PRESS RELEASE

For immediate release

Cogeco Cable well positioned to improve on its 2012 financial objectives

Montréal, July 12, 2012 – Today, Cogeco Cable Inc. (TSX: CCA) (“Cogeco Cable” or the “Corporation”) announced its

financial results for the third quarter of fiscal 2012, ended May 31, 2012, in accordance with International Financial

Reporting Standards (“IFRS”).

For the third quarter and firs t n ine mont hs of fis c al 2012 :

•

Revenue increased by 7.2% to reach $319.8 million, and by 8.4% to reach $952.9 million;

•

Operating inco me before de prec iation an d amortizat ion

(1)

increase d b y 10. 5% to $152 .7 million when c ompare d

to the third quarter of fiscal 2011, and by 8.7% to $428.2 million when compared to the first nine months of the

prior fiscal year;

•

Operating margin

(1)

increased to 47.7% from 46.3% in the quarter and to 44.9% from 44.8% in the first nine

months when compared to the same periods of the prior year;

•

Profit for the period from cont inuing op erations a mounted to $53.2 million in the third qua rter when compare d to

$52.4 million for the same period of the previous fiscal year. For the first nine months of fiscal 2012, profit for

the period from con tinuing operations amou nted to $123.8 million whe n compared to $136.4 million f or the first

nine months of fiscal 2011. Profit variation for the nine-month period is mostly attributable to the increase in

depreciation and amortization expense due to the reduction of depreciation period for certain property, plant

and equipment, partly offset by the increase in operating income before depreciation and amortization;

•

Profit for the period a mounted to $53.2 million in the third quarter when c ompared to a l oss of $181.2 million for

the same period of the previous fiscal year. For the first nine months of fiscal 2012, profit for the period

amounted to $179.3 million when compared to a loss of $114.5 million for the first nine months of fiscal 2011.

The increases in both periods are mostly attributable to the write-off of the Corporation’s net investment in the

Portuguese subsidiary recorded through a non-cash impairment loss in the amount of $225.9 million during the

third quarter of fiscal 20 11 . Th e Portugu es e subs i diary was subsequently disposed of on February 29, 2012;

•

Free cash flow

(1)

reached $25.6 million for the quarter compared to $63.1 million in the comparable quarter of

the prior year. Free cash flow decreased in the third quarter over the prior year due to the increase in

acquisition of property, plant and equipment combined with the difference in the recognition of current income

tax expense, partly offset by the improvement of operating income before depreciation and amortization. For

the first nine months, free cash flow amounted to $63.8 million, compared to $90.8 million in the first nine

months of fiscal 2011. For the first nine-months, the decrease over the prior year is mostly attributable to the

increase in acquisition of property, plant and equipment, partly offset by the improvement of operating income

before depreciation and amortization;

•

A quarterly dividend of $0.25 per share was paid to the holders of subordinate and multiple voting shares, an

increase of $0.08 per share , or 47.1% , when compar ed to a divid end o f $0.17 per share paid in the third quarter

of fiscal 2011. Dividend payments in the first nine months totalled $0.75 per share in fiscal 2012, compared to

$0.51 per share in fiscal 2011;

•

Primary service units (“PSU”)

(2)

grew by 6,246 in the quarter and 64,705 in the first nine months, for a total of

1,962,174 PSU at May 31, 2012.

“We are satisfied with Cogeco Cable’s results for the third quarter of fiscal 2012. After nine months, we still continue to

grow and most of our performance indicators are on target with our objectives. Even though we are revising our fiscal

2012 Primary service units (“PSU”) target from 80,000 to 72,000, we are confident we will improve our 2012 operating

income before depreciation and amortization target from $580 million to $585 million. These solid results in the third

quarter of fiscal 2012 demonstrate that with strong cost controls and a competitive marketing strategy, Cogeco Cable

manages to grow and achieves its financial objectives in this highly competitive industry,” stated Louis Audet President

and Chief Executive Officer of Cogeco Cable.

(1)

The indicated terms do not have standard definitions prescribed by IFRS and therefore, may not be comparable to similar measures presented by other

companies For more details please consult the

“

Non

IFRS

financial measures

”

section of the Management

’

s discussion and analysis

FINANCIAL HIGHLIGHTS

Quarters ended May 31, Nine months ended May 31,

2012 2011 Change 2012 2011 Change

($000, except percentages and per share d ata) $ $ % $ $ %

(unaudited)

(unaudited) (unaudited)

Operations

Revenue 319,771 298,211 7.2 952,930 878,872 8.4

Operating income bef ore depreciation and amortization

(1)

152,661 138,147 10.5 428,227 393,782 8.7

Operating margin

(1)

47.7% 46.3% – 44.9% 44.8% –

Operating income 90,981 86,995 4.6 217,471 243,138 (10.6)

Profit for the period from continuing operations 53,159 52,352 1.5 123,812 136,420 (9.2)

Profit (loss) for the period from discon t inued operations – (233,573) – 55,446 (250,955) –

Profit (loss) for the period 53,159 (181,221) – 179,258 (114,535) –

Cash Flow

Cash flow from operating activities from continuing

operations 112,275 142,009 (20.9) 247,043 280,238 (11.8)

Cash flow from operations

(1)

113,075 125,923 (10.2) 314,740 272,668 15.4

cquisitions of property, plant and equipment an d intangible

assets 87,459 62,782 39.3 250,976 181,878 38.0

Free cash flow

(1)

25,616 63,141 (59.4) 63,764 90,790 (29.8)

Financial Condition

(2)

Property, plant and equipment – – – 1,262,495 1,254,217 0.7

Total assets – – – 2,780,943 2,712,679 2.5

Indebtedness

(3)

– – – 1,069,488 981,214 9.0

Shareholders’ equity – – – 1,155,038 1,033,252 11.8

Primary service units

(4)

growth 6,246 18,304 (65.9) 64,705 86,570 (25.3)

Per Share Data

(5)

Earnings (loss) per sha re

From continuing and discontinued operations

Basic 1.09 (3.73) – 3.68 (2.36) –

Diluted 1.09 (3.73) – 3.66 (2.36) –

From continuing operations

Basic 1.09 1.08 0.9 2.54 2.81 (9.6)

Diluted 1.09 1.08 0.9 2.53 2.81 (10.0)

From discontinued operations

Basic – (4.80) – 1.14 (5.17) –

Diluted – (4.80) – 1.13 (5.17) –

(1)

The indicated terms do not have standardized definitio ns prescribed by International Financial Reporting Standards (“IFRS”) and th erefore, may not be comparable to

similar measures presented by other companies. For more details, please consult the “Non-IFRS financial measures” section of the Management’s discussion and

analysis.

(2)

At May 31, 2012 and August 31, 2011.

(3)

Indebtedness is de fined as the total of bank indebt edness, principal on long-te rm debt, balance due on a bu siness acquisit ion and obligations unde r derivative financial

instruments.

(4)

Represents the sum of Television, High Speed Internet (“HSI”) and Telep hony service customers.

(5)

Per multiple and subordinate voting share.



FORWARD-L O OKIN G STAT E M ENT S

Certain statements in this Management’s Discussion and Analysis (“MD&A”) may constitute forward-looking information within the

meaning of securities laws. Forward-looking information may relate to Cogeco Cable’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 Corporation’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 Cable believes are reasonable as of the current date. While management considers these assumptions to be reasonable

based on information currently available to the Corporation, they may prove to be incorrect. The Corporation cautions the reader that the

economic downturn experienced over the past few years makes 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 Corporation’s

expectations. It is impossible for Cogeco Cable to predict with certainty the impact that the current economic uncertainties 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 Corporation’s 2011 annual MD&A) that could cause actual results to differ materially

from what Cogeco Cable 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 Corporation’s control. Therefore, future events and results may vary significantly from what management

currently foresee. 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 Corporation is under no obligation (and expressly disclaims any such

obligation), and does not undertake to update or alter this information before the next quarter.

As described in note 1 to the condensed interim consolidated financial statements for the three and nine-month periods ended May 31,

2012, Canadian Generally Accepted Accounting Principles (“GAAP”), which were previously used in preparing the consolidated financial

statements, were replaced on the adoption of International Financial Reporting Standards (“IFRS”) on January 1, 2011. The Corporation’s

condensed interim consolidated financial statements for the three and nine-month periods ended May 31, 2012 have therefore been

prepared in accordance with IFRS. Comparative figures for 2011 have also been restated.

All amounts are stated in Canadian dollars unless otherwise indicated. This report should be read in conjunction with the Corporation’s

consolidated financial statements and MD&A for the fiscal year ended August 31, 2011 included in the Corporation’s 2011 Annual Report.

It should also be read in conjunction with the Corporation’s condensed interim consolidated financial statements and MD&A for the first

quarter of fiscal 2012 as well as the information on the adjustments to the fiscal 2011 financial figures upon adoption of IFRS, explai ne d i n

Note 17 of the condensed interim consolidated financial statements for the three and nine-month periods ended May 31, 2012.



Corporate strategies and objectives

Cogeco Cable Inc.’s (“Cogeco Cable” or the “Corporation”) objectives are to improve profitability and create shareholder value. The

strategies for reaching those objectives are sustained growth through the diversification and the improvement of products, services,

clientele and territories, as well as the continuous improvement of networks and equipment and tight controls over costs and business

processes. The Corporation measures its performance, with regard to these objectives by monitoring operating income before

depreciation and amortization

(1)

, operating margin

(1)

, primary service units (“PSU”)

(2)

growth and free cash flow

(1)

During the first nine months of fiscal 2012, the Corporation invested approximately $140.1 million in its network infrastructure and

equipment to upgrade its capacity, improve its robustness and extend its territories in order to better serve and increase its service

offerings for new and existing clientele.

PSU growth and penetration of service offerings

During the nine-month period ended May 31, 2012, the number of PSU increased by 64,705 or 3.4%, to reach 1,962,174, mainly as a

result of targeted marketing initiatives and of the continuing interest for high definition (“HD”) television service. As a result of the lower

growth than expected in the first nine months of the fiscal year, Cogeco Cable revised its guidelines from 80,000 PSU, as issued on April

11, 2012, to 72,000 PSU for a growth of approximately 3.8% when compared to August 31, 2011. PSU growth is expected to stem

primarily from HSI and Telephony services, the continued strong interest in Digital Television services, enhanced service offerings, and

through promotional activities. For further details, please consult the fiscal 2012 revised projections in the “Fiscal 2012 financial

guidelines” section.

Operating income before depreciation and amortization and operating margin

First nine months operating income before depreciation and amortization increased by 8.7% when compared to the same period of fiscal

2011 to reach $428.2 million and operating margin increased to 44.9% from 44.8%. As a result of the improvement of operating income

before depreciation and amortization during the first nine-month period, management revised upwards its April 2012 projections for fiscal

2012. Operating income before depreciation and amortization is now expected to reach $585 million from $580 million and operating

margin should increase to 45.7% from 45.2%. For further details, please consult the fiscal 2012 revised projections in the “Fiscal 2012

financial guidelines” section.

Free cash flow

For the nine-month period ended May 31, 2012, Cogeco Cable reports free cash flow of $63.8 million, compared to $90.8 million for the

first nine months of the previous fiscal year, representing a decrease of $27 million. This variance is mostly attributable to the increase in

acquisition of property, plant and equipment, partly offset by the improvement of operating income before depreciation and amortization.

Giving effect to the revised guidelines of operating income before depreciation and amortization, management also revised its free cash

flow projections from $85 million to $90 million. For further details, please consult the fiscal 2012 revised projections in the “Fiscal 2012

financial guidelines” section.

Disposal of subsi diary and discontinued operations

On February 29, 2012, the Corporation completed the sale of its Portuguese subsidiary, Cabovisão – Televisão por Cabo, S.A.

(“Cabovisão”) for a cash consideration of €45 million or approximately $59.3 million. Operating results from European operations have

therefore been classified as discontinued operations. For further details on the European’s operating results, please refer to the “D is posal

of subsidiary and discontinued operations” section.

OPER ATING RE SU L TS FROM CO NTI NUING OPER ATION S

Quarters ended May 31, Nine months ended May 31,

2012 2011 Change 2012 2011 Change

($000, except percentag es) $ $ % $ $ %

(unaudited)

(unaudited) (unaudited)

Revenue 319,771

298,211

7.2

952,930 878,872

8.4

Operating expenses 167,110 160,064 4.4 515,218 475,918 8.3

Management fees - COGECO Inc. – – – 9,485 9,172 3.4

Operating income before depreciation and amortization 152,661 138,147 10.5 428,227 393,782 8.7

Operating margin 47.7% 46.3% 44.9% 44.8%

Revenue

Fiscal 2012 third-quarter revenue rose by $21.6 million, or 7.2%, to reach $319.8 million, when compared to the prior year. For the first

nine months, revenue amounted to $952.9 million, an increase of $74.1 million, or 8.4% when compared to the first nine months of fiscal

2011. The increase in revenue was driven by PSU growth, rate increases implemented in April and October 2011 combined with the

acquisitions of MTO Telecom Inc. (“MTO”) and Quiettouch Inc. (“QTI”) during the fourth quarter fiscal 2011.

(1)

The indicated terms do not have standardized definitions prescribed by IFRS and therefore, may not be comparable to similar measures presented by other

companies. For more details, please consult the “Non -IFRS financia l measures” section.

(2)

Represents the sum of Television, High Speed Internet (“HSI”) and Telephony service customers.

Operating expenses

For the third quarter of fiscal 2012, operating expenses, excluding management fees payable to COGECO Inc., increased by $7 million,

to reach $167.1 million, an increase of 4.4% compared to prior year. For the first nine months of the fiscal year, operating expenses,

excluding management fees payable to COGECO Inc., amounted to $515.2 million, an increase of $39.3 million, or 8.3%, when

compared to the same period of fiscal 2011. The increase in operating expenses is mainly attributable to servicing additional PSU, the

launch of new HD channels, additional programming costs, deployment and support costs related to the migration of Television service

customers from analog to digital and the acquisitions of MTO and QTI.

Operating income before depreciation and amortization and operating margin

Fiscal 2012 third-quarter operating income before depreciation and amortization increased by $14.5 million, or 10.5% to reach

$152.7 million, and by $34.4 million, or 8.7%, in the first nine months to reach $428.2 million. Cogeco Cable’s third-quarter operating

margin increased to 47.7% from 46.3% in the comparable period of the prior year. For the first nine months, the operating margin

increased to 44.9% from 44.8% in the first nine months of fiscal 2011.

CUSTOM ER STATI S TIC S

Net additions (losses) % of Penetration

(1)

Quarters ended May 31, Nine months ended May 31,

May 31, 2012 2012

2011

2012

2011 2012

2011

PSU 1,962,174 6,246 18,304 64,705 86,570

Television service customers

(2)

868,873 (4,453) (1,401)

(9,112) 4,849 52.9 54.5

HSI service cust omers 628,852 2,835 6,989 27,638 34,411 38.3 36.8

Telephony service customers 464,449 7,864 12,716 46,179 47,310 28.3 25.1

(1) As a percentage of Homes Passed.

(2) The number of Television servi ce customers includes 765,585 Digital Television service customers.

Fiscal 2012 third-quarter and first nine months, PSU net additions were lower than in the comparable period of the prior year mainly as a

resul t of category matur ity, compet itive offers an d tightening of our credit contr ols and process es. For the thir d quarter and the first nine

months net customer losses for Television service customers stood at 4,453 and 9,112, respectively, compared to 1,401 and net

additions of 4,849 for the same periods of the prior year. Television service customer net losses in the third quarter are usual and due to

the end of the school year for college and university students. Television service customer net losses in the first nine months of fiscal

2012 are mainly due to the competitive promotional offers for the video service combined with the tightening of our credit controls and

processes. For the three and nine-month periods ended May 31, 2012, Telephony service customers grew by 7,864 and 46,179

compared to 12,716 and 47,310 for the same periods last year, and the number of net additions to the HSI service stood at 2,835 and

27,638 customers compared to 6,989 and 34,411 customers for the same periods of the prior year. HSI and Telephony net additions

continue to stem from the enhancement of the product offering, the impact of the bundled offer (Cogeco Complete Connection) of

Television, HSI and Telephony services, and promotional activities. For the three and nine-month periods ended May 31, 2012, additions

to the Digital Television service which are included in the Television service customers, stood at 12,943 and 87,259 compared to 34,080

and 89,444 for the comparable periods of the prior year. Digital Television service net additions are due to targeted marketing initiatives to

improve penetration, the launch of new HD channels, the continuing interest for HD television service and the deployment of Digital

Terminal Adapters technology to migrate customers from analog to digital services.

PROFIT FOR THE PERIOD FROM CONTINUING OPER ATION S

For the three and nine-month periods ended May 31, 2012, profit for the period from continuing operations amounted to $53.2 million, or

$1.09 per share, and $123.8 million, or $2.54 per share, respectively. For the comparable periods of fiscal 2011, profit for the period from

continuing operations amounted to $52.4 million, or $1.08 per share in the quarter, and $136.4 million, or $2.81 per share in the first nine

months. The variance for the quarter is mainly due to the improvement of the operating income before depreciation and amortization,

partly offset by the increase of depreciation and amortization expense. This variance for the nine-month period is mostly attributable to the

increase of depreciation and amortization expense due to the reduction of depreciation period of certain property, plant and equipment,

partly offset by the increase in operating income before depreciation and amortization and the decrease in financial expense.

PROFIT FOR THE PERI OD

For the three and nine-month periods ended May 31, 2012, profit for the period amounted to $53.2 million, or $1.09 per share, and

$179.3 million, or $3.68 per share, respectively. For the comparable periods of fiscal 2011, loss for the period amounted to $181.2 million,

or $3.73 per share in the quarter, and $114.5 million, or $2.36 per share in the first nine months. Profit progression is mostly attributable

to the write-off of the Corporation’s net investment in the Portuguese subsidiary recorded through a non-cash impairment loss in the

amount of $225.9 million during the third quarter of fiscal 2011 and the improvement of operating income before depreciation and

amortization improvement, partly offset by the increase of depreciation and amortization expense due to the reduction of the depreciation

period of certain property, plant and equipment.

FINANCING AC TIVITIES

In the normal course of business, Cogeco Cable has incurred financial obligations, primarily in the form of long-term debt, operating and

finance leases and guarantees. Cogeco Cable’s obligations, as discussed in the 2011 Annual Report, have not materially changed since

August 31, 2011, except as mentioned below.

As a result of the sale of its Portuguese subsidiary, the letters of credits which were issued to guarantee the payment by Cabovisão of

stamp taxes and withholding taxes have been released.

On February 14, 2012 , th e Co rp o r ation compl e te d pur s ua nt to a public debt o f fering, the i ss ue of $2 0 0 m il lio n Sen ior Secured De bentures

Series 3. These Debentures mature on February 14, 2022 and bear interest at 4.925% per annum payable semi-annually. These

debentures are indirectly secured by a first priority fixed and floating charge and a security interest on substantially all present and future

real and personal property and undertaking of every nature and kind of the Corporation.

On November 22, 2011, the Corporation renewed its credit agreement for a $750 million credit facility, with an option to increase to a total

amount of up to $1 billion, subject to lenders’ participation, in the form of a five year r enewed Term Revolving Facility. The renewed Term

Revolving Facility was arranged by a group of financial institutions. The renewed Term Revolving Facility will mature on November 22,

2016, but may be extended by additional one-year periods on an annual basis, subject to lenders’ approval. The renewed Term Revolving

Facility is indirectly secured by a first priority fixed and floating charge on substantially all present and future real and personal property

and undertaking of every nature and kind of the Corporation and certain of its subsidiaries, and provides for certain permitted

encumbrances, including purchased money obligations, existing funded obligations and charges granted by any subsidiary prior to the

date when it becomes a subsidiary, subject to a maximum amount.

DIVIDEND DECLARATION

At its July 11, 2012 meeting, the Board of Directors of Cogeco Cable declared a quarterly eligible dividend of $0.25 per share for multiple

voting and subordinate voting shares, payable on August 8, 2012, to shareholders of record on July 25, 2012. The declaration, amount

and date of any future dividend will continue to be considered and approved by the Board of Directors of the Corporation based upon the

Corporation’s financial condition, results of operations, capital requirements and such other factors as the Board of Directors, at its sole

discretion, deems relevant. There is therefore no assurance that dividends will be declared, and if declared, the amount and frequency

may vary.

DISPOSAL OF SUBSIDIARY AND DISCONTINUED OPERATIONS

On February 29, 2012, the Corporation completed the sale of its Portuguese subsidiary for a cash consideration of €45 million ($59.3

million). The selling price has been reduced by selling fees of approximately €8.5 million ($11.2 million) and contingent claims assumed

up to a maximum amount of €5 million ($6.6 million).

The carrying value of the net liabilities disposed of on February 29, 2012 was $6.7

million resulting in a gain on disposal of $48.2 million recorded in the interim consolidated statements of profit or loss.



The details of the assets and liabilities disposed of are as follows:

($000) $

(unaudited)

Cash and cash equivalents

13,041

Trade and other receivables 7,693

Income taxes receivab le 277

Prepaid expenses and other 2,777

Property, plant and equipment 38,931

Trade and other payables (42,514)

Provisions (6,665)

Deferred and prepaid revenue (411)

Foreign currency translation adjustment (19,817)

(6,688)

As a result of the sale and in accordance with IFRS 5 – Non-Current As sets Held f or Sale and Discont inued Oper ations , the Corporation

reclassified the current and prior year results and cash flows of the European operations, up to the date of the disposal, as discontinued

operations

Profit (loss) for t he period from discontinued operations

Quarters ended May 31, Nine months ended Ma y 31,

2012 2011 2012 2011

($000) $ $ $ $

(unaudited)

(unaudited) (unaudited)

(unaudited)

Revenue –

43,647 80,546

128,971

Operating expenses – 37,637 70,247 114,544

Depreciation and amortization – 13,640 2,814 40,068

Operating income (loss) – (7,630) 7,485 (25,641)

Financial income – 7 155 85

Impairment of goodwill – 29,344 – 29,344

Impairment of property, plant and equipment – 196,529 – 196,529

Gain on disposal – – 48,215 –

Profit (loss) bef ore income taxes – (233,496) 55,855 (251,429)

Income taxes – 77 409 (474)

Profit (loss) for the period – (233,573) 55,446 (250,955)

Cash flows from discontinued operations

Quarters ended May 31, Nine months ended May 31,

2012 2011 2012 2011

($000) $ $ $ $

(unaudited)

(unaudited) (unaudited) (unaudited)

Net cash flows from operating activities –

6,292 13,637 15,849

Net cash flows from investing activities – (7,934) 36,826 (26,073)

Effect of exchange rate changes on cash and cash equivalents denominated in a foreign

currency – 573 (866) 438

Net increase (decrease) in cash and cash equivalents – (1,069) 49,597 (9,786)

FISCAL 2012 FINANCIAL GUIDELINES

For the first nine months of fiscal 2012, the Corporation improved its financial performance with regards to operating income before

depreciation and amortization, while PSU growth and revenue increased at a lower pace than expected, when compared to the revised

projections issued on April 11, 2012. As a result, management revised downwards its revenue projections from $1,285 million to $1,280

million and PSU growth from 80,000 to 72,000 net additions, as a consequence of a more competitive environment and tightening of

credit controls, thus containing collection and bad debt expenses. Nonetheless, operating income before depreciation and amortization

should increase from $580 million to $585 million to reflect the cost reduction initiatives implemented by the Corporation over the year

and, consequently operating margin should increase from 45.2% to 45.7%.

Giving effect to the revised guidelines of operating income before depreciation and amortization, management also revised its free cash

flow projections from $85 million to $90 million. Profit for the year is expected to amount to $225 million, $10 million lower when compared

to the revised projections of April 2012, resulting from the increase of the corporate income tax rate as discussed in the “Income taxes

from continuing operations” section. Finally, management has not revised its other financial projections for the 2012 fiscal year.

Revised proj ections Revised projections

July 11, 2012 April 11, 2012

Fiscal 2012 Fiscal 2012

(in millions of dollars, except net customer additions and operating margin) $ $

Financial guidelines

Revenue 1,280 1,285

Operating income before depreciation and amortization 585 580

Operating margin 45.7% 45.2%

Depreciation and amortization 270 270

Financial expense 65 65

Current income taxes expense 90 90

Profit for the year 225 235

Acquisitions of property, plant and equipment and intangible assets 340 340

Free cash flow 90 85

Net customer additions guidelines

PSU 72,000 80,000

FISCAL 2013 PRELIMINARY FINANCIAL GUIDELINES

For fiscal 2013, Cogeco Cable expects to achieve revenue of $1,350 million, representing growth of $70 million, or 5.5% when compared

to the revised fiscal 2012 projections issued on July 11, 2012. The preliminary guidelines take into consideration the current uncertain

global economic environment. In Canada, household debt remains a concern as credit market debt as a % of personal disposal income

continues to rise and average resale price to household income continue to increase, which should coincide with a contraction in

consumer spending. In addition, the high value of the Canadian dollar may generate further restructuring in the manufacturing sector and

additional headwinds from government spending restraints might result in slower 2013 growth.

In pre vious recessionary periods, demand

for cable telecommunications services has generally proven to be resilient; however there is no assurance that demand would remain

resilient in a prolonged difficult economic environment. These preliminary guidelines also take into consideration the competitive

environment that prevails in Canada, the deployment of new technologies such as Fibre to the Home (“FTTH”), Fibre to the Node

(“FTTN”) and Internet Pro tocol Television (“IPTV”) by the incumbent te lecommunication s providers.

Revenue should increase as a result of PSU growth stemming from targeted marketing initiatives to improve penetration rates of the

Digital Television, HSI and Telephony services. Furthermore, the Digital Television service should continue to benefit from the customers’

ongoing strong interest in the Corporation’s growing HD service offerings. Revenue will also benefit from the impact of rate increases

implemented in June 2012 in Quebec and July 2012 in Ontario, ranging an average between $2 to $3 per HSI and Telephony service

customers. Cogeco Cable’s strategies include consistently effective marketing to residential and business customers, competitive product

offerings and superior customer service, which combined, lead to the expansion and loyalty of the Basic Cable Service clientele. As the

penetration of residential HSI, Telephony and Digital Television services increase, the new demand for these products should slow,

reflecting signs of maturity. However, growth in the commercial and business sector is expected to continue at a consistent pace.

As a result of increased costs to service additional PSU, inflation and manpower increases, as well as the continuation of the marketing

initiatives and retention strategies, operating expenses are expected to expand by approximately $41 million, or 5.9% in the 2013 fiscal

year when compared to the revised projections for fiscal 2012.

For fiscal 2013, the Corporation expects operating income before depreciation and amortization of $614 million, an increase of

$29 million, or 5% when compared to the revised fiscal 2012 projections issued on July 11, 2012. The operating margin is expected to

reach approximately 45.5% in fiscal 2013, compared to revised projections of 45.7% for the 2012 fiscal year, reflecting operating

expenses growth slightly higher than the revenue growth.

Cogeco Cable expects the depreciation and amortization of property, plant and equipment and intangible assets to increase by

$20 million for fiscal 2013, mainly from acquisition of capital expenditures and the increase in intangible assets related to PSU growth and

other initiatives and by the full year impact of those of fiscal 2012. In addition, the depreciation and amortization expense for fisc al 2012

included the impact from the reduction of the depreciation period for certain home terminal devices. Cash flows from operations should

finance capital expenditures and the increase in intangible assets amounting to $350 million, an increase of $10 million when compared to

the revised fiscal 2012 projections. Capital expenditures projected for the 2013 fiscal year are mainly due to customer premise equipment

required to support PSU growth, scalable infrastructure for product enhancements and the deployment of new technologies, line

extensions to expand existing territories, support capital to improve business information systems and support facility requirements and

expansion for the data services business.

Fiscal 2013 free cash flow is expected to amount to $105 million, an increase of $15 million, or 16.7% when compared to the projected

free cash flow of $90 million for fiscal 2012, resulting from the growth in operating income before depreciation and amortization.

Generated free cash flow will result in reduced Indebtedness net of cash and cash equivalent, thus improving the Corporation’s net

leverage ratios. Financial expense should amount to $64 million, essentially the same when compared to the 2012 revised projections, as

a result of a slight increase in the Corporation’s cost of debt reflecting current market conditions, partly offset by the reduction in

Indebtedness level. As a result, profit for the year of approximately $190 million should be achieved compared to $225 million for the

revised fiscal 2012 projections. The 2012 projections of profit for the year include $55.4 million profit from discontinued operations

resulting from the disposal of the Portuguese subsidiary. Excluding this item, the fiscal 2013 projected profit for the year represents an

increase of $20.4 million, or 12%, when compared to the revised fiscal 2012 projected profit for the year.

The fiscal 2013 preliminary financial gu idelines are as fo llows:

Preliminary

projections

Fiscal 2013

Revised

projections

Fiscal 2012

(in millions of dollars, except net customer additions and operating margin) $ $

Financial guidelines

Revenue 1,350 1,280

Operating income before depreciation and amortization 614 585

Operating margin 45.5% 45.7%

Depreciation and amortization 290 270

Financial expense 64 65

Current income taxes expense 95 90

Profit for the year 190 225

Acquisitions of property, plant and equipment and intangible assets 350 340

Free cash flow 105 90

Net customer addition guidelines

PSU 50,000 72,000

NON-IFRS FINANCIAL MEASURES

This section describes non-IFRS financial measures from continuing operations used by Cogeco Cable throughout this MD&A. It also

provides reconciliations between these non-IFRS measures and the most comparable IFRS financial measures. These financial

measures do not have standard definitions prescribed by IFRS and therefore, may not be comparable to similar measures presented by

other companies. These measures include “cash flow from operations”, “free cash flow”, “operating income before depreciation and

amortization” and “operating margin”.

Cash flow from operations and free cash flow

Cash flow from operations is used by Cogeco Cable’s management and investors to evaluate cash flows generated by operating

activities, excluding the impact of changes in non-cash operating activities, amortization of deferred transaction costs and discounts on

long-term debt, income taxes paid or received, current income tax expense, financial expense paid and financial expense. This allows the

Corporation to isolate the cash flows from operating activities from the impact of cash management decisions. Cash flow from operations

is subsequently used in calculating the non-IFRS measure, “free cash flow”. Free cash flow is used, by Cogeco Cable’s management and

investors, to measure its ability to repay debt, distribute capital to its shareholders and finance its growth.

The most comparable IFRS measure is cash flow from operating activities. Cash flow from operations is calculated as follows:

Quarters ended Six months ended,

February 29,

February 28, February 29, February 28,

2012

2011 2012 2011

($000) $

$ $

(unaudited)

Cash flow from operating activities 120,961 88,420 134,768 13 8,229

Changes in non-cash operating activities (3,179) 23,712 59,489 82,358

Amortization of deferred transaction costs a nd discoun t s on long-term debt 682 865 1,357 1,596

Income taxes paid (received) 17,635 94 53,817 (2,736)

Current income tax recover y (expense) (26,206) 5,577 (45,696) (72,419)

Financial expense paid 9,517 20,114 29,547 40,500

Financial expense (14,788) (24,100)

(31,617) (40,783)

Cash flow from operations 104,622 114,682 201,665 146,745

Free cash flow is calculated as follows:

Quarters ended Six months ended

February 29, February 28, February 29, February 28,

2012 2011 2012 2011

($000) $

$ $

(unaudited)

(unaudited) (unaudited)

Cash flow from operations 104,622 114,682 201,665 146,745

Acquisition of property, plant and equipment (83,588)

(58,563)

(156,927) (113,342)

Acquisition of intangible assets (2,646)

(2,516)

(6,590) (5,754)

Free cash flow 18,388 53,603 38,148 27,649

Operating income before depreciation and amortization and operating margin

Operating income before depreciation and amortization is used by Cogeco Cable’s management and investors to assess the

Corporation’s ability to seize growth opportunities in a cost effective manner, to finance its ongoing operations and to service its debt.

Operating income before depreciation and 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 Corporation's revenue which is available, before income taxes, to pay for its fixed costs, such

as interest on Indebtedness. Operating margin is calculated by dividing operating income before depreciation and amortization by

revenue.

The most comparable IFRS financial measure is operating income. Operating income before depreciation and amortization and operating

margin are calc ulated as follows:

Quarters ended Six months ended

February 29,

February 28,

February 29, February 28,

2012

2011

2012 2011

($000, except percentag es) $

$ $

(unaudited)

(unaudited) (unaudited)

Operating income 59,491 80,426 126,490 156,143

Depreciation and amortization 84,252 49,973 149,076 99,492

Operating income before depreciation and amortization 143,743 130,399 275,566 255,635

Revenue 317,735 293,457 633,159 580,661

Operating margin 45.2% 44.4% 43.5% 44.0%

ABOUT COGECO CABLE

Cogeco Cable (www.cogeco.ca) is a telecommunications corporation and is the second largest hybrid fibre coaxial cable operator in

Ontario, and Québec. Through its two-way broadband cable networks, Cogeco Cable provides its residential customers with Audio,

Analogue and Digital Television, as well as HSI and Telephony services. Cogeco Cable also provides to its commercial customers,

through its subsidiary Cogeco Data Services, data networking, e-business applications, video conferencing, hosting services, Ethernet,

private line, VoIP, HSI access, data storage, data security, co-location services, managed IT services, cloud services and other advanced

communication solutions. Cogeco Cable’s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).

ADDITIONAL INFORMATION

For additional information relating to the Corporation, including its Annual Information Form, and for a detailed analysis of Cogeco Cable's

results for the third quarter of 2012, please refer to the Management Discussion and Analysis and condensed consolidated financial

statements of Cogeco Cable, available on the SEDAR website at www.sedar.com.

– 30 –

Source: Cogeco Cable Inc.

Pierre Gagné

Senior Vice President and Chief Financial Officer

Tel.: 514-764-4700

Information: Media

René Guimond

Vice-President, Public Affairs and Communications

Tel.: 514-764-4700

Analyst Conference Call: Thursday, July 12, 2012 at 11:00 a.m. (Eastern Daylight Time)

Media representatives may attend as listeners only.

Please use the following dial-in number to have access to the conference call by dialling five

minutes before the start of the conference:

Canada/USA Access Number: 1-800-820-0231

International Access Number: 1-416-640-5926

Confirmation Code: 1348176

By Internet at www.cogeco.ca/investors

A rebroadcast of the conference call will be available until October 11, by dialling:

Canada and US access number: 1 888-203-1112

International access number: + 1 647-436-0148

Confirmation code: 1348176