Solid Third Quarter Performance Led by Increased Wireless Revenue and Operating Income

CINCINNATI--(BUSINESS WIRE)--October 30, 2008--Cincinnati Bell Inc. (NYSE:CBB) today announced financial results for the third quarter of 2008 including revenue of $347 million, up $2 million or 1 percent year-over-year. Operating income was $80 million with net income of $27 million. Earnings per share on a diluted basis were 10 cents, which is a 12 percent increase over the third quarter of 2007. Adjusted earnings before interest, taxes, depreciation and amortization¹ (Adjusted EBITDA) equaled $120 million, which was even with a year ago.

“Cincinnati Bell’s third-quarter results demonstrate solid performance in the face of challenging times in the U.S. economy,” said Jack Cassidy, president and chief executive officer of Cincinnati Bell. “As a company we continue to deliver superior network quality, service, and value to consumers and businesses. Our customers in Greater Cincinnati and Dayton experienced this firsthand when we took quick and decisive action to respond to the region’s largest-ever commercial power outage in September.”

“The strength of Cincinnati Bell’s market positions, consistent strategy execution, and attention to cost structure continue to produce strong and stable free cash flow,” said Gary Wojtaszek, chief financial officer. “As a result, we are able to strengthen our balance sheet by retiring debt and repurchasing shares of common stock.”

Quarterly Wireline revenue was $201 million, down $1 million or 1 percent from the third quarter of 2007. Increased revenue from data services, long distance, expansion markets and the eGIX acquisition partially offset lower voice revenue in Cincinnati Bell’s traditional service area. Operating income totaled $66 million in the quarter with Adjusted EBITDA of $93 million. Year-over-year total access line loss in the third quarter was 6.8 percent reflecting a decline in the company’s in-territory consumer access lines. Business lines were even with a year ago while expansion market access lines increased 14 percent.

Quarterly revenue from the Wireless segment increased 8 percent to $81 million and operating income equaled $12 million, up $3 million from a year ago, primarily due to a $6 million, or 9 percent, increase in service revenue. Adjusted EBITDA was $21 million, up $2 million, or 10 percent compared with the third quarter of 2007.

Cincinnati Bell had 567,000 wireless customers at the end of the quarter, which reflected year-over-year growth of 6 percent in its postpaid wireless customer base. Postpaid quarterly average revenue per user (ARPU) was $48.82, an increase of $1.41 year-over-year and $1.46 sequentially. Prepaid ARPU was $26.33, up 15 percent from the third quarter of 2007 while prepaid subscribers declined 8 percent.

Technology Solutions quarterly revenue was $73 million, down $1 million, or 1 percent from a year ago. Data Center and Managed Services revenue grew $7 million, a 39 percent increase compared to the third quarter of 2007 while lower-margin Telecommunications and IT Equipment revenue declined $10 million or 19 percent from the prior year. Operating income totaled $6 million. Adjusted EBITDA was $10 million, up 33 percent from the third quarter of 2007.

Capital expenditures of $23 million in the quarter were used primarily for construction of future data center space. Billable data center space of 202,000 square feet was unchanged from the end of the second quarter of 2008. A total of 3,000 square feet began billing in the quarter, which resulted in an 88 percent utilization rate compared to 87 percent in the second quarter of 2008.

Cincinnati Bell will host a conference call today at 10:00 a.m. (ET) to discuss its results for the third quarter of 2008. 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 (866) 780-1233. Callers located outside of the U.S. and Canada may dial (816) 581-1571. A taped replay of the conference call will be available one hour after the conclusion of the call until 5:00 p.m. on Thursday, Nov. 13, 2008. For U.S. callers, the replay will be available at (888) 203-1112. For callers outside of the U.S. and Canada, the replay will be available at (719) 457-0820. The replay reference number is 7054832. An archived version of the webcast will also be available in the Investor Relations section of www.cincinnatibell.com.

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; uncertainty in U.S. and world securities markets that could result in increased costs for the Company and limit its financing alternatives; 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; 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 Form 8-K reports. The forward-looking statements included in this release represent company estimates as of Oct. 30, 2008. Cincinnati Bell anticipates that subsequent events and developments will cause its estimates to change.

This press release contains information about net income excluding special items, free cash flow, net debt, adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) and Adjusted EBITDA margin. 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 income excluding special items, Adjusted EBITDA, net debt and free cash flow 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.

¹Adjusted EBITDA and Adjusted EBITDA margin provide useful measures of operational performance. The company defines Adjusted EBITDA as GAAP Operating Income plus depreciation, amortization, restructuring charges, asset impairments and other special items. The company defines Adjusted EBITDA margin as Adjusted EBITDA divided by revenues. Adjusted EBITDA and Adjusted EBITDA margin should not be considered as alternatives to comparable GAAP measures of profitability and may not be comparable with these measures as defined by other companies.

²Free 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, adjusted for the issuance and repayment of debt, the repurchase of common stock, and the proceeds from the sale or the use of funds from the purchase of business operations. 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. Although the company feels that there is no comparable GAAP measure for free cash flow, the attached financial information reconciles free cash flow to the net increase (decrease) in cash and cash equivalents.

³Net 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.

Net income excluding special items provides a useful measure of operating performance. Net income excluding special items should not be considered as an alternative to comparable GAAP measures of profitability and may not be comparable with net income excluding special items as defined by other companies.

With headquarters in Cincinnati, Ohio, Cincinnati Bell (NYSE: CBB) provides integrated communications solutions—including local, long distance, data, Internet, and wireless services—that help keep residential and business customers in Greater Cincinnati and Dayton connected with each other and with the world.

In addition, businesses ranging in size from start-up companies to large enterprises turn to Cincinnati Bell for efficient, scalable office communications systems as well as complex information technology solutions including data center and managed services.

Cincinnati Bell conducts its operations through three business segments: Wireline, Wireless, and Technology Solutions. For more information, visit www.cincinnatibell.com.

Cincinnati Bell Inc.
Consolidated Statements of Income
(Unaudited)
(Dollars in millions, except per share amounts)


				Three Months											Nine Months
				Ended September 30,						Change					Ended September 30,						Change
				2008			2007			$			%		2008			2007			$			%

	Revenue			$	346.5		$	344.3		$	2.2		1	%	$	1,046.2		$	988.6		$	57.6		6	%

	Costs and expenses
		Cost of services and products			154.8			159.0			(4.2	)	(3	%)		473.6			437.5			36.1		8	%
		Selling, general and administrative			71.5			65.3			6.2		9	%		213.8			196.6			17.2		9	%
		Depreciation and amortization			38.7			37.7			1.0		3	%		113.7			110.8			2.9		3	%
		Restructuring charges (gains)			1.7			(0.3	)		2.0		n/m			27.1			2.3			24.8		n/m
		Asset impairment			-			-			-		n/m			1.2			-			1.2		n/m

			Operating income		79.8			82.6			(2.8	)	(3	%)		216.8			241.4			(24.6	)	(10	%)

	Interest expense				35.0			38.0			(3.0	)	(8	%)		106.1			117.1			(11.0	)	(9	%)
	Other expense (income), net				(1.0	)		0.2			(1.2	)	n/m			(2.4	)		(2.1	)		(0.3	)	14	%

	Income before income taxes				45.8			44.4			1.4		3	%		113.1			126.4			(13.3	)	(11	%)
	Income tax expense				19.2			18.7			0.5		3	%		48.0			54.0			(6.0	)	(11	%)

	Net income				26.6			25.7			0.9		4	%		65.1			72.4			(7.3	)	(10	%)

	Preferred stock dividends				2.6			2.6			-		0	%		7.8			7.8			-		0	%

	Net income applicable to common shareowners			$	24.0		$	23.1		$	0.9		4	%	$	57.3		$	64.6		$	(7.3	)	(11	%)


	Basic earnings per common share			$	0.10		$	0.09							$	0.24		$	0.26
	Diluted earnings per common share			$	0.10		$	0.09							$	0.23		$	0.25

	Weighted average common shares outstanding (in millions)
		- Basic			233.7			247.6								240.6			247.3
		- Diluted			239.2			257.2								247.0			256.6

Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)


			Three Months										Nine Months
			Ended September 30,					Change					Ended September 30,				Change
			2008		2007			$			%		2008		2007		$			%
	Wireline
	Revenue
		Voice - local service	$	96.0	$	105.8		$	(9.8	)	(9	%)	$	295.9	$	328.7	$	(32.8	)	(10	%)
		Data		68.8		65.8			3.0		5	%		204.3		191.8		12.5		7	%
		Long distance and VoIP		24.8		19.8			5.0		25	%		73.7		58.3		15.4		26	%
		Other		11.0		10.6			0.4		4	%		31.8		31.0		0.8		3	%

		Total revenue		200.6		202.0			(1.4	)	(1	%)		605.7		609.8		(4.1	)	(1	%)

	Operating costs and expenses
		Cost of services and products		67.5		66.0			1.5		2	%		201.4		199.0		2.4		1	%
		Selling, general and administrative		40.2		37.1			3.1		8	%		118.7		113.5		5.2		5	%
		Depreciation and amortization		25.7		26.2			(0.5	)	(2	%)		75.9		78.1		(2.2	)	(3	%)
		Restructuring charges (gains)		1.6		(0.3	)		1.9		n/m			26.0		2.1		23.9		n/m
		Asset Impairment		-		-			-		n/m			1.2		-		1.2		n/m

		Total operating costs and expenses		135.0		129.0			6.0		5	%		423.2		392.7		30.5		8	%

	Operating income		$	65.6	$	73.0		$	(7.4	)	(10	%)	$	182.5	$	217.1	$	(34.6	)	(16	%)

	Wireless
	Revenue
		Service	$	74.2	$	68.2		$	6.0		9	%	$	218.5	$	197.9	$	20.6		10	%
		Equipment		6.6		6.9			(0.3	)	(4	%)		19.1		19.2		(0.1	)	(1	%)

		Total revenue		80.8		75.1			5.7		8	%		237.6		217.1		20.5		9	%

	Operating costs and expenses
		Cost of services and products		41.7		39.9			1.8		5	%		122.3		112.0		10.3		9	%
		Selling, general and administrative		18.6		16.6			2.0		12	%		52.2		50.2		2.0		4	%
		Depreciation and amortization		8.7		9.6			(0.9	)	(9	%)		26.3		28.1		(1.8	)	(6	%)
		Restructuring charges		0.1		-			0.1		n/m			0.5		-		0.5		n/m

		Total operating costs and expenses		69.1		66.1			3.0		5	%		201.3		190.3		11.0		6	%

	Operating income		$	11.7	$	9.0		$	2.7		30	%	$	36.3	$	26.8	$	9.5		35	%

	Technology Solutions
	Revenue
		Telecom and IT equipment distribution	$	43.1	$	52.9		$	(9.8	)	(19	%)	$	142.9	$	125.0	$	17.9		14	%
		Data center and managed services		25.6		18.4			7.2		39	%		72.2		48.2		24.0		50	%
		Professional services		4.6		2.8			1.8		64	%		11.4		6.9		4.5		65	%

		Total revenue		73.3		74.1			(0.8	)	(1	%)		226.5		180.1		46.4		26	%

	Operating costs and expenses
		Cost of services and products		53.4		59.5			(6.1	)	(10	%)		171.7		143.2		28.5		20	%
		Selling, general and administrative		9.8		7.0			2.8		40	%		29.7		20.1		9.6		48	%
		Depreciation and amortization		4.3		1.9			2.4		n/m			11.4		4.6		6.8		n/m
		Restructuring charges		-		-			-		n/m			0.4		-		0.4		n/m

		Total operating costs and expenses		67.5		68.4			(0.9	)	(1	%)		213.2		167.9		45.3		27	%

	Operating income		$	5.8	$	5.7		$	0.1		2	%	$	13.3	$	12.2	$	1.1		9	%

Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)


			Three Months											Nine Months
			Ended September 30,						Change					Ended September 30,						Change
			2008			2007			$			%		2008			2007			$			%
	Revenue
		Wireline	$	200.6		$	202.0		$	(1.4	)	(1	%)	$	605.7		$	609.8		$	(4.1	)	(1	%)
		Wireless		80.8			75.1			5.7		8	%		237.6			217.1			20.5		9	%
		Technology Solutions		73.3			74.1			(0.8	)	(1	%)		226.5			180.1			46.4		26	%
		Eliminations		(8.2	)		(6.9	)		(1.3	)	19	%		(23.6	)		(18.4	)		(5.2	)	28	%

		Total revenue	$	346.5		$	344.3		$	2.2		1	%	$	1,046.2		$	988.6		$	57.6		6	%

	Cost of Services and Products
		Wireline	$	67.5		$	66.0		$	1.5		2	%	$	201.4		$	199.0		$	2.4		1	%
		Wireless		41.7			39.9			1.8		5	%		122.3			112.0			10.3		9	%
		Technology Solutions		53.4			59.5			(6.1	)	(10	%)		171.7			143.2			28.5		20	%
		Eliminations		(7.8	)		(6.4	)		(1.4	)	22	%		(21.8	)		(16.7	)		(5.1	)	31	%

		Total cost of services and products	$	154.8		$	159.0		$	(4.2	)	(3	%)	$	473.6		$	437.5		$	36.1		8	%

	Selling, General and Administrative
		Wireline	$	40.2		$	37.1		$	3.1		8	%	$	118.7		$	113.5		$	5.2		5	%
		Wireless		18.6			16.6			2.0		12	%		52.2			50.2			2.0		4	%
		Technology Solutions		9.8			7.0			2.8		40	%		29.7			20.1			9.6		48	%
		Corporate and eliminations		2.9			4.6			(1.7	)	(37	%)		13.2			12.8			0.4		3	%

		Total selling, general and administrative	$	71.5		$	65.3		$	6.2		9	%	$	213.8		$	196.6		$	17.2		9	%

	Depreciation and Amortization
		Wireline	$	25.7		$	26.2		$	(0.5	)	(2	%)	$	75.9		$	78.1		$	(2.2	)	(3	%)
		Wireless		8.7			9.6			(0.9	)	(9	%)		26.3			28.1			(1.8	)	(6	%)
		Technology Solutions		4.3			1.9			2.4		n/m			11.4			4.6			6.8		n/m
		Corporate		-			-			-		n/m			0.1			-			0.1		n/m

		Total depreciation and amortization	$	38.7		$	37.7		$	1.0		3	%	$	113.7		$	110.8		$	2.9		3	%

	Restructuring and Asset Impairment Charges
		Wireline	$	1.6		$	(0.3	)	$	1.9		n/m		$	27.2		$	2.1		$	25.1		n/m
		Wireless		0.1			-			0.1		n/m			0.5			-			0.5		n/m
		Technology Solutions		-			-			-		n/m			0.4			-			0.4		n/m
		Corporate		-			-			-		n/m			0.2			0.2			-		0	%

		Total restructuring and asset impairment charges	$	1.7		$	(0.3	)	$	2.0		n/m		$	28.3		$	2.3		$	26.0		n/m

	Operating Income
		Wireline	$	65.6		$	73.0		$	(7.4	)	(10	%)	$	182.5		$	217.1		$	(34.6	)	(16	%)
		Wireless		11.7			9.0			2.7		30	%		36.3			26.8			9.5		35	%
		Technology Solutions		5.8			5.7			0.1		2	%		13.3			12.2			1.1		9	%
		Corporate and eliminations		(3.3	)		(5.1	)		1.8		(35	%)		(15.3	)		(14.7	)		(0.6	)	4	%

		Total operating income	$	79.8		$	82.6		$	(2.8	)	(3	%)	$	216.8		$	241.4		$	(24.6	)	(10	%)

Cincinnati Bell Inc.
Segment Metric Information
(Unaudited)


		September 30,	December 31,
		2008	2007
	(in thousands)

	Local access lines	791.4	834.3
	DSL subscribers	231.1	221.5


	Postpaid wireless subscribers	413.6	400.4
	Prepaid wireless subscribers	153.4	170.6

	Total wireless subscribers	567.0	571.0


	Consumer long distance lines	356.9	374.2
	Business long distance lines	178.0	174.1

	Total long distance lines	534.9	548.3


	Data Center and Managed Services
	Raised Floor (in square feet)	202,000	144,000
	Utilization rate	88%	93%

Cincinnati Bell Telephone
Local Access Line Detail
(Unaudited)
(In thousands)


	2006				2007				2008
	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q
Local Access Lines

In-Territory:
Primary Residential	547.4	536.7	522.5	510.5	499.1	484.8	468.4	454.2	441.2	427.6	414.5
Secondary Residential	42.4	40.9	39.2	37.6	36.2	34.9	33.4	32.0	30.7	29.5	28.4
Business/ Other	290.9	291.3	291.4	288.6	287.6	287.7	286.9	285.8	284.3	283.4	280.2
Total In-Territory	880.7	868.9	853.1	836.7	822.9	807.4	788.7	772.0	756.2	740.5	723.1

Out-of-Territory:
Primary Residential	22.8	24.8	26.8	28.1	29.4	30.7	32.0	32.7	32.8	32.7	33.7
Secondary Residential	1.1	1.1	1.2	1.2	1.2	1.3	1.3	1.3	1.4	1.3	1.3
Business/ Other	16.3	17.7	19.4	21.0	22.4	24.2	26.7	28.3	30.2	31.2	33.3
Total Out-of-Territory	40.2	43.6	47.4	50.3	53.0	56.2	60.0	62.3	64.4	65.2	68.3

Total Access Lines	920.9	912.5	900.5	887.0	875.9	863.6	848.7	834.3	820.6	805.7	791.4

Cincinnati Bell Inc.
Net Debt Calculation
(Unaudited)
(Dollars in millions)


	September 30,			December 31,			Change
	2008			2007			$			%

Credit facility, revolver	$	80.0		$	55.0		$	25.0		45	%
Credit facility, tranche B term loan		208.0			211.0			(3.0	)	(1	%)
7 1/4% Senior Notes due 2013		465.2			470.5			(5.3	)	(1	%)
8 3/8% Senior Subordinated Notes due 2014		585.5			637.4			(51.9	)	(8	%)
7% Senior Notes due 2015		251.4			250.6			0.8		0	%
7 1/4% Senior Notes due 2023		50.0			50.0			-		0	%
Accounts receivable securitization facility		78.0			75.0			3.0		4	%
Various Cincinnati Bell Telephone notes		230.0			230.0			-		0	%
Capital leases and other debt		41.9			29.6			12.3		42	%
Net unamortized premium		0.5			0.6			(0.1	)	(17	%)

Total debt		1,990.5			2,009.7			(19.2	)	(1	%)

Less: Interest rate swap asset		(4.8	)		(2.9	)		(1.9	)	66	%
Less: Cash and cash equivalents		(8.0	)		(26.1	)		18.1		(69	%)

Net debt (as defined by the company)	$	1,977.7		$	1,980.7		$	(3.0	)	0	%

Credit facility availability	$	142.9		$	167.9		$	(25.0	)	(15	%)

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


			Three Months						Nine Months
			Ended September 30,						Ended September 30,
			2008			2007			2008			2007

	Cash provided by operating activities		$	78.4		$	54.2		$	266.3		$	209.3

		Capital expenditures		(55.5	)		(62.1	)		(158.7	)		(152.4	)
		Acquisitions of businesses		-			-			(21.6	)		(4.6	)
		Other, net		-			(0.8	)		1.0			(0.7	)

	Cash used in investing activities			(55.5	)		(62.9	)		(179.3	)		(157.7	)

		Issuance of long-term debt		3.0			-			3.0			75.0
		Change in corporate credit facility, net		(6.0	)		40.0			25.0			40.0
		Repayment of debt		(12.8	)		(28.0	)		(57.4	)		(211.2	)
		Issuance of common shares - exercise of stock options		-			-			0.3			2.3
		Preferred stock dividends		-			(2.6	)		(7.8	)		(7.8	)
		Common stock repurchase		(20.5	)		-			(67.5	)		-
		Other, net		-			(0.1	)		(0.7	)		(2.0	)

	Cash (used in) provided by financing activities			(36.3	)		9.3			(105.1	)		(103.7	)

	Net increase (decrease) in cash and cash equivalents			(13.4	)		0.6			(18.1	)		(52.1	)
	Cash and cash equivalents at beginning of period			21.4			26.7			26.1			79.4

	Cash and cash equivalents at end of period		$	8.0		$	27.3		$	8.0		$	27.3


	Reconciliation of GAAP Cash Flow to
		Free Cash Flow (as defined by the company)
	Net increase (decrease) in cash and cash equivalents		$	(13.4	)	$	0.6		$	(18.1	)	$	(52.1	)
	Less adjustments:
		Issuance of long-term debt and change in corporate credit facility		3.0			(40.0	)		(28.0	)		(115.0	)
		Repayment of debt		12.8			28.0			57.4			211.2
		Common stock repurchase		20.5			-			67.5			-
		Acquisitions of businesses		-			-			21.6			4.6

		Free cash flow (as defined by the company)	$	22.9		$	(11.4	)	$	100.4		$	48.7

	Income tax payments		$	-		$	1.8		$	1.9		$	5.6

Cincinnati Bell Inc.
Reconciliation of Adjusted EBITDA (Non-GAAP) to Operating Income (GAAP)
(Unaudited)
(Dollars in millions)


			Three Months Ended September 30, 2008
			Wireline			Wireless			Technology Solutions			Corporate			Total Company

	Operating Income (GAAP)		$	65.6		$	11.7		$	5.8		$	(3.3	)	$	79.8
	Add:
		Depreciation and amortization		25.7			8.7			4.3			-			38.7
		Restructuring and asset impairment charges		1.6			0.1			-			-			1.7

	Adjusted EBITDA (Non-GAAP)		$	92.9		$	20.5		$	10.1		$	(3.3	)	$	120.2



			Three Months Ended September 30, 2007
			Wireline			Wireless			Technology Solutions			Corporate			Total Company

	Operating Income (GAAP)		$	73.0		$	9.0		$	5.7		$	(5.1	)	$	82.6
	Add:
		Depreciation and amortization		26.2			9.6			1.9			-			37.7
		Restructuring gains		(0.3	)		-			-			-			(0.3	)

	Adjusted EBITDA (Non-GAAP)		$	98.9		$	18.6		$	7.6		$	(5.1	)	$	120.0

	Year-over-year dollar change in Adjusted EBITDA			($6.0	)	$	1.9		$	2.5		$	1.8		$	0.2

	Year-over-year percentage change in Adjusted EBITDA			(6	%)		10	%		33	%		(35	%)		0	%



			Nine Months Ended September 30, 2008
			Wireline			Wireless			Technology Solutions			Corporate			Total Company

	Operating Income (GAAP)		$	182.5		$	36.3		$	13.3		$	(15.3	)	$	216.8
	Add:
		Depreciation and amortization		75.9			26.3			11.4			0.1			113.7
		Restructuring and asset impairment charges		27.2			0.5			0.4			0.2			28.3

	Adjusted EBITDA (Non-GAAP)		$	285.6		$	63.1		$	25.1		$	(15.0	)	$	358.8



			Nine Months Ended September 30, 2007
			Wireline			Wireless			Technology Solutions			Corporate			Total Company

	Operating Income (GAAP)		$	217.1		$	26.8		$	12.2		$	(14.7	)	$	241.4
	Add:
		Depreciation and amortization		78.1			28.1			4.6			-			110.8
		Restructuring charges		2.1			-			-			0.2			2.3

	Adjusted EBITDA (Non-GAAP)		$	297.3		$	54.9		$	16.8		$	(14.5	)	$	354.5

	Year-over-year dollar change in Adjusted EBITDA			($11.7	)	$	8.2		$	8.3			($0.5	)	$	4.3

	Year-over-year percentage change in Adjusted EBITDA			(4	%)		15	%		49	%		3	%		1	%

Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to Reported Results
(Unaudited)
(Dollars in millions, except per share amounts)

						Special Items
			Three Months Ended September 30, 2008 (GAAP)			Restructuring Charges			Gain on Debt Extinguishment			Three Months Ended September 30, 2008 Before Special Items (Non-GAAP)
						A			B
	Revenue		$	346.5		$	-		$	-		$	346.5

	Costs and expenses
		Cost of services and products		154.8			-			-			154.8
		Selling, general and administrative		71.5			-			-			71.5
		Depreciation and amortization		38.7			-			-			38.7
		Restructuring charges		1.7			(1.7	)		-			-
		Operating income		79.8			1.7			-			81.5

	Interest expense			35.0			-			-			35.0
	Other income, net			(1.0	)		-			0.9			(0.1	)

	Income before income taxes			45.8			1.7			(0.9	)		46.6
	Income tax expense			19.2			0.7			(0.4	)		19.5

	Net income			26.6			1.0			(0.5	)		27.1

	Preferred stock dividends			2.6			-			-			2.6

	Net income applicable to common shareowners		$	24.0		$	1.0		$	(0.5	)	$	24.5


	Weighted average diluted common shares			239.2			239.2			239.2			239.2

	Diluted earnings per common share		$	0.10		$	0.00		$	0.00		$	0.10


	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 40%):

A	Charge related to voluntary early retirement program for union and management employees.

B	Gain on extinguishment of 8 3/8% Senior Subordinated Notes due 2014 and 7 1/4% Senior Notes due 2013.

Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to Reported Results
(Unaudited)
(Dollars in millions, except per share amounts)

						Special Items
			Nine Months Ended September 30, 2008 (GAAP)			Restruc- turing Charges			Asset Impairment			Gain on Debt Extingui- shment			Nine Months Ended September 30, 2008 Before Special Items (Non-GAAP)
						A			B			C
	Revenue		$	1,046.2		$	-		$	-		$	-		$	1,046.2

	Costs and expenses
		Cost of services and products		473.6			-			-			-			473.6
		Selling, general and administrative		213.8			-			-			-			213.8
		Depreciation and amortization		113.7			-			-			-			113.7
		Restructuring charges		27.1			(27.1	)		-			-			-
		Asset impairment		1.2			-			(1.2	)		-			-
		Operating income		216.8			27.1			1.2			-			245.1

	Interest expense			106.1			-			-			-			106.1
	Other income, net			(2.4	)		-			-			2.2			(0.2	)

	Income before income taxes			113.1			27.1			1.2			(2.2	)		139.2
	Income tax expense			48.0			10.8			0.5			(0.9	)		58.4

	Net income			65.1			16.3			0.7			(1.3	)		80.8

	Preferred stock dividends			7.8			-			-			-			7.8

	Net income applicable to common shareowners		$	57.3		$	16.3		$	0.7		$	(1.3	)		73.0


	Weighted average diluted common shares			247.0			247.0			247.0			247.0			247.0

	Diluted earnings per common share		$	0.23		$	0.07		$	0.00		$	0.00		$	0.30


	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 40%):

A	Charge related to voluntary early retirement program for union and management employees.

B	Asset impairment charge for discontinued software.

C	Gain on extinguishment of 8 3/8% Senior Subordinated Notes due 2014 and 7 1/4% Senior Notes due 2013.

Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to Reported Results
(Unaudited)
(Dollars in millions, except per share amounts)

						Special Items
			Three Months Ended September 30, 2007 (GAAP)			Restructuring Charges (gains)			Three Months Ended September 30, 2007 Before Special Items (Non-GAAP)
						A
	Revenue		$	344.3		$	-		$	344.3

	Costs and expenses
		Cost of services and products		159.0			-			159.0
		Selling, general and administrative		65.3			-			65.3
		Depreciation and amortization		37.7			-			37.7
		Restructuring charges (gains)		(0.3	)		0.3			-
		Operating income		82.6			(0.3	)		82.3

	Interest expense			38.0			-			38.0
	Other expense, net			0.2			-			0.2

	Income before income taxes			44.4			(0.3	)		44.1
	Income tax expense			18.7			(0.1	)		18.6

	Net income			25.7			(0.2	)		25.5

	Preferred stock dividends			2.6			-			2.6

	Net income applicable to common shareowners		$	23.1		$	(0.2	)	$	22.9


	Weighted average diluted common shares			257.2			257.2			257.2

	Diluted earnings per common share		$	0.09		$	0.00		$	0.09


	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 40%):

A	Adjustment to the company's restructuring reserve.

Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to Reported Results
(Unaudited)

(Dollars in millions, except per share amounts)
						Special Items
			Nine Months Ended September 30, 2007 (GAAP)			Restructuring Charges			Dividend From Investment			Nine Months Ended September 30, 2007 Before Special Items (Non-GAAP)
						A			B
	Revenue		$	988.6		$	-		$	-		$	988.6

	Costs and expenses
		Cost of services and products		437.5			-			-			437.5
		Selling, general and administrative		196.6			-			-			196.6
		Depreciation and amortization		110.8			-			-			110.8
		Restructuring charges		2.3			(2.3	)		-			-
		Operating income		241.4			2.3			-			243.7

	Interest expense			117.1			-			-			117.1
	Other income, net			(2.1	)		-			1.9			(0.2	)

	Income before income taxes			126.4			2.3			(1.9	)		126.8
	Income tax expense			54.0			1.0			(0.8	)		54.2

	Net income			72.4			1.3			(1.1	)		72.6

	Preferred stock dividends			7.8			-			-			7.8

	Net income applicable to common shareowners		$	64.6		$	1.3		$	(1.1	)	$	64.8


	Weighted average diluted common shares			256.6			256.6			256.6			256.6

	Diluted earnings per common share		$	0.25		$	0.01		$	(0.01	)	$	0.25


	Normalized results have been adjusted for the following (pretax adjustments are tax effected at 40%):

A	The company incurred employee separation expense primarily related to the outsourcing of certain accounting functions and the reduction in workforce of various other administrative functions.

B	One-time dividend received from a cost investment.

CONTACT:
Cincinnati Bell Inc.
Investor / Media contact:
Traci Bolte, 513-397-1195
traci.bolte@cinbell.com


2008 Guidance

Cincinnati Bell updates its financial guidance for 2008:
Category				2008 Guidance
Revenue				Approx. $1.4 billion
Adjusted EBITDA				Approx. $480 million
Capital Expenditures				Approx. 16% of revenue
Free Cash Flow				Approx. $150 million