decline in the fourth quarter of 2004.

Wireless Services

Cincinnati Bell Wireless produced revenue of $61 million compared with $64 million in the first quarter of 2004. Improved revenue contributions from data and equipment partially offset lower subscriber voice revenue and a $2 million decline in roaming revenue related to the merger of AT&T Wireless and Cingular. Despite lower revenue, EBITDA of $19 million was essentially even with the first quarter of 2004 due to a $3 million decrease in roaming expense and a decrease in handset subsidies.

Postpaid churn improved to 2.64 percent, versus 2.78 percent reported in the fourth quarter of 2004, due to higher network quality. The company expects continued improvement in churn. Strong fundamentals in prepaid wireless partially offset a decline in net postpaid subscribers. Net prepaid activations were 5,000 compared to a loss of 7,000 postpaid subscribers. At the end of the quarter, Cincinnati Bell served 479,000 subscribers, of which 255,000, or 53 percent, were on the GSM network. The faster-than-expected migration to the GSM network resulted in a $23 million non-cash write-down to recognize TDMA assets taken out of service.

Prepaid Average Revenue per User (ARPU) rose 3 percent versus the first quarter of 2004 to $22 and included a 65 percent increase in data revenue. Postpaid ARPU was $48 as higher data revenue was offset by lower roaming and voice revenue.

Hardware and Managed Services

Driven by strong hardware sales, data center co-location and related managed service activity, revenue from Hardware and Managed Services increased to $27 million, up 35 percent from a year ago when excluding $14 million in revenue associated with low-margin assets sold in 2004. EBITDA of $3 million increased $1 million versus the first quarter of 2004 due to higher margins on equipment and managed services produced by the remaining in-territory operations.

Other Communications Services

Other Communications Services, which includes long distance and payphone operations, produced quarterly revenue of $19 million, essentially unchanged from the first quarter of 2004. The introduction of new business products and the use of bundling drove a $2 million increase in long distance revenue, offsetting a $2 million decline in payphone revenue due primarily to the sale of out-of-territory and correctional facility phones in the fourth quarter of 2004. EBITDA more than doubled to $6 million due primarily to a decrease in the cost of long distance minutes.

Total long distance subscribers increased 27,000, or 5 percent, versus the end of the first quarter of 2004. Cincinnati Bell's market share of CBT lines for which a long distance carrier is selected was 77 percent in the consumer market and 49 percent in the business market, improvements of 6 points and 3 points, respectively, compared to the same time a year ago.

2005 Guidance

There have been no changes to Cincinnati Bell's financial guidance:

Category               Guidance
----------------------------------------------------------------------
Revenue                Low single-digit percent decline
----------------------------------------------------------------------
EBITDA                 $480 million to $490 million, including
                       approximately $20 million in incremental non-
                       cash expense related to post-retirement
                       medical benefits
----------------------------------------------------------------------
Capital Expenditures   Approximately 12 percent of revenue
----------------------------------------------------------------------
Free Cash Flow         Approximately $145 million, including financing
                       fees of $21 million
----------------------------------------------------------------------

Conference Call/Webcast

Cincinnati Bell will host a conference call today at 10:00 a.m. (EDT) to discuss its first quarter 2005 results. A live webcast of the call will be available via the Investor Relations section of www.cincinnatibell.com. The conference call dial-in number is 877.641.0086. International callers may dial 678.460.1867. A taped replay call will be available one hour after the conclusion of the teleconference until 5:00 p.m. (EDT) on May 17, 2005. For U.S. callers, the replay will be available at 888.284.7564. For international callers, the replay will be available at 678.460.1866. The replay reference number is 164635. An archived version of the webcast will also be available at www.cincinnatibell.com.

About Cincinnati Bell Inc.

Cincinnati Bell Inc. (NYSE: CBB) is parent to one of the nation's most respected and best performing local exchange and wireless providers with a legacy of unparalleled customer service excellence. With headquarters in Cincinnati, Ohio, Cincinnati Bell provides a wide range of telecommunications products and services to residential and business customers in Ohio, Kentucky and Indiana. For more information, visit www.cincinnatibell.com.

Use of Non-GAAP Financial Measures

This press release contains information about net debt, free cash flow and earnings before interest, taxes, depreciation and amortization (EBITDA). These are non-GAAP financial measures used by Cincinnati Bell management when evaluating results of operations and cash flow. Management believes these measures also provide users of the financial statements with additional and useful comparisons of current results of operations and cash flows with past and future periods. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures. Detailed reconciliations of net debt, free cash flow and EBITDA to comparable GAAP financial measures have been included in the tables distributed with this release and are available in the Investor Relations section of www.cincinnatibell.com.

(1) Free cash flow provides a useful measure of operational performance, liquidity and financial health. The company defines free cash flow as SFAS 95 cash provided by (used in) operating, financing and investing activities, less changes in restricted cash in operating activities, issuance and repayment of long-term debt in financing activities, short-term borrowings (repayments) in financing activities and proceeds from the sale of discontinued operations and assets in investing activities. Free cash flow should not be considered as an alternative to net income (loss), operating income (loss), cash flow from operating activities, or the change in cash on the balance sheet and may not be comparable with free cash flow as defined by other companies.

(2) EBITDA provides a useful measure of operational performance. The company defines EBITDA as GAAP Operating Income plus depreciation, amortization, restructuring charges, asset impairments, gain on the sale of assets and other special items. EBITDA should not be considered as an alternative to comparable GAAP measures of profitability.

(3) Net Debt provides a useful measure of liquidity and financial health. The company defines net debt as the sum of the face amount of short-term and long-term debt and unamortized premium and/or discount, offset by cash and cash equivalents.

Safe Harbor Note

Certain of the statements and predictions contained in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. In particular, statements, projections or estimates that include or reference the words "believes," "anticipates," "plans," "intends," "expects," "will," or any similar expression fall within the safe harbor for forward-looking statements contained in the Reform Act. Actual results or outcomes may differ materially from those indicated or suggested by any such forward-looking statement for a variety of reasons, including, but not limited to: Cincinnati Bell's ability to maintain its market position in communications services, including wireless, wireline and internet services; general economic trends affecting the purchase or supply of telecommunication services; world and national events that may affect the ability to provide services; changes in the regulatory environment; any rulings, orders or decrees that may be issued by any court or arbitrator; restrictions imposed under various credit facilities and debt instruments; work stoppages caused by labor disputes; adjustments resulting from year-end audit procedures; and Cincinnati Bell's ability to develop and launch new products and services. More information on potential risks and uncertainties is available in recent filings with the Securities and Exchange Commission, including Cincinnati Bell's Form 10-K report, Form 10-Q reports and Forms 8-K. The forward-looking statements included in this release represent company estimates as of May 3, 2005. Cincinnati Bell anticipates that subsequent events and developments will cause its estimates to change.

Cincinnati Bell Inc.
Consolidated Statements of Income
(Unaudited)

(in millions - except per share amounts)

                                                 Three Months
                                                Ended March 31,   %
                                                 2005    2004   Change
                                                ------- ------- ------

Revenue                                         $288.6  $302.4    (5%)
-------

Costs and Expenses
------------------
Cost of Services and Products                    109.2   125.7   (13%)
Selling, General and Administrative               58.1    57.9      0%
Depreciation and Amortization                     43.0    45.7    (6%)
Restructuring                                       --     0.2    n/m
Asset Impairments and Other Charges               23.1     0.1    n/m
                                                ------- --------

Operating Income                                  55.2    72.8   (24%)

Minority Interest Expense (Income)                (4.3)    0.1    n/m
Interest Expense                                  50.5    50.8    (1%)
Loss on Extinquishment of Debt                     7.9      --    n/m
Other Expense, Net                                 0.5      --    n/m
                                                ------- -------

  Income before Income Taxes                       0.6    21.9   (97%)

Income Tax Expense                                 3.8    11.0   (65%)
                                                ------- -------

Net Income (Loss)                                 (3.2)   10.9    n/m

Preferred Stock Dividends                          2.6     2.6      0%
                                                ------- -------

Net Income (Loss) Applicable to Common
 Shareowners                                     $(5.8)   $8.3    n/m
                                                ======= =======

Basic and Diluted Earnings (Loss) Per Common
 Share                                          $(0.02)  $0.03
--------------------------------------------    ======= =======

Weighted Average Common Shares Outstanding
------------------------------------------
- Basic                                          245.6   245.0
- Diluted                                        245.6   253.6



Cincinnati Bell Inc.
Segment Information
(Unaudited)

(dollars in millions)                           Three Months
                                               Ended March 31,    %
                                               2005     2004    Change
                                              -------- -------- ------
 Local
Revenue
   Voice                                       $128.0   $130.5    (2%)
   Data                                          53.2     50.3      6%
   Other services                                 9.0     10.1   (11%)
                                              -------- --------
   Total revenue                                190.2    190.9      0%

Operating Costs and Expenses:
   Cost of services and products                 57.7     56.3      2%
   Selling, general and administrative           35.4     33.4      6%
   Depreciation                                  27.1     29.9    (9%)
   Restructuring                                   --      0.2    n/m
                                              -------- --------
   Total operating costs and expenses           120.2    119.8      0%

                                              -------- --------
Operating income                                $70.0    $71.1    (2%)
                                              ======== ========

 Wireless
Revenue
   Service                                      $55.6    $60.2    (8%)
   Equipment                                      5.6      3.8     47%
                                              -------- --------
   Total revenue                                 61.2     64.0    (4%)

Operating Costs and Expenses:
   Cost of services and products                 29.3     33.3   (12%)
   Selling, general and administrative           13.4     12.2     10%
   Depreciation                                  14.9     14.6      2%
   Amortization                                     -      0.4    n/m
   Asset impairments and other charges           23.7      2.4    n/m
                                              -------- --------
   Total operating costs and expenses            81.3     62.9     29%

                                              -------- --------
Operating income (loss)                        $(20.1)    $1.1    n/m
                                              ======== ========

 Hardware & Mgd. Services
Revenue
   Hardware                                     $12.3    $18.2   (32%)
   Managed services                              14.8     16.2    (9%)
                                              -------- --------
   Total revenue                                 27.1     34.4   (21%)

Operating Costs and Expenses:
   Cost of services and products                 20.3     26.9   (25%)
   Selling, general and administrative            4.1      5.4   (24%)
   Depreciation                                   0.5      0.2    n/m
   Asset impairments and other charges
    (credits)                                    (0.1)    (1.1)  (91%)
                                              -------- --------
   Total operating costs and expenses            24.8     31.4   (21%)

                                              -------- --------
Operating income                                 $2.3     $3.0   (23%)
                                              ======== ========

 Other
Revenue                                         $19.0    $18.8      1%

Costs and Expenses:
   Cost of services and products                  8.8     13.1   (33%)
   Selling, general and administrative            3.9      3.0     30%
   Depreciation and amortization                  0.4      0.4     --
                                              -------- --------
   Total costs and expenses                      13.1     16.5   (21%)

                                              -------- --------
Operating income                                 $5.9     $2.3    157%
                                              ======== ========



Cincinnati Bell Inc.
Segment Information
(Unaudited)

(dollars in millions)                           Three Months
                                               Ended March 31,    %
                                               2005     2004    Change
                                              -------- -------- ------
Revenue
-------
Local                                          $190.2   $190.9    (0%)
Wireless                                         61.2     64.0    (4%)
Hardware & Mgd. Services                         27.1     34.4   (21%)
Other                                            19.0     18.8      1%
Broadband                                          --       --     --
Corporate and eliminations                       (8.9)    (5.7)    56%
                                              -------- --------
Total Revenue                                  $288.6   $302.4    (5%)
                                              ======== ========

Cost of Services and Products
-----------------------------
Local                                           $57.7    $56.3      2%
Wireless                                         29.3     33.3   (12%)
Hardware & Mgd. Services                         20.3     26.9   (25%)
Other                                             8.8     13.1   (33%)
Broadband                                          --       --     --
Corporate and eliminations                       (6.9)    (3.9)    77%
                                              -------- --------
Total Cost of Services and Products            $109.2   $125.7   (13%)
                                              ======== ========

Selling, General & Administrative
---------------------------------
Local                                           $35.4    $33.4      6%
Wireless                                         13.4     12.2     10%
Hardware & Mgd. Services                          4.1      5.4   (24%)
Other                                             3.9      3.0     30%
Broadband                                        (0.8)     0.1    n/m
Corporate and eliminations                        2.1      3.8   (45%)
                                              -------- --------
Total Selling, General & Administrative         $58.1    $57.9      0%
                                              ======== ========

Depreciation and Amortization
-----------------------------
Local                                           $27.1    $29.9    (9%)
Wireless                                         14.9     15.0    (1%)
Hardware & Mgd. Services                          0.5      0.2    n/m
Other                                             0.4      0.4     --
Broadband                                          --       --     --
Corporate and eliminations                        0.1      0.2   (50%)
                                              -------- --------
Total Depreciation and Amortization             $43.0    $45.7    (6%)
                                              ======== ========

Asset Impairments and Other Charges (Credits)
---------------------------------------------
Local                                              $-       $-     --
Wireless                                         23.7      2.4    n/m
Hardware & Mgd. Services                         (0.1)    (1.1)  (91%)
Other                                               -        -     --
Broadband                                        (0.5)    (1.2)  (58%)
Corporate and eliminations                          -        -     --
                                              -------- --------
Total Asset Impairments and Other Charges
 (Credits)                                      $23.1     $0.1    n/m
                                              ======== ========

Operating Income
----------------
Local                                           $70.0    $71.1    (2%)
Wireless                                        (20.1)     1.1    n/m
Hardware & Mgd. Services                          2.3      3.0   (23%)
Other                                             5.9      2.3    157%
Broadband                                         1.3      1.1     18%
Corporate and eliminations                       (4.2)    (5.8)  (28%)
                                              -------- --------
Total Operating Income                          $55.2    $72.8   (24%)
                                              ======== ========



Cincinnati Bell Inc.
Consolidated Balance Sheets
(Unaudited)

(in millions - except segment metric
 information)
                                              March 31,   December 31,
                                                2005         2004
                                             ------------ ------------

Assets
------

Cash and Cash Equivalents                          $24.8        $24.9
Receivables - Net                                  126.2        139.0
Materials and Supplies                              29.2         29.3
Other Current Assets                                78.8         66.6
Property, Plant and Equipment - Net                812.4        851.1
Goodwill                                            40.9         40.9
Other Intangible Assets - Net                       35.8         35.8
Noncurrent Deferred Tax Assets                     650.2        656.7
Other Noncurrent Assets                            120.6        114.4
                                             ------------ ------------
   Total Assets                                 $1,918.9     $1,958.7
                                             ============ ============


Liabilities and Shareowners' Deficit
------------------------------------

Current Portion of Long-Term Debt                  $24.8        $30.1
Current Portion of Unearned Revenue and
 Customer Deposits                                  41.7         42.5
Accounts Payable                                    53.9         58.9
Accrued Taxes                                       36.5         45.4
Other Current Liabilities                          110.1        120.5
Long-Term Debt, Less Current Portion             2,097.5      2,111.1
Unearned Revenue, Less Current Portion               8.3          8.9
Other Noncurrent Liabilities                       138.8        126.6
Minority Interest                                   34.9         39.2
Shareowners' Deficit                              (627.6)      (624.5)
                                             ------------ ------------
   Total Liabilities and Shareowners' Deficit   $1,918.9     $1,958.7
                                             ============ ============


Other Data:
-----------
Common Shares Outstanding at Balance Sheet
 Date                                              245.7        245.4
Net Debt                                        $2,104.5     $2,112.4
Credit Facility Availability                      $168.6       $377.8

Segment Metric Information (in thousands):
------------------------------------------
Local Access Lines                                 959.9        970.1
Complete Connections Subscribers                   339.4        336.4
DSL Subscribers                                    140.6        130.7
Custom Connections Subscribers                     137.4        123.4

GSM:
Postpaid Wireless Subscribers                      147.0        119.3
Prepaid Wireless Subscribers                       108.1         87.5
TDMA:
Postpaid Wireless Subscribers                      152.6        187.0
Prepaid Wireless Subscribers                        71.3         87.2
                                             ------------ ------------
Total Wireless Subscribers                         479.0        481.0
                                             ============ ============

Consumer Long Distance Lines                       423.6        423.5
Business Long Distance Lines                       141.5        138.1
                                             ------------ ------------
Total Long Distance Lines                          565.1        561.6
                                             ============ ============



Cincinnati Bell Telephone
Access Line Detail
(Unaudited)


(in thousands)
                                         ----------------------------
                                                    2003
                                         ----------------------------
                                            1Q      2Q     3Q    4Q
                                         ----------------------------
Access Lines
------------

In-Territory:
  Primary Residential                      624.6   620.3 617.7 613.9
  Secondary Residential                     64.3    62.2  60.0  58.1
  Business/Other                           313.2   310.2 308.0 304.6
                                         ----------------------------
Total In-Territory                       1,002.1   992.7 985.7 976.6

Out-of-Territory:
  Primary Residential                        2.3     2.7   3.1   3.4
  Secondary Residential                      0.1     0.1   0.2   0.2
  Business/Other                             4.7     5.0   5.2   5.6
                                         ----------------------------
Total Out-of-Territory                       7.1     7.8   8.5   9.2

                                         ----------------------------
Total Access Lines                       1,009.2 1,000.5 994.2 985.8
                                         ============================


Cincinnati Bell Telephone
Access Line Detail
(Unaudited)


(in thousands)
                                       ------------------------ ------
                                                2004            2005
                                       ------------------------ ------
                                         1Q    2Q    3Q    4Q     1Q
                                       ------------------------ ------
Access Lines
------------

In-Territory:
  Primary Residential                  611.8 606.3 601.5 592.7  584.2
  Secondary Residential                 56.0  54.0  52.2  50.5   48.9
  Business/Other                       301.5 299.6 298.4 296.6  296.1
                                       ------------------------ ------
Total In-Territory                     969.3 959.9 952.1 939.8  929.2

Out-of-Territory:
  Primary Residential                    4.6  10.9  15.8  18.4   17.7
  Secondary Residential                  0.2   0.6   0.7   0.8    0.8
  Business/Other                         6.8   8.0   9.9  11.1   12.2
                                       ------------------------ ------
Total Out-of-Territory                  11.6  19.5  26.4  30.3   30.7

                                       ------------------------ ------
Total Access Lines                     980.9 979.4 978.5 970.1  959.9
                                       ======================== ======


Cincinnati Bell Inc.
Net Debt Calculation
(Unaudited)

                                                            Change
                                   March 31, December 31,-------------
(dollars in millions)                2005       2004        $      %
                                   --------- ----------- -------------

Credit Facilities                     $75.0      $438.8  $(363.8)(83%)
Cincinnati Bell Telephone notes       250.0       250.0        -    -
7 1/4% Senior notes due 2013 of
 Cincinnati Bell Inc.                 500.0       500.0        -    -
16% Senior subordinated notes of
 Cincinnati Bell Inc.                 378.9       375.2      3.7    1%
7 1/4% Senior notes due 2023 of
 Cincinnati Bell Inc.                  50.0        50.0        -    -
8 3/8% Senior subordinated notes
 due 2014 of Cincinnati Bell Inc.     635.9       543.9     92.0   17%
7% Senior notes due 2015 of
 Cincinnati Bell Inc.                 247.1           -    247.1  n/m
Capital leases                         13.9        15.6     (1.7)(11%)
Other short-term debt                   1.2         1.6     (0.4)(25%)
Other long-term debt                    0.3           -      0.3  n/m
Unamortized discount, net of
 unamortized premiums                 (30.0)      (33.9)     3.9 (12%)
                                   --------- ----------- --------

   Total Debt                       2,122.3     2,141.2    (18.9) (1%)

Add: Interest Rate Swap Liability
 (Asset) on 8 3/8% Notes due 2014
 and 7% Notes due 2015                  7.0        (3.9)    10.9  n/m
Less: Cash and Cash Equivalents       (24.8)      (24.9)     0.1  (0%)
                                   --------- ----------- --------

   Net Debt (as defined by the
    company)                       $2,104.5    $2,112.4    $(7.9) (0%)
                                   ========= =========== ========



Cincinnati Bell Inc.
Consolidated Statements of Cash Flows
(Unaudited)

(dollars in millions)                                  Three Months
                                                      Ended March 31,
                                                        2005     2004
                                                     -------- --------

Cash provided by operating activities                  $64.4    $69.8
                                                     -------- --------

Capital expenditures                                   (28.0)   (23.3)
Proceeds from sale of assets                               -      3.2
                                                     -------- --------
Cash used in investing activities                      (28.0)   (20.1)
                                                     -------- --------

Issuance of long-term debt                             427.0        -
Repayment of long-term debt                           (440.8)   (51.8)
Debt issuance costs and consent fees                   (21.0)       -
Issuance of common shares - exercise of stock
 options                                                 0.9      1.5
Preferred stock dividends paid                          (2.6)    (2.6)
                                                     -------- --------
Cash used in financing activities                      (36.5)   (52.9)
                                                     -------- --------

Net increase in cash and cash equivalents               (0.1)    (3.2)
Cash and cash equivalents at beginning of period        24.9     26.0
                                                     -------- --------
Cash and cash equivalents at end of period             $24.8    $22.8
                                                     ======== ========


Reconciliation of GAAP Cash Flow to Free Cash Flow
 as defined by the company
Net decrease in cash and cash equivalents              $(0.1)   $(3.2)
Less adjustments:
Issuance of long-term debt                             427.0        -
Repayment of long-term debt                           (440.8)   (51.8)
Proceeds from sale of assets                               -      3.2
                                                     -------- --------

   Free cash flow (as defined by the company)          $13.7    $45.4
                                                     ======== ========


Cash Expenditures for Restructuring                    $(0.9)   $(3.6)

Income Tax Refunds / (Payments)                         $0.5       $-



Reconciliation of EBITDA to Operating Income (GAAP)

                                                 Three Months
                                               Ended March 31,
                                              2005         2004
                                           ------------------------

Operating Income (GAAP)                         $55.2        $72.8

Add:
     Depreciation and Amortization               43.0         45.7
     Restructuring                                  -          0.2
     Asset Impairments & Other                   23.1          0.1
                                           ------------------------

                                                 66.1         46.0
                                           ------------------------

EBITDA (Non-GAAP)                              $121.3       $118.8
                                           ========================



Cincinnati Bell Inc.
Normalized Statement of Operations -
Reconciliation to Reported Results
(in millions - except per share amounts)
(Unaudited)

                                    Special Items
                          ----------------------------------
                                                             Three
                                                             Months
                  Three                                      Ended
                  Months                                    March 31,
                  Ended                            Asset      2005
                March 31, Income                Impairments  Before
                  2005      Tax       Debt       and Other   Special
                  (GAAP)  Expense Extinguishment   Charges    Items
                ------------------------------------------------------
                             A          B            C
Revenue           $288.6      $-            $-          $-     $288.6
----------------

Costs and
 Expenses
----------------
Cost of Services
 and Products      109.2      --            --          --      109.2
Selling, General
 and
 Administrative     58.1      --            --          --       58.1
Depreciation and
 Amortization       43.0      --            --          --       43.0
Asset
 Impairments and
 Other Charges      23.1      --            --        23.1         --
                --------- ------- ------------- ----------- ----------

Operating Income    55.2      --            --       (23.1)      78.3

Minority
 Interest
 Expense
 (Income)           (4.3)                             (4.6)       0.3
Interest Expense    50.5      --            --          --       50.5
Loss on
 Extinquishment
 of Debt             7.9      --           7.9          --         --
Other Expense,
 Net                 0.5      --            --          --        0.5
                --------- ------- ------------- ----------- ----------

  Income before
   Income Taxes      0.6      --          (7.9)      (18.5)      27.0

Income Tax
 Expense             3.8     3.4          (3.2)       (7.4)      11.0
                --------- ------- ------------- ----------- ----------

Net Income
 (Loss)             (3.2)   (3.4)         (4.7)      (11.1)      16.0

Preferred Stock
 Dividends           2.6       -            --          --        2.6
                --------- ------- ------------- ----------- ----------

Net Income
 (Loss)
 Applicable to
 Common
 Shareowners       $(5.8)  $(3.4)        $(4.7)     $(11.1)     $13.4
                ========= ======= ============= =========== ==========

Basic and
 Diluted
 Earnings (Loss)
 Per Common
 Share            $(0.02) $(0.01)       $(0.02)     $(0.05)     $0.05
                ========= ======= ============= =========== ==========

Normalized results have been adjusted for the following:

(A) Write-down of certain state deferred tax assets due to change in
    future state income tax rates,

(B) Non-cash loss of $7.9 million due to the extinguishment of the
    company's prior credit facility, and

(C) Asset impairments and other charges of $23.1 million,
    substantially all of which related to a write-down of the
    company's TDMA network assets.

    CONTACT: Cincinnati Bell Inc.
             Michael Vanderwoude, 513-397-7685
             mike.vanderwoude@cinbell.com

    SOURCE: Cincinnati Bell Inc.