CINCINNATI BELL INC. 201 EAST FOURTH STREET CINCINNATI, OHIO 45202

EX-4.(C)(VIII)(5) 10 ex_4cviii5.htm

CINCINNATI BELL INC.
201 EAST FOURTH STREET
CINCINNATI, OHIO 45202

January 31, 2005


Goldman Sachs Direct Investment Fund 2000, L.P.		Dover Capital Management 2 LLC
Goldman, Sachs & Co.		c/o Falcon Investment Group
GS Capital Partners 2000, L.P.		4350 Von Karman Ave.
GS Capital Partners 2000 Offshore, L.P.		Suite 400
GS Capital Partners 2000 GmbH & Co. Beteiligungs KG		Newport Beach, CA ###-###-####
GS Capital Partners 2000 Employee Fund, L.P.
c/o Goldman, Sachs & Co.
85 Broad Street
New York, New York 10004

TCW/Crescent Mezzanine Partners III, L.P.		C-Squared CDO Ltd.
TCW/Crescent Mezzanine Trust III		c/o TCW/Crescent Mezzanine LLC
TCW/Crescent Mezzanine Partners III Netherlands, L.P.		200 Park Avenue, 22^nd Floor
c/o TCW/Crescent Mezzanine LLC		New York, New York 10166
200 Crescent Court, Suite 1600
Dallas, Texas 75201

Western and Southern Life Insurance Company		GS Mezzanine Partners II, L.P.
c/o Fort Washington Investment Advisers		GS Mezzanine Partners II Offshore, L.P.
420 East 4th Street		85 Broad Street
Cincinnati, Ohio 45202		New York, New York 10004

Oak Hill Securities Fund, L.P.		Lerner Enterprises, L.P.
Oak Hill Securities Fund II, L.P.		P&PK Family Limited Partnership
Oak Hill Credit Partners I, Limited		Cardinal Investment Partners I, L.P.
Oak Hill Credit Partners II, Limited		c/o Oak Hill Advisors, L.P.
c/o Oak Hill Advisors, L.P.		201 Main Street, Suite 2600
201 Main Street, Suite 2600		Fort Worth, Texas 76102
Forth Worth, Texas 76102

Re: Amendment to the Purchase Agreement

Ladies and Gentlemen:

Reference is made to the Purchase Agreement (the “Purchase Agreement”), dated as of December 9, 2002, as amended to the date hereof (the “Purchase Agreement”), among Cincinnati Bell Inc. (f/k/a Broadwing Inc.), an Ohio corporation (the “Company”), and the persons specified as Purchasers in Schedule 1 to the Purchase Agreement, regarding the purchase of the Company’s Senior Subordinated Discount Notes due 2009 and warrants to purchase common stock of the Company. Capitalized terms used herein but not defined herein have the meanings ascribed thereto in the Purchase Agreement.

The parties hereto hereby agree as follows:

1. The Purchase Agreement shall be amended as follows:

1.1. The following new Section 1A is hereby added immediately after Section 1 of the Purchase Agreement:

“1 A. The Company represents and warrants to the Purchasers that Schedule 1A sets forth as of January 31, 2005 (except to the extent that such Schedule 1A refers to an earlier date, in which case as of such date) all material liabilities of the members of the BCI Group as of the date hereof that would be required to be reflected in, or referred to in the notes to, a balance sheet of the BCI Group prepared in accordance with United States generally accepted accounting principles.”

1.2. Clause (ii) of Section 9 is hereby deleted in its entirety and replaced with the following:

“(ii) Annual Statements. As soon as available, but in any event within ninety-five (95) days after the end of each fiscal year of the Company, or, in the case of the information required by clause (x) below for the fiscal year ended December 31, 2003, only, within one hundred twenty-five (125) days after the end of such fiscal year, a copy of:

(x) (a) an audited consolidated balance sheet of the Company and its subsidiaries and (b) an unaudited consolidated balance sheet of the Company and its Restrictive Subsidiaries, in each case as at the end of such year, together with consolidating balance sheets for each of the Company’s Primary Business Segments, and

(y) (a) audited consolidated statements of income or operations, stockholders’ equity and cash flows of the Company and its subsidiaries and (b) unaudited consolidated statements of income or operations, stockholders’ equity and cash flows of the Company and its Restricted Subsidiaries, in each case for such year, together with consolidating information for each of the Company’s Primary Business Segments,

in each case setting forth in comparative form the figures for the prior fiscal year, all in reasonable detail, prepared in accordance with GAAP, fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from normal year-end adjustments, and accompanied by:

(A) with respect to the financial statements referred to in clauses (x)(a) and (y)(a) above, an opinion thereon of independent certified public accountants of recognized national standing, which opinion shall state that such consolidated financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP and that the examination of such accountants in connection with such financial statements (other than

consolidating statements) has been made in accordance with generally accepted auditing standards in the United States, and that such audit provides a reasonable basis for such opinion in the circumstances,

(B) with respect to the financial statements referred to in clauses (x)(a) and (y)(a) above, a written statement by the independent certified public accountants giving the report thereon stating whether, in connection with their audit examination, any condition or event that constitutes a Default or Event of Default with respect to the covenants contained in Section 5.02 and Section 5.04 of the Indenture has come to their attention and, if such a condition or event has come to their attention, specifying the nature and period of existence thereof; provided that such accountants shall not be liable by reason of any failure to obtain knowledge of any such Default or Event of Default that would not be disclosed in the course of their audit examination, and

(C) a certificate of the chief financial officer or chief executive officer on behalf of the Company stating that such financial statements have been prepared in accordance with GAAP applicable to periodic financial statements generally and fairly present, in all material respects, the financial position of the companies being reported on and their results of operations and income, retained earnings and stockholders’ equity, and cash flows;

provided, however, that if the Company is then subject to the reporting requirements under Section 13 or 15(d) of the Exchange Act, the delivery by the Company to such Purchaser or such Subsequent Purchaser of an Annual Report on Form 10-K or any successor form within the time periods above described shall satisfy the requirements of this Section 9(ii) with respect to financial statements for the Company and its subsidiaries; provided that the documents referred to in clauses (A) and (C) of this Section 9(ii) shall nonetheless be provided.”

1.3. Clause (iii) of Section 9 is hereby amended by deleting clause (3) thereof in its entirety and renumbering clause (4) thereof as clause (3).

1.4. The Schedules to the Purchase Agreement are hereby amended by adding thereto Schedule 1A that is attached to this letter agreement.

2. Except as specifically set forth herein, the provisions of the Purchase Agreement and the Exhibits and Schedules attached thereto remain in full force and effect. This letter agreement shall not constitute an amendment or waiver of any provision of the Purchase Agreement and shall not be construed as a waiver or consent to any further or future action on the part of the Company, except to the extent expressly set forth herein.

3. The amendments to the Purchase Agreement set forth in this letter agreement will become effective only upon the consummation of a refinancing of, or an amendment or waiver to, the Company’s Third Amendment and Restatement of the

Credit Agreement dated as of November 17, 2003, as amended to the date hereof, among the Company, BCSI Inc., the lenders party thereto, Bank of America, N.A., as syndication agent, Citicorp USA, Inc., as administrative agent, Credit Suisse First Boston and The Bank of New York, as co-documentation agents, and the other persons party thereto, that permits such amendments.

This letter agreement shall be governed by the internal laws of the State of New York, without regard to the conflict-of-law principles thereof which would require the application of laws of any other state.


	Very truly yours,

	CINCINNATI BELL INC. (f/k/a Broadwing Inc.)

	By:	/s/ Mark W. Peterson

		Name: Mark W. Peterson
		Title: Treasure


Agreed to and accepted by:

GS MEZZANINE PARTNERS II, L.P.

By:	GS Mezzanine Advisors II, L.L.C., its general partner

By:	/s/ John E. Bowman

	Name: John E. Bowman
	Title: Vice President

GS MEZZANINE PARTNERS II OFFSHORE, L.P.

By:	GS Mezzanine Advisors II, L.L.C. its general partner

By:	/s/ John E. Bowman

	Name: John E. Bowman
	Title: Vice President

Agreed to and accepted by:

GOLDMAN SACHS DIRECT INVESTMENT FUND 2000, L.P.

By:	GS Employee Funds 2000 GP, L.L.C, its general partner

By:	/s/ John E. Bowman

	Name: John E. Bowman
	Title: Vice President

Agreed to and accepted by:


GOLDMAN, SACHS & Co.

By:	/s/ Kenneth Glassman

	Name: Kenneth Glassman
	Title: Managing Director

Agreed to and accepted by:

GS CAPITAL PARTNERS 2000, L.P.

By:	GS Advisors 2000, L.L.C. its General Partner

By:	/s/ John E. Bowman

	Name: John E. Bowman
	Title: Vice President

Agreed to and accepted by:

GS CAPITAL PARTNERS 2000 OFFSHORE, L.P.

By:	GS Advisors 2000, L.L.C. its General Partner

By:	/s/ John E. Bowman

	Name: John E. Bowman
	Title: Vice President

Agreed to and accepted by:

GS CAPITAL PARTNERS 2000, GmbH & CO. BETEILIGUNGS KG

By:	Goldman Sachs Management GP GmbH its General Partner

By:	/s/ John E. Bowman

	Name: John E. Bowman
	Title: Managing Director

Agreed to and accepted by:

GS CAPITAL PARTNERS 2000, EMPLOYEE FUND, L.P.


By:	GS Emplopyee Funds 2000 GP, L.L.C. its General Partner

By:	/s/ John E. Bowman

	Name: John E. Bowman
	Title: Vice President

Agreed to and accepted by:

TCW/CRESCENT MEZZANINE PARTNERS III, L.P.
TCW/CRESCENT MEZZANINE TRUST III
TCW/CRESCENT MEZZANINE PARTNERS III NETHERLANDS, L.P.

By:	TCW/Crescent Mezzanine Management III, L.L.C, its Investment Manager

By:	TCW Asset Management Company, its Sub-Advisor

By:	/s/ Timothy P. Costello

	Name: TIMOTHY P. COSTELLO
	Title: MANAGING DIRECTOR

Agreed to and accepted by:

C-SQUARED CDO LTD.

By:	TCW Advisors, Inc., as its Portfolio Manager

By:	/s/ Timothy P. Costello

	Name: TIMOTHY P. COSTELLO
	Title: MANAGING DIRECTOR

By:	/s/ James M. Hassett

	Name: James M. Hassett
	Title: Managing Director


Agreed to and accepted by:

WESTERN AND SOUTHERN LIFE INSURANCE COMPANY

By:	/s/ Bradler J. Hunkler

	Name: Bradler J. Hunkler
	Title: Vice President

By:	/s/ James J. Vance

	Name: James J. Vance
	Title: Vice President

Agreed to and accepted by:

DOVER CAPITAL MANAGEMENT 2 LLC

By:	/s/ Richard Meage

	Name: Richard Meage
	Title: Manager

Agreed and accepted by:

OAKHILL SECURITIES FUND, L.P.

By:	Oak Hill Securities GenPar, L.P. its General Partner

By:	Oak Hill Securities MGP, Inc. its General Partner

By:	/s/ [ILLEGIBLE]

	Name: [ILLEGIBLE]
	Title: Authorized signatory

Agreed to and accepted by:

OAK HILL SECURITIES FUND II, L.P.

By:	Oak Hill Securities GenPar II, L.P. its General Partner

By:	Oak Hill Securities MGP II, Inc. its General Partner

By:	/s/ [ILLEGIBLE]

	Name: [ILLEGIBLE]
	Title: Authorized signatory


Agreed to and accepted by:

OAK HILL ASSET MANAGEMENT, INC. As advisor and attomey-in-fact to Lerner Enterprises, L.P.

By:	/s/ [ILLEGIBLE]

	Name: [ILLEGIBLE]
	Title: Authorized signatory

Agreed to and accepted by:

OAK HILL ASSET MANAGEMENT, INC. As advisor and attorney-in -fact to P&PK Family Ltd. Partnership

By:	/s/ [ILLEGIBLE]

	Name: [ILLEGIBLE]
	Title: Authorized signatory

Agreed to and accepted by:

OAK HILL ASSET MANAGEMENT, INC. As advisor and attorney-in-fact to CARDINAL INVESTMENT PARTNERS I, L.P.

By:	/s/ [ILLEGIBLE]

	Name: [ILLEGIBLE]
	Title: Authorized signatory

Agreed to and accepted by:

OAK HILL CREDIT PARTNERS I, LIMITED

By:	Oak Hill CLO Management II, LLC As Investment Manger

By:	/s/ [ILLEGIBLE]

	Name: [ILLEGIBLE]
	Title: Authorized signatory


Agreed to and accepted by:

OAK HILL CREDIT PARTNERS II, LIMITED

By:	Oak Hill CLO Management II, LLC As Investment Manager

By:	/s/ [ILLEGIBLE]

	Name: [ILLEGIBLE]
	Title: Authorized signatory

LIABILITIES OF THE BCI GROUP

CINCINNATI BELL INC.
CONSOLIDATED BALANCE SHEET
SEPTEMBER, 2004
(Dollars in millions)


	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			VS. PRIOR QUARTER			VS. PRIOR YEAR-END
	2003			2003			2004			2004			2004			CHANGE			CHANGE			%
ASSETS:
Restricted Cash		0.1			0.1			0.1			0.1			0.1			0.0			0.0
Unrestricted Cash & Cash Equivalents		32.8			26.0			22.8			22.3			23.0			0.6			(3.1	)
Intercompany Notes Receivable		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Reserve for BRCOM Uncollectible IC Notes		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Intercompany Interest Receivable - BRCOM		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Intercompany Accounts Receivable, Gross		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Accounts Receivable, External		159.4			160.6			137.1			148.0			151.8			3.9			(8.8	)
Allowance		(20.4	)		(20.2	)		(16.5	)		(15.2	)		(15.2	)		(0.0	)		4.9

Accounts Receivable, Net		139.0			140.5			120.6			132.7			136.6			3.9			(3.9	)
Materials and Supplies		40.5			33.6			35.7			45.4			36.6			(8.8	)		3.0
Prepaid Expense		17.1			15.9			24.5			23.2			18.3			(4.9	)		2.4
Other Current Assets		2.2			43.3			40.6			53.9			40.1			(13.8	)		(3.1	)

CURRENT ASSETS		231.7			259.3			244.3			277.7			254.6			(23.0	)		(4.7	)
Property, Plant & Equipment - Gross		2,485.7			2,507.2			2,505.8			2,536.3			2,542.8			6.6			35.6
Property, Plant & Equipment - CIP		42.7			17.8			18.2			17.4			20.4			3.1			2.7
Property, Plant & Equipment - Impairment		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Accumulated Depreciation		(1,605.2	)		(1,626.2	)		(1,648.31	)		(1,663.7	)		(1,702.9	)		(19.2	)		(76.7	)

Property, Plant & Equipment - Net		923.2			898.8			875.7			869.9			860.4			(9.6	)		(38.4	)
Intangible Assets, Net		88.3			86.1			85.3			84.7			78.6			(6.1	)		(9.5	)
Long Term Notes Receivable		0.0			0.0			0.3			0.4			0.4			(0.0	)		0.4
Investments (incl. in BRCOM)		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Other Investments		4.2			4.2			3.9			3.9			3.8			(0.1	)		(0.4	)

Investments		4.2			4.2			3.9			3.9			3.8			(0.1	)		(0.4	)
Deferred Tax Asset		0.0			697.0			689.2			662.4			660.7			(1.7	)		(36.2	)
Long Term Notes Intercompany - BRCOM		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Deferred Charges & Noncurrent Assets		110.9			126.1			126.3			122.9			126.4			6.5			2.3
Net Assets of Discontinued Ops		0.0			0.0			0.0			0.0			0.0			0.0			0.0

NONCURRENT ASSETS		1,126.6			1,614.2			1,780.5			1,744.3			1,732.3			(12.0	)		(81.8	)

TOTAL ASSETS		1,358.3			2,073.5			2,024.9			2,022.0			1,987.0			(35.0	)		(86.6	)

LIABILITIES:
Accounts Payable - Intercompany		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Accounts Payable - Trade		59.0			64.5			52.2			70.8			56.0			(14.8	)		(8.5	)

Accounts Payable - Net		59.0			64.5			52.2			70.8			58.0			(14.8	)		(8.5	)
Accounts Payable - Intercompany
Accrued Liabilities		103.6			94.6			66.0			81.1			81.2			0.1			(13.4	)
Intercompany Notes Payable		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Accrued Taxes		54.4			43.9			34.0			30.7			41.3			10.5			(2.7	)
Advanced Billings & Customer Deposits		39.2			41.5			40.2			41.3			41.1			(0.3	)		(0.4	)
Accrued Compensated Absences		2.8			3.8			4.0			3.8			3.2			(0.6	)		(0.6	)
Restructuring		24.3			4.2			1.6			1.2			1.0			(0.2	)		(3.2	)
Other Currant Liabilities		30.7			29.6			47.0			50.4			40.0			(10.4	)		10.3
Short-Term Bank Note		106.0			5.3			48.6			10.3			4.7			(5.6	)		(0.6	)
Other Short-Term Debt		29.7			8.1			7.1			6.6			5.9			(0.6	)		(2.1	)

CURRENT LIABILITIES		449.8			295.5			320.7			298.1			274.3			(21.6	)		(21.1	)
Bank Note		533.9			603.2			507.8			510.7			484.3			(26.4	)		(118.9	)
Convertible Bonds		534.5			0.0			0.0			0.0			0.0			0.0			0.0
Other Long Term Debt		1,139.6			1,671.3			1,676.7			1,682.1			1,691.3			9.2			19.9
NonCurrent Intercompany Debt		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Minority Interest		40.0			39.7			39.6			40.9			41.1			0.2			1.5
LT Restructuring		0.0			11.5			10.8			10.5			10.0			(0.5	)		(1.5	)
Unearned Revenue		12.3			11.0			11.1			10.7			10.4			(0.4	)		(1.6	)
Total Noncurrent Liabilities		181.0			119.8			126.6			127.1			116.7			(10.4	)		(3.1	)
Net Liabilities from Discontinued Ops		0.0			0.0			0.0			0.0			0.0			0.0			0.0

NONCURRENT LIABILITIES		2,441.3			2,457.5			2,372.0			2,382.0			2,353.7			(28.3	)		(103.7	)

TOTAL LIABILITIES		2,891.0			2,752.9			2,003.5			2,678.2			2,628.0			(50.1	)		(124.9	)
MEZZANINE FINANCING:
Convertible Preferred Stock		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Exchangeable Preferred stock		(0.0	)		(0.0	)		(0.0	)		(0.0	)		(0.0	)		0.0			0.0

TOTAL MEZZANINE FINANCING		(0.0	)		(0.0	)		(0.0	)		(0.0	)		(0.0	)		0.0			0.0
SHAREOWNERS’ EQUITY:
Convertible Preferred Stock		129.4			129.4			129.4			129.4			129.4			0.0			0.0
Common Stock		2.5			2.5			2.5			2.5			2.5			0.0			0.0
Paid-in Capital		2,937.5			2,040.6			2,940.4			2,938.1			2,935.7			(2.4	)		(4.9	)
Retained Earnings		(4,447.2	)		(3,604.2	)		(3,509.3	)		(3,578.4	)		(3,560.9	)		17.5			43.3
Accumulated Other Comprehensive Income		(9.5	)		(2.3	)		(2.3	)		(2.5	)		(2.5	)		0.0			(0.2	)
Treasury Stock		(145.5	)		(145.5	)		(145.5	)		(145.5	)		(145.4	)		0.1			0.1
Investment Valuation Allowance		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Foreign Currency Adjustment		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Other Shareowners’ Equity		0.0			0.0			00			0.0			0.0			0.0			0.0

TOTAL EQUITY		(1,532.8	)		(879.4	)		(688.7	)		(656.2	)		(641.1	)		15.1			38.3

TOTAL LIABILITIES & EQUITY		1,358.3			2,073.5			2,024.9			2,022.0			1,987.0			(35.0	)		(86.6	)

Total Credit Facility Balance		639.9			608.4			556.4			521.0			469.0			(32.0	)		(119.4	)
Net Debt (See Note)		2,310.9			2,261.8			2,217.4			2,187.6			2,159.5			(28.1	)		(102.3	)


Note:	“Net Debt” includes Short-Term Bank Note, Other Short-Term Notes, Bank Notes, Convertible Bonds, Other Long-Term Debt and the portion of minority interest associated with the BROOM 12 1/2% Preferred stock; offset by Cash and Cash Equivalents and Swap Liability


		2/2/2005 6:05 PM
Unrestricted Group 093004 Balance Sheet.xls (Consol)	Cincinnati Bell Inc. Confidential	Report #Consol

Amounts for the current month are PRELIMINARY

CINCINNATI BELL INC. - RESTRICTED ENTITIES
INCLUDES CBT, CBW, CBAD, PUBLIC AND CORPORATE; EXCLUDES CONSOLIDATED BRCOM
CONSOLIDATED BALANCE SHEET
SEPTEMBER, 2004
(Dollars in millions)


	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			VS. PLAN						VS. PRIOR QUARTER						VS. PRIOR YEAR-END

	2003			2003			2004			2004			2004			CHANGE			%			CHANGE			%			CHANGE			%
ASSETS:
Restricted Cash		0.1			0.1			0.1			0.1			0.1			0.1			n/m			0.0			0	%		0.0			0	%
Unrestricted Cash A Cash Equivalents		32.7			26.0			22.8			22.3			23.0			(3.1	)		(12	%)		0.6			3	%		(3.1	)		(12	%)
Intercompany Notes Receivable - BRCOM		31.5			157.3			166.5			187.0			203.2			60.5			42	%		16.2			9	%		46.0			29	%
Reserve for BRCOM Uncollectable IC Notes		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m
Intercompany Interest Receivable - BRCOM		0.1			1.0			0.5			0.6			0.7			0.7			n/m			0.2			27	%		(0.3	)		(26	%)
Intercompany Accounts Receivable - BRCOM		268.0			16.5			18.0			6.5			(1.4	)		(1.4	)		n/m			(7.9	)		(122	%)		(17.9	)		(109	%)
Accounts Receivable, External		137.7			139.4			116.9			129.0			130.1			(8.0	)		(6	%)		1.1			1	%		(9.4	)		(7	%)
Allowance		(18.0	)		(17.7	)		(12.7	)		(13.1	)		(12.8	)		4.4			25	%		0.3			2	%		4.8			27	%

Accounts Receivable, Net		119.7			121.8			104.2			115.9			117.2			(3.6	)		(3	%)		1.3			1	%		(4.5	)		(4	%)
Materials and Supplies		36.0			32.2			30.4			31.5			30.2			(0.5	)		(2	%)		(1.3	)		(4	%)		(2.0	)		(8	%)
Prepaid Expense		16.2			15.3			24.0			22.6			17.9			(2.0	)		(10	%)		(4.7	)		(21	%)		2.6			17	%
Other Current Assets		11.5			13.6			14.5			17.2			17.4			1.0			(5	%)		0.1			1	%		3.5			25	%

CURRENT ASSETS		515.8			383.9			380.9			403.8			406.2			49.7			14	%		4.5			1	%		24.3			6	%
Property, Plant & Equipment - Gross		2,482.8			2,504.1			2,502.5			2,532.6			2,529.6			(42.8	)		(2	%)		(3.2	)		(0	%)		25.5			1	%
Property, Plant & Equipment-CIP		42.7			17.8			18.2			17.4			17.2			(1.1	)		(6	%)		(0.1	)		(1	%)		(0.5	)		(3	%)
Property, Plant & Equipment-Impairment		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m
Accumulated Depreciation		(1,604.8	)		(1,625.6	)		(1,647.5	)		(1,682.8	)		(1,701.7	)		40.2			2	%		(18.9	)		1	%		(76.1	)		(5	%)

Property, Plant & Equipment - Net		920.6			896.3			873.2			867.4			845.1			(3.7	)		(0	%)		(22.3	)		(3	%)		(51.1	)		(6	%)
Intangible Assets, Net		88.3			88.1			85.3			84.7			78.6			(9.1	)		(10	%)		(6.1	)		(7	%)		(9.5	)		(11	%)
Long Term Notes Receivable		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m
Investment in BRCOM		(452.1	)		472.3			295.8			295.9			295.9			296.9			n/m			0.0			0	%		(176.4	)		(37	%)
Other Investments		1.4			1.4			1.4			1.4			1.4			(0.1	)		(6	%)		(0.1	)		(6	%)		(0.1	)		(6	%)

Investments		(450.6	)		473.8			297.3			297.3			297.3			295.8			n/m			(0.1	)		(0	%)		(176.5	)		(37	%)
Deferred Tex Asset		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m
Long Term Notes Intercompany - BRCOM		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m
Deferred Charges & Noncurrent Assets		110.8			191.0			188.6			179.7			162.9			(378.9	)		(67	%)		3.3			2	%		(8.1	)		(4	%)
Net Assets of Discontinued Ops		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m

NONCURRENT ASSETS		668.0			1,649.1			1,444.3			1,429.1			1,404.0			(95.9	)		(6	%)		(25.1	)		(2	%)		(245.2	)		(18	%)

TOTAL ASSETS		1,184.8			2,033.1			1,825.2			1,832.9			1,812.2			(46.3	)		(2	%)		(20.7	)		(1	%)		(220.9	)		(11	%)

LIABILITIES:
Accounts Payable - Intercompany		8.5			48.6			53.0			52.3			52.7			52.7			n/m			0.5			1	%		4.2			9	%
Accounts Payable - Trade		50.1			54.7			48.8			62.8			49.8			(0.0	)		(0	%)		(13.0	)		(21	%)		(4.9	)		(9	%)

Accounts Payable-Net		58.5			103.2			101.9			115.1			102.5			52.7			106	%		(12.5	)		(11	%)		(0.7	)		(1	%)
Accounts Payable - Intercompany
Accrued Liabilities		79.2			68.1			58.1			58.6			60.9			7.1			13	%		2.3			4	%		(7.2	)		(11	%)
Intercompany Notes Payable		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m
Accrued Taxes		(271.0	)		(143.3	)		(143.9	)		(136.3	)		(129.7	)		15.7			11	%		8.7			6	%		13.7			10	%
Advanced Billings & Customer Deposits		38.6			39.5			38.3			39.6			39.2			1.0			3	%		(0.5	)		(1	%)		(0.4	)		(1	%)
Accrued Compensated Absences		2.8			3.3			3.5			3.3			2.8			0.4			15	%		(0.6	)		(17	%)		(0.6	)		(17	%)
Restructuring		4.6			2.6			1.0			0.8			0.7			(6.6	)		(90	%)		(0.1	)		(10	%)		(1.8	)		(71	%)
Other Current Liabilities		30.2			29.6			47.0			50.4			40.0			(3.2	)		(7	%)		(10.4	)		(21	%)		10.3			35	%
Short-Term Bank Note (See Notes 3 & 4)		106.0			5.3			48.6			10.3			4.7			(93.0	)		(85	%)		(5.6	)		(54	%)		(0.6	)		(10	%)
Other Short-Term Debt		26.9			5.3			5.5			4.9			4.7			0.1			1	%		(0.2	)		(5	%)		(0.7	)		(12	%)

CURRENT LIABILITIES		75.8			113.7			158.9			144.8			125.9			(25.9	)		(17	%)		(18.9	)		(13	%)		12.2			11	%
Bank Note (See Notes 3 & 4)		393.2			603.2			507.8			510.7			484.3			76.9			19	%		(26.4	)		(5	%)		(118.9	)		(20	%)
Convertible Bonds		534.5			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m
Other Long Term Debt		1,139.6			1,671.3			1,676.7			1,682.4			1,691.1			3.8			0	%		8.6			1	%		19.7			1	%
NonCurrent Intercompany Debt		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m
Minority Interest		39.2			38.9			39.0			40.2			40.4			(2.1	)		(5	%)		0.2			1	%		1.5			4	%
LT Restructuring		0.0			7.4			6.9			6.8			6.5			6.5			n/m			(0.3	)		(5	%)		(0.9	)		(13	%)
Unearned Revenue		12.3			11.9			11.1			10.7			10.4			(1.6	)		(13	%)		(0.4	)		(4	%)		(1.6	)		(13	%)
Noncurrent Deferred Income Taxes		261.5			0.0			0.0			0.0			0.0			(120.0	)		(100	%)		0.0			n/m			0.0			n/m
Post Retirement (FAS 106)		52.6			55.1			59.1			62.4			64.7			1.2			2	%		2.4			4	%		9.6			17	%
Other Noncurrent Liabilities		30.9			32.8			33.2			31.1			30.0			(3.8	)		(11	%)		(1.1	)		(3	%)		(2.8	)		(8	%)
Total Noncurrent Liabilities		83.5			87.9			92.3			93.5			94.8			(2.5	)		(3	%)		1.3			1	%		6.8			8	%
Net Liabilities from Discontinued Ops		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m

NONCURRENT LIABILITIES		2,463.6			2,420.8			2,333.9			2,344.3			2,327.4			(39.0	)		(2	%)		(16.9	)		(1	%)		(93.4	)		(4	%)

TOTAL LIABILITIES		2,539.6			2,534.5			2,493.8			2,489.1			2,453.3			(64.9	)		(3	%)		(35.8	)		(1	%)		(81.21	)		(2	%)
MEZZANINE FINANCING:
Convertible Preferred Stock		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m
Exchangeable Preferred Stock		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m

TOTAL MEZZANINE FINANCING		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m
SHAREOWNERS’ EQUITY:
Convertible Preferred Stock		129.4			129.4			129.4			129.4			129.4			(0.0	)		(0	%)		0.0			0	%		0.0			0	%
Common Stock		2.5			2.5			2.5			2.5			2.5			0.0			0	%		0.0			0	%		0.0			0	%
Paid-In Capital		2,937.5			2,940.6			2,940.4			2,936.1			2,935.7			3.0			0	%		(2.4	)		(0	%)		(4.9	)		(0	%)
Retained Earnings		(4,269.2	)		(3,426.2	)		(3,593.3	)		(3,578.4	)		(3,560.9	)		15.7			0	%		17.5			0	%		(134.7	)		(4	%)
Accumulated Other Comprehensive Income		(9.5	)		(2.3	)		(2.3	)		(2.5	)		(2.5	)		(0.2	)		(8	%)		0.0			0	%		(0.2	)		(8	%)
Treasury Stock		(145.5	)		(145.5	)		(145.5	)		(145.5	)		(145.4	)		0.1			0	%		0.1			0	%		0.1			0	%
Investment Valuation Allowance		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m
Foreign Currency Adjustment		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m
Other Shareowners’ Equity		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m			0.0			n/m

TOTAL EQUITY		(1,354.6	)		(501.4	)		(668.7	)		(656.2	)		(641.1	)		18.6			3	%		15.1			2	%		(139.7	)		(26	%)

TOTAL LIABILITIES & EQUITY		1,184.8			2,033.1			1,825.2			1,632.9			1,812.2			(46.3	)		(2	%)		(20.71	)		(1	%)		(220.9	)		(11	%)

Total Credit Facility Balance		499.2			608.4			556.4			521.0			489.0			16.1			3	%		32.0			6	%		119.4			20	%
Net Debt (See Note)		2,167.4			2,259.1			2,215.8			2,186.3			2,158.1			12.9			1	%		27.9			1	%		101.1			4	%

Note: “Net Debt” includes Short-Term Bank Note, Other Short-Term Debt, Bank Notes, Convertible Bonds and Other Long-Term Debt; offset by Cash and Cash Equivalents, and Swap Liability.

Note 2: All intercompany transactions within Restricted Group have been eliminated. Transactions between the Restricted Group & BRCOM are not eliminated, but are presented separately.

Note 3: CBI guarantees the borrowing under the credit facility directly at BRCOM. The BRCOM direct borrowings are not reflected above.

Note 4: BRCOM direct borrowings under credit facility $0 million


Unrestricted Group 093004 Balance Sheet.xls (Restricted)	Cincinnati Bell, Inc. Confidential	2/2/2005 6:06 PM Report #Restricted

CINCINNATI BELL INC. - UNRESTRICTED ENTITIES

INCLUDES CBTS AND BRCOM SUBSIDIARIES

BALANCE SHEET

SEPTEMBER, 2004

(Dollars in millions)


	3RD QTR			4TH QTR			1ST QTR			2ND QTR			3RD QTR			VS. PRIOR QUARTER			VS. PRIOR YEAR-END
	2003			2003			2004			2004			2004			CHANGE			CHANGE
ASSETS:
Intercompany Notes Receivable - BRCOM		(31.5	)		(157.3	)		(166.5	)		(187.0	)		(203.2	)		(16.2	)		(46.0	)
Intercompany Interest Receivable - BRCOM		(0.1	)		(1.0	)		(0.5	)		(0.6	)		(0.7	)		(0.2	)		0.3
Intercompany Accounts Receivable - BRCOM		(268.0	)		(16.5	)		(18.0	)		(6.5	)		1.4			7.9			17.9
Accounts Receivable, External		21.7			21.2			20.2			18.9			21.7			2.8			0.5
Allowance		(2.4	)		(2.5	)		(3.8	)		(2.1	)		(2.4	)		(0.3	)		0.1

Accounts Receivable, Net		19.3			18.7			16.4			16.8			19.3			2.5			0.6
Materials and Supplies		4.6			1.4			5.4			13.9			6.4			(7.5	)		5.0
Prepaid Expense		0.9			0.6			0.6			0.6			0.4			(0.2	)		(0.2	)
Other Current Assets		(9.3	)		29.4			26.1			36.7			22.8			(13.9	)		(6.7	)

CURRENT ASSETS		(284.1	)		(124.6	)		(136.6	)		(126.1	)		(153.6	)		(27.5	)		(29.0	)
Property, Plant & Equipment - Gross		3.0			3.1			3.3			3.5			13.3			9.8			10.1
Property, Plant & Equipment - CIP		0.0			0.0			0.0			0.0			3.2			3.2			3.2
Accumulated Depreciation		(0.4	)		(0.6	)		(0.8	)		(1.0	)		(1.2	)		(0.2	)		(0.6	)

Property, Plant & Equipment - Net		2.6			2.6			2.5			2.5			15.3			12.7			12.7
Long Term Notes Receivable		0.0			0.0			0.3			0.4			0.4			(0.0	)		0.4
Investment in BRCOM		452.1			(472.3	)		(295.8	)		(295.9	)		(295.9	)		(0.0	)		176.4
Other Investments		2.8			2.8			2.5			2.5			2.4			(0.0	)		(0.3	)

Investments		454.8			(469.6	)		(293.4	)		(293.4	)		(293.5	)		(0.0	)		176.1
Noncurrent Deferred Tax Asset		0.0			697.0			689.2			662.4			660.7			(1.7	)		(36.2	)
Long Term Notes Intercompany - BRCOM		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Deferred Charges & Noncurrent Assets		0.2			(64.9	)		(62.3	)		(56.8	)		(54.5	)		2.2			10.4

NONCURRENT ASSETS		457.5			165.0			336.3			315.2			328.4			13.2			163.3

TOTAL ASSETS		173.4			40.4			199.7			189.1			174.8			(14.3	)		134.3

LIABILITIES:
Accounts Payable - Intercompany		(8.5	)		(48.6	)		(53.0	)		(52.3	)		(52.7	)		(0.5	)		(4.2	)
Accounts Payable - Trade		9.0			9.8			3.3			8.0			6.2			(1.8	)		(3.6	)

Accounts Payable - Net		0.5			(38.8	)		(49.7	)		(44.3	)		(46.5	)		(2.3	)		(7.8	)
Accrued Liabilities		24.4			26.5			27.9			22.4			20.3			(2.2	)		(6.2	)
Accrued Taxes		325.5			187.3			177.9			169.0			170.9			1.9			(16.3	)
Advanced Billings & Customer Deposits		0.6			2.0			2.0			1.7			1.9			0.2			(0.1	)
Accrued Compensated Absences		0.0			0.4			0.4			0.5			0.4			(0.1	)		(0.0	)
Restructuring		19.7			1.6			0.6			0.4			0.2			(0.1	)		(1.4	)
Other Current Liabilities		0.5			0.0			0.0			0.0			0.0			0.0			0.0
Other Short-Term Debt		2.8			2.7			1.6			1.6			1.2			(0.4	)		(1.5	)

CURRENT LIABILITIES		374.0			181.7			160.7			151.4			148.4			(2.9	)		(33.3	)
Bank Note (See Notes 3 & 4)		140.7			0.0			0.0			0.0			0.0			0.0			0.0
Other Long Term Debt		0.0			0.0			0.0			(0.3	)		0.2			0.6			0.2
Minority Interest		0.7			0.7			0.7			0.7			0.7			0.0			0.0
LT Restructuring		0.0			4.1			3.9			3.7			3.5			(0.2	)		(0.6	)
Noncurrent Deferred Income Taxes		(261.5	)		0.0			0.0			0.0			0.0			0.0			0.0
Total Noncurrent Liabilities		97.5			31.9			34.3			33.6			21.9			(11.8	)		(10.0	)

NONCURRENT LIABILITIES		(22.5	)		36.7			39.0			37.7			26.3			(11.4	)		(10.4	)

TOTAL LIABILITIES		351.4			218.4			199.7			189.1			174.8			(14.3	)		(43.7	)
SHAREOWNERS’ EQUITY:
Retained Earnings		(178.0	)		(178.0	)		0.0			0.0			0.0			0.0			178.0

TOTAL EQUITY		(178.0	)		(178.0	)		(0.0	)		(0.0	)		(0.0	)		0.0			178.0

TOTAL LIABILITIES & EQUITY		173.4			40.4			199.7			189.1			174.8			(14.3	)		134.3

Total Credit Facility Balance		140.7			0.0			0.0			0.0			0.0			0.0			0.0
Net Debt (See Note)		2,310.9			2,261.8			2,217.4			2,187.6			2,159.5			(28.1	)		(102.3	)

Note 1: “Net Debt” includes Short-Term Bank Note, Other Short-Term Debt, Bank Notes, Convertible Bonds and Other Long-Term Debt; offset by Cash and Cash Equivalents, and Swap Liability.

Note 2: All intercompany transactions within Restricted Group have been eliminated. Transactions between the Restricted Group & BRCOM are not eliminated, but are presented separately.


		2/2/2005 6:06 PM
Unrestricted Group 093004 Balance Sheet.xls (Unrestricted)	Cincinnati BELL Inc. Confidential	Report #Unrestricted

BROADBAND SEGMENT
BALANCE SHEET
SEPTEMBER, 2004

(Dollars in millions)


	3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			vs. PRIOR QUARTER						vs. PRIOR YEAR-END

	2003			2003			2004			2004			2004			CHANGE			%			CHANGE			%
ASSETS:
Restricted Cash		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m
Cash & Cash Equivalents		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m
Intercompany Notes Receivable - BRCOM		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m
Reserve for BRCOM Uncollectible IC Notes		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m
Intercompany Interest Receivable - BRCOM		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m
Intercompany Accounts Receivable, Gross		4.2			48.8			48.9			48.6			48.8			0.2			0	%		(0.1	)		(0	%)
Accounts Receivable, Gross		0.2			0.4			0.2			0.2			0.2			0.0			0	%		(0.2	)		(46	%)
Allowance		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m

Accounts Receivable, Net		0.2			0.4			0.2			0.2			0.2			0.0			0	%		(0.2	)		(46	%)
Materials and Supplies		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m
Prepaid Expense		0.4			0.1			0.1			0.1			0.1			0.0			0	%		0.0			0	%
Other Current Assets		0.7			0.7			0.3			0.3			0.0			(0.3	)		(100	%)		(0.7	)		(100	%)

CURRENT ASSETS		5.5			49.9			49.4			49.1			49.0			(0.1	)		(0	)%		(0.9	)		(2	)%
Property, Plant & Equipment - Gross		0.9			0.4			0.4			0.4			0.4			0.0			0	%		0.0			0	%
Accumulated Depreciation		(0.0	)		(0.0	)		(0.0	)		(0.0	)		(0.0	)		0.0			0	%		0.0			0	%

Property, Plant & Equipment - Net		0.9			0.4			0.4			0.4			0.4			0.0			0	%		0.0			0	%
Intangible Assets, Net		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m
Investment in BRCOM		0.0			0.0			0.0			0.0			0.0			0.0			0	%		(0.3	)		(10	%)
Other Investments		2.7			2.7			2.5			2.5			2.5

Investments		2.7			2.7			2.5			2.5			2.5			0.0						(0.3	)
Noncurrent Deferred Tax Asset		0.0			473.4			469.5			466.6			459.2			(7.4	)		(2	%)		(14.2	)		(3	%)
Long Term Notes Intercompany - BRCOM		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m
Deferred Charges & Noncurrent Assets		(0.2	)		(0.3	)		(0.3	)		(0.3	)		(0.3	)		(0.0	)		(0	%)		(0.0	)		(0	%)

NONCURRENT ASSETS		3.5			476.3			472.1			469.1			461.7			(7.4	)		(2	)%		(14.5	)		(3	)%

TOTAL ASSETS		8.9			526.2			521.5			518.3			510.8			(7.5	)		(1	)%		(15.4	%)		(3	)%

LIABILITIES:
Accounts Payable - Intercompany		267.4			15.1			6.9			(0.9	)		(2.8	)		(1.9	)		n/m			(17.9	)		(119	%)
Accounts Payable - Trade		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m

Accounts Payable - Net		267.4			15.1			6.9			(0.9	)		(2.8	)
Accrued Liabilities		23.3			25.3			23.5			20.8			18.4			(2.4	)		(12	%)		(6.9	)		(27	%)
Intercompany Notes Payable		31.5			168.8			178.3			188.6			188.7			0.1			0	%		19.9			12	%
Accrued Taxes		159.1			9.3			4.2			3.2			11.8			8.6			n/m			2.6			28	%
Restructuring		19.7			1.6			0.6			0.4			0.2			(0.1	)		(36	%)		(1.4	)		(85	%)

CURRENT LIABILITIES		501.5			220.1			213.5			212.2			216.4			4.2			2	%		(3.8	)		(2	%)
Bank Note		140.7			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m
Minority Interest		0.7			0.7			0.7			0.7			0.7			0.0			0	%		0.0			0	%
LT Restructuring		0.0			4.1			3.9			3.7			3.5			(0.2	)		(5	%)		(0.6	)		(14	%)
Other NonCurrent Liabilities		9.7			31.9			34.3			33.6			21.9			(11.7	)		(35	%)		(10.0	)		(31	%)

NONCURRENT LIABILITIES		151.1			36.7			39.0			38.0			26.1			(11.9	)		(31	)%		(10.6	)		(29	)%

TOTAL LIABILTIES		652.6			256.8			252.4			250.2			242.5			(7.7	)		(3	)%		(14.3	)		(6	)%
SHAREOWNERS’ EQUITY:
Paid-in Capital		3,318.4			2,944.6			2,944.6			2,944.6			2,944.6			0.0			0	%		0.0			0	%
Retained Earnings		(3,965.5	)		(2,678.8	)		(2,679.1	)		(2,680.1	)		(2,679.9	)		0.2			0	%		(1.1	)		(0	%)

TOTAL EQUITY		(647.1	)		265.8			265.5			264.6			264.7			0.2			0	%		(1.1	)		(0	)%

TOTAL LIABILITIES & EQUITY		5.5			522.6			517.9			514.7			507.2			(7.5	)		(1	%)		(15.4	)		(3	%)

Net Debt (See Note)		435.4			135.1			136.3			139.2			137.1			(2.0	)		(1	%)		2.0			2	%

Note: “Net Debt” includes Intercompany Accounts Payable, Intercompany Notes Payable, Short-Term Bank Note, Other Short-Term Notes, Bank Notes, Convertible Bonds, Other Long-Te and 12 1/2% Preferred tock; offset by Cash and Cash Equivalents, Intercompany Notes Receivable and Intercompany Accounts Receivable.


Unrestricted Group 093004 Balance Sheet.xls (Broadband)	Cincinnati Bell, Inc. Confidential	2/2/2005 6:06 PM Report Broadband

HARDWARE & MANAGED SERVICES

BALANCE SHEET

SEPTEMBER, 2004

(Dollars in millions)


	3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			vs. PRIOR			QUARTER			vs. PRIOR			YEAR-END

	2003			2003			2003			2003			2004			CHANGE			%			CHANGE			%
ASSETS:
Restricted Cash		0.0			0.0			0.0			0.0			0.0			0.0						0.0
Cash & Cash Equivalents		0.1			0.0			0.0			0.0			0.0			0.0			51	%		(0.0	)		(32	%)
Intercompany Notes Receivable		(0.0	)		11.5			11.8			1.6			(14.5	)		(16.1	)		n/m			(26.0	)		n/m
Intercompany Accounts Receivable, Gross		5.5			1.0			5.4			4.9			5.2			0.3			6	%		4.2			n/m
Accounts Receivable, Gross		21.4			31.3			20.0			18.7			21.5			2.8			15	%		(9.8	)		(31	%)
Allowance		(2.4	)		(3.6	)		(3.8	)		(2.1	)		(2.4	)		(0.3	)		(13	%)		1.2			34	%

Accounts Receivable, Net		19.0			27.7			16.2			16.6			19.1			2.5			15	%		(8.6	)		(31	%)
Materials and Supplies		4.6			3.6			5.4			13.9			6.4			(7.5	)		(54	%)		2.8			77	%
Prepaid Expense		0.5			0.6			0.5			0.5			0.3			(0.2	)		(35	%)		(0.2	)		(42	%)
Other Current Assets		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m

CURRENT ASSETS		29.7			44.4			39.3			37.5			16.5			(21.0	)		(56	%)		(27.8	)		(63	%)
Property, Plant & Equipment - Gross		2.0			2.7			2.9			3.1			12.9			9.8			n/m			10.1			n/m
Property, Plant & Equipment - CIP		0.0			0.0			0.0			0.0			3.2			3.2			n/m			3.2			n/m
Accumulated Depreciation		(0.4	)		(0.6	)		(0.8	)		(1.0	)		(1.2	)		(0.2	)		(26	%)		(0.6	)		(107	%)

Property, Plant & Equipment - Net		1.6			2.2			2.1			2.2			14.9			12.7			n/m			12.7			n/m
Long Term Notes Receivable		0.0			0.0			0.3			0.4			0.4			(0.0	)		(5	%)		0.4			n/m
Investment in BRCOM		0.0			0.0			0.0			0.0			0.0			0.0			n/m			0.0			n/m
Other Investments		0.0			0.0			0.0			0.0			0.0			0.0						0.0

Investments		0.0			0.0			0.0			0.0			0.0			0.0						0.0
Noncurrent Deferred Tax Asset		0.0			9.9			9.9			9.7			8.8			(0.9	)		(9	%)		(1.0	)		(11	%)
Long Term Notes Intercompany - BRCOM		0.0			0.0			0.0			0.0			0.0			0.0						0.0
Other NonCurrent Assets		0.4			0.4			0.3			0.3			2.4			2.1			n/m			2.0			n/m

NONCURRENT ASSETS		2.0			12.4			12.6			12.6			26.5			13.9			110	%		14.1			113	%

TOTAL ASSETS		31.7			56.8			51.8			50.1			43.0			(7.1	)		(14	%)		(13.8	)		(24	%)

LIABILITIES:
Accounts Payable - Intercompany		1.8			11.9			12.3			8.5			2.6			(5.9	)		(70	%)		(9.3	)		(78	%)
Accounts Payable - Trade		9.0			9.8			3.3			8.0			6.2			(1.8	)					(3.6	)

Accounts Payable - Net		10.8			21.7			15.6			16.5			8.8			(1.8	)		(22	%)		(3.6	)		(37	%)
Accrued Liabilities		1.2			3.7			4.9			2.2			2.6			0.4			19	%		(1.1	)		(30	%)
Accrued Taxes		2.7			0.6			0.5			0.1			0.3			0.1			108	%		(0.3	)		(53	%)
Advanced Billings & Customer Deposits		0.6			2.7			2.0			1.7			1.9			0.2			12	%		(0.8	)		(31	%)
Accrued Compensated Absences		0.0			0.4			0.4			0.5			0.4			(0.1	)		(11	%)		(0.0	)		(1	%)
Other Short-Term Debt		2.8			2.7			1.6			1.3			1.2			(0.1	)		(4	%)		(1.5	)		(55	%)

CURRENT LIABILITIES		18.1			31.9			25.1			22.3			15.2			(7.1	)		(32	%)		(16.7	)		(52	%)
Other Long Term Debt		0.0			0.0			0.0			0.0			0.2			0.2			n/m			0.2			n/m
Net Liabilities from Discontinued Ops		0.0			0.0			0.0			0.1			0.0			(0.1	)		(100	%)		0.0			n/m

NONCURRENT LIABILITIES		0.0			0.0			0.0			0.1			02			0.1			149	%		0.2			n/m
TOTAL LIABILITIES		18.1			31.9			25.1			22.4			15.4			(6.9	)		(31	%)		(16.5	)		(52	%)
SHAREOWNERS’ EQUITY:
Paid-In Capital		54.0			54.0			54.0			54.0			54.0			0.0			0	%		0.0			0	%
Retained Earnings		(40.4	)		(29.1	)		(27.3	)		(26.3	)		(26.4	)		(0.1	)		(1	%)		2.7			9	%

TOTAL EQUITY		13.6			24.9			26.8			27.7			27.6			(0.1	)		(1	%)		2.7			11	%

TOTAL LIABILITIES & EQUITY		31.7			56.8			51.8			50.1			43.0			(7.1	)		(14	%)		(13.8	)		(24	%)

Net Debt (See Note)		(0.9	)		2.2			(3.3	)		3.3			13.4			10.0			n/m			11.2			n/m

Note 1: “Net Debt” includes Intercompany Accounts Payable, Intercompany Notes Payable, Short-Term Bank Note, Other Short-Term Notes, Bank Notes, Convertible Bonds and Other Long-T offset by Cash and Cash Equivalents, Intercompany Notes Receivable and Intercompany Accounts Receivable.

Note 2: The balance sheet has been restated in December 2003 to reflect the transfer of the equipment business from CBT.


Unrestricted Group 093004 Balance Sheet. xls (Hardware)	Cincinnati Bell, Inc. Confidential	2/2/2005 6:06 PM Report #Hardware

UNRESTRICTED GROUP - ELIMINATIONS

BALANCE SHEET
SEPTEMBER, 2004

(Dollars in millions)


	3rdQtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			vs. PRIOR QUARTER			vs. PRIOR YEAR-End
	2003			2003			2003			2003			2004			CHANGE			CHANGE
ASSETS:
Restricted Cash		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Cash & Cash Equivalents		0.0			0.0			0.0			0.0			0.0			0.0			(0.0	)
Intercompany Notes Receivable		(31.5	)		(168.8	)		(178.3	)		(188.6	)		(188.7	)		(0.1	)		(157.2	)
(ILLEGIBLE)
Intercompany Accounts Receivable, Gross		(277.7	)		(66.2	)		(72.2	)		(59.9	)		(52.5	)		7.4			225.2
Accounts Receivable, Gross		0.0			(10.5	)		0.0			(0.0	)		(0.0	)		0.0			(0.0	)
Allowance		0.0			1.1			0.0			0.0			0.0			0.0			0.0

Accounts Receivable, Net		(0.0	)		(9.4	)		(0.0	)		(0.0	)		(0.0	)		0.0			(0.0	)
Materials and Supplies		(0.0	)		(2.2	)		0.0			0.0			0.0			0.0			0.0
Prepaid Expense		0.0			(0.1	)		(0.0	)		0.0			(0.0	)		(0.0	)		(0.0	)
(ILLEGIBLE)
CURRENT ASSETS		(319.3	)		(218.9	)		(225.3	)		(212.7	)		(219.2	)		(6.4	)		100.1
Investment in BRCOM		452.1			(472.3	)		(295.8	)		(295.9	)		(295.9	)		(00	)		(748.0	)
(ILLEGIBLE)
Long Term Notes Intercompany - BRCOM		0.0			0.0			0.0			0.0			0.0			0.0			0.0
(ILLEGIBLE)
NONCURRENT ASSETS		452.1			(323.6	)		(148.3	)		(166.5	)		(159.9	)		6.7			(611.9	)

TOTAL ASSETS		132.8			(542.6	)		(373.6	)		(379.3	)		(379.0	)		0.2			(511.8	)

LIABILITIES:
Accounts payable - Intercompany		(277.7	)		(75.6	)		(72.2	)		(59.9	)		(52.5	)		7.4			225.2
(ILLEGIBLE)
Intercompany Notes Payable		(31.5	)		(168.8	)		(178.3	)		(188.6	)		(188.7	)		(0.1	)		(157.2	)
(ILLEGIBLE)
CURRENT LIABILITIES		(145.6	)		(70.3	)		(77.8	)		(83.1	)		(83.2	)		(0.1)			62.5
(ILLEGIBLE)
Other NonCurrent Liabilities		87.9			(0.0	)		0.0			0.1			(0.0	)		(0.1	)		(87.9	)
Net Liabilities from Discontinued Ops		0.0			0.0			0.0			(0.1	)		0.0			0.1			0.0

NONCURRENT LIABILITIES		(173.7	)		(0.0	)		0.0			(0.3	)		(0.0	)		0.3			173.7

TOTAL LIABILITIES		(319.3	)		(70.3	)		(77.8	)		(83.4	)		(83.2	)		0.3			236.1
SHAREOWNERS’ EQUITY:
Paid-in Capital		(3,375.9	)		(3,002.2	)		(3,002.2	)		(3,002.2	)		(3,002.2	)		0.0			373.7
Retained Earnings		3,827.9			2,529.9			2,706.4			2,706.3			2,706.3			(0.0	)		(1,121.6	)

TOTAL EQUITY		452.1			(472.3	)		(295.8	)		(295.8	)		(295.9	)		(0.0	)		(747.9	)

TOTAL LIABILITIES & EQUITY		132.8			(542.6	)		(373.6	)		(379.3	)		(379.0	)		0.2			(511.8	)

Note 1: “Net Debt” includes Intercompany Accounts Payable, Intercompany Notes Payable, Short-Term Bank Note, Other Short-Term Notes, Bank Notes, Convertible Bonds and Other Long-Term offset by Cash and Cash Equivalents, Intercompany Notes Receivable and Intercompany Accounts Receivable.

Note 2: The balance sheet has been restated in December 2003 to reflect the transfer of the equipment business from CBT.


Unrestricted Group 093004 Balance Sheet.xls (Elims)	Cincinnati Bell, Inc. Confidential	2/2/2005 6:06 PM Report #Elims

CINCINNATI BELL INC.
CONSOLIDATING BALANCE SHEET
UNRESTRICTED AND RESTRICTED GROUPS
SEPTEMBER, 2004
(Dollars in millions)


							OTHER/			UNRE-			RESTRICTED			CONSOL-
	BRCOM			CBTS			ELIMS			STRICTED			GROUP			IDATED

ASSETS:
Restricted Cash		0.0			0.0			0.0			0.0			0.1			0.1
Unrestricted Cash & Cash Equivalents		0.0			0.0			0.0			0.0			23.0			23.0
Intercompany Notes Receivable - BRCOM		0.0			(14.5	)		(188.7	)		(203.2	)		203.2			0.0
Intercompany Interest Receivable - BRCOM		0.0			0.0			(0.7	)		(0.7	)		0.7			0.0
Intercompany Accounts Receivable - BRCOM		48.8			5.2			(52.5	)		1.4			(1.4	)		0.0
Accounts Receivable, External		0.2			21.5			(0.0	)		21.7			130.1			151.8
Allowance		0.0			(2.4	)		0.0			(2.4	)		(12.8	)		(15.2	)

Accounts Receivable, Net		0.2			19.1			(0.0	)		19.3			117.2			136.6
Materials and Supplies		0.0			6.4			0.0			6.4			30.2			36.6
Prepaid Expense		0.1			0.3			(0.0	)		0.4			17.9			18.3
Other Current Assets		0.0			0.0			22.8			22.8			17.4			40.1

CURRENT ASSETS		49.0			16.5			(219.2	)		(153.6	)		408.2			254.6
Property, Plant & Equipment - Gross		0.4			12.9			0.0			13.3			2,529.6			2,542.8
Property, Plant & Equipment - CIP		0.0			3.2			0.0			3.2			17.2			20.4
Accumulated Depreciation		(0.0	)		(1.2	)		0.0			(1.2	)		(1,701.7	)		(1,702.9	)

Property, Plant & Equipment - Net		0.4			14.9			0.0			15.3			845.1			860.4
Intangible Assets, Net		0.0			0.0			0.0			0.0			78.6			78.6
Long Term Notes Receivable		0.0			0.4			0.0			0.4			0.0			0.4
Investment in BRCOM		0.0			0.0			(295.9	)		(295.9	)		295.9			0.0
Other Investments		2.5			0.0			(0.0	)		2.4			1.4			3.8

Investments		2.5			0.0			(295.9	)		(293.5	)		297.3			3.8
Deferred Tax Asset		459.2			8.8			192.7			660.7			0.0			660.7
Deferred Charges & Noncurrent Assets		(0.3	)		2.4			(56.7	)		(54.5	)		182.9			128.4
Net Assets of Discontinued Ops		0.0			0.0			0.0			0.0			0.0			0.0

NONCURRENT ASSETS		461.7			26.5			(159.9	)		328.4			1,404.0			1,732.3

TOTAL ASSETS		510.8			43.0			(379.0	)		174.8			1,812.2			1,987.0

LIABILITIES:
Accounts Payable - Intercompany		(2.8	)		2.6			(52.5	)		(52.7	)		52.7			0.0
Accounts Payable - Trade		0.0			6.2			0.0			6.2			49.8			56.0

Accounts Payable - Net		(2.8	)		8.8			(52.5	)		(46.5	)		102.5			56.0
Accrued Liabilities		18.4			2.6			(0.7	)		20.3			60.9			81.2
Intercompany Notes Payable		188.7			0.0			(188.7	)		0.0			0.0			0.0
Accrued Taxes		11.8			0.3			158.8			170.9			(129.7	)		41.3
Advanced Billings & Customer Deposits		0.0			1.9			(0.0	)		1.9			39.2			41.1
Accrued Compensated Absences		0.0			0.4			0.0			0.4			2.8			3.2
Restructuring		0.2			0.0			(0.0	)		0.2			0.7			1.0
Other Current Liabilities		0.0			0.0			0.0			0.0			40.0			40.0
Short-Term Bank Note		0.0			0.0			0.0			0.0			4.7			4.7
Other Short-Term Debt		0.0			1.2			(0.0	)		1.2			4.7			5.9

CURRENT LIABILITIES		216.4			15.2			(83.2	)		148.4			125.9			274.3
								0.0
Bank Note		0.0			0.0			0.0			0.0			484.3			484.3
Other Long Term Debt		0.0			0.2			(0.0	)		0.2			1,691.1			1,691.3
Minority Interest		0.7			0.0			(0.0	)		0.7			40.4			41.1
LT Restructuring		3.5			0.0			0.0			3.5			6.5			10.0
Unearned Revenue		0.0			0.0			0.0			0.0			10.4			10.4
Other Noncurrent Liabilities		0.0			0.0			86.6			86.6			30.0			116.7
Total Noncurrent Liabilities		21.9			0.0			(0.0	)		21.9			94.8			116.7

NONCURRENT LIABILITIES		26.1			0.2			(0.0	)		26.3			2,327.4			2,353.7

TOTAL LIABILITIES		242.5			15.4			(83.2	)		174.8			2,453.3			2,628.0
SHAREOWNERS’ EQUITY:
Convertible Preferred Stock		0.0			0.0			0.0			0.0			129.4			129.4
Common Stock		0.0			0.0			0.0			0.0			2.5			2.5
Paid-In Capital		2,948.2			54.0			(3,002.2	)		(0.0	)		2,935.7			2,935.7
Retained Earnings		(2,679.9	)		(26.4	)		2,706.3			0.0			(3,560.9	)		(3,560.9	)
Accumulated Other Comprehensive Income		0.0			0.0			0.0			0.0			(2.5	)		(2.5	)
Treasury Stock		0.0			0.0			0.0			0.0			(145.4	)		(145.4	)

TOTAL EQUITY		268.3			27.6			(295.9	)		0.0			(641.1	)		(641.1	)

TOTAL LIABILITIES & EQUITY		510.8			43.0			(379.0	)		174.8			1,812.2			1,987.0

Note 1: “Net Debt” includes Short-Term Bank Note, Other Short-Term Debt, Bank Notes, Convertible Bonds and Other Long-Term Debt; offset by Cash and Cash Equivalents, and Swap Liability.


		2/2/2005 6:06 PM
Unrestricted Group 093004 Balance Sheet.xls (Consolidating)	Cincinnati Bell, Inc. Confidential	Report #Consolidating

Category

Description/Nature of Accrual

Q4 ’04

2005

2006

2007

2008

2009

Total

Ring Fence Availability

Beginning Balance

49,100,000

32,631,000

20,268,579

16,168,579

13,568,579

13,558,5790

49,100,00

Legal

Subtotal

(800,000

)

(2,422,436

)

(3,222,436

)

EPGN

Accrued Capital

(3,100,000

)

(300,000

)

(300,000

)

(300,000

)

(4,000,000

)

Franchise Taxes

Subtotal

(10,000

)

(100,000

)

(1,000,000

)

(100,000

)

(10,000

)

(1,220,000

)

Property Taxes

Various States

(175,000

)

(500,000

)

(1,000,000

)

(400,000

)

(2,075,000

)

Sales Taxes

Various States

(8,000,000

)

(600,000

)

(600,000

)

(9,200,000

)

Restructuring

(334,000

)

(1,039,985

)

(1,200,000

)

(1,200,000

)

(3,773,985

)

Mutual Signal

Est of amount due Global Crossing as 15% owner of Mutual Signal

(50,000

)

(50,000

)

FIN 45 Liability

Warranties & Reps associated with BCI Asset Sale to CIII

(2,000,000

)

(2,000,000

)

Working Capital Settlement

WC Settlement Payable to BRCOM

(10,000,000

)

(10,000,000

)

A Total Estimated Cash Payments For Period

(16,469,000

)

(12,362,421

)

(4,100,000

)

(2,600,000

)

(10,000

)

(35,541,421

)

Ring Fence Availability

Ending Balance

32,631,000

20,268,579

16,168,579

13,568,579

13,558,579

Note: Difference between B and A represents the difference between management’s best estimated of actual cash to be paid against liabilities vs. book accruals per GAAP.