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COGECO Sustains Growth for the Fourth Quarter of Fiscal 2009

MONTREAL, QUEBEC--(Marketwire - Oct. 30, 2009) - Today, COGECO Inc. (TSX:CGO) ("COGECO" or the "Company") announced its financial results for the fourth quarter and 2009 fiscal year ended August 31, 2009.

For the fourth quarter and fiscal 2009:

- Fiscal 2009 fourth-quarter consolidated revenue increased by 8% to reach $316.3 million, when compared to the corresponding period of the prior year. Revenue in the cable subsidiary, Cogeco Cable Inc. ("Cogeco Cable"), driven by increased revenue-generating units ("RGU")(1) combined with rate increases and the financial results generated by the acquisition of Cogeco Data Services Inc. (the "CDS acquisition") in the Canadian operations, went up by $22.9 million, or 8%. For the fiscal year 2009, consolidated revenue grew by 13% to reach $1,252.8 million;

- Fiscal 2009 fourth-quarter operating income before amortization(2) increased by $29.2 million, or 23.9%, to reach $151.2 million. The cable sector contributed to an increase of $28.5 million as a result of the favourable impact of $19.8 million from the settlement of the Part II licence fees payable to the Canadian Radio-television and Telecommunications Commission ("CRTC") for the 2007 to 2009 fiscal years (the "Part II licence fee settlement agreement") and RGU growth, the CDS acquisition and various rate increases generating additional revenues which outpaced other operating cost increases in the period. For fiscal 2009, consolidated operating income before amortization grew by 18.5% to reach $532 million;

- During fiscal 2009, a $399.6 million non-cash impairment loss (the "impairment loss") on Cogeco Cable's investment in its Portuguese subsidiary, Cabovisao - Televisao por Cabo, S.A. ("Cabovisao") was recorded as a result of competitive pressure resulting in customer losses that were more severe than originally anticipated;

- Fourth quarter of 2009 consolidated net income amounted to $15.2 million compared to $9.7 million for the corresponding period of the prior year. Excluding the favourable impacts from the reduction of withholding and stamp tax contingent liabilities in the amount of $1.7 million in Europe and from the $5.3 million with respect to the Part II licence fee settlement agreement in Canada, both net of related income taxes and non-controlling interest, adjusted net income(2) would have amounted to $8.2 million, a decrease of $1.4 million, or 14.6% compared to the fourth quarter of fiscal 2008;

- Fiscal 2009 net loss amounted to $78.5 million, or $4.69 per share, compared to a net income of $25.1 million, or $1.50 per share for the prior year. Net loss for fiscal 2009 was affected by the impairment loss of $399.6 million recorded on Cogeco Cable's investment in Cabovisao. Net of related income taxes and non- controlling interest, the impairment loss reduced net income by $124 million. Furthermore, the net loss in the cable sector includes an unfavourable impact of $2 million from the utilization of Cabovisao's pre-acquisition tax losses and a favourable impact from the reduction of withholding and stamp tax contingent liabilities in the amount of $5.2 million described above, also in Cabovisao, both net of non-controlling interest, and a favourable impact of $5.3 million from the Part II licence fee settlement agreement net of related income taxes and non- controlling interest. Net income of the prior year included a loss from discontinued operations of $18.1 million and an income tax adjustment, as described in the "Income taxes" section of the Company's 2009 Annual report, which, net of non-controlling interest, increased the prior year net income by $7.9 million. Excluding the effect of these items, adjusted net income for fiscal 2009 would have amounted to $36.9 million, or $2.20 per share(2), compared to $35.3 million, or $2.11 per share in 2008, increases of 4.6% and 4.3%, respectively;

- Free cash flow(2) reached $14.7 million for the fourth quarter, representing a decrease of 29.7% over the prior year. The decrease in free cash flow is due to an increase in capital expenditures which exceeded the increase in cash flow from operations. Free cash flow stands at $101 million for fiscal 2009, an increase of 0.6% over fiscal 2008;

- Operating margin(2) increased to 47.8%(3) for the fourth quarter compared to 41.7% in the corresponding period of the prior year, and increased to 42.5%(3) during fiscal 2009 from 40.5% the year before. In the cable sector, the operating margin in Canada improved to 54.8%(3) from 44% which offset the decrease in the European operating margin to 20.1% from 38.9% and fiscal 2009 operating margin in Canada improved to 46.7%(3) from 42.9% and decreased to 27.5% from 36.2% in Europe;

- In the cable sector, RGU grew by 48,170 net additions in the quarter and 175,364 net additions in the fiscal year, for a total of 2,892,238 RGU at August 31, 2009.

"Despite the economic difficulties that marked fiscal 2009, we are pleased with COGECO's year-end financial results, with most key performance indicators surpassing our expectations. In the cable sector, our Canadian operations enjoyed a solid growth, with RGU additions of 167,955 for the year, exceeding by far our guidelines. In our European operations, Cabovisao has implemented far-reaching strategies to counter the severe competitive pressure in that market. Management believes that the turnaround phase is solidly underway. As always, customer satisfaction remains our focus, and Cogeco Cable's new Canadian operational structure and the many enhancements made to the service offerings in fiscal 2009, will pave the way for growth in fiscal 2010. As for the radio sector, Rythme FM is still the first choice in Montreal in 2009 and the Trois-Rivieres market is also at the top since last May. In these difficult times, radio is more than ever a good choice for announcers; and our audiences like what we offer them either on Rythme FM network and on the FM93 station in Quebec City", declared Louis Audet, President and CEO of COGECO.

Fiscal 2010 Financial Guidelines

The Company issued its 2010 financial guidelines, maintaining revenue outlook at about $1,285 million. Operating income before amortization should decrease from $505 million to approximately $486 million, a reduction of $19 million compared to our preliminary projections due to an increase in operating costs in the cable sector from the application of CICA Handbook Section 3064 Goodwill and intangible assets. Capital expenditures and the increase in deferred charges should also decrease by $19 million, from $360 million to $341 million from the application of CICA Handbook Section 3064. Free cash flow should remain the same to approximately $130 million. Please consult the "Fiscal 2010 financial guidelines" section of the Corporation's 2009 annual report for further details.

(1) Represents the sum of Basic Cable, High Speed Internet ("HSI"), Digital
 Television and Telephony service customers.
(2) The indicated terms do not have a standardized definition prescribed by
 Canadian Generally Accepted Accounting Principles ("GAAP") and
 therefore, may not be comparable to similar measures presented by other
 companies. For further details, please consult the "Non-GAAP financial
 measures" section of the Results overview.
(3) Includes the favourable impact from the Part II licence fee settlement
 agreement of $21.3 million, $19.8 million of which stems from cable
 sector.


 FINANCIAL HIGHLIGHTS

--------------------------------------------------------------------------
--------------------------------------------------------------------------
($000, except
 percentages,
 per share data Quarters ended August 31, Years ended August 31,
 and RGU 2009 2008(1) Change 2009 2008(1) Change
 growth) $ $ % $ $ %
--------------------------------------------------------------------------
 (unaudited) (unaudited) (audited) (audited)

Revenue 316,284 292,873 8.0 1,252,794 1,108,900 13.0
Operating
 income
 from
 continuing
 operations
 before
 amortization(2) 151,242 122,019 23.9 532,013 448,922 18.5
Operating
 margin(2) 47.8% 41.7% - 42.5% 40.5% -
Operating
 income
 from
 continuing
 operations 78,744 60,244 30.7 261,013 219,198 19.1
Impairment of
 goodwill
 and intangible
 assets - - - 399,648 - -
Income (loss)
 from
 continuing
 operations 15,233 9,656 57.8 (78,525) 43,165 -
Loss from
 discontinued
 operations - - - - (18,057) -
Net income
 (loss) 15,233 9,656 57.8 (78,525) 25,108 -
Adjusted net
 income(2) 8,249 9,656 (14.6) 36,895 35,256 4.6

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Cash flow from
 operating
 activities
 from
 continuing
 operations 183,620 146,052 25.7 437,223 398,491 9.7
Cash flow from
 operations
 from
 continuing
 operations(2) 115,332 99,969 15.4 406,807 362,788 12.1
Capital
 expenditures
 and increase
 in deferred
 charges 100,590 78,988 27.3 305,789 262,352 16.6
Free cash
 flow(2) 14,742 20,981 (29.7) 101,018 100,436 0.6
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RGU growth(3) 48,170 41,100 17.2 175,364 231,209 (24.2)

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Earnings (loss)
 per share
 Basic
 Income (loss)
 from
 continuing
 operations 0.91 0.58 56.9 (4.69) 2.59 -
 Loss from
 discontinued
 operations - - - - (1.08) -
 Net income
 (loss) 0.91 0.58 56.9 (4.69) 1.50 -
Adjusted earnings
 per share(2) 0.49 0.58 (15.5) 2.20 2.11 4.3
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(1) Certain comparative figures have been reclassified to conform to the
 current year's presentation to reflect the reclassification of foreign
 exchange gains or losses from operating costs to financial expense.
(2) The indicated terms do not have standardized definitions prescribed by
 Canadian GAAP and therefore, may not be comparable to similar measures
 presented by other companies. For more details, please consult the
 "Non-GAAP financial measures" section of the Results overview.
(3) Revenue generating units ("RGU"). Represents the sum of Basic Cable,
 High Speed Internet ("HSI"), Digital Television and Telephony service
 customers. The number of Digital Television service customers in Europe
 has been restated in the fourth quarter of fiscal 2009 in order to
 conform to the industry definition of a RGU. This restatement increased
 the number of customers at the end of the second quarter by 34,785 and
 at the end of the third quarter by 33,869.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to COGECO's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee", "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding the Company's future operating results and economic performance and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which COGECO believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to the Company, they may prove to be incorrect. The Company cautions the reader that the current adverse economic conditions make forward-looking information and the underlying assumptions subject to greater uncertainty and that, consequently, they may not materialize, or the results may significantly differ from the Company's expectations. It is impossible for COGECO to predict with certainty the impact that the current economic downtown may have on future results. Forward-looking information is also subject to certain factors, including risks and uncertainties (described in the "Uncertainties and main risk factors" section of the Company's 2009 annual Management's Discussion and Analysis (MD&A) that could cause actual results to differ materially from what COGECO currently expects. These factors include technological changes, changes in market and competition, governmental or regulatory developments, general economic conditions, the development of new products and services, the enhancement of existing products and services, and the introduction of competing products having technological or other advantages, many of which are beyond the Company's control. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While management may elect to, the Company is under no obligation (and expressly disclaims any such obligation), and does not undertake to update or alter this information before the next quarter, except as required by Law.

This analysis should be read in conjunction with the Company's consolidated financial statements, and the notes thereto, prepared in accordance with Canadian GAAP and the MD&A included in the Company's 2009 Annual Report. Throughout this discussion, all amounts are in Canadian dollars unless otherwise indicated.

 RESULTS OVERVIEW

This analysis should be read in conjunction with the Company's 2009 Annual
Report available on SEDAR at [ www.sedar.com ].

CUSTOMER STATISTICS

--------------------------------------------------------------------------
--------------------------------------------------------------------------
 Net additions
 (losses)
 August 31, Quarters ended
 2009 August 31, 2009
 Canada Europe Conso- Canada Europe Conso-
 Lidated lidated
--------------------------------------------------------------------------
RGU(1)(2) 2,159,863 732,375 2,892,238 27,740 20,430 48,170
Basic Cable
 service
 customers 864,805 259,480 1,124,285 (924) (5,318) (6,242)
HSI service
 customers 515,052 143,614 658,666 5,619 1,430 7,049
Digital Television
 service customers(2) 498,398 102,753 601,151 9,674 23,456 33,130
Telephony service
 customers 281,608 226,528 508,136 13,371 862 14,233
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 Net additions
 (losses)
 August 31, Quarters ended
 2008 August 31, 2008
 Canada Europe Conso- Canada Europe Conso-
 Lidated lidated
--------------------------------------------------------------------------
RGU 1,991,908 724,966 2,716,874 42,909 (1,809) 41,100
Basic Cable
 service
 customers 857,094 296,135 1,153,229 (1,476) (4,456) (5,932)
HSI service
 customers 473,467 159,301 632,768 8,799 (5,009) 3,790
Digital Television
 service customers(3) 441,746 24,452 466,198 16,150 9,982 26,132
Telephony service
 customers 219,601 245,078 464,679 19,436 (2,326) 17,110
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(1) Represents the sum of Basic Cable, High Speed Internet ("HSI"), Digital
 Television and Telephony service customers.
(2) The number of Digital Television service customers in Europe has been
 restated in the fourth quarter of fiscal 2009 in order to conform to
 the industry definition of a RGU. This restatement increased the number
 of customers at the end of the second quarter by 34,785 and at the end
 of the third quarter by 33,869.
(3) In the European operations, the Digital Television service was launched
 in the third quarter of fiscal 2008.

In the cable sector, Canadian operations' fourth-quarter 2009 RGU net additions were lower than for the corresponding periods last year and reflect an early sign of maturation in some services. The number of net losses for Basic Cable stood at 924 customers compared to 1,476 customers for the corresponding period of the prior year. Fourth-quarter Basic Cable service customer losses are usual and due to seasonal variations. In the quarter, Telephony customers grew by 13,371 compared to 19,436 in the prior year. The lower growth is mostly attributable to the increased penetration in areas where the service is already offered and to fewer new areas where the service was launched. The number of net additions to HSI service stood at 5,619 customers compared to 8,799 in the fourth quarter of fiscal 2008. The growth in HSI customer net additions continues to stem from the enhancement of the product offering, the impact of the bundled offer (Cogeco Complete Connection) of Cable Television, HSI and Telephony services, and promotional activities. The Digital Television service net additions stood at 9,674 customers compared to 16,150 customers in the prior year, due to more targeted marketing initiatives in the second half of fiscal 2008 to improve penetration and to the continuing strong interest for the High Definition ("HD") Television service.

In Europe, fourth-quarter of 2009 was marked by a continuing difficult competitive environment in the Iberian Peninsula, recurring intense customer promotions and advertising initiatives from competitors for their new respective third leg of the triple-play service in the Portuguese market. These factors were the main contributors to net customer losses in the Basic Cable service, and low customer additions in the HSI and Telephony services. The Digital Television service was launched during the third quarter of 2008, with net additions of 23,456 customers in the fourth quarter of fiscal 2009, compared to 9,982 in the fourth quarter of fiscal 2008. Fiscal 2009 fourth quarter Basic Cable service customers decreased by 5,318 customers compared to a decrease of 4,456 customers in the comparable period of the prior year. HSI service customers increased by 1,430 customers compared to a decrease of 5,009 customers for the corresponding period in fiscal 2008. Telephony service increased by 862 customers compared to a decrease of 2,326 customers for the corresponding periods of the preceding year. Cabovisao has launched new channels and retention strategies, as well as new marketing and other operating initiatives which should reduce customer attrition in the upcoming quarters.

OPERATING RESULTS - CONSOLIDATED OVERVIEW

--------------------------------------------------------------------------
--------------------------------------------------------------------------
($000, except Quarters ended August 31, Years ended August 31,
 percentages) 2009 2008(1) Change 2009 2008(1) Change
 $ $ % $ $ %
--------------------------------------------------------------------------
 (unaudited) (unaudited) (audited) (audited)

Revenue 316,284 292,873 8.0 1,252,794 1,108,900 13.0
Operating costs 165,042 170,854 (3.4) 720,781 659,978 9.2
--------------------------------------------------------------------------
Operating
 income from
 continuing
 operations
 before
 amortization(2) 151,242 122,019 23.9 532,013 448,922 18.5
--------------------------------------------------------------------------
Operating
 margin(2) 47.8% 41.7% 42.5% 40.5%
--------------------------------------------------------------------------
--------------------------------------------------------------------------

(1) Certain comparative figures have been reclassified to conform to the
 current year's presentation. Financial information for the previous
 year has been restated to reflect the presentation of foreign exchange
 gains or losses as financial expense instead of operating costs.
(2) The indicated terms do not have standardized definitions prescribed by
 Canadian GAAP and therefore, may not be comparable to similar measures
 presented by other companies. For more details, please consult the
 "Non-GAAP financial measures" section.

Consolidated revenue for the fourth quarter rose by $23.4 million, or 8%, when compared to the corresponding period last year. Cable revenue, driven by increased RGU combined with rate increases and the CDS acquisition in the Canadian operations, went up by $22.9 million, or 8%. Other sector revenue increased by $0.5 million, or 6.4%, in the fourth quarter of 2009 due to favourable ratings for the Company's radio stations.

Operating costs decreased by $5.8 million at $165 million, or 3.4%, compared to the fourth quarter of fiscal 2008, mainly due to the cable sector. The decrease in operating costs in the cable sector is primarily attributable to the favourable impact of $19.8 million from the Part II licence fee settlement agreement, partly offset by the impact of servicing additional RGU and the CDS acquisition in Canada, and in Europe, due to the appreciation of the Euro over the Canadian dollar and an increase in the amount of bad debts. Cabovisao has put together initiatives at the end of the second quarter of 2009 to better manage its collection processes which management expects will have a favourable impact on the level of bad debts in fiscal 2010.

Operating income before amortization grew by $29.2 million, or 23.9%, to reach $151.2 million in the fourth quarter 2009, compared to $122 million for the corresponding period last year. The increase, mainly in the cable sector, results from the favourable impact of $19.8 million from the Part II licence fee settlement agreement, RGU growth, the CDS acquisition and various rate increases generating additional revenues which outpaced other operating cost increases. The Company's fourth quarter operating margin increased to 47.8% from 41.7% for the corresponding period of the prior year, mainly as a result of the favourable impact of $21.3 million from the Part II licence fee settlement agreement which impacted both the cable sector and the radio activities.

NON-GAAP FINANCIAL MEASURES

This section describes non-GAAP financial measures used by COGECO throughout this Press release. It also provides reconciliations between these non-GAAP measures and the most comparable GAAP financial measures. These financial measures do not have standard definitions prescribed by Canadian GAAP and may not be comparable with similar measures presented by other companies. These measures include "cash flow from operations from continuing operations", "free cash flow", "operating income from continuing operations before amortization", "operating margin", "adjusted net income", and "adjusted earnings per share".

Cash flow from operations from continuing operations and free cash flow

Cash flow from operations from continuing operations is used by COGECO's management and investors to evaluate cash flows generated by operating activities excluding the impact of changes in non-cash operating items. This allows the Company to isolate the cash flows from operating activities from the impact of cash management decisions. Cash flow from operations from continuing operations is subsequently used in calculating the non-GAAP measure "free cash flow". Free cash flow is used by COGECO's management and investors to measure COGECO's ability to repay debt, distribute capital to its shareholders and finance its growth.

The most comparable Canadian GAAP financial measure is cash flow from operating activities from continuing operations. Cash flow from operations from continuing operations is calculated as follows:

--------------------------------------------------------------------------
--------------------------------------------------------------------------
 Quarters ended August 31, Years ended August 31,
 2009 2008 2009 2008
($000) $ $ $ $
--------------------------------------------------------------------------
 (unaudited) (unaudited) (audited) (audited)

Cash flow from operating
 activities from
 continuing operations 183,620 146,052 437,223 398,491
Changes in non-cash
 operating items (68,288) (46,083) (30,416) (35,703)
--------------------------------------------------------------------------
Cash flow from
 operations from
 continuing operations 115,332 99,969 406,087 362,788
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Free cash flow is calculated as follows:

--------------------------------------------------------------------------
--------------------------------------------------------------------------
 Quarters ended August 31, Years ended August 31,
 2009 2008 2009 2008
($000) $ $ $ $
--------------------------------------------------------------------------
 (unaudited) (unaudited) (audited) (audited)

Cash flow from
 operations from
 continuing operations 115,332 99,969 406,807 362,788

Acquisition of fixed assets (89,199) (68,895) (273,733) (229,181)

Increase in deferred charges (9,050) (7,035) (27,292) (27,696)

Assets acquired under
 capital leases (2,341) (3,058) (4,764) (5,475)
--------------------------------------------------------------------------
Free cash flow 14,742 20,981 101,018 100,436
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Operating income from continuing operations before amortization and operating margin

Operating income from continuing operations before amortization is used by COGECO's management and investors to assess the Company's ability to seize growth opportunities in a cost effective manner, to finance its ongoing operations and to service its debt. Operating income from continuing operations before amortization is a proxy for cash flows from operations excluding the impact of the capital structure chosen, and is one of the key metrics used by the financial community to value the business and its financial strength. Operating margin is a measure of the proportion of the Company's revenue which is left over, before taxes, to pay for its fixed costs, such as interest on Indebtedness(1). Operating margin is calculated by dividing operating income from continuing operations before amortization by revenue.

(1) Indebtedness is defined as the total of bank indebtedness, principal on long-term debt and obligations under derivative financial instruments.

The most comparable Canadian GAAP financial measure is operating income from continuing operations. Operating income from continuing operations before amortization and operating margin are calculated as follows:

--------------------------------------------------------------------------
--------------------------------------------------------------------------
 Quarters ended August 31, Years ended August 31,
 2009 2008(1) 2009 2008(1)
($000, except percentages) $ $ $ $
--------------------------------------------------------------------------
 (unaudited) (unaudited) (audited) (audited)

Operating income from
 continuing operations 78,744 60,244 261,013 219,198
Amortization 72,498 61,775 271,000 229,724
--------------------------------------------------------------------------
Operating income from
 continuing operations
 before amortization 151,242 122,019 532,013 448,922
--------------------------------------------------------------------------

Revenue 316,284 292,873 1,252,794 1,108,900
--------------------------------------------------------------------------
Operating margin 47.8% 41.7% 42.5% 40.5%
--------------------------------------------------------------------------
--------------------------------------------------------------------------

(1) Certain comparative figures have been reclassified to conform to the
 current year's presentation. Financial information for the previous
 year has been restated to reflect the presentation of foreign exchange
 gains or losses as financial expense instead of operating costs.

Adjusted net income and adjusted earnings per share

Adjusted net income and adjusted earnings per share are used by COGECO's management and investors to evaluate what would have been the net income and earnings per share excluding the impairment of goodwill and intangible assets, non-recurring tax adjustments and the Part II licence fee settlement agreement, all net of non-controlling interest, and the loss from discontinued operations. This allows the Company to isolate the unusual adjustments in order to evaluate the net income and earnings per share from ongoing activities.

The most comparable Canadian GAAP financial measures are net income and earnings per share. Adjusted net income and adjusted earnings per share are calculated as follows:

--------------------------------------------------------------------------
--------------------------------------------------------------------------
 Quarters ended August 31, Years ended August 31,
 2009 2008 2009 2008
($000) $ $ $ $
--------------------------------------------------------------------------
 (unaudited) (unaudited) (audited) (audited)

Net income (loss) 15,233 9,656 (78,525) 25,108
Adjustments:
 Impairment of goodwill and
 intangible assets net of
 related income taxes and
 non-controlling interest - - 123,951 -
 Non-recurring tax
 adjustments net of
 non-controlling interest:
 Reduction of withholding
 and stamp tax contingent
 liabilities (1,680) - (5,211) -
 Utilization of
 pre-acquisition tax losses - - 1,984 -
 Reduction of Canadian
 federal income tax rates - - - (7,909)
 Part II licence fee
 settlement agreement net
 of related income taxes (5,304) - (5,304) -
 Loss from discontinued
 operations - - - 18,057
--------------------------------------------------------------------------
Adjusted net income 8,249 9,656 36,895 35,256
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Weighted average number
 of multiple voting and
 subordinate voting
 shares outstanding 16,785,330 16,709,946 16,756,610 16,684,809
Effect of dilutive
 stock options 730 30,427 8,757 60,299
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Weighted average number
 of diluted multiple
 voting and subordinate
 voting shares
 outstanding 16,786,060 16,740,373 16,765,367 16,745,108
--------------------------------------------------------------------------

Adjusted earnings
 per share
 Basic 0.49 0.58 2.20 2.11
 Diluted 0.49 0.58 2.20 2.11
--------------------------------------------------------------------------
--------------------------------------------------------------------------

ADDITIONAL INFORMATION

Additional information relating to the Company, including its 2009 Annual Report and Annual Information Form, is available on the SEDAR website at [ www.sedar.com ].

ABOUT COGECO

COGECO is a diversified communications company. Through its Cogeco Cable subsidiary, COGECO provides its residential customers with Audio, Analogue and Digital Television, as well as HSI and Telephony services using its two-way broadband cable networks. Cogeco Cable also provides, to its commercial customers, data networking, e-business applications, video conferencing, hosting services, Ethernet, private line, VoIP, HSI access, dark fibre, data storage, data security and co-location services and other advanced communication solutions. Through its Cogeco Diffusion subsidiary, COGECO owns and operates the RYTHME FM radio stations in Montreal, Quebec City, Trois-Rivieres and Sherbrooke, as well as the FM 93 radio station in Quebec City. COGECO's subordinate voting shares are listed on the Toronto Stock Exchange (TSX:CGO). The subordinate voting shares of Cogeco Cable are also listed on the Toronto Stock Exchange (TSX:CCA)

Analyst Conference Call: Friday, October 30, 2009 at 11:00 A.M. (EDT)
 Media representatives may attend as listeners
 only.

 Please use the following dial-in number to have
 access to the conference call by dialing ten
 minutes before the start of the conference:
 Canada/USA Access Number: 1 888 300-0053
 International Access Number: + 1 647 427-3420
 Confirmation Code: 30223367

 A rebroadcast of the conference call will be
 available until November 6, by dialing:
 Canada and US Access Number: 1 800 839-9868
 International Access Number: + 1 402 220-4283
 Confirmation code: 30223367



 Supplementary Quarterly Financial Information
 (unaudited)

--------------------------------------------------------------------------
--------------------------------------------------------------------------
Quarters ended(1) Fiscal 2009
($000, except percentages Nov. 30 Feb. 28 May 31 Aug. 31
 and per share data) $ $ $ $
--------------------------------------------------------------------------
Revenue 308,375 311,825 316,310 316,284
Operating income from
 continuing operations before
 amortization(4) 124,704 126,663 129,404 151,242
Operating margin(4) 40.4% 40.6% 40.9% 47.8%
Operating income from
 continuing operations 60,641 59,878 61,750 78,744
Impairment of goodwill and
 intangible assets - 399,648 - -
Net income (loss) from
 continuing operations 11,053 (115,291) 10,480 15,233
Net loss from discontinued
 operations - - - -
Net income (loss) 11,053 (115,291) 10,480 15,233
Adjusted net income(4) 11,053 8,660 8,933 8,249
Cash flow from operating
 activities from continuing
 operations 30,470 120,480 102,653 183,620
Cash flow from operations
 from continuing operations(4) 95,626 100,351 95,498 115,332
Free cash flow(4) 21,771 32,089 32,416 14,742
Earnings (loss) per share(5)
Basic
 Income (loss) from
 continuing operations 0.66 (6.89) 0.63 0.91
 Loss from discontinued
 operations - - - -
 Net income (loss) 0.66 (6.89) 0.63 0.91
 Adjusted net income(4) 0.66 0.52 0.53 0.49
Diluted
 Income (loss) from
 continuing operations 0.66 (6.89) 0.63 0.91
 Loss from discontinued
 operations - - - -
 Net income (loss) 0.66 (6.89) 0.63 0.91
 Adjusted net income(4) 0.66 0.52 0.53 0.49
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--------------------------------------------------------------------------
--------------------------------------------------------------------------
Quarters ended(1) Fiscal 2008
($000, except percentages Nov. 30(2) Feb. 29(2) May 31(2) Aug. 31(2)(3)
 and per share data) $ $ $ $
--------------------------------------------------------------------------
Revenue 260,255 271,894 283,878 292,873
Operating income from
 continuing operations
 before amortization(4) 100,174 109,523 117,206 122,019
Operating margin(4) 38.5% 40.3% 41.3% 41.7%
Operating income from
 continuing operations 47,135 53,177 58,642 60,244
Impairment of goodwill
 and intangible assets - - - -
Net income (loss) from
 continuing operations 7,656 16,315 9,538 9,656
Net loss from discontinued
 operations (17,632) (425) - -
Net income (loss) (9,976) 15,890 9,538 9,656
Adjusted net income(4) 7,656 8,406 9,538 9,656
Cash flow from operating
 activities from
 continuing operations 46,604 92,942 112,893 146,052
Cash flow from operations
 from continuing
 operations(4) 81,377 85,374 96,068 99,969
Free cash flow(4) 22,974 19,374 37,107 20,981
Earnings (loss) per share(5)
Basic
 Income (loss) from
 continuing operations 0.46 0.98 0.57 0.58
 Loss from discontinued
 operations (1.06) (0.03) - -
 Net income (loss) (0.60) 0.95 0.57 0.58
 Adjusted net income(4) 0.46 0.50 0.57 0.58
Diluted
 Income (loss) from
 continuing operations 0.46 0.97 0.57 0.58
 Loss from discontinued
 operations (1.06) (0.03) - -
 Net income (loss) (0.60) 0.95 0.57 0.58
 Adjusted net income(4) 0.46 0.50 0.57 0.58
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(1) The addition of quarterly information may not correspond to the annual
 total given rounding.
(2) Certain comparative figures have been reclassified to conform to the
 current year's presentation to reflect the reclassification of foreign
 exchange gains or losses from operating costs to financial expense.
(3) Includes the results of CDS since the date of acquisition of control on
 July 31, 2008.
(4) The indicated terms do not have standardized definitions prescribed by
 Canadian Generally Accepted Accounting Principles ("GAAP") and
 therefore, may not be comparable to similar measures presented by other
 companies. For more details, please consult the "Non-GAAP financial
 measures" section of the Results overview.
(5) Per multiple and subordinate voting share

SEASONAL VARIATIONS

Cogeco Cable's operating results are not generally subject to material seasonal fluctuations. However, the loss in Basic Cable service customers is usually greater, and the addition of HSI service customers is generally lower, in the second half of the fiscal year as a result of a decrease in economic activity due to the beginning of the vacation period, the end of the television seasons, and students leaving their campuses at the end of the school year. Cogeco Cable offers its services in several university and college towns such as Kingston, Windsor, St. Catharines, Hamilton, Peterborough, Trois-Rivieres and Rimouski in Canada, and Aveiro, Covilha, Evora, Guarda and Coimbra in Portugal. Furthermore, the operating margin in the third and fourth quarters is generally higher as the maximum amount payable to COGECO under the management agreement is usually reached in the second quarter of the year. As part of the management agreement between Cogeco Cable and COGECO, Cogeco Cable pays management fees to COGECO equivalent to 2% of its revenue subject to an annual maximum amount, which is adjusted annually to reflect the increase in the Canadian Consumer Price index. For fiscal 2009 and 2008, the maximum amounts of $9 million and $8.7 million, respectively, were attained in the second quarters and therefore, no management fees were paid in the third or fourth quarters of the 2009 and 2008 fiscal years.

 Cable Customer Statistics
 (unaudited)


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 August 31, 2009 August 31, 2008
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Homes passed
 Ontario 1,049,818 1,029,121
 Quebec 515,327 502,490
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 Canada 1,565,145 1,531,611
 Portugal 905,129(1) 895,923
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 Total 2,470,274 2,427,534
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Revenue generating units
 Ontario 1,483,324 1,387,054
 Quebec 676,539 604,854
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 Canada 2,159,863 1,991,908
 Portugal 732,375 724,966
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 Total 2,892,238 2,716,874
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Basic Cable service customers
 Ontario 597,651 596,229
 Quebec 267,154 260,865
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 Canada 864,805 857,094
 Portugal 259,480 296,135
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 Total 1,124,285 1,153,229
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High Speed Internet service customers
 Ontario 374,906 352,553
 Quebec 140,146 120,914
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 Canada 515,052 473,467
 Portugal 143,614 159,301
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 Total 658,666 632,768
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Digital Television service customers
 Ontario 326,227 288,345
 Quebec 172,171 153,401
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 Canada 498,398 441,746
 Portugal 102,753 24,452
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 Total 601,151 466,198
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Telephony service customers
 Ontario 184,540 149,927
 Quebec 97,068 69,674
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 Canada 281,608 219,601
 Portugal 226,528 245,078
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 Total 508,136 464,679
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(1) Cogeco Cable is currently assessing the number of homes passed.