<PAGE>   1

                                                               EXHIBIT 10.47


                          

                              ARTHUR ANDERSEN LLP



                         FAIR MARKET VALUATION REPORT:

                     FALCON CLASSIC CABLE INCOME PROPERTIES

                                    BURKE, NC
                               CALIFORNIA CITY, CA
                                 CENTREVILLE, MD
                                   REDMOND, OR
                                  SOMERSET, KY

                                February 20, 1997





<PAGE>   2

                                                               EXHIBIT 10.30


                          

                              ARTHUR ANDERSEN LLP



                         FAIR MARKET VALUATION REPORT:

                     FALCON CLASSIC CABLE INCOME PROPERTIES

                                    BURKE, NC
                               CALIFORNIA CITY, CA
                                 CENTREVILLE, MD
                                   REDMOND, OR
                                  SOMERSET, KY

                                February 20, 1997





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[ARTHUR ANDERSEN LETTERHEAD]





February 20, 1997




Mr. Burt Harris
Harriscope Corporation
Conflicts Committee of Falcon Classic Cable Income Properties, L.P.
10960 Wilshire Boulevard
Los Angeles, CA 90024

Dear Mr. Harris:

You retained Arthur Andersen LLP to render an opinion as to the fair market
value of the cable television systems owned by Falcon Classic Cable Income
Properties, LP ("Classic") as of December 31, 1996. Classic offers cable service
in five areas: Burke County, NC, California City, CA, Centreville, MD, Redmond,
OR, and Somerset, KY. The scope of our engagement was to value each cluster of
cable television systems operating as a single going concern. The purpose of our
report is to assist in a possible partnership buyout involving Falcon Holdings
Group L.P. (or its affiliates) and Classic's partners. We were not engaged to
make specific purchase, sale or lending recommendations. This report is not a
fairness opinion.

The Burke County, NC system serves the towns of Connelly Springs, Drexel, Glen
Alpine, Rutherford College and Valdese, as well as certain unincorporated areas
of Burke County, NC. The California City, CA system serves California City as
well as certain unincorporated areas of Kern County, CA. The Centreville, MD
system serves the towns of Barclay, Betterton, Centreville, Chestertown, Church
Hill, Millington, Oxford, Queenstown, Rock Hall, St. Michaels, Sudlersville,
Templeville and Trappe as well as certain unincorporated areas of Kent, Talbot
and Queen Anne's Counties. The Redmond, OR system serves Redmond and certain
unincorporated areas of Deschutes County, OR. The Somerset, KY systems serve the
cities of Burnside, Columbia, Eubank, Ferguson, McKinney and Somerset, as well
as certain unincorporated areas of Adair, Pulaski, Laurel and Lincoln Counties.

For purposes of this report, fair market value is defined as the amount at which
the subject properties would change hands, in a free and clear arm's length
transaction, between a willing buyer and willing seller when neither is acting
under any compulsion to complete the transaction, and when both have reasonable
knowledge of the relevant facts. No consideration is given to minority holdings
or ownership interests. This concept of value is supported by numerous court
decisions dealing with fair market value. Further, it is assumed that all assets
will remain in place and be employed in the delivery of cable television to
subscribers, which is assumed to be the highest and best use of those assets.

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Mr. Burt Harris
Page 2
February 20, 1997


Our investigation included interviews with management, a review of financial and
other documents, and an on-site review of a representative portion of the cable
systems and the areas served. We relied upon the information provided by
management as accurately representing the financial, technical and operational
status of the companies.

Based on our investigation and analysis as described in the report, and subject
to the assumptions and limiting conditions specified in this report, it is our
opinion that the fair market value of the subject properties, free and clear of
all liens and encumbrances, as of December 31, 1996 is as follows:

<TABLE>
<S>                                                            <C>        
       Burke County, NC Cluster                                $17,685,000
       California City, CA Cluster                              $2,791,000
       Centreville, MD Cluster                                 $20,445,000
       Redmond, OR Cluster                                      $5,882,000
       Somerset, KY Cluster                                    $30,277,000
                                                               -----------

       Total                                                   $77,080,000
                                                               -----------
</TABLE>


Very truly yours,



/S/Arthur Andersen LLP

ARTHUR ANDERSEN LLP


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                          FAIR MARKET VALUATION REPORT:

                     FALCON CLASSIC CABLE INCOME PROPERTIES

                                    BURKE, NC
                               CALIFORNIA CITY, CA
                                 CENTREVILLE, MD
                                   REDMOND, OR
                                  SOMERSET, KY
                                        .




                             As of December 31, 1996


                                  Prepared For:

       Conflicts Committee of Falcon Classic Cable Income Properties, L.P.


                                  Prepared By:

                               Arthur Andersen LLP
                                Washington, D.C.







                                February 20, 1997





                       Copyright 1997-All Rights Reserved
                               Arthur Andersen LLP


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                          FAIR MARKET VALUATION REPORT:

                     FALCON CLASSIC CABLE INCOME PROPERTIES

                                    BURKE, NC
                               CALIFORNIA CITY, CA
                                 CENTREVILLE, MD
                                   REDMOND, OR
                                  SOMERSET, KY

                                TABLE OF CONTENTS

A. EXECUTIVE SUMMARY........................................................1
         1. Introduction and Purpose of Report..............................1
         2. Fair Market Value Conclusion....................................2
B. ECONOMIC PERSPECTIVE.....................................................3
         1. The U.S. Economy................................................3
                  a. General Overview.......................................3
                  b. Implications for the Cable Television Industry.........6
         2. Industry Overview...............................................6
                  a. History................................................6
                  b. Future.................................................9
C. PROPERTY DESCRIPTION.....................................................11
         1. Operating Market................................................11
         2. Physical Plant..................................................12
         3. Operations Review...............................................15
         4. Homes Passed and Subscribers....................................16
         5. Franchise Agreements............................................18
         6. Channel Line-Up and Rate Card...................................20
         7. Financial History...............................................21
         8. Management......................................................22
D. VALUATION METHODOLOGY....................................................23
         1. Purpose.........................................................23
         2. Definition of Fair Market Value.................................23
         3. Three Approaches to Value.......................................24
         4. Overall Valuation Procedure.....................................24
         5. Operating Income Capitalization Method..........................26
         6. Discounted Cash Flow Methodology................................26
         7. Residual Value..................................................28
         8. Analysis of Future Projections..................................29
         9. Comparable Sales Methodology....................................30
E. CONCLUSIONS..............................................................32
F. GENERAL ASSUMPTIONS AND LIMITING CONDITIONS..............................33
G. CERTIFICATION............................................................36


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EXHIBITS
A. Cable Television Miles, Homes and Subscribers
B. Service Rates
C. Revenue, Expenses, Operating Income
D. Capital Expenditures
E. Discounted Cash Flow Valuation
F. Valuation Matrix

ADDENDUM 1 Channel Line-Ups and Rate Cards
ADDENDUM 2 Capital Asset Pricing Model & Weighted Average Cost of Capital
ADDENDUM 3 Financial History
ADDENDUM 4 Demographics



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                          FAIR MARKET VALUATION REPORT:

                     FALCON CLASSIC CABLE INCOME PROPERTIES

                                    BURKE, NC
                               CALIFORNIA CITY, CA
                                 CENTREVILLE, MD
                                   REDMOND, OR
                                  SOMERSET, KY




A.    EXECUTIVE SUMMARY



      1.    Introduction and Purpose of Report

            You retained Arthur Andersen LLP to render an opinion as to the fair
            market value of the cable television systems owned by Falcon Classic
            Cable Income Properties, LP ("Classic") as of December 31, 1996.
            Classic offers cable service in five areas: Burke County, NC,
            California City, CA, Centreville, MD, Redmond, OR, and Somerset, KY.
            The scope of our engagement was to value each cluster of cable
            television systems operating as a single going concern. The purpose
            of our report is to assist in a possible partnership buyout
            involving Falcon Holdings Group L.P. (or its affiliates) and
            Classic's partners. We were not engaged to make specific purchase,
            sale or lending recommendations. This report is not a fairness
            opinion.

            The Burke County, NC system serves the towns of Connelly Springs,
            Drexel, Glen Alpine, Rutherford College and Valdese, as well as
            certain unincorporated areas of Burke County, NC. The California
            City, CA system serves California City as well as certain
            unincorporated areas of Kern County, CA. The Centreville, MD system
            serves the towns of Barclay, Betterton, Centreville, Chestertown,
            Church Hill, Millington, Oxford, Queenstown, Rock Hall, St.
            Michaels, Sudlersville, Templeville and Trappe as well as certain
            unincorporated areas of Kent, Talbot and Queen Anne's Counties. The
            Redmond, OR system serves Redmond and certain unincorporated areas
            of Deschutes County, OR. The Somerset, KY systems serve the cities
            of Burnside, Columbia, 



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            Eubank, Ferguson, McKinney and Somerset, as well as certain
            unincorporated areas of Adair, Pulaski, Laurel and Lincoln Counties.

            For purposes of this report, fair market value is defined as the
            amount at which the subject properties would change hands, in a free
            and clear arm's length transaction, between a willing buyer and
            willing seller when neither is acting under any compulsion to
            complete the transaction, and when both have reasonable knowledge of
            the relevant facts. No consideration is given to minority holdings
            or ownership interests. This concept of value is supported by
            numerous court decisions dealing with fair market value. Further, it
            is assumed that all assets will remain in place and be employed in
            the delivery of cable television to subscribers, which is assumed to
            be the highest and best use of those assets.

            As of the valuation date, the Burke County system passed 18,986
            homes and served 10,516 customers via 731.1 miles of cable
            television plant. The California City system passed 2,858 homes and
            served 1,922 customers via 90.1 miles of cable television plant. The
            Centreville system passed 23,857 homes and served 12,325 customers
            via 649.8 miles of cable television plant. The Redmond system passed
            7,252 homes and served 3,516 customers via 170 miles of cable
            television plant. The Somerset system passed 22,060 homes and served
            19,296 customers via 834.5 miles of cable television plant.


      2.    Fair Market Value Conclusion

            Our opinion of the fair market value is based on information and
            data supplied by the System's management, our on-site inspection of
            representative portions of the Systems and the areas served and
            cable television industry information. Based on our analysis and
            investigation of the Systems, it is our opinion that the fair market
            value of the subject properties as of December 31, 1996 is as
            follows:

<TABLE>
<S>                                                            <C>        
               Burke County, NC Cluster                        $17,685,000
               California City, CA Cluster                      $2,791,000
               Centreville, MD Cluster                         $20,445,000
               Redmond, OR Cluster                              $5,882,000
               Somerset, KY Cluster                            $30,277,000
</TABLE>


                                       

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B.    ECONOMIC PERSPECTIVE

      1.    The U.S. Economy

            a.    General Overview

                  Economic growth accelerated in the first half of 1996.
                  According to preliminary estimates, real gross domestic
                  product increased at an annual rate of 3.4 percent in the
                  first two quarters compared to 2.0 percent in 1995. On a
                  quarterly basis, Gross Domestic Product ("GDP") increased 0.5
                  percent during the first quarter and 1.2 percent during the
                  second quarter. The substantial growth in the second quarter
                  of 1996 was widespread, with the largest increases in personal
                  consumption expenditures and in government.

                  During the second quarter of 1996, consumption expenditures
                  grew by an annual rate of 3.4 percent. The largest increase
                  was in durable goods, which increased at an annual rate of
                  11.3 percent. Spending on durables offset some weakening in
                  spending on nondurable goods, as the growth rate of
                  nondurables fell to an annual growth rate of 1.6 percent in
                  the second quarter versus 3.6 percent for the first quarter of
                  1996.

                  An increase in government expenditures and investment was
                  another major factor in the increase of the economic growth
                  rate. National defense expenditures and investment increased
                  at an annual rate of 7.6 percent in the first half of 1996
                  compared to a decline throughout 1995. Additionally, state and
                  local expenditures and investment increased at an annual rate
                  of 6.6 percent during the second quarter of 1996.


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                  Inflation remained low, but increased compared to 1995. The
                  consumer price index for urban consumers ("CPI-U") increased
                  by 3.5 percent, seasonally adjusted annual rate, in the first
                  seven months of 1996, compared with a 2.5 percent increase for
                  all of 1995. The increase in the CPI-U during the first seven
                  months of 1996 was due to an acceleration in both food and
                  energy costs. The food index rose at an annual rate of 4.1
                  percent for the first seven months after rising 2.1 percent in
                  all of 1995. Energy costs increased at a 9.6 percent annual
                  rate after declining in 1995. Petroleum prices led the
                  increase with an annual rate of 15.7 percent for the first
                  seven months of 1996. Core inflation, as measured by the CPI-U
                  excluding food and energy, increased at an annual rate of 3.0
                  percent in the first seven months of 1996.

                  The unemployment rate remained relatively steady in the first
                  seven months of 1996, closing in July at 5.4 percent. The rate
                  had fluctuated in a narrow band around 5.6 percent during
                  1995, as increases in the number of jobs fully absorbed
                  increases in the labor force. An acceleration in total
                  employment throughout 1996 had increased the labor force by
                  1.9 million for the first seven months of 1996. Total
                  employment grew by only 400,000 during all of 1995.

                  Income growth during the first two quarters of 1996 increased
                  slightly compared to 1995. Personal income increased 1.6
                  percent in the second quarter of 1996 compared to average
                  quarterly increases of 1.25 percent for the previous four
                  quarters. The largest sector responsible for this increase was
                  manufacturing, which increased 2.6 percent in the second
                  quarter compared to a 1.7 percent increase from the first
                  quarter of 1995 to the first quarter of 1996.

                  FINANCIAL MARKETS
                  The prime rate, the rate which major commercial banks charge
                  their best customers, fluctuated from a low of 6 percent in
                  1993 to a high of 12.04 percent in 1984. The prime rate, which
                  is considered a key economic and financial 



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                  barometer, averaged 8.29 percent in the first half of 1996 and
                  stood at 8.25 percent as of the valuation date.

                  A visible mechanism utilized by the Federal Reserve Bank to
                  increase capital expenditures during the most recent recession
                  was a dramatic decrease in the discount rate. The discount
                  rate in 1984 was 8.8 percent, and declined throughout the
                  decade to a low of 3.0 percent during 1993. During the first
                  seven months of 1996, yields on three-month Treasury bills
                  ranged from 5.02 percent in January to 5.17 percent in July.
                  During the same period, yields on Moody's AAA corporate bonds
                  ranged from 6.8 percent in January to a low of 7.65 percent in
                  July.

                  FUTURE OUTLOOK
                  Most of the available evidence supports the conventional
                  wisdom that the economy's productive capacity is expanding
                  approximately 2.3 percent annually. Growth in the productivity
                  of American workers seems to have increased slightly in recent
                  years, to about 1.25 percent annually. Overall, the growth of
                  the economy appears to be nearly what it has been for the last
                  two decades, with productivity trends offsetting workforce
                  population declines.

                  Advance estimates for the GDP indicate that the economy is
                  continuing to expand. Since the Federal Reserve can be
                  expected to continue influencing economic growth and inflation
                  through adjustments in the federal funds rate, analysts expect
                  a 2.5 percent growth in the U.S. economy for all of 1996.

                  In addition, long-run projections suggest that if the Clinton
                  Administration's current policy proposals are enacted and the
                  anticipated slowdowns in Medicare and Medicaid spending
                  persist, the deficit should improve over the next ten years.
                  After the year 2000, the amount of the deficit is expected to
                  remain stable, but become a smaller percentage of GDP as GDP
                  increases are realized. Over the longer run, changing
                  demographics will put upward pressure on the deficit as the
                  baby-boom generation retires. Social Security and Federal
                  medical spending are expected to increase as more of the
                  population reaches the age of 65.


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            b.    Implications for the Cable Television Industry

                  Traditionally, the cable television industry has been
                  relatively recession-proof. Although cable television is an
                  optional service, during periods of economic downturns, when
                  unemployment rises and household income declines, it is
                  generally considered an entertainment bargain. For a modest
                  amount of money per month, a family can purchase many hours of
                  in-home entertainment. As a consequence, the decline in
                  customers taking the basic service is minimal. Similarly,
                  little or no decline is seen in revenues associated with the
                  basic service. Subscribers are more likely to drop premium
                  services, or elect to watch fewer pay-per-view offerings, when
                  the economy turns down. Thus premium and pay-per-view revenues
                  may decline or show less pronounced growth. Conversely, cable
                  customers generally subscribe more frequently to premium
                  services and watch more elective pay-per-view offerings when
                  unemployment decreases and household income rises.


      2.    Industry Overview

            a.    History

                  Cable television was born of necessity. In rural America,
                  during the late 1940s and early 1950s, the first cable
                  television systems were constructed to allow clear reception
                  of broadcast television signals. These rural communities were
                  either too far away from broadcast stations to receive
                  viewable signals, or were surrounded by mountains or other
                  terrain conditions not conducive to good reception. The first
                  systems were of simple design. An antennae, usually a
                  household rooftop unit, was placed on top of the signal
                  blocking obstruction and from there wires were run into the
                  community to the homes. While these early systems generally
                  provided no more than 6 to 12 channels, they did provide clear
                  pictures.


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                  From the late 1950s through the early 1970s construction of
                  cable television systems continued at a moderate pace. Systems
                  were being constructed in more densely populated areas with
                  more channels (12 to 24) and new programming services were
                  being introduced. These new services were imported by way of
                  microwave. However, mid-way through this period, the Federal
                  Communications Commission ("FCC") placed restrictions on the
                  importation of distant broadcast signals. The effect of these
                  restrictions was to slow or stop construction of systems in
                  major markets.

                  The FCC eased distant signal importation restrictions in 1972.
                  This allowed operators to introduce more varied programming
                  and to expand into larger markets. The beginning of cable
                  television, as it is thought of today, began in 1974-1975 with
                  the introduction of satellite delivered television
                  programming. The efficiency of the delivery system, and the
                  variety of programming that would soon become available helped
                  move systems beyond 24 channels to 36 channels and more. The
                  period between 1972 and 1984 saw the rapid development and
                  expansion of cable television throughout all markets.

                  In 1984 the Cable Communications Policy Act was approved by
                  Congress. Viewed in hindsight, the most controversial feature
                  of the act was the removal of price controls on programming
                  services to the subscriber. The release of price controls was
                  phased in over 1985 and 1986 with all controls coming off in
                  1987. Between 1987 and 1991 the cost of basic programming to
                  the subscriber rose dramatically. Cable operators argued that
                  the increases were a result of an artificially restricted
                  market and prices were now reaching equilibrium as program
                  offerings increased and technical facilities were improved.
                  Consumer advocates argued that cable operators were taking
                  advantage of an unrestricted situation in which the operators
                  held unregulated monopolies.


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                  In response to recent history, Congress proposed several
                  re-regulation bills over a period of three years. Finally, on
                  October 5, 1992, the House and Senate enacted into law the
                  controversial Cable Television Consumer Protection and
                  Competition Act of 1992 (the "1992 Cable Act") over the veto
                  of President Bush. Many of the provisions of the new law took
                  effect 60 days after passage of the bill, on December 4, 1992,
                  but a number of key provisions took effect on dates ranging
                  from 120 days to 18 months from the date of passage. Among the
                  most critical issues affected by the 1992 Cable Act are direct
                  rate regulation, "must-carry," and re-transmission consent.

                  Provisions of the new law relating to direct rate regulation
                  allow most local franchising authorities to take steps to
                  ensure that basic service rates are reasonable, i.e., not
                  greater than would be the case if the system was subject to
                  effective competition. The FCC is required to establish and
                  adopt regulations to be followed by the local authorities who
                  choose to regulate. Rates may be regulated on other, non-basic
                  services only in cases of "bad actor" complaints.

                  In April 1993, the FCC announced preliminary guidelines for
                  rate regulation which are based on benchmarks derived from a
                  national price survey of systems subject to competition. The
                  FCC expected most systems would be required to roll back rates
                  approximately ten percent or more. Operators may elect to
                  prove the reasonableness of their rates by means of a cost of
                  service showing. The long expected rules for the cost of
                  service showing were announced by the FCC by February, 1994.
                  At the same time, the FCC revised benchmark rates and issued
                  new methodology for operators to use in determining which
                  benchmark rates apply to their systems. The FCC expects the
                  new benchmarks will result in an additional rollback of rates
                  for regulated services in the average magnitude of about 7
                  percent . The new rules also are intended to encourage the
                  development of new, unregulated services.

                  Under the 1992 Cable Act broadcasters are given broad "must
                  carry" and channel position rights. Requirements are
                  established for cable television operators to carry local
                  television stations. Prior to enactment of the new law, cable
                  systems were not required to carry broadcast stations.


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                  Cable operators also did not have to request permission to use
                  broadcast signals prior to enactment of the 1992 Cable Act,
                  nor did they have to pay a carriage fee to the broadcasters.
                  As a result of the re-transmission consent provisions of the
                  1992 law, cable systems are barred from retransmitting
                  broadcast signals without a station's consent. The cable
                  operator must negotiate with local broadcasters to obtain
                  their consent for retransmission. As a result of the
                  negotiation process, the cable operator might be charged a fee
                  for carriage of the broadcaster's signals. It is important to
                  remember that much of the viewing on cable television is still
                  done on the three major broadcast networks.

            b.    Future

                  Despite re-regulation, cable operators' total revenues
                  continue to increase. Subscribers increased 4 percent to 63
                  million in 1995, basic service revenues expanded 11 percent,
                  premium service revenue grew 6 percent, and advertising
                  revenue rose 16 percent.

                  There are some difficulties in projecting cable revenues more
                  than five years out because of inevitable technological
                  changes on the horizon (such as interactive media). It is
                  anticipated that growth will not pass into the double digits
                  in the 1990's as in the 1980's. However, cable household
                  penetration should reach 70% and advertising revenues should
                  increase in the near future. Overall, total cable revenues are
                  expected to increase 5 to 7 percent per year over the next 5
                  years, until certain technological change alters the
                  competitive situation.

                  The future also holds the potential for competition. The two
                  primary sources of competition are widely considered to be the
                  regional bell operating companies ("RBOCs") and direct
                  broadcast satellites.


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                  The economics of competition and the possible reconstruction
                  of entire subscriber networks represents an investment that
                  may not be economically feasible for the RBOCs. Recent
                  developments in copper transmission technology, specifically,
                  asymmetrical digital subscriber lines, have given the RBOCs
                  some hope of using their existing subscriber networks to
                  transmit full motion video. Many analysts view the RBOCs as
                  possible joint venture candidates or purchasers of cable
                  systems. Indeed, a number of actions support this view,
                  including US West's investment in Time Warner, Bell Atlantic's
                  bid to acquire Tele-Communications, Inc., Southwestern Bell's
                  acquisition of Hauser Communications, USWest's acquisition of
                  Continental Cable and rumors of discussions between other
                  RBOCs and large cable operators.

                  The other source of competition is from direct broadcast
                  satellites ("DBS"). DBS is a high power satellite which
                  broadcasts programs directly to the subscriber's home
                  utilizing an 18" receive dish. Several companies now offer the
                  service. The first commercial launch was in December of 1993.
                  Initially, DBS was widely viewed as a complementary service to
                  cable. However, in many areas DBS has eroded cable subscriber
                  bases. Technological restrictions prevent DBS from offering as
                  many local channels as cable, and the enormous expense of the
                  venture has kept the price to the subscriber in line with that
                  of cable. Further, DBS is fighting for market share against an
                  already well established cable service infrastructure. As of
                  this writing, all DBS providers serve approximately 4,400,000
                  subscribers.

                  In February of 1996, President Clinton signed into law the
                  Telecommunications Act of 1996. Among the numerous provisions,
                  the Act deregulates small cable systems of under 50,000
                  subscribers, and allows for the entry of cable companies into
                  the telephone industry. Additionally, it lifts the barriers
                  for entry into the cable television industry for local
                  exchange carriers (LEC's) as well as other entities. Most
                  analysts expect numerous legal challenges to the Act.


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C.    PROPERTY DESCRIPTION


      1.    Operating Market

            Falcon Classic Cable Income Properties, LP offers cable service in
            five areas: Burke County, NC, California City, CA, Centreville MD,
            Redmond, OR, and Somerset KY. The Burke County, NC system serves the
            towns of Connelly Springs, Drexel, Glen Alpine, Rutherford College
            and Valdese, as well as certain unincorporated areas of Burke
            County, NC. The California City, CA system serves California City as
            well as certain unincorporated areas of Kern County, CA. The
            Centreville, MD system serves the towns of Barclay, Betterton,
            Centreville, Chestertown, Church Hill, Millington, Oxford,
            Queenstown, Rock Hall, St. Michaels, Sudlersville, Templeville and
            Trappe as well as certain unincorporated areas of Kent, Talbot and
            Queen Anne's Counties. The Redmond, OR system serves Redmond and
            certain unincorporated areas of Deschutes County, OR. The Somerset,
            KY systems serve the cities of Burnside, Columbia, Eubank, Ferguson,
            McKinney and Somerset, as well as certain unincorporated areas of
            Adair, Pulaski, Laurel and Lincoln Counties.

            Residents in the areas served by the Burke County, North Carolina
            system are employed in industries that include textiles, poultry
            processing, building materials and structural products, timber
            processing and furniture manufacturing. Major employers include
            Lowe's Companies, Gardner Mirror, Carolina Mirror and ITT
            Corporation.

            Residents in the areas served by the California City, California
            system generally commute to the Los Angeles area for employment.

            Residents in the areas served by the Centreville, Maryland system
            rely heavily upon the Chesapeake Bay for their economy. This
            industry includes commercial fishing, crabbing and processing.
            Portions of the area's workforce are also employed in the farming
            and tourism industries. Additionally, a number of area residents
            commute to Annapolis, Baltimore and Washington, D.C.


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            Residents in the areas served by the Redmond, Oregon system are
            employed in a variety of industries such as timber, tourism, trade,
            service and agriculture. Major employers include Eagle Crest Resort
            and the Redmond Airport.

            Residents in the areas served by the Somerset, Kentucky system are
            employed in industries such as glassware, dairy, gas and oil and
            forestry. Major employers include General Electric, Southern Belle
            Dairy and Palm Beach Clothing.

            The data presented in Addendum 4, taken from Sales and Marketing
            Management's Demographics USA 1996, shows the January 1, 1996,
            population, households, median age and average household effective
            buying income ("EBI") for the counties in which the entire service
            area is located. If available, projections for January 1, 2001, also
            are included for each category along with the compounded annual
            change for the five year period.

            The average annual rate of growth for each category represents a
            general indicator of overall growth levels in the areas in which the
            Systems operate. The growth of the area as a whole may not be
            indicative of the level of growth expected and achievable in the
            Systems due to a variety of reasons, including (a) the lag between
            statistical reporting and the current state of affairs, (b) the fact
            that certain portions of a particular county may experience robust
            growth while other areas face slow or even negative growth, and (c)
            the cable system may be preparing to offer the cable service in
            areas previously unserved by the cable.

            As of the valuation date, reception of off-air signals to service
            area residents without the cable television service was poor to
            excellent depending on which areas of the Systems. The main sources
            of competition for the cable service were MMDS, DBS, satellite
            dishes and video rental stores.


      2.    Physical Plant

                          Burke County, North Carolina
            The Burke, North Carolina plant included one headend located on High
            Peak Mountain. As of the valuation date, the System included 468.7
            miles of aerial plant and 262.4 miles of underground plant. Plant
            bandwidth capacity was at 330 MHz.


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            The distribution plant contained .860 and .750-inch trunk and
            .500-inch feeder cable. Additionally, the system utilized fiber
            optic cable to shorten cascades. The majority of the active
            electronics consisted of Magnavox and Scientific Atlanta trunk
            amplifiers and line extenders. Subscriber drops consisted of RG-6
            messengered cable. The longest trunk cascade was 20 amplifiers and
            the longest line extender cascade was 4 line extenders.         

            Manufacturers of the headend electronics included General
            Instruments, Avantek, Olson, Catel, Cadco and Scientific Atlanta.
            Fiber optic electronics were manufactured by Scientific Atlanta and
            Synchronous. Off-air signals were received via antennas mounted on a
            100-foot self-supporting tower located at the headend. Satellite
            signals were received by earth stations ranging in size from 2.8 to
            7.0 meters.

            Pay and tier security was accomplished through addressability.
            Converters in the field consisted of Scientific Atlanta 8550 and
            8580 addressable models.

                          California City, California

            The California City, California plant included one headend located
            in the town of North Edwards. As of the valuation date, the System
            included 79 miles of aerial plant and 11.1 miles of underground
            plant. Plant bandwidth capacity was at 330 MHz.

            The distribution plant contained .750-inch trunk and .500-inch
            feeder cable. Active electronics consisted of Magnavox trunk
            amplifiers and line extenders. The longest trunk cascade was 16
            amplifiers and the longest line extender cascade was 3 line
            extenders.

            Manufacturers of headend electronics included Scientific Atlanta,
            M/A-Com, Standard Communications and Jerrold. Off-air signals were
            received via antennas mounted on a 250-foot tower. Satellite signals
            were received by earth stations ranging in size from 4.2 to 5.0
            meters in diameter.

            Pay and tier security was accomplished through a combination of the
            use of traps and addressability. Converters in the field consisted
            of Jerrold DPV7 addressable models.


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                              Centreville, Maryland
            The Centreville, Maryland plant included one headend located in the
            town of Wye Mills. As of the valuation date, the System included
            460.2 miles of aerial plant and 189.60 miles of underground plant.
            Plant bandwidth capacity was at 450 MHz.

            The distribution plant contained .750-inch trunk and .500 and
            .412-inch feeder cable. Additionally, the signal was microwaved from
            the headend to two sites in Talbot County, two sites in Queen Anne
            County and two sites in Kent County. Fiber was utilized throughout
            the system both from the headend and from microwave receive sites.

            Active electronics consisted of Magnavox trunk amplifiers and line
            extenders. Subscriber drops consisted of RG-6, RG-59, and RG-11
            cable. The longest trunk run was 19 amplifiers and the longest line
            extender cascade was 5 line extenders.

            Manufacturers of headend electronics included Scientific Atlanta,
            General Instruments, Drake, Cadco, M/A-Com and Olson. Fiber optic
            electronics were manufactured by Antec and Phillips. Off-air signals
            were received via antennas mounted on a 300-foot guyed tower at the
            headend. Satellite signals were received by earth stations ranging
            in size from 2.8 to 5.0 meters in diameter.

            Pay and tier security was accomplished through the use of traps.
            Converters in the field consisted of Jerrold DRZ-3 models.

                                 Redmond, Oregon
            The Redmond, Oregon plant included one headend located in the town
            of Redmond. As of the valuation date, the System included 116 miles
            of aerial plant and 54 miles of underground plant. Plant bandwidth
            capacity was at 270 MHz.

            The distribution plant contained .750 and .500-inch trunk and .500
            and .412-inch feeder cable. Active electronics consisted of Magnavox
            and Century trunk amplifiers and line extenders. Subscriber drops
            consisted of RG-6, RG-59, and RG-11 cable. The longest trunk cascade
            was 32 amplifiers and the longest line extender cascade was 5 line
            extenders.


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            Manufacturers of the headend electronics included General
            Instruments, Pico and Scientific Atlanta. Satellite signals were
            received by earth stations manufactured by Comtech and Scientific
            Atlanta.

            Pay security was accomplished through the combination of traps and
            addressability. Converters in the field were manufactured by
            Jerrold.

                               Somerset, Kentucky
            The Somerset, Kentucky plant included five headends located in the
            towns of Burnside, Columbia, Eubank, London, and McKinney. As of the
            valuation date, the Systems included 816.5 miles of aerial plant and
            18 miles of underground plant. Plant bandwidth capacity ranged from
            270 to 400 MHz.

            The distribution plant contained .860, .750 and .500-inch trunk and
            .500 and .412-inch feeder cable. Active electronics consisted of
            Scientific Atlanta, Tocom, Sylvania and Jerrold trunk amplifiers and
            line extenders. Subscriber drops consisted of RG-6 and RG-59 cable.
            The longest trunk run was 33 amplifiers and the longest line
            extender cascade was 8 line extenders.

            Manufacturers of headend electronics included General Instruments,
            Scientific Atlanta, Microdyne, Blonder Tongue, Triple Crown, Catel
            and Olson. Fiber optic electronics were manufactured by Antec and
            Scientific Atlanta. Off-air signals were received via antennas
            mounted on towers either at the headend or near the headend on a
            mountaintop site. Satellite signals were received by earth stations
            ranging in size from 3.0 to 5.0 meters in diameter.

            Pay security was accomplished through a combination of traps and
            addressability. Converters in the field consisted of Scientific
            Atlanta 8501, 8510, 8511, and 8600 non-addressable and addressable
            models.


      3.    Operations Review

            The Burke County, California City, Centreville, and Redmond systems
            each conducted operations from one centrally located business
            office. The Somerset systems had three business offices located at
            strategic points throughout the service areas.


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            Our visual inspection of the Systems included on-site inspections of
            the Burke County, NC system, the Centreville, MD system and the
            Somerset, KY systems. These systems represented nearly 90% of the
            subscribers within the five areas. Numerous new build areas were
            observed throughout the Systems. Our inspection of the active
            distribution plant showed the cable and strand to be in fair to good
            condition with very little signs of broken lashing wire.

            The headends observed during the on-site observations appeared to be
            very well organized and well maintained. Headend electronics
            consisted of a mixed batch of low to high quality brand name
            equipment and appeared to be in fair to excellent condition in each
            of the Systems.


      4.    Homes Passed and Subscribers

            Systems management's best estimate of the number of homes passed and
            subscribers as of the valuation date is as follows:
<TABLE>
<CAPTION>
Burke County, North Carolina                           Penetration
----------------------------                           -----------

<S>                                       <C>               <C>      
Homes Passed:                             18,986               N/A
Basic Subscribers:                        10,516             55.4%
Expanded Basic:                            9,097             86.5%
Pay Units:                                 4,840             46.0%
Converters:                               15,346            145.9%
Remotes:                                  10,922            103.8%
</TABLE>

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<TABLE>
<CAPTION>
California City, California                           Penetration
---------------------------                           -----------
<S>                                       <C>              <C>      
Homes Passed:                             2,858              N/A
Basic Subscribers:                        1,922            67.2%
Expanded Basic:                           1,820            94.7%
Pay Units:                                  839            43.7%
Converters:                                 931            48.4%
Remotes:                                    802            41.7%

Centreville, Maryland                                 Penetration
---------------------                                 -----------

Homes Passed:                            23,857              N/A
Basic Subscribers:                       12,325            51.7%
Expanded Basic:                          11,863            96.3%
Pay Units:                                7,440            60.4%
Converters:                               1,838            14.9%
Remotes:                                    681             5.5%

Redmond, Oregon                                       Penetration
---------------                                       -----------
Homes Passed:                             7,252              N/A
Basic Subscribers:                        3,516            48.5%
Expanded Basic:                           2,847            81.0%
Pay Units:                                  777            22.1%
Converters:                               1,050            29.9%
Remotes:                                    933            24.7%

Somerset, Kentucky                                    Penetration
------------------                                    -----------
Homes Passed:                            22,060              N/A
Basic Subscribers:                       19,296            87.5%
Expanded Basic:                          18,823            97.5%
Pay Units:                                3,914            20.3%
Converters:                               5,119            26.5%
Remotes:                                  4,622            24.0%
</TABLE>


            Management's estimate of homes passed were drawn from System
            information and based on a combination of billing records, previous
            audits and the System's maps.


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      5.    Franchise Agreements

            The following chart details the active franchises and agreements for
            the Systems and provides term expiration.
<TABLE>
<CAPTION>
            Franchise Area                   Expiration Date
            --------------                   ---------------


Burke County, North Carolina
----------------------------

<S>                                        <C>    
Burke County                               June 3, 1998
Connelly Springs                           October 7, 1999
Drexel                                     February 2, 2005
Glen Alpine                                October 31, 1998
Rutherford College                         October 10, 2001
Valdese                                    June 20, 2007

California City, California
---------------------------

California City                            April 1, 2001

Centreville, Maryland
---------------------

Barclay                                    March 13, 2009
Betterton                                  June 13, 2004
Centreville                                October 7, 1997
Chestertown                                March 29, 1998
Church Hill                                February 2, 2009
Kent County                                May 17, 2003
Millington                                 February 21, 2004
Oxford                                     August 27, 2006
Queen Anne's County                        September 1, 1997
Queenstown                                 June 16, 1998
Rock Hall                                  December 26, 2001
St. Michaels                               December 31, 1996
Sudlersville                               September 22, 2008
Talbot County                              May 29, 2006
Templeville                                May 3, 2008
Trappe                                     September 23, 2006
</TABLE>


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<TABLE>
<CAPTION>
            Franchise Area                   Expiration Date
            --------------                   ---------------


Redmond, Oregon
---------------

Redmond                                    February 23, 2002


Somerset, Kentucky
------------------

<S>                                        <C>    
Adair County                               May 8, 2005
Burnside                                   June 2, 2000
Columbia                                   August 27, 2011
Eubank                                     September 6, 1998
Ferguson                                   November 7, 2008
Laurel County                              May 27, 2009
Lincoln County (a)                         April 5, 1998
Lincoln County (b)                         May 5, 2007
Pulaski County (a)                         June 1, 1999
Pulaski County (b)                         October 26, 2008
Somerset                                   December 31, 1996
</TABLE>


The weighted average remaining life per basic subscriber of the
franchises for the Burke County System is 2.08 years. The weighted
average remaining life per basic subscriber of the franchises for
the California City System is 4.25 years. The weighted average
remaining life per basic subscriber of the franchises for the
Centreville System is 3.36 years. The weighted average remaining
life per basic subscriber of the franchises for the Redmond System
is 5.15 years. The weighted average remaining life per basic
subscriber of the franchises for the Somerset System is 6.24 years.


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      6.    Channel Line-Up and Rate Card

            As of the valuation date, the following average rates were charged
to subscribers.


<TABLE>
<CAPTION>
Burke County, North Carolina
----------------------------
<S>                                                   <C>   
Basic:                                                $16.96
Expanded Basic:                                         6.20
Pay:                                                    7.51
Converters:                                             2.50
Remotes:                                                0.03
Installation:                                          45.00
Reconnect:                                             45.00

California City, California
---------------------------
Basic:                                                $15.77
Expanded Basic:                                         6.00
Pay:                                                    8.14
Converters:                                             4.46
Remotes:                                                0.34
Installation:                                          45.00
Reconnect:                                             45.00

Centreville, Maryland
---------------------
Basic:                                                $20.60
Expanded Basic:                                         3.52
Pay:                                                    8.54
Converters:                                             1.99
Remotes:                                                 .68
Installation:                                          45.00
Reconnect:                                             45.00


Redmond, Oregon
---------------
Basic:                                                $22.23
Expanded Basic:                                         2.05
Pay:                                                    6.16
Converters:                                             2.57
Remotes:                                                0.22
Installation:                                          45.00
Reconnect:                                             45.00


</TABLE>
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<TABLE>
<CAPTION>
Somerset, Kentucky
------------------
<S>                                                    <C>  
Basic:                                                 19.24
Expanded Basic:                                         2.37
Pay:                                                    8.71
Converters:                                             1.58
Remotes:                                                0.33
Installation:                                          45.00
Reconnect:                                             45.00
</TABLE>

            Detailed channel line-up and rate information is included in
Addendum 1.


      7.    Financial History

            For purposes of our investigation, we were furnished for review
            financial statements for each of the Systems for the years ending
            December 31, 1993, 1994, 1995 and 1996. We have accepted such
            information, without audit or investigation on our part, as
            correctly reflecting the business and financial operations and
            conditions it was purported to reflect but made such adjustments as
            we deemed appropriate for valuation purposes.

            Recent financial operating history is discussed below, and summary
            income statements, including notations pertaining to adjustments,
            are presented in Addendum 3.

            In the Burke County system, total revenues for the twelve months
            ended December, 1996 were $5,077,787 and operating expenses totaled
            $2,023,543, resulting in operating income of $3,054,244 and an
            operating margin of 60.15%. This represents an increase in operating
            income of 3.5% over the previous year from $2,951,419 reported for
            the year ended December 31, 1995.

            In the California City system, total revenues for the twelve months
            ended December, 1996 were $753,244 and operating expenses totaled
            $318,288, resulting in operating income of $434,956 and an operating
            margin of 57.74%. This represents an increase in operating income of
            5.2% over the previous year from $413,393 reported for the year
            ended December 31, 1995.


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            In the Centreville system, total revenues for the twelve months
            ended December, 1996 were $5,342,637 and operating expenses totaled
            $2,623,275, resulting in operating income of $2,719,362 and an
            operating margin of 50.90%. This represents an increase in operating
            income of 31% over the previous year from $2,075,645 reported for
            the year ended December 31, 1995.

            In the Redmond system, total revenues for the twelve months ended
            December, 1996 were $1,561,593 and operating expenses totaled
            $632,632, resulting in operating income of $928,961 and an operating
            margin of 59.49%. This represents an increase in operating income of
            5% over the previous year from $885,188 reported for the year ended
            December 31, 1995.

            In the Somerset systems, total revenues for the twelve months ended
            December, 1996 were $7,090,865 and operating expenses totaled
            $3,102,395, resulting in operating income of $3,988,470 and an
            operating margin of 56.25%. This represents an increase in operating
            income of 16.1% over the previous year from $3,436,148 reported for
            the year ended December 31, 1995.

      8.    Management

            Our representative met and interviewed several members of management
            during the on-site review of the Systems. The management team in
            place at the time of the valuation was comprised of professionals in
            the cable television industry and demonstrated substantial knowledge
            about all aspects of the Systems' operation.


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D.    VALUATION METHODOLOGY


      1.    Purpose

            We were engaged to render an opinion as to the fair market value of
            the cable television systems owned by Falcon Classic Cable Income
            Properties, LP ("Classic" or the "Systems") as of December 31, 1996.
            Classic offers cable service in five areas: Burke County, NC,
            California City, CA, Centreville, MD, Redmond, OR and Somerset, KY.
            The scope of our engagement was to value each cluster of cable
            television systems operating as a single going concern. The purpose
            of our report is to assist in a possible partnership buyout
            involving Falcon Holdings Group L.P. (or its affiliates) and
            Classic's partners. We were not engaged to make specific purchase,
            sale or lending recommendations. This report is not a fairness 
            opinion.

            The Burke County, NC system serves the towns of Connelly Springs,
            Drexel, Glen Alpine, Rutherford College and Valdese, as well as
            certain unincorporated areas of Burke County, NC. The California
            City, CA system serves California City as well as certain
            unincorporated areas of Kern County, CA. The Centreville, MD system
            serves the towns of Barclay, Betterton, Centreville, Chestertown,
            Church Hill, Millington, Oxford, Queenstown, Rock Hall, St.
            Michaels, Sudlersville, Templeville and Trappe as well as certain
            unincorporated areas of Kent, Talbot and Queen Anne's Counties. The
            Redmond, OR system serves Redmond and certain unincorporated areas
            of Deschutes County, OR. The Somerset, KY systems serve the cities
            of Burnside, Columbia, Eubank, Ferguson, McKinney and Somerset, as
            well as certain unincorporated areas of Adair, Pulaski, Laurel and
            Lincoln Counties.


      2.    Definition of Fair Market Value

            For purposes of this report, fair market value is defined as the
            estimated cash or cash equivalent price at which the subject
            properties would change hands between a willing buyer and a willing
            seller, in an arm's length transaction, in which both buyer and
            seller have been informed of all relevant facts and neither is under
            compulsion to complete the transaction. This concept of value is
            supported by numerous court decisions dealing 


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            with fair market value. Further, it is assumed that all assets will
            remain in place and be employed in the delivery of cable television
            signals to subscribers, which is assumed to be the highest and best
            use of those assets.


      3.    Three Approaches to Value

            Traditionally, the development of a fair market value opinion is
            based on the consideration of three basic approaches to value: the
            Cost Approach, the Market Approach and the Income Approach. The cost
            approach measures the value of an asset by the cost to reconstruct
            or replace it with another of like utility. The income approach
            measures the value of an asset by the present value of its future
            economic benefits. The market approach measures the value of an
            asset through an analysis of recent sales or offerings of comparable
            property. Value indications derived through one or more of these
            approaches are then analyzed in order to formulate an objective
            opinion as to the market value of the Systems under valuation.

            We considered these three generally accepted valuation methods in
            determining the Systems' fair market value. In considering the
            income approach, two methodologies were used: an operating income
            capitalization method and a discounted cash flow calculation. The
            capitalization method is presented in part D-5 of this report, and
            the discounted cash flow methodology is described in sections D-6
            through D-8. We considered the market approach as presented in part
            D-9 of the report. The cost approach was considered but not used
            because it does not adequately capture the value attributable to the
            continued operation of the business.


      4.    Overall Valuation Procedure

            We employed the following steps in determining the fair market value
            of the Systems:

             a.   Performed an on-site inspection of a representative portion of
                  the Systems' headends, earth stations, towers, antennas,
                  distribution plant, customer service and technical offices to
                  determine technical and/or physical condition.


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             b.   Performed an on-site review of a representative portion of the
                  Systems' service area to confirm economic and demographic data
                  and information collected from the Systems' management, local
                  governmental jurisdictions and independent sources.

             c.   Examined financial statements and other information.

             d.   Examined historic subscriber records and monthly reports.

             e.   Reviewed historic service rate records.

             f.   Reviewed franchises and other agreements.

             g.   Interviewed  management and staff on a variety of financial,
                  operational, technical, marketing and programming issues.

             h.   Applied the most likely changes, in our opinion, in operations
                  and finance that a reasonable, prudent, "outside" buyer would
                  institute.

             i.   Applied or considered an operating  income  capitalization  
                  method, a discounted cash flow method and a comparable sales
                  methodology.

             j.   Derived an estimated fair market value which considered the
                  results of the various valuation methods, giving greater
                  weight to the discounted cash flow and projected income
                  capitalization methods, since they reflect future factors, as
                  well as past and current, affecting overall systems value.

            We conducted an on-site inspection of a representative portion of
            the cable systems to determine physical condition and satisfactory
            function of fixed assets currently in place.

            We assessed the reasonableness of management's 1997 budget regarding
            homes, subscribers, miles, rates, revenues, operating expenses, and
            capital expenditures. We used essentially the same estimates for
            future growth in miles and homes in our analysis in the assumption
            that a typical outside buyer would plan to achieve the same level of


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            growth. The annual capital expenditure assumptions for both new
            construction, rebuilds and ongoing maintenance used in our analysis
            are similar to or slightly less than those projected by management.


      5.    Operating Income Capitalization Method

            We considered three variations of the operating income
            capitalization method. In the first variation, we applied a baseline
            multiplier to the Systems' adjusted 1996 12-month operating income
            based on historical financial information presented in Addendum 3.
            The baseline multiplier was derived from a variety of cable industry
            data including public and private transactions, public stock data,
            industry trends and other information. The second variation of this
            method utilized a slightly lower multiplier applied to the Systems'
            current operating income. Current operating income is defined as the
            annualized estimate of the Systems' current monthly operating income
            based on the number of subscribers and the service rates charged on
            the date of the valuation. A lower multiplier was used to recognize
            the risk and uncertainty of using operating income estimated by
            annualization rather than historic data. We applied an even lower
            multiplier to the Systems' estimated future operating income in the
            third variation of the operating income capitalization method. We
            used the lower multiple to recognize the greater risk and
            uncertainty of using future estimates of operating income rather
            than historic achievements. The results of the three income
            capitalization methods are presented in Exhibits F.


      6.    Discounted Cash Flow Methodology

            The discounted cash flow methodology measured the net present value
            of the Systems' estimated future pre-tax operating income, less
            capital expenditures, plus the residual value of the Systems. This
            methodology relied on estimates of future operating income which
            were derived from data supplied by the Systems' management and
            certain assumptions based on experience and professional judgment.

            The revenue estimates were based on data provided by management
            regarding homes passed, subscribers, special services, rates, and
            penetration levels. The expense estimates, based on many of the same
            factors as the revenue estimates, also were overlaid with inflation
            factors specific to the expense categories. In all cases, our work


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            was based on management's 1997 budget and our experience with
            comparable cable systems. Capital expenditures were based on
            anticipated new miles of plant, plant rebuild, converter
            replacement, system upgrades, and other expense factors that
            generally vary from system to system.

            A residual value was added to the operating income stream in the
            final year of the period analyzed. The residual value was discounted
            to the present at the same rate as the operating income. The
            residual analysis estimated the present value of the Systems at the
            end of the horizon period. We calculated the residual as a multiple
            of operating income in the final year of the operating income
            analysis. The residual multiple was lower than the multiple used in
            the operating income capitalization method to account for the
            uncertainty of regulation, competition and technological changes.

            An important component of the discounted cash flow methodology is
            the selection of the discount rate for overall capital or total
            investment. We combined two basic components, i.e., the anticipated
            return on investors' equity and the cost of debt, to create the
            discount rate. As the equity return rate, we used the expected rate
            of return available on alternative investment opportunities with
            comparable risk. The equity return rate was developed using the
            capital asset pricing model ("CAPM"), as outlined in Addendum 2.
            CAPM, which is part of a larger theory known as the capital market
            theory, is based on the fact that investors in risky assets require
            an additional return above the risk free market rate as compensation
            for investing in the particular asset.

            In determining the risk component of the equity portion of capital
            we analyzed the systematic and unsystematic risks associated with
            the subject properties. Systematic risk is a measure of the
            uncertainty of future returns due to the sensitivity of the return
            on the subject investment to movements in the return for the market
            as a whole. Systematic risk is measured in CAPM by a factor called
            beta. Beta is a function of the relationship between the return on
            an individual security and the return on the market as measured by
            the return on a standard market index. Unsystematic risk is a
            measurement of the risk directly related to the characteristics of a
            specific industry, the cable system itself, community/municipal
            relationships, competition, regulation, and management ability.


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            The discount rate was determined by combining the cost of equity (as
            determined above) and the cost of debt in weighted proportions
            (weighted average cost of capital) that would have been typical for
            the Systems, or a comparable system, and which were representative
            of the industry as of the valuation date (see Addendum 2). The cost
            of debt was based on the benchmark prime lending rate as listed in
            The Wall Street Journal. The prime lending rate is one customarily
            used as a basis for the cable television industry. Points over prime
            were assigned to the debt structure based on the anticipated risk
            involved in the loan and prevailing bank industry standards. The
            discounted cash flow model is presented in Exhibits E.


      7.    Residual Value

            The residual value of the cable property represents the best
            estimate, as of the valuation date, of the fair market value of the
            property in the final year considered in our analysis. The residual
            is calculated via a valuation multiplier similar to the multipliers
            used in the operating income capitalization method. Once calculated,
            the residual value is added to the operating income stream. The
            premise upon which the use of a residual value is based is the fact
            that significant value will be returned to the owner of a property
            at the end of its holding period. Alternatively, the owner will
            continue to hold the property and realize operating profit well into
            the future. The residual multiplier captures both aspects of value.

            For most well operated cable television systems the residual
            multiplier is the same, given the same valuation date. However, a
            number of factors can be cause for adjustment to the multiplier. For
            instance, a cable system without a likely prospect for franchise
            renewal would have little or no value at the end of the franchise
            term. In this example, a lower than average, or possibly zero
            multiplier would be used. If, for instance, a system had a
            significant number of years remaining on the current franchise plus
            a renewal already assured it might garner a higher than average
            multiplier. Franchise life, terms and conditions represent only a
            single consideration that is made when determining the multiplier.
            Other significant considerations include rate regulation,
            competition, expanded services, market maturity, and operating
            trends.

            Based on the aforementioned considerations, we have selected a
            residual multiple of 8.5 (eight and one half) for the Somerset
            system, (eight) for the Centreville system, 7.5 


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            (seven and one half) for the Burke County system, and 7 (seven) for
            the Redmond and California City systems. The residual multiple is
            applied to operating income in the final year of our operating
            income analysis. As a result, the residual value of the property is
            calculated to be $30,052,136 for the Burke County system, $3,800,438
            for the California City system, $36,593,516 for the Centreville
            system, $9,001,414 for the Redmond system and $48,434,673 for the
            Somerset system, as shown in Exhibits E.


      8.    Analysis of Future Projections

            A key factor in determining the fair market value of a cable
            television property is the ability to accurately assess the Systems'
            future operating characteristics and the resulting operating income
            and cash flow. Operating income and cash flow are the primary
            drivers of overall fair market value.

            Operating analyses generally take into consideration a number of
            system specific characteristics as well as industry characteristics.
            System specific considerations include homes passed and homes
            growth, subscriber penetration (all services) and system maturity,
            economic and demographic composition of the market, marketing and
            administration, and programming. We examine the historic growth and
            composition of all these areas as well as management's forecast of
            growth. Industry characteristics include subscriber trends for the
            various programming services, program ratings and offerings,
            marketing trends, and industry developed consumer mandates for
            service and accessibility.

            Additionally, a great deal of attention is given to the age,
            condition and functionality of the Systems' physical plant as this
            impacts the estimate of future capital expenditures. We rely on
            management's best estimate of planned capital expenses for near term
            projections (generally five years). We corroborate management's
            forecast with our observations of the Systems' physical plant.
            Adjustments are then made to management estimates, when deemed
            necessary.

            We considered all of these factors when analyzing the operational
            and financial future of the Systems. The major items that we
            analyzed included homes passed, miles of plant, basic subscribers,
            pay service units (HBO, Showtime, etc.), additional outlets (more
            than one television in a home with service), and remote control or
            converter units. 


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<PAGE>   37


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            Additionally, we analyzed future rates (for all services) that might
            be charged to the subscribers, revenue by specific category (basic,
            pay, pay-per-view, advertising, etc.), expenses by category
            (programming, operations, etc.) and capital expenditures. We
            considered in our analyses regulations in effect at the time of the
            valuation or likely to take effect soon after the valuation date. We
            then used the results of our detailed analyses in determining the
            value of the properties as a whole. Our calculations also were
            based, in part, on the historical financial and operational
            performance of the Systems and other systems of similar
            configuration. The operating horizon period was determined by the
            weighted average remaining life of the franchises.

            The analysis pertaining to the Systems' future operations as
            described above is presented in Exhibits A, B, C, and D.


      9.    Comparable Sales Methodology

            We utilized a market approach, or comparable sales method, in
            analyzing the subject properties. Under this method, sales of
            properties of similar size and construction were compared to the
            subject properties. It should be noted that the market approach is
            the least reliable of the valuation methodologies considered.
            Because detailed financial, technical and operating information is
            not generally available regarding cable television transactions, it
            is impossible to relate these prices to the operating performance of
            any particular property or to make a direct comparison with the
            subject properties. This method is used to generally validate the
            overall market and to confirm the range of values developed with the
            economic methods as reasonable.


                                       30
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[LOGO - ARTHUR ANDERSEN]

<TABLE>
<CAPTION>
Recent Transactions/
  Announced Sales             Price      Price/Subscriber   Multiple(1)
  ---------------             -----      ----------------   ---------
<S>                        <C>              <C>                <C>
Kern Valley, CA            $11,000,000      $1,571             8.8
Loudon City, TN             $1,700,000      $1,164             7.0
IL and IA                   $9,400,000      $1,237             7.5
Las Vegas, NV               $7,100,000      $1,309             8.3
Genoa, NE                   $1,700,000      $1,296             8.9

Burke County               $17,685,000      $1,682(2)          6.2
California City             $2,791,000      $1,452(3)          7.2
Centreville                $20,445,000      $1,659(4)          7.3
Redmond                     $5,882,000      $1,673(5)          7.1
Somerset                   $30,277,000      $1,569(6)          8.1
</TABLE>

           (1)      Multiple of next year's projected operating income.
           (2)      $1,682 per beginning subscriber; $1,690 per 
                    average year 1 subscriber.
           (3)      $1,452 per beginning subscriber; $1,433 per 
                    average year 1 subscriber.
           (4)      $1,659 per beginning subscriber; $1,633 per 
                    average year 1 subscriber.
           (5)      $1,673 per beginning subscriber; $1,514 per 
                    average year 1 subscriber.
           (6)      $1,569 per beginning subscriber; $1,566 per 
                    average year 1 subscriber.

            Although the range of values presented above is too wide from which
            to derive any conclusive supporting evidence, the values of Burke,
            California City, Centreville, Redmond, and Somerset at $17,685,000,
            $2,791,000, $20,455,000, $5,882,000 and $30,277,000, respectively,
            appear to be reasonable.


                                       31
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E.    CONCLUSIONS

      Based on our analysis and investigation of the Systems, and its service
      areas, it is our opinion that the fair market value of the subject
      properties, as a going concern, free and clear of all liens and
      encumbrances, as of December 31, 1996, is $17,685,000 for Burke County,
      $2,791,000 for California City, $20,455,000 for Centreville, $5,882,000
      for Redmond and $30,277,000 for Somerset. Our opinion is based on
      information and data supplied by the Systems' management, our on-site
      inspection of the Systems and the areas served and cable television
      industry information. This valuation is expressly subject to the General
      Assumptions and Limiting Conditions as defined in this report.


                                       32
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[LOGO - ARTHUR ANDERSEN]


F.    GENERAL ASSUMPTIONS AND LIMITING CONDITIONS


      This appraisal report is subject to the following general assumptions and
      limiting conditions:

      1.       No investigation has been made of, and no responsibility is
               assumed for, the legal description of the properties being valued
               or legal matters, including title or encumbrances. Title to the
               properties is assumed to be good and marketable unless otherwise
               stated. The properties are assumed to be free and clear of any
               liens, easements or encumbrances unless otherwise stated.

      2.       Information furnished by others, upon which all or portions of
               this report is based, is believed to be reliable, but has not
               been verified in all cases. No warranty is given as to the
               accuracy of such information.

      3.       This report has been made only for the purpose stated and shall
               not be used for any other purpose. Neither this report nor any
               portions thereof (including without limitation any conclusions as
               to value, the identity of Arthur Andersen LLP or any individuals
               signing or associated with this report, or the professional
               associations or organizations with which they affiliated) shall
               be disseminated to third parties except federal and state taxing
               authorities by any means without the prior written consent and
               approval of Arthur Andersen LLP.

      4.       Neither Arthur Andersen LLP nor any individuals signing or
               associated with this report shall be required by reason of this
               report to give further consultation, to provide testimony, or
               appear in court or other legal proceedings unless specific
               arrangements therefor have been made.

      5.       This appraisal has been made in conformance with, and is subject
               to, the requirements of the Principles of Appraisal Practice and
               Code of Ethics of the American Society of Appraisers and the
               Uniform Standards of Professional Appraisal Practice of The
               Appraisal Foundation.


                                       33
<PAGE>   41


[LOGO - ARTHUR ANDERSEN]


      6.       No responsibility is taken for changes in market conditions and
               no obligation is assumed to revise this report to reflect events
               or conditions which occur subsequent to the valuation date
               hereof.

      7.       The date of value to which the conclusions and opinions expressed
               in this report apply is set forth in this opinion letter. Our
               value opinion is based on the purchasing power of the United
               States' dollar as of this date.

      8.       It is assumed that all required licenses, certificates of
               occupancy, consents, or other legislative or administrative
               authority from any local, state, or national government or
               private entity or organization have been, or can readily be,
               obtained or renewed for any use on which the value estimates
               provided in this report are based.

      9.       Full compliance with all applicable federal, state and local
               zoning use, environmental and similar laws and regulations is
               assumed, unless otherwise stated.

      10.      Responsible ownership and competent property management are 
               assumed.

      11.      The opinion of value is  predicated  on the  financial  structure
               prevailing as of the date of this valuation.

      12.      We were not engaged nor are we qualified to detect the  existence
               of toxic or hazardous material or the presence of radio frequency
               radiation which may or may not be present on or near the
               properties of the appraised entity (the "Company"). The presence
               of radio frequency radiation or potentially toxic or hazardous
               substances such as asbestos, urea-formaldehyde foam insulation,
               industrial wastes, etc. may affect the value of the Company. The
               value estimates herein are predicted on the assumption that there
               is no such radiation or material on, in, or near the Company's
               properties that would cause a loss in value. No responsibility is
               assumed for any such conditions or for any expertise or
               engineering knowledge required to discover them. Falcon Classic
               Cable Income Properties, L.P., Falcon Cable TV, Falcon Holdings
               Group, L.P. should retain an expert in this field if further
               information is desired.


                                       34
<PAGE>   42


[LOGO - ARTHUR ANDERSEN]


      13.a.    Falcon Classic Cable Income  Properties,  L.P.,  Falcon Cable TV,
               Falcon Holdings Group, L.P. shall indemnify and hold harmless
               Arthur Andersen LLP, its affiliates, partners, agents and
               employees from and against any losses, claims, damages or
               liabilities (or actions in respect thereof) that may be asserted
               by Conflicts Committee of Falcon Classic Cable Income Properties,
               L.P., or any person or entity who may receive our report, except
               to the extent of any losses, claims, damages or liabilities (or
               actions in respect thereof) arising by reason of gross negligence
               or willful misconduct of Arthur Andersen LLP in preparing the
               report, and will reimburse Arthur Andersen LLP for all expenses
               (including counsel fees) as they are incurred by Arthur Andersen
               LLP in connection with investigating, preparing or defending any
               such action or claim.

         b.    In any circumstance in which the foregoing  indemnification  is 
               held by a court to be unavailable to Arthur Andersen LLP, Falcon
               Classic Cable Income Properties, L.P., Falcon Cable TV, Falcon
               Holdings Group, L.P. and Arthur Andersen LLP shall contribute to
               any aggregate losses, claims, damages or liabilities (including
               the related fees and expenses) to which Falcon Classic Cable
               Income Properties, L.P., Falcon Cable TV, Falcon Holdings Group,
               L.P. and Arthur Andersen LLP may be subject in such proportion
               that Arthur Andersen LLP shall be responsible only for that
               portion represented by the percentage that the fees paid to
               Arthur Andersen LLP for the portion of its services or work
               product giving rise to the liabilities bears to the value of the
               transaction giving rise to such liability.

      14.      This report is not a fairness opinion.


                                       35


<PAGE>   43


[LOGO - ARTHUR ANDERSEN]


G.    CERTIFICATION

      The undersigned hereby certifies that we have no present or contemplated
      future interest in the properties that are the subject of this report and
      have no personal interest or bias with respect to the parties involved;
      neither our employment nor our compensation in connection with this report
      is in any way contingent upon the conclusions reached or values estimated;
      the values and conclusions contained herein, limited only by the reported
      assumptions and limiting conditions, reflect our personal, unbiased
      professional judgment; this appraisal has been prepared in conformance
      with the "Uniform Standards of Professional Appraisal Practice"; no person
      other than the undersigned or those acknowledged in this report prepared
      the analysis, values or conclusions set forth in this report; and to the
      best of our knowledge and belief, the statements of fact contained in this
      report are true and correct.

                                                              /S/Anthony P. Kern
                                                     --------------------------
                                                                 Anthony P. Kern

Contributing Analysts:
John F. Lisciandro
Vance L. Wilson


                                       36
<PAGE>   44


[LOGO - ARTHUR ANDERSEN]





                                EXHIBITS


                                A. Cable Television Miles, Homes and Subscribers

                                B. Service Rates

                                C. Revenue, Expenses, Operating Income

                                D. Capital Expenditures

                                E. Discounted Cash Flow Valuation

                                F. Valuation Matrix




                                       37
<PAGE>   45
EXHIBIT A-1

---------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
BURKE COUNTY, NC
AS OF DECEMBER 31, 1996
---------------------------------------------------

---------------------------------------------------
CABLE TELEVISION MILES, HOMES PASSED, SUBSCRIBERS
---------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDING DECEMBER 31,                1997           1998           1999           2000          2001          2002          2003
                                        ----           ----           ----           ----          ----          ----          ----
<S>                                   <C>            <C>            <C>            <C>           <C>           <C>           <C>  
BEGINNING MILES                        731.1                                                                                       
NEW MILES                                8.0            8.0            8.0            8.0           8.0           8.0           8.0
TOTAL                                  739.1          747.1          755.1          763.1         771.1         779.1         787.1
PERCENT GROWTH                          1.09%          1.08%          1.07%          1.06%         1.05%         1.04%         1.03%

BEGINNING HOMES                       18,986
NEW HOMES                                150            150            150            150           150           150           150
AVERAGE HOMES                         19,061         19,211         19,361         19,511        19,661        19,811        19,961
TOTAL                                 19,136         19,286         19,436         19,586        19,736        19,886        20,036
PERCENT GROWTH                           0.8%           0.8%           0.8%           0.8%          0.8%          0.8%          0.8%
NEW BUILD DENSITY                         19             19             19             19            19            19            19
AVERAGE DENSITY                           26             26             26             26            26            26            25

BEGINNING BASIC                       10,516         10,408         10,393         10,377        10,750        11,030        11,213
NEW BASIC                               (108)           (15)           (16)           374           280           183            85
AVERAGE BASIC                         10,462         10,400         10,385         10,563        10,890        11,122        11,256
TOTAL                                 10,408         10,393         10,377         10,750        11,030        11,213        11,298
PENETRATION                             54.4%          53.9%          53.4%          54.9%         55.9%         56.4%         56.4%

EXPANDED BASIC                         9,097          8,951          8,939          8,924         9,246         9,487         9,644
NEW EXPANDED                            (146)           (13)           (14)           322           241           158            73
AVERAGE EXPANDED                       9,024          8,945          8,931          9,085         9,366         9,565         9,681
TOTAL                                  8,951          8,939          8,924          9,246         9,487         9,644         9,717
PENETRATION                             86.0%          86.0%          86.0%          86.0%         86.0%         86.0%         86.0%

BEGINNING PAY                          4,840          4,686          4,627          4,620         4,787         4,911         4,993
NEW PAY                                 (154)           (59)            (7)           166           125            82            38
AVERAGE PAY                            4,763          4,657          4,624          4,703         4,849         4,952         5,012
TOTAL                                  4,686          4,627          4,620          4,787         4,911         4,993         5,030
PENETRATION                             45.0%          44.5%          44.5%          44.5%         44.5%         44.5%         44.5%

BEGINNING CONVERTERS                  15,346         15,188         15,166         15,142        15,688        16,096        16,364
NEW CONVERTERS                          (158)           (22)           (24)           546           408           267           123
AVERAGE CONVERTERS                    15,267         15,177         15,154         15,415        15,892        16,230        16,425
TOTAL                                 15,188         15,166         15,142         15,688        16,096        16,364        16,487
PENETRATION                            145.9%         145.9%         145.9%         145.9%        145.9%        145.9%        145.9%

BEGINNING REMOTES                     10,922         10,810         10,794         10,777        11,165        11,456        11,646
NEW REMOTES                             (112)           (15)           (17)           388           290           190            88
AVERAGE REMOTES                       10,866         10,802         10,786         10,971        11,311        11,551        11,690
TOTAL                                 10,810         10,794         10,777         11,165        11,456        11,646        11,734
PENETRATION                            103.9%         103.9%         103.9%         103.9%        103.9%        103.9%        103.9%

                                                                                                                 ARTHUR ANDERSEN LLP

</TABLE>
<PAGE>   46


EXHIBIT A-2

-------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CALIFORNIA CITY, CALIFORNIA
AS OF DECEMBER 31, 1996
-------------------------------------------------

-------------------------------------------------
CABLE TELEVISION MILES, HOMES PASSED, SUBSCRIBERS
-------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDING DECEMBER 31,                   1997          1998          1999          2000          2001          2002           2003
                                           ----          ----          ----          ----          ----          ----           ----
<S>                                       <C>           <C>           <C>           <C>           <C>           <C>           <C>   
BEGINNING MILES                            90.1
NEW MILES                                   2.0           1.0           1.0           1.0           1.0           1.0           1.0
TOTAL                                      92.1          93.1          94.1          95.1          96.1          97.1          98.1
PERCENT GROWTH                             2.22%         1.09%         1.07%         1.06%         1.05%         1.04%         1.03%

BEGINNING HOMES                           2,858
NEW HOMES                                    80            40            40            40            40            40            40
AVERAGE HOMES                             2,898         2,958         2,998         3,038         3,078         3,118         3,158
TOTAL                                     2,938         2,978         3,018         3,058         3,098         3,138         3,178
PERCENT GROWTH                              2.8%          1.4%          1.3%          1.3%          1.3%          1.3%          1.3%
NEW BUILD DENSITY                            40            40            40            40            40            40            40
AVERAGE DENSITY                              32            32            32            32            32            32            32

BEGINNING BASIC                           1,922         1,973         2,000         2,027         2,053         2,080         2,107
NEW BASIC                                    51            27            27            27            27            27            27
AVERAGE BASIC                             1,947         1,986         2,013         2,040         2,067         2,094         2,121
TOTAL                                     1,973         2,000         2,027         2,053         2,080         2,107         2,134
PENETRATION                                67.1%         67.1%         67.1%         67.1%         67.1%         67.1%         67.1%

EXPANDED BASIC                            1,820         1,866         1,892         1,917         1,942         1,968         1,993
NEW EXPANDED                                 46            25            25            25            25            25            25
AVERAGE EXPANDED                          1,843         1,879         1,904         1,930         1,955         1,981         2,006
TOTAL                                     1,866         1,892         1,917         1,942         1,968         1,993         2,019
PENETRATION                                94.6%         94.6%         94.6%         94.6%         94.6%         94.6%         94.6%

BEGINNING PAY                               839           851           863           875           886           898           909
NEW PAY                                      12            12            12            12            12            12            12
AVERAGE PAY                                 845           857           869           880           892           903           915
TOTAL                                       851           863           875           886           898           909           921
PENETRATION                                43.2%         43.2%         43.2%         43.2%         43.2%         43.2%         43.2%

BEGINNING CONVERTERS                        931           956           969           982           995         1,008         1,021
NEW CONVERTERS                               25            13            13            13            13            13            13
AVERAGE CONVERTERS                          943           962           975           988         1,001         1,014         1,027
TOTAL                                       956           969           982           995         1,008         1,021         1,034
PENETRATION                                48.4%         48.4%         48.4%         48.4%         48.4%         48.4%         48.4%

BEGINNING REMOTES                           802           823           834           846           857           868           879
NEW REMOTES                                  21            11            11            11            11            11            11
AVERAGE REMOTES                             813           829           840           851           862           874           885
TOTAL                                       823           834           846           857           868           879           890
PENETRATION                                41.7%         41.7%         41.7%         41.7%         41.7%         41.7%         41.7%

                                                                                                                 ARTHUR ANDERSEN LLP
</TABLE>


<PAGE>   47



EXHIBIT A-3

---------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CENTREVILLE, MARYLAND
AS OF DECEMBER 31, 1996
---------------------------------------------

---------------------------------------------
CABLE TELEVISION MILES, HOMES PASSED, SUBSCRIBERS
---------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDING DECEMBER 31,                   1997          1998          1999          2000          2001          2002           2003
                                           ----          ----          ----          ----          ----          ----           ----
<S>                                      <C>           <C>           <C>           <C>           <C>           <C>           <C>    
BEGINNING MILES                           649.8
NEW MILES                                   5.0           5.0           5.0           5.0           5.0           5.0           5.0
TOTAL                                     654.8         659.8         664.8         669.8         674.8         679.8         684.8
PERCENT GROWTH                             0.77%         0.76%         0.76%         0.75%         0.75%         0.74%         0.74%

BEGINNING HOMES                          23,857
NEW HOMES                                   300           300           300           300           300           300           300
AVERAGE HOMES                            24,007        24,307        24,607        24,907        25,207        25,507        25,807
TOTAL                                    24,157        24,457        24,757        25,057        25,357        25,657        25,957
PERCENT GROWTH                              1.3%          1.2%          1.2%          1.2%          1.2%          1.2%          1.2%
NEW BUILD DENSITY                            60            60            60            60            60            60            60
AVERAGE DENSITY                              37            37            37            37            38            38            38

BEGINNING BASIC                          12,325        12,722        13,002        13,409        13,822        14,621        15,051
NEW BASIC                                   397           280           407           413           799           430           306
AVERAGE BASIC                            12,523        12,862        13,205        13,615        14,222        14,836        15,204
TOTAL                                    12,722        13,002        13,409        13,822        14,621        15,051        15,357
PENETRATION                                52.7%         53.2%         54.2%         55.2%         57.7%         58.7%         59.2%

EXPANDED BASIC                           11,863        12,245        12,514        12,906        13,304        14,073        14,487
NEW EXPANDED                                382           270           392           398           769           413           294
AVERAGE EXPANDED                         12,054        12,380        12,710        13,105        13,689        14,280        14,634
TOTAL                                    12,245        12,514        12,906        13,304        14,073        14,487        14,781
PENETRATION                                96.3%         96.3%         96.3%         96.3%         96.3%         96.3%         96.3%

BEGINNING PAY                             7,440         7,552         7,719         7,960         8,205         8,680         8,935
NEW PAY                                     112           166           242           245           475           255           182
AVERAGE PAY                               7,496         7,635         7,839         8,083         8,443         8,807         9,026
TOTAL                                     7,552         7,719         7,960         8,205         8,680         8,935         9,117
PENETRATION                                59.4%         59.4%         59.4%         59.4%         59.4%         59.4%         59.4%

BEGINNING CONVERTERS                      1,838         1,897         1,939         2,000         2,061         2,180         2,245
NEW CONVERTERS                               59            42            61            62           119            64            46
AVERAGE CONVERTERS                        1,868         1,918         1,969         2,030         2,121         2,212         2,267
TOTAL                                     1,897         1,939         2,000         2,061         2,180         2,245         2,290
PENETRATION                                14.9%         14.9%         14.9%         14.9%         14.9%         14.9%         14.9%

BEGINNING REMOTES                           681           703           718           741           764           808           832
NEW REMOTES                                  22            15            22            23            44            24            17
AVERAGE REMOTES                             692           711           730           752           786           820           840
TOTAL                                       703           718           741           764           808           832           849
PENETRATION                                 5.5%          5.5%          5.5%          5.5%          5.5%          5.5%          5.5%

                                                                                                                 ARTHUR ANDERSEN LLP
</TABLE>

<PAGE>   48



EXHIBIT A-4

--------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
REDMOND, OREGON
AS OF DECEMBER 31, 1996
--------------------------------------

--------------------------------------
CABLE TELEVISION MILES, HOMES PASSED, SUBSCRIBERS
--------------------------------------
<TABLE>
<CAPTION>
YEAR ENDING DECEMBER 31,                 1997          1998           1999           2000          2001          2002          2003
                                         ----          ----           ----           ----          ----          ----          ----
<S>                                     <C>           <C>           <C>            <C>           <C>           <C>           <C>   
BEGINNING MILES                         170.0
NEW MILES                                29.0           6.0            6.0            6.0           6.0           6.0           6.0
TOTAL                                   199.0         205.0          211.0          217.0         223.0         229.0         235.0
PERCENT GROWTH                          17.06%         3.02%          2.93%          2.84%         2.76%         2.69%         2.62%

BEGINNING HOMES                         7,252
NEW HOMES                               2,310           300            300            300           300           300           300
AVERAGE HOMES                           8,407         9,712         10,012         10,312        10,612        10,912        11,212
TOTAL                                   9,562         9,862         10,162         10,462        10,762        11,062        11,362
PERCENT GROWTH                           31.9%          3.1%           3.0%           3.0%          2.9%          2.8%          2.7%
NEW BUILD DENSITY                          80            50             50             50            50            50            50
AVERAGE DENSITY                            48            48             48             48            48            48            48

BEGINNING BASIC                         3,516         4,253          4,190          4,216         4,288         4,411         4,534
NEW BASIC                                 737           (64)            26             72           123           123           123
AVERAGE BASIC                           3,885         4,222          4,203          4,252         4,349         4,472         4,595
TOTAL                                   4,253         4,190          4,216          4,288         4,411         4,534         4,657
PENETRATION                              44.5%         42.5%          41.5%          41.0%         41.0%         41.0%         41.0%

EXPANDED BASIC                          2,847         3,380          3,288          3,287         3,343         3,439         3,535
NEW EXPANDED                              533           (93)            (1)            56            96            96            96
AVERAGE EXPANDED                        3,114         3,334          3,287          3,315         3,391         3,487         3,583
TOTAL                                   3,380         3,288          3,287          3,343         3,439         3,535         3,631
PENETRATION                              79.5%         78.5%          78.0%          78.0%         78.0%         78.0%         78.0%

BEGINNING PAY                             777           897            863            868           883           909           934
NEW PAY                                   120           (34)             5             15            25            25            25
AVERAGE PAY                               837           880            866            876           896           921           947
TOTAL                                     897           863            868            883           909           934           959
PENETRATION                              21.1%         20.6%          20.6%          20.6%         20.6%         20.6%         20.6%

BEGINNING CONVERTERS                    1,050         1,270          1,251          1,259         1,280         1,317         1,354
NEW CONVERTERS                            220           (19)             8             22            37            37            37
AVERAGE CONVERTERS                      1,160         1,261          1,255          1,270         1,299         1,336         1,372
TOTAL                                   1,270         1,251          1,259          1,280         1,317         1,354         1,391
PENETRATION                              29.9%         29.9%          29.9%          29.9%         29.9%         29.9%         29.9%

BEGINNING REMOTES                         870         1,052          1,037          1,043         1,061         1,091         1,122
NEW REMOTES                               182           (16)             6             18            30            30            30
AVERAGE REMOTES                           961         1,045          1,040          1,052         1,076         1,107         1,137
TOTAL                                   1,052         1,037          1,043          1,061         1,091         1,122         1,152
PENETRATION                              24.7%         24.7%          24.7%          24.7%         24.7%         24.7%         24.7%

                                                                                                                 ARTHUR ANDERSEN LLP
</TABLE>

<PAGE>   49


EXHIBIT A-5

------------------------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SOMERSET, KY
AS OF DECEMBER 31, 1996
------------------------------------------------------------------

------------------------------------------------------------------
CABLE TELEVISION MILES, HOMES PASSED, SUBSCRIBERS
------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDING DECEMBER 31,                  1997           1998          1999          2000          2001          2002           2003
                                          ----           ----          ----          ----          ----          ----           ----
<S>                                     <C>            <C>           <C>           <C>           <C>           <C>           <C>
BEGINNING MILES                          834.5
NEW MILES                                  1.9            8.5           8.5           8.5           8.5           8.5           8.5
TOTAL                                    836.4          844.9         853.4         861.9         870.4         878.9         887.5
PERCENT GROWTH                            0.23%          1.02%         1.01%         1.00%         0.99%         0.98%         0.97%

BEGINNING HOMES                         22,060
NEW HOMES                                   50            225           225           225           225           225           225
AVERAGE HOMES                           22,085         22,223        22,448        22,673        22,898        23,123        23,348
TOTAL                                   22,110         22,335        22,560        22,785        23,010        23,235        23,460
PERCENT GROWTH                             0.2%           1.0%          1.0%          1.0%          1.0%          1.0%          1.0%
NEW BUILD DENSITY                           26             26            26            26            26            26            26
AVERAGE DENSITY                             26             26            26            26            26            26            26

BEGINNING BASIC                         19,296         19,384        19,626        19,869        20,135        20,449        20,696
NEW BASIC                                   88            242           243           267           314           246           200
AVERAGE BASIC                           19,340         19,505        19,747        20,002        20,292        20,572        20,796
TOTAL                                   19,384         19,626        19,869        20,135        20,449        20,696        20,896
PENETRATION                               87.7%          87.9%         88.1%         88.4%         88.9%         89.1%         89.1%

EXPANDED BASIC                          18,823         18,870        19,106        19,342        19,601        19,907        20,147
NEW EXPANDED                                47            236           236           259           306           240           195
AVERAGE EXPANDED                        18,847         18,988        19,224        19,472        19,754        20,027        20,244
TOTAL                                   18,870         19,106        19,342        19,601        19,907        20,147        20,342
PENETRATION                               97.3%          97.3%         97.3%         97.3%         97.3%         97.3%         97.3%

BEGINNING PAY                            3,914          3,874         3,922         3,971         4,084         4,209         4,281
NEW PAY                                    (40)            48            49           114           125            71            41
AVERAGE PAY                              3,894          3,898         3,946         4,027         4,147         4,245         4,301
TOTAL                                    3,874          3,922         3,971         4,084         4,209         4,281         4,322
PENETRATION                               20.0%          20.0%         20.0%         20.3%         20.6%         20.7%         20.7%

BEGINNING CONVERTERS                     5,119          5,142         5,207         5,271         7,355         8,492         9,629
NEW CONVERTERS                              23             64            64         2,084         1,137         1,137         1,138
AVERAGE CONVERTERS                       5,131          5,174         5,239         6,313         7,924         9,061        10,198
TOTAL                                    5,142          5,207         5,271         7,355         8,492         9,629        10,767
PENETRATION                               26.5%          26.5%         26.5%         36.5%         41.5%         46.5%         51.5%

BEGINNING REMOTES                        4,622          4,643         4,701         4,759         6,837         7,966         9,096
NEW REMOTES                                 21             58            58          2077          1129          1131          1133
AVERAGE REMOTES                          4,633          4,672         4,730         5,798         7,401         8,531         9,663
TOTAL                                    4,643          4,701         4,759         6,837         7,966         9,096        10,229
PENETRATION                               24.0%          24.0%         24.0%         34.0%         39.0%         44.0%         49.0%

                                                                                                                 ARTHUR ANDERSEN LLP
</TABLE>





<PAGE>   50
EXHIBIT B-1

------------------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
BURKE COUNTY, NC
AS OF DECEMBER 31, 1996
------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------------
SERVICE RATES
------------------------------------------------------------
<S>                                           <C>       <C>       <C>       <C>       <C>       <C>       <C> 
CURRENT RATES
BASIC (AVG.)                                $16.96
EXPANDED BASIC (AVG.)                        $6.20
PAY (AVG)                                    $7.51
CONVERTERS                                   $2.50
REMOTES                                      $0.03
INSTALLATION                                $45.00
RECONNECT                                   $45.00

YEAR ENDING DECEMBER 31,                     1997       1998      1999      2000      2001      2002      2003
                                             ----       ----      ----      ----      ----      ----      ----
RATE INCREASES
BASIC                                          0.0%      4.0%      4.0%      4.0%      6.0%      4.0%      4.0%
EXPANDED BASIC                                 0.0%      4.0%      4.0%      4.0%      6.0%      4.0%      4.0%
PAY                                            0.0%      0.0%      0.0%      0.0%      0.0%      0.0%      0.0%
CONVERTERS                                     0.0%      4.0%      4.0%      4.0%      4.0%      4.0%      4.0%
REMOTES                                        0.0%      4.0%      4.0%      4.0%      4.0%      4.0%      4.0%
INSTALLATION                                   0.0%      4.0%      0.0%      4.0%      0.0%      4.0%      0.0%
RECONNECT                                      0.0%      4.0%      0.0%      4.0%      0.0%      4.0%      0.0%
                                           
AVERAGE RATES
BASIC                                       $16.96    $17.64    $18.35    $19.08    $20.23    $21.04    $21.88
EXPANDED BASIC                               $6.20     $6.45     $6.70     $6.97     $7.39     $7.69     $7.99
PAY                                          $7.51     $7.51     $7.51     $7.51     $7.51     $7.51     $7.51
CONVERTERS                                   $2.50     $2.60     $2.70     $2.81     $2.92     $3.04     $3.16
REMOTES                                      $0.03     $0.03     $0.03     $0.04     $0.04     $0.04     $0.04
INSTALLATION                                $45.00    $46.80    $46.80    $48.67    $48.67    $50.62    $50.62
RECONNECT                                   $45.00    $46.80    $46.80    $48.67    $48.67    $50.62    $50.62

BASIC CHURN RATE (EST)                          36%       36%       36%       36%       36%       36%       36%

                                                                                                                 ARTHUR ANDERSEN LLP
</TABLE>
<PAGE>   51
EXHIBIT B-2

-------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CALIFORNIA CITY, CALIFORNIA
AS OF DECEMBER 31, 1996
-------------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------
SERVICE RATES
-------------------------------------------
<S>                                                <C>       <C>       <C>       <C>       <C>       <C>       <C> 
CURRENT RATES
BASIC (AVG.)                                     $15.77
EXPANDED BASIC (AVG.)                             $6.00
PAY (AVG.)                                        $8.14
CONVERTERS                                        $4.46
REMOTES                                           $0.34
INSTALLATION                                     $45.00
RECONNECT                                        $45.00

YEAR ENDING DECEMBER 31,                           1997      1998      1999      2000      2001      2002      2003
                                                   ----      ----      ----      ----      ----      ----      ----
RATE INCREASES
BASIC                                               0.0%      4.0%      4.0%      4.0%      4.0%      4.0%      4.0%
EXPANDED BASIC                                      0.0%      4.0%      4.0%      4.0%      4.0%      4.0%      4.0%
PAY                                                 0.0%      0.0%      0.0%      0.0%      0.0%      0.0%      0.0%
CONVERTERS                                          0.0%      4.0%      4.0%      4.0%      4.0%      4.0%      4.0%
REMOTES                                             0.0%      4.0%      4.0%      4.0%      4.0%      4.0%      4.0%
INSTALLATION                                        0.0%      4.0%      0.0%      4.0%      0.0%      4.0%      0.0%
RECONNECT                                           0.0%      4.0%      0.0%      4.0%      0.0%      4.0%      0.0%
                                                
AVERAGE RATES
BASIC                                            $15.77    $16.40    $17.05    $17.74    $18.45    $19.18    $19.95
EXPANDED BASIC                                    $6.00     $6.24     $6.49     $6.75     $7.02     $7.30     $7.60
PAY                                               $8.14     $8.14     $8.14     $8.14     $8.14     $8.14     $8.14
CONVERTERS                                        $4.46     $4.64     $4.83     $5.02     $5.22     $5.43     $5.65
REMOTES                                           $0.34     $0.35     $0.37     $0.38     $0.40     $0.41     $0.43
INSTALLATION                                     $45.00    $46.80    $46.80    $48.67    $48.67    $50.62    $50.62
RECONNECT                                        $45.00    $46.80    $46.80    $48.67    $48.67    $50.62    $50.62

BASIC CHURN RATE (EST)                               24%       24%       24%       24%       24%       24%       24%

                                                                                                                ARTHUR ANDERSEN LLP
</TABLE>
<PAGE>   52

EXHIBIT B-3

-------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CENTREVILLE, MARYLAND
AS OF DECEMBER 31, 1996
-------------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------
SERVICE RATES
-------------------------------------------
<S>                                                  <C>         <C>         <C>         <C>          <C>         <C>         <C> 
CURRENT RATES
BASIC (AVG.)                                       $20.60
EXPANDED BASIC (AVG.)                               $3.52
PAY (AVG.)                                          $8.54
CONVERTERS                                          $1.99
REMOTES                                             $0.68
INSTALLATION                                       $45.00
RECONNECT                                          $45.00

YEAR ENDING DECEMBER 31,                              1997        1998        1999        2000         2001        2002        2003
                                                      ----        ----        ----        ----         ----        ----        ----
RATE INCREASES                                    
BASIC                                                 0.0%        4.0%        4.0%        5.0%         7.0%        4.0%        4.0%
EXPANDED BASIC                                        0.0%        4.0%        4.0%        5.0%         7.0%        4.0%        4.0%
PAY                                                   0.0%        0.0%        0.0%        0.0%         0.0%        0.0%        0.0%
CONVERTERS                                            0.0%        4.0%        4.0%        4.0%         4.0%        4.0%        4.0%
REMOTES                                               0.0%        4.0%        4.0%        4.0%         4.0%        4.0%        4.0%
INSTALLATION                                          0.0%        4.0%        0.0%        4.0%         0.0%        4.0%        0.0%
RECONNECT                                             0.0%        4.0%        0.0%        4.0%         0.0%        4.0%        0.0%
                                                  
AVERAGE RATES
BASIC                                              $20.60      $21.43      $22.29      $23.40       $25.04      $26.04      $27.08
EXPANDED BASIC                                      $3.52       $3.67       $3.81       $4.00        $4.28       $4.45       $4.63
PAY                                                 $8.54       $8.54       $8.54       $8.54        $8.54       $8.54       $8.54
CONVERTERS                                          $1.99       $2.07       $2.16       $2.24        $2.33       $2.43       $2.52
REMOTES                                             $0.68       $0.71       $0.73       $0.76        $0.79       $0.83       $0.86
INSTALLATION                                       $45.00      $46.80      $46.80      $48.67       $48.67      $50.62      $50.62
RECONNECT                                          $45.00      $46.80      $46.80      $48.67       $48.67      $50.62      $50.62

BASIC CHURN RATE (EST)                                 32%         32%         32%         32%          32%         32%         32%

                                                                                                                ARTHUR ANDERSEN LLP
</TABLE>
<PAGE>   53

EXHIBIT B-4

-------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
REDMOND, OREGON
AS OF DECEMBER 31, 1996
-------------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------
SERVICE RATES
-------------------------------------------
<S>                                                  <C>         <C>         <C>         <C>          <C>         <C>         <C> 
CURRENT RATES
BASIC (AVG.)                                       $22.23
EXPANDED BASIC (AVG.)                               $2.05
PAY (AVG.)                                          $6.16
CONVERTERS                                          $2.57
REMOTES                                             $0.22
INSTALLATION                                       $45.00
RECONNECT                                          $45.00

YEAR ENDING DECEMBER 31,                             1997        1998        1999        2000         2001        2002        2003
                                                     ----        ----        ----        ----         ----        ----        ----
RATE INCREASES                                
BASIC                                                 0.0%        4.0%        4.0%        4.0%         4.0%        4.0%        4.0%
EXPANDED BASIC                                        0.0%        4.0%        4.0%        4.0%         4.0%        4.0%        4.0%
PAY                                                   0.0%        0.0%        0.0%        0.0%         0.0%        0.0%        0.0%
CONVERTERS                                            0.0%        4.0%        4.0%        4.0%         4.0%        4.0%        4.0%
REMOTES                                               0.0%        4.0%        4.0%        4.0%         4.0%        4.0%        4.0%
INSTALLATION                                          0.0%        4.0%        0.0%        4.0%         0.0%        4.0%        0.0%
RECONNECT                                             0.0%        4.0%        0.0%        4.0%         0.0%        4.0%        0.0%
                                                  
AVERAGE RATES
BASIC                                              $22.23      $23.12      $24.04      $25.00       $26.00      $27.04      $28.12
EXPANDED BASIC                                      $2.05       $2.14       $2.22       $2.31        $2.40       $2.50       $2.60
PAY                                                 $6.16       $6.16       $6.16       $6.16        $6.16       $6.16       $6.16
CONVERTERS                                          $2.57       $2.67       $2.78       $2.89        $3.00       $3.13       $3.25
REMOTES                                             $0.22       $0.23       $0.24       $0.25        $0.26       $0.27       $0.28
INSTALLATION                                       $45.00      $46.80      $46.80      $48.67       $48.67      $50.62      $50.62
RECONNECT                                          $45.00      $46.80      $46.80      $48.67       $48.67      $50.62      $50.62

BASIC CHURN RATE (EST)                                 31%         31%         31%         31%          31%         31%         31%

                                                                                                                ARTHUR ANDERSEN LLP
</TABLE>
<PAGE>   54

EXHIBIT B-5

-------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SOMERSET, KY
AS OF DECEMBER 31, 1996
-------------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------
SERVICE RATES
-------------------------------------------
<S>                                                  <C>         <C>         <C>         <C>          <C>         <C>         <C> 
CURRENT RATES
BASIC (AVG.)                                       $19.24
EXPANDED BASIC (AVG.)                               $2.37
PAY (AVG.)                                          $8.71
CONVERTERS                                          $1.58
REMOTES                                             $0.33
INSTALLATION                                       $45.00
RECONNECT                                          $45.00

YEAR ENDING DECEMBER 31,                             1997        1998        1999        2000         2001        2002        2003
                                                     ----        ----        ----        ----         ----        ----        ----
RATE INCREASES                                  
BASIC                                                 0.0%        4.0%        4.0%        4.0%         7.0%        4.0%        4.0%
EXPANDED BASIC                                        0.0%        4.0%        4.0%        4.0%         7.0%        4.0%        4.0%
PAY                                                   0.0%        0.0%        0.0%        0.0%         0.0%        0.0%        0.0%
CONVERTERS                                            0.0%        4.0%        4.0%        4.0%         4.0%        4.0%        4.0%
REMOTES                                               0.0%        4.0%        4.0%        4.0%         4.0%        4.0%        4.0%
INSTALLATION                                          0.0%        4.0%        0.0%        4.0%         0.0%        4.0%        0.0%
RECONNECT                                             0.0%        4.0%        0.0%        4.0%         0.0%        4.0%        0.0%
                                                    
AVERAGE RATES
BASIC                                              $19.24      $20.01      $20.81      $21.64       $23.16      $24.08      $25.05
EXPANDED BASIC                                      $2.37       $2.46       $2.56       $2.66        $2.85       $2.96       $3.08
PAY                                                 $8.71       $8.71       $8.71       $8.71        $8.71       $8.71       $8.71
CONVERTERS                                          $1.58       $1.65       $1.71       $1.78        $1.85       $1.93       $2.00
REMOTES                                             $0.33       $0.35       $0.36       $0.38        $0.39       $0.41       $0.42
INSTALLATION                                       $45.00      $46.80      $46.80      $48.67       $48.67      $50.62      $50.62
RECONNECT                                          $45.00      $46.80      $46.80      $48.67       $48.67      $50.62      $50.62

BASIC CHURN RATE (EST)                                 26%         26%         26%         26%          26%         26%         26%

                                                                                                                ARTHUR ANDERSEN LLP
</TABLE>
<PAGE>   55
EXHIBIT C-1

------------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
BURKE COUNTY, NC
AS OF DECEMBER 31, 1996
------------------------------------------------------

------------------------------------------------------
REVENUE, EXPENSE, OPERATING INCOME
------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDING DECEMBER 31,          1997           1998           1999           2000       
                              -----------    -----------    -----------    -----------    
REVENUE
<S>                           <C>            <C>            <C>            <C>            
BASIC                         $ 2,129,647    $ 2,201,800    $ 2,286,438    $ 2,418,828    
EXPANDED BASIC                    671,189        691,908        718,505        760,108    
PAY                               429,170        419,594        416,623        423,795    
CONVERTERS                        457,592        473,095        491,281        519,728    
REMOTES                             4,155          4,295          4,460          4,719    
INSTALLATIONS                       4,708          4,867          4,860         18,197    
RECONNECT                          84,741         87,612         87,481         92,546    
ADDITIONAL TIER                   988,460      1,027,999      1,069,119      1,111,883    
ADVERTISING                       175,000        201,250        231,438        277,725    
PAY PER VIEW                      110,000        115,500        121,275        133,403    
MISCELLANEOUS                     212,296        219,573        228,122        241,959    
                              -----------    -----------    -----------    -----------    
TOTAL                         $ 5,266,958    $ 5,447,493    $ 5,659,602    $ 6,002,891    
REVENUE GROWTH                          0           3.31%          3.75%          5.72%
REVENUE PER SUB./MONTH        $     41.95    $     43.65    $     45.42    $     47.36

EXPENSES
TECHNICAL & OPERATIONS          1,003,124      1,039,779      1,079,648      1,129,499    
GENERAL & ADMINISTRATIVE          487,195        500,191        515,451        539,743    
SALES & MARKETING                  95,157        103,364        112,879        127,738    
PROGRAMMING                       841,520        852,083        869,333        907,390    
                              -----------    -----------    -----------    -----------    
TOTAL EXPENSE                 $ 2,426,995    $ 2,495,417    $ 2,577,311    $ 2,704,371    

OPERATING INCOME              $ 2,839,963    $ 2,952,076    $ 3,082,291    $ 3,298,520    
                              
OPERATING MARGIN                     53.9%          54.2%          54.5%         54.9 %   
OPERTAING INCOME GROWTH                 0           3.80%          4.22%          6.56%
OPERATING INCOME/SUB./MONTH   $     22.62    $     23.65    $     24.73    $     26.02

                                                                                          


YEAR ENDING DECEMBER 31,          2001           2002           2003          TOTAL
                              -----------    -----------    -----------    -----------
REVENUE
BASIC                         $ 2,643,275    $ 2,807,437    $ 2,954,892    $17,442,318
EXPANDED BASIC                    830,640        882,227        928,564      5,483,141
PAY                               436,905        446,192        451,565      3,023,844
CONVERTERS                        557,238        591,845        622,931      3,713,710
REMOTES                             5,059          5,373          5,656         33,717
INSTALLATIONS                      13,613          9,277          4,281         59,804
RECONNECT                          95,409        101,334        102,555        651,678
ADDITIONAL TIER                 1,156,359      1,202,613      1,250,717      7,807,150
ADVERTISING                       347,156        373,193        391,853      1,997,614
PAY PER VIEW                      146,743        157,748        165,636        950,305
MISCELLANEOUS                     261,761        276,244        288,903      1,728,858
                              -----------    -----------    -----------    -----------
TOTAL                         $ 6,494,157    $ 6,853,484    $ 7,167,554    $42,892,138
REVENUE GROWTH                       7.56%          5.24%          4.38%
REVENUE PER SUB./MONTH        $     49.69    $     51.35    $     53.07

EXPENSES
TECHNICAL & OPERATIONS          1,189,540      1,244,034      1,296,342    $ 7,981,965
GENERAL & ADMINISTRATIVE          572,314        600,444        625,154      3,840,493
SALES & MARKETING                 149,682        159,606        167,135        915,562
PROGRAMMING                       989,323      1,035,074      1,071,970      6,566,693
                              -----------    -----------    -----------    -----------
TOTAL EXPENSE                 $ 2,900,859    $ 3,039,158    $ 3,160,602    $19,304,713

OPERATING INCOME              $ 3,593,298    $ 3,814,326    $ 4,006,951    $23,587,425
                             

OPERATING MARGIN                     55.3%          55.7%          55.9%
OPERTAING INCOME GROWTH              8.20%          5.79%          4.81%
OPERATING INCOME/SUB./MONTH   $     27.50    $     28.58    $     29.67

                                                                   ARTHUR ANDERSEN LLP
</TABLE>


<PAGE>   56



EXHIBIT C-2

--------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CALIFORNIA CITY, CALIFORNIA
AS OF DECEMBER 31, 1996
--------------------------------------------

--------------------------------------------
REVENUE, EXPENSE, OPERATING INCOME
--------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDING DECEMBER 31,            1997          1998          1999          2000   
                              ----------    ----------    ----------    ----------   
<S>                           <C>           <C>           <C>           <C>          
REVENUE
BASIC                         $  368,460    $  390,845    $  411,975    $  434,171   
EXPANDED BASIC                   132,776       140,769       148,379       156,373   
PAY                               82,514        83,682        84,814        85,946   
CONVERTERS                        50,520        53,589        56,486        59,529   
REMOTES                            3,307         3,508         3,698         3,897   
INSTALLATIONS                      2,289         1,257         1,257         1,307   
RECONNECT                         14,912        15,818        16,032        16,895   
ADDITIONAL TIER                   62,494        65,878        69,434        73,168   
ADVERTISING                            0             0             0             0   
FCC USER FEE PASS THROUGH            995         1,055         1,112         1,172   
MISCELLANEOUS                     35,913        37,820        39,659        41,623   
                              ----------    ----------    ----------    ----------   
TOTAL                         $  754,179    $  794,221    $  832,846    $  874,082   
REVENUE GROWTH                         0          5.04%         4.64%         4.72%
REVENUE PER SUB./MONTH        $    32.27    $    33.32    $    34.48    $    35.71   

EXPENSES
TECHNICAL & OPERATIONS           129,495       135,213       140,972       146,981   
GENERAL & ADMINISTRATIVE          84,317        88,017        91,527        95,182   
SALES & MARKETING                 16,465        17,297        18,057        18,847   
PROGRAMMING                      138,272       143,761       148,803       154,023   
                              ----------    ----------    ----------    ----------   
TOTAL EXPENSE                 $  368,549    $  384,288    $  399,359    $  415,034   

OPERATING INCOME              $  385,630    $  409,933    $  433,487    $  459,048   
                              
OPERATING MARGIN                    51.1%         51.6%         52.0%         52.5%  
OPERATING INCOME GROWTH                0          5.93%         5.43%         5.57%  
OPERATING INCOME/SUB./MONTH   $    16.50    $    17.20    $    17.94    $    18.75   



YEAR ENDING DECEMBER 31,            2001          2002          2003         TOTAL
                              ----------    ----------    ----------    ----------
REVENUE
BASIC                         $  457,483    $  481,965    $  507,674    $3,052,572
EXPANDED BASIC                   164,770       173,587       182,847     1,099,501
PAY                               87,077        88,209        89,340       601,583
CONVERTERS                        62,726        66,083        69,607       418,540
REMOTES                            4,106         4,326         4,557        27,399
INSTALLATIONS                      1,307         1,360         1,360        10,137
RECONNECT                         17,118        18,034        18,265       117,073
ADDITIONAL TIER                   77,090        81,209        85,534       514,807
ADVERTISING                            0             0             0             0
FCC USER FEE PASS THROUGH          1,235         1,301         1,371         8,242
MISCELLANEOUS                     43,646        45,804        48,028       292,493
                              ----------    ----------    ----------    ----------
TOTAL                         $  916,557    $  961,877    $1,008,582    $6,142,345
REVENUE GROWTH                      4.63%         4.71%         4.63%
REVENUE PER SUB./MONTH        $    36.95    $    38.28    $    39.63

EXPENSES
TECHNICAL & OPERATIONS           153,211       159,711       166,450    $1,032,031
GENERAL & ADMINISTRATIVE          98,968       102,911       106,993       667,915
SALES & MARKETING                 19,668        20,521        21,408       132,264
PROGRAMMING                      159,427       165,020       170,811     1,080,118
                              ----------    ----------    ----------    ----------
TOTAL EXPENSE                 $  431,273    $  448,163    $  465,663    $2,912,329

OPERATING INCOME              $  485,284    $  513,714    $  542,920    $3,230,016
                              
OPERATING MARGIN                    52.9%         53.4%         53.8%
OPERATING INCOME GROWTH             5.41%         5.53%         5.38%
OPERATING INCOME/SUB./MONTH   $    19.57    $    20.45    $    21.34


                                                                 ARTHUR ANDERSEN LLP
</TABLE>


<PAGE>   57



EXHIBIT C-3

--------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CENTREVILLE, MARYLAND
AS OF DECEMBER 31, 1996
--------------------------------------------

--------------------------------------------
REVENUE, EXPENSE, OPERATING INCOME
--------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDING DECEMBER 31,             1997           1998           1999           2000   
                               -----------    -----------    -----------    -----------  
<S>                           <C>            <C>            <C>            <C>           
REVENUE
BASIC                         $ 3,096,364    $ 3,307,238    $ 3,531,431    $ 3,823,145   
EXPANDED BASIC                    509,840        544,562        581,477        629,510   
PAY                               768,518        782,797        803,713        828,670   
CONVERTERS                         44,700         47,744         50,980         54,666   
REMOTES                             5,633          6,017          6,425          6,889   
INSTALLATIONS                      17,845         13,117         19,050         20,104   
RECONNECT                          53,966         57,642         59,182         63,460   
ADDITIONAL TIER                   771,011        811,809        854,638        908,244   
ADVERTISING                       140,000        154,000        169,400        186,340   
FRANCHISE PASS THROUGH            117,662        125,675        134,194        145,279   
MISCELLANEOUS                     298,379        315,932        335,367        359,981   
                              -----------    -----------    -----------    -----------   
TOTAL                         $ 5,823,918    $ 6,166,532    $ 6,545,857    $ 7,026,289   
REVENUE GROWTH                          0           5.56%          5.79%          6.84%  
REVENUE PER SUB./MONTH        $     38.75    $     39.95    $     41.31    $     43.00   

EXPENSES
TECHNICAL & OPERATIONS          1,197,944      1,252,330      1,310,016      1,374,835   
GENERAL & ADMINISTRATIVE          410,748        432,759        456,072        482,920   
SALES & MARKETING                 177,010        186,807        196,759        212,479   
PROGRAMMING                     1,231,498      1,287,019      1,348,501      1,447,919   
                              -----------    -----------    -----------    -----------   
TOTAL EXPENSE                 $ 3,017,200    $ 3,158,916    $ 3,311,348    $ 3,518,153   

OPERATING INCOME              $ 2,806,718    $ 3,007,617    $ 3,234,510    $ 3,508,136   

OPERATING MARGIN                     48.2%          48.8%          49.4%          49.9%  
OPERATING INCOME GROWTH                 0           6.68%          7.01%          7.80%  
OPERATING INCOME/SUB./MONTH   $     18.68    $     19.49    $     20.41    $     21.47   

 

YEAR ENDING DECEMBER 31,             2001           2002           2003          TOTAL
                               -----------    -----------    -----------    -----------
REVENUE
BASIC                         $ 4,272,908    $ 4,635,832    $ 4,940,744    $27,607,661
EXPANDED BASIC                    703,567        763,325        813,531      4,545,814
PAY                               865,567        902,966        925,343      5,877,573
CONVERTERS                         59,384         64,428         68,666        390,568
REMOTES                             7,484          8,119          8,653         49,220
INSTALLATIONS                      38,909         21,744         15,478        146,247
RECONNECT                          66,286         71,916         73,698        446,150
ADDITIONAL TIER                   992,648      1,044,568      1,099,053      6,481,971
ADVERTISING                       204,974        225,471        242,382      1,322,567
FRANCHISE PASS THROUGH            162,371        176,162        187,748      1,049,091
MISCELLANEOUS                     398,201        427,385        452,266      2,587,510
                              -----------    -----------    -----------    -----------
TOTAL                         $ 7,772,298    $ 8,341,915    $ 8,827,562    $50,504,372
REVENUE GROWTH                       9.60%          6.83%          5.50%
REVENUE PER SUB./MONTH        $     45.54    $     46.86    $     48.38

EXPENSES
TECHNICAL & OPERATIONS          1,456,425      1,532,216      1,601,974    $ 9,725,741
GENERAL & ADMINISTRATIVE          518,524        553,812        582,879      3,437,714
SALES & MARKETING                 244,390        250,737        262,115      1,530,297
PROGRAMMING                     1,618,577      1,725,068      1,806,404     10,464,988
                              -----------    -----------    -----------    -----------
TOTAL EXPENSE                 $ 3,837,916    $ 4,061,834    $ 4,253,372    $25,158,739

OPERATING INCOME              $ 3,934,382    $ 4,280,081    $ 4,574,189    $25,345,633

OPERATING MARGIN                     50.6%          51.3%          51.8%
OPERATING INCOME GROWTH             10.83%          8.08%          6.43%
OPERATING INCOME/SUB./MONTH   $     23.05    $     24.04    $     25.07
                                                                     
                                                                    ARTHUR ANDERSEN LLP
</TABLE>



<PAGE>   58


EXHIBIT C-4

--------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
REDMOND, OREGON
AS OF DECEMBER 31, 1996
--------------------------------------------

--------------------------------------------
REVENUE, EXPENSE, OPERATING INCOME
--------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDING DECEMBER 31,             1997           1998           1999           2000    
<S>                           <C>            <C>            <C>            <C>            
REVENUE
BASIC                         $ 1,036,152    $ 1,171,036    $ 1,212,402    $ 1,275,595    
EXPANDED BASIC                     76,710         85,425         87,598         91,870    
PAY                                61,857         65,036         63,961         64,707    
CONVERTERS                         35,758         40,413         41,841         44,021    
REMOTES                             2,546          2,877          2,979          3,134    
INSTALLATIONS                       8,297          1,976          1,967          2,069    
RECONNECT                           8,038          9,085          9,044          9,515    
ADDITIONAL TIER                   301,290        324,739        348,002        372,607    
ADVERTISING                        70,000         73,500         77,175         81,034    
FCC USER FEE PASS THROUGH           2,072          2,342          2,425          2,551    
MISCELLANEOUS                      80,136         88,821         92,370         97,355    
                              -----------    -----------    -----------    -----------    
TOTAL                         $ 1,682,856    $ 1,865,250    $ 1,939,763    $ 2,044,458    
REVENUE GROWTH                          0           9.78%          3.84%          5.12%   
REVENUE PER SUB./MONTH        $     36.10    $     36.82    $     38.46    $     40.07    

EXPENSES
TECHNICAL & OPERATIONS            296,082        321,208        336,230        354,236    
GENERAL & ADMINISTRATIVE          224,348        245,971        252,943        263,286    
SALES & MARKETING                 125,315        135,900        140,977        147,454    
PROGRAMMING                       212,954        235,609        239,801        248,602    
                              -----------    -----------    -----------    -----------    
TOTAL EXPENSE                 $   858,699    $   938,687    $   969,951    $ 1,013,578    

OPERATING INCOME              $   824,157    $   926,563    $   969,812    $ 1,030,880    
                              
OPERATING MARGIN                     49.0%          49.7%          50.0%          50.4%   
OPERTAING INCOME GROWTH                 0          11.05%          4.46%          5.92%   
OPERATING INCOME/SUB./MONTH   $     17.68    $     18.29    $     19.23    $     20.21    

                                                                                        

YEAR ENDING DECEMBER 31,             2001           2002           2003        TOTAL
                              -----------    -----------    -----------    
REVENUE
BASIC                         $ 1,357,055    $ 1,451,236    $ 1,550,780    $ 9,054,256
EXPANDED BASIC                     97,737        104,520        111,689        655,547
PAY                                66,191         68,062         69,934        459,748
CONVERTERS                         46,833         50,083         53,518        312,467
REMOTES                             3,334          3,565          3,810         22,245
INSTALLATIONS                       4,488          4,668          4,668         28,132
RECONNECT                           9,733         10,409         10,695         66,520
ADDITIONAL TIER                   398,623        426,125        455,188      2,626,575
ADVERTISING                        85,085         89,340         93,807        569,941
FCC USER FEE PASS THROUGH           2,714          2,902          3,102         18,109
MISCELLANEOUS                     103,590        110,545        117,859        690,677
                              -----------    -----------    -----------    -----------
TOTAL                         $ 2,175,384    $ 2,321,455    $ 2,475,049    $14,504,216
REVENUE GROWTH                       6.02%          6.29%          6.21%
REVENUE PER SUB./MONTH        $     41.68    $     43.26    $     44.89

EXPENSES
TECHNICAL & OPERATIONS            374,801        397,166        420,556    $ 2,500,279
GENERAL & ADMINISTRATIVE          276,384        291,258        306,789      1,860,979
SALES & MARKETING                 155,097        163,568        172,438      1,040,749
PROGRAMMING                       260,634        274,704        289,350      1,761,653
                              -----------    -----------    -----------    -----------
TOTAL EXPENSE                 $ 1,066,915    $ 1,126,696    $ 1,189,133    $ 7,163,660

OPERATING INCOME              $ 1,108,469    $ 1,194,759    $ 1,285,916    $ 7,340,556
                              
OPERATING MARGIN                     51.0%          51.5%          52.0%
OPERTAING INCOME GROWTH              7.00%          7.22%          7.09%
OPERATING INCOME/SUB./MONTH   $     21.24    $     22.26    $     23.32

                                                                   ARTHUR ANDERSEN LLP
</TABLE>
                                                                     
<PAGE>   59


EXHIBIT C-5

--------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SOMERSET, KY
AS OF DECEMBER 31, 1996
--------------------------------------------

--------------------------------------------
REVENUE, EXPENSE, OPERATING INCOME
--------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDING DECEMBER 31,             1997           1998           1999           2000    
                              -----------    -----------    -----------    -----------    
<S>                           <C>            <C>            <C>            <C>            
REVENUE
BASIC                         $ 4,465,358    $ 4,683,579    $ 4,931,450    $ 5,194,851    
EXPANDED BASIC                    534,919        560,486        590,149        621,671    
PAY                               406,842        407,262        412,323        420,796    
CONVERTERS                         97,518        102,283        107,697        134,974    
REMOTES                            18,570         19,478         20,509         26,144    
INSTALLATIONS                       3,958         11,322         11,364         12,972    
RECONNECT                         100,394        105,300        106,609        112,303    
ADDITIONAL TIER                 1,199,773      1,260,462      1,324,086      1,390,783    
ADVERTISING                       385,000        442,750        487,025        535,728    
PAY PER VIEW                       12,000         13,200         19,800         29,700    
MISCELLANEOUS                     270,912        285,230        300,413        317,997    
                              -----------    -----------    -----------    -----------    
TOTAL                         $ 7,495,245    $ 7,891,352    $ 8,311,425    $ 8,797,917    
REVENUE GROWTH                          0           5.02%          5.05%          5.53%   
REVENUE PER SUB./MONTH        $     32.30    $     33.72    $     35.07    $     36.65    

EXPENSES
TECHNICAL & OPERATIONS          1,672,516      1,743,696      1,819,082      1,899,684    
GENERAL & ADMINISTRATIVE          637,808        663,156        691,353        721,641    
SALES & MARKETING                 264,171        291,758        314,502        339,302    
PROGRAMMING                     1,201,237      1,239,936      1,289,726      1,345,591    
                              -----------    -----------    -----------    -----------    
TOTAL EXPENSE                 $ 3,775,732    $ 3,938,547    $ 4,114,663    $ 4,306,218    

OPERATING INCOME              $ 3,719,513    $ 3,952,805    $ 4,196,762    $ 4,491,700    
                              
OPERATING MARGIN                     49.6%          50.1%          50.5%          51.1%   
OPERATING INCOME GROWTH                 0           5.90%          5.81%          6.57%   
OPERATING INCOME/SUB./MONTH   $     16.03    $     16.89    $     17.71    $     18.71    

                                                                   
YEAR ENDING DECEMBER 31,             2001           2002           2003        TOTAL
                              -----------    -----------    -----------    
REVENUE
BASIC                         $ 5,639,136    $ 5,945,670    $ 6,250,651    $37,110,694
EXPANDED BASIC                    674,838        711,522        748,019      4,441,604
PAY                               433,265        443,527        449,424      2,973,439
CONVERTERS                        176,186        209,529        245,269      1,073,456
REMOTES                            34,708         41,607         49,012        210,026
INSTALLATIONS                      15,277         12,474         10,144         77,512
RECONNECT                         113,933        120,126        121,430        780,096
ADDITIONAL TIER                 1,502,833      1,578,230      1,657,253      9,913,421
ADVERTISING                       575,907        604,702        634,938      3,666,050
PAY PER VIEW                      103,950        166,320        216,216        561,186
MISCELLANEOUS                     347,626        368,764        389,338      2,280,281
                              -----------    -----------    -----------    -----------
TOTAL                         $ 9,617,660    $10,202,471    $10,771,694    $63,087,764
REVENUE GROWTH                       8.52%          5.73%          5.28%
REVENUE PER SUB./MONTH        $     39.50    $     41.33    $     43.16

EXPENSES
TECHNICAL & OPERATIONS          1,995,945      2,084,512      2,174,136    $13,389,572
GENERAL & ADMINISTRATIVE          758,533        792,716        826,171      5,091,378
SALES & MARKETING                 361,073        378,387        396,130      2,345,324
PROGRAMMING                     1,499,642      1,593,786      1,677,059      9,846,978
                              -----------    -----------    -----------    -----------
TOTAL EXPENSE                 $ 4,615,192    $ 4,849,402    $ 5,073,497    $30,673,252

OPERATING INCOME              $ 5,002,468    $ 5,353,069    $ 5,698,197    $32,414,512
                              
OPERATING MARGIN                     52.0%          52.5%          52.9%
OPERATING INCOME GROWTH             10.21%          6.55%          6.06%
OPERATING INCOME/SUB./MONTH   $     20.54    $     21.68    $     22.83



                                                                   ARTHUR ANDERSEN LLP

</TABLE>

<PAGE>   60
EXHIBIT D-1

------------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
BURKE COUNTY, NC
AS OF DECEMBER 31, 1996
------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------
CAPITAL EXPENDITURES
------------------------------------------------------
<S>                                <C>           <C>        <C>         <C>          <C>       <C>         <C>          <C>
YEAR ENDING DECEMBER 31,               1997         1998         1999          2000       2001       2002        2003
                                 ----------   ----------   ----------    ----------   --------   --------    --------  
CAPITAL ASSUMPTIONS
NEW PLANT MILES                         8.0          8.0          8.0           8.0        8.0        8.0         8.0
PLANT-AERIAL                        $16,000      $16,480      $16,974       $17,484    $18,008    $18,548     $19,105
PLANT-U/G                           $28,000      $28,840      $29,705       $30,596    $31,514    $32,460     $33,433
AERIAL PERCENTAGE                        20%          20%          20%           20%        20%        20%         20%
UNDERGROUND PERCENTAGE                   80%          80%          80%           80%        80%        80%         80%
AVERAGE COST PER CONVERTER             $110         $113         $117          $120       $124       $128        $131
CONVERTER USE PERCENTAGE                 89%          89%          89%           89%        89%        89%         89%
CONVERTER REPLACEMENT PERCENTAGE          3%           4%           5%            5%         6%         6%          6%
INSTALLATION COST/SUBSCRIBER            $80          $82          $85           $87        $90        $93         $96
MISCELLANEOUS EXPENSE/SUBSCRIBER        $40          $20          $21           $21        $22        $23         $23
INFLATION                                 0%           3%           3%            3%         3%         3%          3%

ANNUAL EXPENSE PROJECTION                                                                                                    TOTAL
NEW PLANT - AERIAL                  $25,600      $26,368      $27,159       $27,974    $28,813    $29,677     $30,568     $196,159
NEW PLANT - UNDERGROUND             179,200      184,576      190,113       195,817    201,691    207,742     213,974    1,373,113
PLANT REBUILD AND UPGRADE           450,000    2,400,000    3,000,000     4,200,000          0          0           0   10,050,000
NEW CONVERTER EXPENSE                     0            0            0        65,580     50,532     34,103      16,212      166,428
CONVERTER REPLACEMENT EXPENSE        50,642       68,832       88,495        91,006    116,537    123,155     128,958      667,624
INSTALLATION EXPENSE                  8,369        8,570        8,814        32,683     25,184     16,996       8,080      108,696
MISCELLANEOUS CAPITAL EXPENSE       418,474      208,006      213,925       224,136    238,001    250,352     260,968    1,813,862
                                 ----------   ----------   ----------    ----------   --------   --------    --------  -----------
TOTAL                            $1,132,286   $2,896,352   $3,528,506    $4,837,196   $660,758   $662,026    $658,759  $14,375,882


PERCENT OF REVENUE                     21.5%        53.2%        62.3%         80.6%      10.2%       9.7%        9.2%

                                                                                                                ARTHUR ANDERSEN LLP
</TABLE>

<PAGE>   61
EXHIBIT D-2

-----------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CALIFORNIA CITY, CALIFORNIA
AS OF DECEMBER 31, 1996
-----------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------
CAPITAL EXPENDITURES
-----------------------------------------------

YEAR ENDING DECEMBER 31,                  1997        1998        1999        2000        2001        2002        2003
                                      --------    --------    --------    --------    --------    --------    --------    
<S>                               <C>          <C>          <C>          <C>          <C>        <C>        <C>        <C>        
CAPITAL ASSUMPTIONS
NEW PLANT MILES                            2.0         1.0         1.0         1.0         1.0         1.0         1.0
PLANT-AERIAL                          $ 16,000    $ 16,480    $ 16,974    $ 17,484    $ 18,008    $ 18,548    $ 19,105
PLANT-U/G                             $ 28,100    $ 28,943    $ 29,811    $ 30,706    $ 31,627    $ 32,576    $ 33,553
AERIAL PERCENTAGE                           50%         50%         50%         50%         50%         50%         50%
UNDERGROUND PERCENTAGE                      50%         50%         50%         50%         50%         50%         50%
AVERAGE COST PER CONVERTER            $     85    $     88    $     90    $     93    $     96    $     99    $    101
CONVERTER USE PERCENTAGE                    26%         26%         26%         26%         26%         26%         26%
CONVERTER REPLACEMENT PERCENTAGE            10%         10%         10%         10%         10%          8%          6%
INSTALLATION COST/SUBSCRIBER          $     70    $     72    $     74    $     76    $     79    $     81    $     84
MISCELLANEOUS EXPENSE/SUBSCRIBER      $     50    $     45    $     46    $     48    $     49    $     51    $     52
INFLATION                                    0%          3%          3%          3%          3%          3%          3%

ANNUAL EXPENSE PROJECTION                                                                                                    TOTAL
NEW PLANT - AERIAL                    $ 16,000    $  8,240    $  8,487    $  8,742    $  9,004    $  9,274    $  9,552    $ 69,300
NEW PLANT - UNDERGROUND                 28,100      14,472      14,906      15,353      15,813      16,288      16,776     121,708
PLANT REBUILD AND UPGRADE                    0           0           0           0           0           0           0           0
NEW CONVERTER EXPENSE                    2,094       1,139       1,173       1,208       1,245       1,282       1,321       9,462
CONVERTER REPLACEMENT EXPENSE            7,914       8,367       8,735       9,118       9,516       7,944       6,216      57,808
INSTALLATION EXPENSE                     3,560       1,937       1,995       2,055       2,116       2,180       2,245      16,087
MISCELLANEOUS CAPITAL EXPENSE           97,372      89,383      93,310      97,391     101,634     106,043     110,626     695,758
                                      --------    --------    --------    --------    --------    --------    --------    --------
TOTAL                                 $155,040    $123,537    $128,605    $133,867    $139,328    $143,010    $146,736    $970,122


PERCENT OF REVENUE                        20.6%       15.6%       15.4%       15.3%       15.2%       14.9%       14.5%

                                                                                                                ARTHUR ANDERSEN LLP
</TABLE>

<PAGE>   62
EXHIBIT D-3

-----------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CENTREVILLE, MARYLAND
AS OF DECEMBER 31, 1996
-----------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------
CAPITAL EXPENDITURES
-----------------------------------------------

YEAR ENDING DECEMBER 31,             1997         1998         1999         2000         2001       2002       2003
                                  ----------   ----------   ----------   ----------   ---------   --------   --------   
<S>                               <C>          <C>          <C>          <C>          <C>        <C>        <C>        <C>        
CAPITAL ASSUMPTIONS  
NEW PLANT MILES                          5.0          5.0          5.0          5.0         5.0        5.0        5.0
PLANT-AERIAL                      $   16,000   $   16,480   $   16,974   $   17,484   $  18,008   $ 18,548   $ 19,105
PLANT-U/G                         $   28,100   $   28,943   $   29,811   $   30,706   $  31,627   $ 32,576   $ 33,553
AERIAL PERCENTAGE                          0%           0%           0%           0%          0%         0%         0%
UNDERGROUND PERCENTAGE                   100%         100%         100%         100%        100%       100%       100%
AVERAGE COST PER CONVERTER        $       60   $       62   $       64   $       65   $      67   $     69   $     72
CONVERTER USE PERCENTAGE                   9%           9%           9%           9%          9%         9%         9%
CONVERTER REPLACEMENT PERCENTAGE          10%          10%          10%          10%         10%        10%        10%
INSTALLATION COST/SUBSCRIBER      $       85   $       88   $       90   $       93   $      96   $     99   $    101
MISCELLANEOUS EXPENSE/SUBSCRIBER  $       25   $       15   $       15   $       16   $      16   $     17   $     17
INFLATION                                  0%           3%           3%           3%          3%         3%         3%

ANNUAL EXPENSE PROJECTION                                                                                                     TOTAL
NEW PLANT - AERIAL                $        0   $        0   $        0   $        0   $       0   $      0   $      0  $          0
NEW PLANT - UNDERGROUND              140,500      144,715      149,056      153,528     158,134    162,878    167,764     1,076,576
PLANT REBUILD AND UPGRADE          1,375,000    2,500,000    4,500,000    3,000,000           0          0          0    11,375,000
NEW CONVERTER EXPENSE                  3,542        2,578        3,857        4,031       8,036      4,448      3,261        29,753
CONVERTER REPLACEMENT EXPENSE         11,008       11,703       12,320       13,087      13,895     15,139     16,051        93,203
INSTALLATION EXPENSE                  33,707       24,538       36,707       38,365      76,478     42,328     31,034       283,157
MISCELLANEOUS CAPITAL EXPENSE        313,082      192,925      204,023      216,669     233,106    250,473    264,380     1,674,658
                                  ----------   ----------   ----------   ----------   ---------   --------   --------   -----------
TOTAL                             $1,876,839   $2,876,460   $4,905,963   $3,425,680   $ 489,649   $475,265   $482,491   $14,532,347

PERCENT OF REVENUE                      32.2%        46.6%        74.9%        48.8%        6.3%       5.7%       5.5%

                                                                                                                ARTHUR ANDERSEN LLP
</TABLE>

<PAGE>   63

EXHIBIT D-4

-----------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
REDMOND, OREGON
AS OF DECEMBER 31, 1996
-----------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------
CAPITAL EXPENDITURES
-----------------------------------------------

YEAR ENDING DECEMBER 31,             1997       1998        1999       2000          2001         2002         2003
                                 --------   --------    --------   --------      --------     --------     --------  
<S>                               <C>        <C>         <C>        <C>           <C>          <C>          <C>       <C>
CAPITAL ASSUMPTIONS
NEW PLANT MILES                      29.0        6.0         6.0        6.0           6.0          6.0          6.0
PLANT-AERIAL                      $16,000    $16,480     $16,974    $17,484       $18,008      $18,548      $19,105
PLANT-U/G                         $28,100    $28,943     $29,811    $30,706       $31,627      $32,576      $33,553
AERIAL PERCENTAGE                      20%        20%         20%        20%           20%          20%          20%
UNDERGROUND PERCENTAGE                 80%        80%         80%        80%           80%          80%          80%
AVERAGE COST PER CONVERTER           $110       $113        $117       $120          $124         $128         $131
CONVERTER USE PERCENTAGE               16%        16%         16%        16%           16%          16%          16%
CONVERTER REPLACEMENT PERCENTAGE       15%        10%         10%        10%           10%          10%          10%
INSTALLATION COST/SUBSCRIBER          $60        $62         $64        $66           $68          $70          $72
MISCELLANEOUS EXPENSE/SUBSCRIBER      $40        $20         $21        $21           $22          $23          $23
INFLATION                               0%         3%          3%         3%            3%           3%           3%

ANNUAL EXPENSE PROJECTION                                                                                                  TOTAL
NEW PLANT - AERIAL                $92,800    $19,776     $20,369    $20,980       $21,610      $22,258      $22,926     $220,719
NEW PLANT - UNDERGROUND           651,920    138,926     143,094    147,387       151,809      156,363      161,054    1,550,553
PLANT REBUILD AND UPGRADE               0          0           0          0             0            0            0            0
NEW CONVERTER EXPENSE              24,226          0         900      2,590         4,546        4,682        4,823       41,766
CONVERTER REPLACEMENT EXPENSE      17,325     14,392      14,601     15,132        15,853       16,796       17,783      111,882
INSTALLATION EXPENSE               44,249      2,609       1,644      4,730         8,303        8,552        8,808       78,895
MISCELLANEOUS CAPITAL EXPENSE     155,390     84,432      86,574     90,210        95,048      100,667      106,538      718,859
                                 --------   --------    --------   --------      --------     --------     --------   ----------
TOTAL                            $985,910   $260,135    $267,183   $281,029      $297,168     $309,319     $321,931   $2,722,674


PERCENT OF REVENUE                   58.6%      13.9%       13.8%      13.7%         13.7%        13.3%        13.0%

                                                                                                                ARTHUR ANDERSEN LLP
</TABLE>
<PAGE>   64
EXHIBIT D-5

-----------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SOMERSET, KY
AS OF DECEMBER 31, 1996
-----------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------
CAPITAL EXPENDITURES
-----------------------------------------------

YEAR ENDING DECEMBER 31,              1997         1998         1999         2000      2001       2002       2003
                                  --------   ----------   ----------   ----------  --------   --------   --------  
<S>                                <C>          <C>          <C>          <C>       <C>        <C>        <C>         <C>      
CAPITAL ASSUMPTIONS
NEW PLANT MILES                        1.9          8.5          8.5          8.5       8.5        8.5        8.5
PLANT-AERIAL                       $18,500      $19,055      $19,627      $20,215   $20,822    $21,447    $22,090
PLANT-U/G                          $21,500      $22,145      $22,809      $23,494   $24,198    $24,924    $25,672
AERIAL PERCENTAGE                       25%          25%          25%          25%       25%        25%        25%
UNDERGROUND PERCENTAGE                  75%          75%          75%          75%       75%        75%        75%
AVERAGE COST PER CONVERTER             $65          $67          $69          $90       $92        $95        $98
CONVERTER USE PERCENTAGE                21%          21%          21%          31%       36%        41%        46%
CONVERTER REPLACEMENT PERCENTAGE         8%           8%           8%           8%        8%         8%         8%
INSTALLATION COST/SUBSCRIBER           $60          $62          $64          $66       $68        $70        $72
MISCELLANEOUS EXPENSE/SUBSCRIBER       $15          $10          $10          $11       $11        $11        $12
INFLATION                                0%           3%           3%           3%        3%         3%         3%

ANNUAL EXPENSE PROJECTION                                                                                                 TOTAL
NEW PLANT - AERIAL                  $8,748      $40,546      $41,763      $43,016   $44,306    $45,635    $47,004      $271,019
NEW PLANT - UNDERGROUND             30,499      141,364      145,605      149,974   154,473    159,107    163,880       944,903
PLANT REBUILD AND UPGRADE          500,000    1,000,000    2,000,000    6,500,000         0          0          0    10,000,000
NEW CONVERTER EXPENSE                1,517        4,297        4,442      186,843   104,996    108,146    111,481       521,722
CONVERTER REPLACEMENT EXPENSE       26,619       27,542       28,723       37,801    54,331     64,613     75,463       315,092
INSTALLATION EXPENSE                 5,277       14,951       15,457       17,474    21,197     17,141     14,358       105,854
MISCELLANEOUS CAPITAL EXPENSE      290,100      195,049      203,397      212,201   221,738    231,543    241,080     1,595,108
                                  --------   ----------   ----------   ----------  --------   --------   --------   -----------
TOTAL                             $862,760   $1,423,751   $2,439,387   $7,147,308  $601,041   $626,185   $653,266   $13,753,698


PERCENT OF REVENUE                    11.5%        18.0%        29.3%        81.2%      6.2%       6.1%       6.1%

                                                                                                                ARTHUR ANDERSEN LLP
</TABLE>
<PAGE>   65
EXHIBIT E-1

----------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
BURKE COUNTY, NC
AS OF DECEMBER 31, 1996
----------------------------------------------
<TABLE>
<CAPTION>
----------------------------------------------
DISCOUNTED CASH FLOW VALUATION
----------------------------------------------


YEAR ENDING DECEMBER 31,           1997         1998         1999         2000        2001         2002         2003         TOTAL
                              ---------    ---------    ---------    ---------   ---------    ---------    ---------    ----------
<S>                          <C>          <C>          <C>          <C>         <C>          <C>          <C>          <C>        
REVENUE                      $5,266,958   $5,447,493   $5,659,602   $6,002,891  $6,494,157   $6,853,484   $7,167,554   $42,892,138
EXPENSES                      2,426,995    2,495,417    2,577,311    2,704,371   2,900,859    3,039,158    3,160,602    19,304,713
                              ---------    ---------    ---------    ---------   ---------    ---------    ---------    ----------
OPERATING INCOME             $2,839,963   $2,952,076   $3,082,291   $3,298,520  $3,593,298   $3,814,326   $4,006,951   $23,587,425
  LESS:
      CAPITAL EXPENDITURES    1,132,286    2,896,352    3,528,506    4,837,196     660,758      662,026      658,759    14,375,882
  PLUS:
      RESIDUAL VALUE                  0            0            0            0           0            0   30,052,136    30,052,136
FREE CASH FLOW                1,707,677       55,724     (446,215)  (1,538,676)  2,932,541    3,152,300   33,400,328    39,263,679

DISCOUNT RATE                     15.03%

DISCOUNTED CASH FLOW VALUE  $15,706,719

                                                                                                                ARTHUR ANDERSEN LLP
</TABLE>
<PAGE>   66
EXHIBIT E-2

--------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CALIFORNIA CITY, CALIFORNIA
AS OF DECEMBER 31, 1996
--------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------
DISCOUNTED CASH FLOW VALUATION
--------------------------------------------------


YEAR ENDING DECEMBER 31,             1997         1998         1999         2000         2001         2002         2003        TOTAL
                               ----------   ----------   ----------   ----------   ----------   ----------   ----------   ----------
<S>                            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>       
REVENUE                        $  754,179   $  794,221   $  832,846   $  874,082   $  916,557   $  961,877   $1,008,582   $6,142,345
EXPENSES                          368,549      384,288      399,359      415,034      431,273      448,163      465,663    2,912,329
                               ----------   ----------   ----------   ----------   ----------   ----------   ----------   ----------
OPERATING INCOME               $  385,630   $  409,933   $  433,487   $  459,048   $  485,284   $  513,714   $  542,920   $3,230,016
  LESS:
      CAPITAL EXPENDITURES        155,040      123,537      128,605      133,867      139,328      143,010      146,736      970,122
  PLUS:
      RESIDUAL VALUE                    0            0            0            0            0            0    3,800,438    3,800,438
FREE CASH FLOW                    230,590      286,396      304,882      325,182      345,956      370,703    4,196,622    6,060,332

DISCOUNT RATE                       15.03%

DISCOUNTED CASH FLOW VALUE     $2,709,780

                                                                                                                ARTHUR ANDERSEN LLP
</TABLE>
<PAGE>   67
EXHIBIT E-3

-------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CENTREVILLE, MARYLAND
AS OF DECEMBER 31, 1996
-------------------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------------
DISCOUNTED CASH FLOW VALUATION
-------------------------------------------------


YEAR ENDING DECEMBER 31,           1997         1998         1999         2000         2001         2002         2003         TOTAL
                             ----------   ----------   ----------   ----------   ----------   ----------   ----------   -----------
<S>                          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>        

REVENUE                      $5,823,918   $6,166,532   $6,545,857   $7,026,289   $7,772,298   $8,341,915   $8,827,562   $50,504,372
EXPENSES                      3,017,200    3,158,916    3,311,348    3,518,153    3,837,916    4,061,834    4,253,372    25,158,739
                             ----------   ----------   ----------   ----------   ----------   ----------   ----------   -----------
OPERATING INCOME             $2,806,718   $3,007,617   $3,234,510   $3,508,136   $3,934,382   $4,280,081   $4,574,189   $25,345,633
  LESS:
      CAPITAL EXPENDITURES    1,876,839    2,876,460    4,905,963    3,425,680      489,649      475,265      482,491    14,532,347
  PLUS:
      RESIDUAL VALUE                  0            0            0            0            0            0   36,593,516    36,593,516
FREE CASH FLOW                  929,878      131,157   (1,671,453)      82,455    3,444,733    3,804,816   40,685,214    47,406,801

DISCOUNT RATE                     14.23%

DISCOUNTED CASH FLOW VALUE  $19,359,143

                                                                                                                ARTHUR ANDERSEN LLP
</TABLE>
<PAGE>   68

EXHIBIT E-4

------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
REDMOND, OREGON
AS OF DECEMBER 31, 1996
------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------
DISCOUNTED CASH FLOW VALUATION
------------------------------------------------

YEAR ENDING DECEMBER 31,           1997         1998         1999         2000         2001         2002         2003         TOTAL
                             ----------   ----------   ----------   ----------   ----------   ----------   ----------   -----------
<S>                          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>        

REVENUE                      $1,682,856   $1,865,250   $1,939,763   $2,044,458   $2,175,384   $2,321,455   $2,475,049   $14,504,216
EXPENSES                        858,699      938,687      969,951    1,013,578    1,066,915    1,126,696    1,189,133     7,163,660
                             ----------   ----------   ----------   ----------   ----------   ----------   ----------   -----------
OPERATING INCOME               $824,157     $926,563     $969,812   $1,030,880   $1,108,469   $1,194,759   $1,285,916    $7,340,556
  LESS:
      CAPITAL EXPENDITURES      985,910      260,135      267,183      281,029      297,168      309,319      321,931     2,722,674
  PLUS:
      RESIDUAL VALUE                  0            0            0            0            0            0    9,001,414     9,001,414
FREE CASH FLOW                 (161,752)     666,428      702,629      749,851      811,301      885,440    9,965,398    13,619,295

DISCOUNT RATE                     15.03%

DISCOUNTED CASH FLOW VALUE   $5,778,109

                                                                                                                ARTHUR ANDERSEN LLP

</TABLE>
<PAGE>   69
EXHIBIT E-5

------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SOMERSET, KY
AS OF DECEMBER 31, 1996
------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------
DISCOUNTED CASH FLOW VALUATION
------------------------------------------------

YEAR ENDING DECEMBER 31,          1997         1998         1999         2000         2001         2002         2003         TOTAL
                            ----------   ----------   ----------   ----------   ----------   -----------   -----------  
<S>                         <C>          <C>          <C>          <C>          <C>          <C>           <C>          <C>        

REVENUE                     $7,495,245   $7,891,352   $8,311,425   $8,797,917   $9,617,660   $10,202,471   $10,771,694  $63,087,764
EXPENSES                     3,775,732    3,938,547    4,114,663    4,306,218    4,615,192     4,849,402     5,073,497   30,673,252
                            ----------   ----------   ----------   ----------   ----------   -----------   -----------  -----------
OPERATING INCOME            $3,719,513   $3,952,805   $4,196,762   $4,491,700   $5,002,468    $5,353,069    $5,698,197  $32,414,512
  LESS:
      CAPITAL EXPENDITURES     862,760    1,423,751    2,439,387    7,147,308      601,041       626,185       653,266   13,753,698
  PLUS:
      RESIDUAL VALUE                 0            0            0            0            0             0    48,434,673   48,434,673
FREE CASH FLOW               2,856,753    2,529,055    1,757,374   (2,655,608)   4,401,427     4,726,883    53,479,604   67,095,488

DISCOUNT RATE                    14.23%

DISCOUNTED CASH FLOW VALUE $29,525,152

                                                                                                                ARTHUR ANDERSEN LLP

</TABLE>
<PAGE>   70
EXHIBIT F-1

-------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
BURKE COUNTY, NC
AS OF DECEMBER 31, 1996
-------------------------------------------

-------------------------------------------
VALUATION MATRIX
-------------------------------------------

VALUATION MATRIX
<TABLE>
<CAPTION>
MULTIPLE OF PAST YEAR'S OPERATING INCOME
<S>  <C>                                       <C>       
     1996 ADJUSTED REVENUE                     $5,077,787
     1996 ADJUSTED EXPENSES                     2,260,515
     1996 ADJUSTED OPERATING INCOME            $2,817,272
  VALUATION MULTIPLE                                  8.5

ESTIMATED FAIR MARKET VALUE -                 $23,946,812
                                              ===========

MULTIPLE OF CURRENT OPERATING INCOME
     REVENUE                                   $5,292,721
     IMPUTED EXPENSES                           2,419,832
                                                ---------
     OPERATING INCOME                           2,872,889
  VALUATION MULTIPLE                                 8.00

ESTIMATED FAIR MARKET VALUE -                 $22,983,111
                                              ===========

MULTIPLE OF PROJECTED OPERATING INCOME
     PROJECTED REVENUE                         $5,266,958
     PROJECTED EXPENSES                         2,426,995
                                              -----------
     PROJECTED OPERATING INCOME                $2,839,963
  VALUATION MULTIPLE                                 7.50

ESTIMATED FAIR MARKET VALUE -                 $21,299,720
                                              ===========

PRE-TAX DISCOUNTED CASH FLOW VALUATION
     DISCOUNT RATE                                   15.0%
  ESTIMATED FAIR MARKET VALUE -               $15,706,719
                                              ===========
</TABLE>
<TABLE>
<CAPTION>
                                                  VALUE SUMMARY    WEIGHTING
<S>                                               <C>                  <C>
          PAST YEAR'S METHOD                      $23,946,812            5%
          CURRENT METHOD                          $22,983,111           10%
          PROJECTED METHOD                        $21,299,720           15%
          DISCOUNTED CASH FLOW METHOD             $15,706,719           70%
                                                   ------------         ---
                                                  
          ESTIMATED FAIR MARKET VALUE             $17,685,000          100%
                                                  ============         ====
</TABLE>
<TABLE>
<CAPTION>
          INFORMATIONAL ITEMS                     
                                                      LOW             HIGH
<S>                                               <C>              <C>        
          VALUE RANGE                             $15,706,719      $23,946,812
          AVERAGE                                 $19,826,766
</TABLE>
<TABLE>
<CAPTION>
                                                  PAST YEAR'S    CURRENT YEAR'S   NEXT YEAR'S
<S>                                                <C>               <C>             <C> 
          MULTIPLE OF CASH FLOW                      6.28            6.16            6.23
          VALUE PER BEGINNING YEAR 1 SUBSCRIBER    $1,682                 
          VALUE PER AVERAGE YEAR 1 SUBSCRIBER      $1,690               
                                                 


                                                                         ARTHUR ANDERSEN LLP
</TABLE>


<PAGE>   71



EXHIBIT F-2

----------------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CALIFORNIA CITY, CALIFORNIA
AS OF DECEMBER 31, 1996
-------------------------------------------

-------------------------------------------
VALUATION MATRIX
-------------------------------------------

VALUATION MATRIX
<TABLE>
<CAPTION>
MULTIPLE OF PAST YEAR'S OPERATING INCOME
<S>  <C>                                       <C>     
     1996 ADJUSTED REVENUE                       $753,244
     1996 ADJUSTED EXPENSES                       334,515
                                                  -------
     1996 ADJUSTED OPERATING INCOME              $418,729
  VALUATION MULTIPLE                                  8.0

ESTIMATED FAIR MARKET VALUE -                  $3,349,832
                                               ==========

MULTIPLE OF CURRENT OPERATING INCOME
     REVENUE                                     $746,398
     IMPUTED EXPENSES                             317,145
                                                  -------
     OPERATING INCOME                             429,254
  VALUATION MULTIPLE                                 7.50

ESTIMATED FAIR MARKET VALUE -                  $3,219,402
                                               ==========

MULTIPLE OF PROJECTED OPERATING INCOME
     PROJECTED REVENUE                           $754,179
     PROJECTED EXPENSES                           368,549
                                                  -------
     PROJECTED OPERATING INCOME                  $385,630
  VALUATION MULTIPLE                                 7.00

ESTIMATED FAIR MARKET VALUE -                  $2,699,409
                                               ==========

PRE-TAX DISCOUNTED CASH FLOW VALUATION
     DISCOUNT RATE                                   15.0%
  ESTIMATED FAIR MARKET VALUE -                $2,709,780
                                               ==========
</TABLE>

<TABLE>
<CAPTION>
                                                     VALUE SUMMARY    WEIGHTING
<S>                                                    <C>                 <C>
                PAST YEAR'S METHOD                     $3,349,832            5%
                CURRENT METHOD                         $3,219,402           10%
                PROJECTED METHOD                       $2,699,409           15%
                DISCOUNTED CASH FLOW METHOD            $2,709,780           70%
                                                       -----------          ---
                                                     
                ESTIMATED FAIR MARKET VALUE            $2,791,000          100%
                                                       ===========         ====
</TABLE>
<TABLE>
<CAPTION>
                                                   
               INFORMATIONAL ITEMS                   
                                                       LOW               HIGH
<S>                                                    <C>            <C>       
               VALUE RANGE                             $2,699,409     $3,349,832
               AVERAGE                                 $3,024,620
</TABLE>
<TABLE>
<CAPTION>
                                                       PAST YEAR'S     CURRENT YEAR'S    NEXT YEAR'S
<S>                                                     <C>                <C>              <C> 
               MULTIPLE OF CASH FLOW                      6.67             6.50             7.24
               VALUE PER BEGINNING YEAR 1 SUBSCRIBER    $1,452
               VALUE PER AVERAGE YEAR 1 SUBSCRIBER      $1,433


                                                                                ARTHUR ANDERSEN LLP
</TABLE>
<PAGE>   72


EXHIBIT F-3

----------------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CENTREVILLE, MARYLAND
AS OF DECEMBER 31, 1996
-------------------------------------------

-------------------------------------------
VALUATION MATRIX
-------------------------------------------
<TABLE>
<CAPTION>
VALUATION MATRIX

MULTIPLE OF PAST YEAR'S OPERATING INCOME
<S>  <C>                                       <C>       
     1996 ADJUSTED REVENUE                     $5,342,637
     1996 ADJUSTED EXPENSES                     2,847,160
                                                ---------
     1996 ADJUSTED OPERATING INCOME            $2,495,477
  VALUATION MULTIPLE                                  9.0

ESTIMATED FAIR MARKET VALUE -                 $22,459,293
                                              ===========

MULTIPLE OF CURRENT OPERATING INCOME
     REVENUE                                   $5,760,275
     IMPUTED EXPENSES                           2,933,132
                                                ---------
     OPERATING INCOME                           2,827,143
  VALUATION MULTIPLE                                 8.50

ESTIMATED FAIR MARKET VALUE -                 $24,030,716
                                              ===========

MULTIPLE OF PROJECTED OPERATING INCOME
     PROJECTED REVENUE                         $5,823,918
     PROJECTED EXPENSES                         3,017,200
                                              -----------
     PROJECTED OPERATING INCOME                $2,806,718
  VALUATION MULTIPLE                                 8.00

ESTIMATED FAIR MARKET VALUE -                 $22,453,742
                                              ===========

PRE-TAX DISCOUNTED CASH FLOW VALUATION
     DISCOUNT RATE                                  14.2%
  ESTIMATED FAIR MARKET VALUE -               $19,359,143
                                              ===========
</TABLE>
<TABLE>
<CAPTION>
                                                        VALUE SUMMARY     WEIGHTING
<S>                                                     <C>                  <C>
                PAST YEAR'S METHOD                      $22,459,293            5%
                CURRENT METHOD                          $24,030,716           10%
                PROJECTED METHOD                        $22,453,742           15%
                DISCOUNTED CASH FLOW METHOD             $19,359,143           70%
                                                        ------------          ---
                                                        
                ESTIMATED FAIR MARKET VALUE             $20,445,000          100%
                                                        ============         ====
</TABLE>
<TABLE>
<CAPTION>
                                                        
               INFORMATIONAL ITEMS                      
                                                            LOW           HIGH
<S>                                                     <C>           <C>              
               VALUE RANGE                              $19,359,143   $24,030,716
               AVERAGE                                  $21,694,930
</TABLE>
<TABLE>
<CAPTION>
                                                        PAST YEAR'S   CURRENT YEAR'S   NEXT YEAR'S
<S>                                                         <C>           <C>              <C> 
               MULTIPLE OF CASH FLOW                        8.19          7.23             7.28
               VALUE PER BEGINNING YEAR 1 SUBSCRIBER      $1,659
               VALUE PER AVERAGE YEAR 1 SUBSCRIBER        $1,633


                                                                               ARTHUR ANDERSEN LLP
</TABLE>
<PAGE>   73


EXHIBIT F-4

-------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
REDMOND, OREGON
AS OF DECEMBER 31, 1996
-------------------------------------------

-------------------------------------------
VALUATION MATRIX
-------------------------------------------

VALUATION MATRIX
<TABLE>
<CAPTION>
MULTIPLE OF PAST YEAR'S OPERATING INCOME
<S>  <C>                                     <C>       
     1996 ADJUSTED REVENUE                   $1,561,593
     1996 ADJUSTED EXPENSES                     721,472
                                             ----------
     1996 ADJUSTED OPERATING INCOME            $840,121
  VALUATION MULTIPLE                                8.0

ESTIMATED FAIR MARKET VALUE -                $6,720,968
                                             ==========

MULTIPLE OF CURRENT OPERATING INCOME
     REVENUE                                 $1,569,849
     IMPUTED EXPENSES                           722,445
                                             ----------
     OPERATING INCOME                           847,405
  VALUATION MULTIPLE                               7.50

ESTIMATED FAIR MARKET VALUE -                $6,355,535
                                             ==========

MULTIPLE OF PROJECTED OPERATING INCOME
     PROJECTED REVENUE                       $1,682,856
     PROJECTED EXPENSES                         858,699
                                             ----------
     PROJECTED OPERATING INCOME                $824,157
  VALUATION MULTIPLE                               7.00

ESTIMATED FAIR MARKET VALUE -                $5,769,101
                                             ==========

PRE-TAX DISCOUNTED CASH FLOW VALUATION
     DISCOUNT RATE                                 15.0%
  ESTIMATED FAIR MARKET VALUE -              $5,778,109
                                             ==========
</TABLE>
<TABLE>
                                                     VALUE SUMMARY    WEIGHTING
<S>                                                   <C>                  <C>
                PAST YEAR'S METHOD                    $6,720,968             5%
                CURRENT METHOD                        $6,355,535            10%
                PROJECTED METHOD                      $5,769,101            15%
                DISCOUNTED CASH FLOW METHOD           $5,778,109            70%
                                                      ----------            ---
                                                                       
                ESTIMATED FAIR MARKET VALUE           $5,882,000           100%
                                                      ----------           ----
</TABLE>
<TABLE>
<CAPTION>
               INFORMATIONAL ITEMS                    
                                                         LOW            HIGH
<S>                                                   <C>            <C>       
               VALUE RANGE                            $5,769,101     $6,720,968
               AVERAGE                                $6,245,034
</TABLE>                                            
<TABLE>
<CAPTION>
                                                    
                                                      PAST YEAR'S    CURRENT YEAR'S   NEXT YEAR'S
<S>                                                    <C>                <C>             <C> 
               MULTIPLE OF CASH FLOW                     7.00             6.94            7.14
               VALUE PER BEGINNING YEAR 1 SUBSCRIBER   $1,673
               VALUE PER AVERAGE YEAR 1 SUBSCRIBER     $1,514
</TABLE>
<PAGE>   74


EXHIBIT F-5

-------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SOMERSET, KY
AS OF DECEMBER 31, 1996
-------------------------------------------

-------------------------------------------
VALUATION MATRIX
-------------------------------------------

VALUATION MATRIX
<TABLE>
<CAPTION>
MULTIPLE OF PAST YEAR'S OPERATING INCOME
<S>  <C>                                     <C>       
     1996 ADJUSTED REVENUE                    $7,090,865
     1996 ADJUSTED EXPENSES                    3,401,985
                                              ----------
     1996 ADJUSTED OPERATING INCOME           $3,688,880
  VALUATION MULTIPLE                                 9.5

ESTIMATED FAIR MARKET VALUE -                $35,044,360
                                             ===========

MULTIPLE OF CURRENT OPERATING INCOME
     REVENUE                                  $7,486,266
     IMPUTED EXPENSES                          4,025,365
                                               ---------
     OPERATING INCOME                          3,460,901
  VALUATION MULTIPLE                                9.00

ESTIMATED FAIR MARKET VALUE -                $31,148,107
                                             ===========

MULTIPLE OF PROJECTED OPERATING INCOME
     PROJECTED REVENUE                        $7,495,245
     PROJECTED EXPENSES                        3,775,732
                                              ----------
     PROJECTED OPERATING INCOME               $3,719,513
  VALUATION MULTIPLE                                8.50

ESTIMATED FAIR MARKET VALUE -                $31,615,860
                                             ===========

PRE-TAX DISCOUNTED CASH FLOW VALUATION
     DISCOUNT RATE                                  14.2%
  ESTIMATED FAIR MARKET VALUE -              $29,525,152
                                             ===========
</TABLE>
<TABLE>
<CAPTION>
                                                    VALUE SUMMARY     WEIGHTING
<S>                                                  <C>                     <C>
                PAST YEAR'S METHOD                   $35,044,360             5%
                CURRENT METHOD                       $31,148,107            10%
                PROJECTED METHOD                     $31,615,860            15%
                DISCOUNTED CASH FLOW METHOD          $29,525,152            70%
                                                     ------------           ---
                                                     
                ESTIMATED FAIR MARKET VALUE          $30,277,000           100%
                                                     ============          ====
</TABLE>
<TABLE>
<CAPTION>
                                                     
               INFORMATIONAL ITEMS                   
                                                        LOW          HIGH
<S>                                                  <C>            <C>        
               VALUE RANGE                           $29,525,152    $35,044,360
               AVERAGE                               $32,284,756
</TABLE>
<TABLE>
                                                     
                                                        PAST YEAR'S    CURRENT YEAR'S    NEXT YEAR'S
<S>                                                       <C>                <C>           <C> 
               MULTIPLE OF CASH FLOW                        8.21             8.75          8.14
               VALUE PER BEGINNING YEAR 1 SUBSCRIBER      $1,569
               VALUE PER AVERAGE YEAR 1 SUBSCRIBER        $1,566



                                                                                ARTHUR ANDERSEN LLP
</TABLE>







<PAGE>   75


[LOGO - ARTHUR ANDERSEN LLP]








                   ADDENDUM 1 Channel Line-Ups and Rate Cards




<PAGE>   76
FALCON CABLE TV - BURKE COUNTY, NC                          (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 LOCAL - COMMUNITY ACCESS/PEG
         3 WBTV 3-CBS CHARLOTTE, NC
         4 WYFF-TV 4-NBC GREENVILLE, SC
         5 WUNE-TV 17-PBS LINVILLE, NC
         6 WCNC-TV 36-NBC CHARLOTTE,NC
         7 WSPA-TV 7-CBS SPARTANBURG, SC
         8 QVC
         9 WSOC-TV 9-ABC CHARLOTTE, NC
        10 WCCB 18-FOX CHARLOTTE, NC
        11 WHKY-TV 14-IND HICKORY, NC
        12 MTV
        13 WLOS 13-ABC ASHEVILLE, NC
        14 WJZY 46-IND/UPN BELMONT, NC
        15 C-SPAN
      * 16 REQUEST - PAY PER VIEW
      * 17 HBO
      * 18 CINEMAX
      * 19 THE MOVIE CHANNEL
      * 20 SHOWTIME
      * 21 ENCORE
      + 22 THE DISNEY CHANNEL
        23 NICKELODEON
      = 24 WTBS 17-IND ATLANTA, GA
      + 25 THE NASHVILLE NETWORK
      + 26 THE DISCOVERY CHANNEL
      + 27 THE FAMILY CHANNEL
      + 28 COUNTRY MUSIC TV
      + 29 THE WEATHER CHANNEL
      + 30 TNT
      = 31 THE LEARNING CHANNEL
      = 32 CNN
      = 33 CNN HEADLINE NEWS
        34 NOSTALGIA
      = 35 ESPN
        36 PREVUE GUIDE
        37 CNBC
        38 COMEDY CENTRAL
        38 VH-1
        39 LIFETIME
      = 40 SPORTSOUTH NETWORK
        41 NEW INSPIRATIONAL NETWORK
      = 42 USA NETWORK
        43 WHNS 21-FOX ASHEVILLE, NC
        44 WFVT-TV 55-IND ROCK HILL, SC

RATES___________________________________________________________________________
        BASIC                                                         $17.54
        TIER (=)                                                        6.36
        SATELLITE PACKAGE 1 (+)                                        10.44
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.03
        ADDRESSABLE CONVERTER                                           2.51
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   250.00
        DAMAGED CONVERTER EQUIPMENT                                   105.00
        DISCONNECT HOLD FEE                                             2.00
        UPGRADE                                                         2.00
        NON PAY RECONNECT FEE                                          15.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        ENCORE                                                          5.95
        PAY PER VIEW MOVIE                                              3.95
________________________________________________________________________________
All Broadcast TV stations can only be received via cable through a converter
box, which is available at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   77
FALCON CABLE TV - CHURCH HILL, MD                          (Effective: 10/1/96)

CHANNEL LINE-UP ---------------------------------------------------------------
        
         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL-COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTG 5-FOX WASHINGTON, DC
        *6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON, DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
       *15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL - COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV 24-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKLEODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E!-ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK
RATES___________________________________________________________________________
        BASIC                                                         $20.44
        TIER (=)                                                        3.42
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments and do
not include franchise fees of 5% of your total bill. Any such amounts will be
itemized on your bill.
<PAGE>   78
FALCON CABLE TV - Kent County, ND                          (Effective: 10/1/96)
                                                        
CHANNEL LINE-UP________________________________________________________________
         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL - COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTG 5-FOX WASHINGTON, DC
      *  6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
      * 15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL - COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV 24-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKELODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E! - ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK

RATES___________________________________________________________________________
        BASIC                                                         $20.63
        TIER (=)                                                        3.48
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments and do
not include franchise fees of 3% of your basic rate. Any such amounts will be
itemized on your bill.
<PAGE>   79
FALCON CABLE TV - CONNELLY SPRINGS, NC                     (Effective: 10/1/96)
                                                        
CHANNEL LINE-UP________________________________________________________________

        2 LOCAL - COMMUNITY ACCESS/PEG
        3 WBTV 3-CBS CHARLOTTE, NC
        4 WYFF-TV 4-NBC GREENVILLE, SC
        5 WUNE-TV 17-PBS LINVILLE, NC
        6 WCNC-TV 36-NBC CHARLOTTE, NC
        7 WSPA-TV 7-CBS SPARTANBURG, SC
        8 QVC
        9 WSOC-TV 9-ABC CHARLOTTE, NC
       10 WCCB 18-FOX CHARLOTTE, NC
       11 WHKY-TV 14-IND HICKORY, NC
       12 MTV
       13 WLOS 13-ABC ASHEVILLE, NC
       14 WJZY 46-IND/UPN BELMONT, NC
       15 C-SPAN
     * 16 REQUEST - PAY PER VIEW
     * 17 HBO
     * 18 CINEMAX
     * 19 THE MOVIE CHANNEL
     * 20 SHOWTIME
     * 21 ENCORE
     + 22 THE DISNEY CHANNEL
       23 NICKELODEON
     = 24 WTBS 17-IND ATLANTA, GA
     + 25 THE NASHVILLE NETWORK
     + 26 THE DISCOVERY CHANNEL
     + 27 THE FAMILY CHANNEL
     + 28 COUNTRY MUSIC TV
     + 29 THE WEATHER CHANNEL
     + 30 TNT
     = 31 THE LEARNING CHANNEL
     = 32 CNN
     = 33 CNN HEADLINE NEWS
       34 NOSTALGIA
     = 35 ESPN
       36 PREVUE GUIDE
       37 CNBC
       38 COMEDY CENTRAL
       38 VH-1
       39 LIFETIME
     = 40 SPORTSOUTH NETWORK
       41 NEW INSPIRATIONAL NETWORK
     = 42 USA NETWORK
       43 WHNS 21-FOX ASHEVILLE, NC
       44 WFVT-TV 55-IND ROCK HILL, SC

RATES___________________________________________________________________________

        BASIC                                                         $17.37
        TIER (=)                                                        6.31
        SATELLITE PACKAGE 1 (+)                                        10.44
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.03
        ADDRESSABLE CONVERTER                                           2.51
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   250.00
        DAMAGED CONVERTER EQUIPMENT                                   105.00
        DISCONNECT HOLD FEE                                             2.00
        UPGRADE                                                         2.00
        NON PAY RECONNECT FEE                                          15.00

PREMIUM SERVICES (*)------------------------------------------------------------

        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        ENCORE                                                          5.95
        PAY PER VIEW MOVIE                                              3.95
________________________________________________________________________________
All Broadcast TV stations can only be received via cable through a
converter box, which is available at the low rate listed above.

The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
<PAGE>   80
FALCON CABLE TV - DREXEL, NC                               (Effective: 10/1/96)
                                                        
CHANNEL LINE-UP________________________________________________________________
         2 LOCAL - COMMUNITY ACCESS/PEG
         3 WBTV 3-CBS CHARLOTTE, NC
         4 WYFF-TV 4-NBC GREENVILLE, SC
         5 WUNE-TV 17-PBS LINVILLE, NC
         6 WCNC-TV 36-NBC CHARLOTTE, NC
         7 WSPA-TV 7-CBS SPARTANBURG, SC
         8 QVC
         9 WSOC-TV 9-ABC CHARLOTTE, NC
        10 WCCB 18-FOX CHARLOTTE, NC
        11 WHKY-TV 14-IND HICKORY, NC
        12 MTV
        13 WLOS 13-ABC ASHEVILLE, NC
        14 WJZY 46-IND/UPN BELMONT, NC
        15 C-SPAN
      * 16 REQUEST - PAY PER VIEW
      * 17 HBO
      * 18 CINEMAX
      * 19 THE MOVIE CHANNEL
      * 20 SHOWTIME
      * 21 ENCORE
      + 22 THE DISNEY CHANNEL
        23 NICKELODEON
      = 24 WTBS 17-IND ATLANTA, GA
      + 25 THE NASHVILLE NETWORK
      + 26 THE DISCOVERY CHANNEL
      + 27 THE FAMILY CHANNEL
      + 28 COUNTRY MUSIC TV
      + 29 THE WEATHER CHANNEL
      + 30 TNT
      = 31 THE LEARNING CHANNEL
      = 32 CNN
      = 33 CNN HEADLINE NEWS
        34 NOSTALGIA
      = 35 ESPN
        36 PREVUE GUIDE
        37 CNBC
        38 COMEDY CENTRAL
        38 VH-1
        39 LIFETIME
      = 40 SPORTSOUTH NETWORK
        41 NEW INSPIRATIONAL NETWORK
      = 42 USA NETWORK
        43 WHNS 21-FOX ASHEVILLE, NC
        44 WFVT-TV 55-IND ROCK HILL, SC

RATES___________________________________________________________________________
        BASIC                                                         $17.26
        TIER (=)                                                        6.50
        SATELLITE PACKAGE 1 (+)                                        10.45
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.03
        ADDRESSABLE CONVERTER                                           2.51
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   250.00
        DAMAGED CONVERTER EQUIPMENT                                   105.00
        DISCONNECT HOLD FEE                                             2.00
        UPGRADE                                                         2.00
        NON PAY RECONNECT FEE                                          15.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        ENCORE                                                          5.95
        PAY PER VIEW MOVIE                                              3.95
________________________________________________________________________________
All Broadcast TV stations can only be received via cable through a
converter box, which is available at the low rate listed above.

The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
<PAGE>   81
FALCON CABLE TV - GLEN ALPINE, NC                          (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 LOCAL - COMMUNITY ACCESS/PEG
         3 WBTV 3-CBS CHARLOTTE, NC
         4 WYFF-TV 4-NBC GREENVILLE, SC
         5 WUNE-TV 17-PBS LINVILLE, NC
         6 WCNC-TV 36-NBC CHARLOTTE,NC
         7 WSPA-TV 7-CBS SPARTANBURG, SC
         8 QVC
         9 WSOC-TV 9-ABC CHARLOTTE, NC
        10 WCCB 18-FOX CHARLOTTE, NC
        11 WHKY-TV 14-IND HICKORY, NC
        12 MTV
        13 WLOS 13-ABC ASHEVILLE, NC
        14 WJZY 46-IND/UPN BELMONT, NC
        15 C-SPAN
      * 16 REQUEST - PAY PER VIEW
      * 17 HBO
      * 18 CINEMAX
      * 19 THE MOVIE CHANNEL
      * 20 SHOWTIME
      * 21 ENCORE
      + 22 THE DISNEY CHANNEL
        23 NICKELODEON
      = 24 WTBS 17-IN ATLANTA, GA
      + 25 THE NASHVILLE NETWORK
      + 26 THE DISCOVERY CHANNEL
      + 27 THE FAMILY CHANNEL
      + 28 COUNTRY MUSIC TV
      + 29 THE WEATHER CHANNEL
      + 30 TNT
      = 31 THE LEARNING CHANNEL
      = 32 CNN
      = 33 CNN HEADLINE NEWS
        34 NOSTALGIA
      = 35 ESPN
        36 PREVUE GUIDE
        37 CNBC
        38 COMEDY CENTRAL
        38 VH-1
        39 LIFETIME
      = 40 SPORTSOUTH NETWORK
        41 NEW INSPIRATIONAL NETWORK
      = 42 USA NETWORK
        43 WHNS 21-FOX ASHEVILLE, NC
        44 WFVT-TV 55-IND ROCK HILL, SC

RATES___________________________________________________________________________
        BASIC                                                         $17.18
        TIER (=)                                                        6.36
        SATELLITE PACKAGE 1 (+)                                        10.44
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.03
        ADDRESSABLE CONVERTER                                           2.51
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   250.00
        DAMAGED CONVERTER EQUIPMENT                                   105.00
        DISCONNECT HOLD FEE                                             2.00
        UPGRADE                                                         2.00
        NON PAY RECONNECT FEE                                          15.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        ENCORE                                                          5.95
        PAY PER VIEW MOVIE                                              3.95
________________________________________________________________________________
All Broadcast TV stations can only be received via cable through a converter
box, which is available at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   82
FALCON CABLE TV - RUTHERFORD COLLEGE, NC                   (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 LOCAL - COMMUNITY ACCESS/PEG
         3 WBTV 3-CBS CHARLOTTE, NC
         4 WYFF-TV 4-NBC GREENVILLE, SC
         5 WUNE-TV 17-PBS LINVILLE, NC
         6 WCNC-TV 36-NBC CHARLOTTE,NC
         7 WSPA-TV 7-CBS SPARTANBURG, SC
         8 QVC
         9 WSOC-TV 9-ABC CHARLOTTE, NC
        10 WCCB 18-FOX CHARLOTTE, NC
        11 WHKY-TV 14-IND HICKORY, NC
        12 MTV
        13 WLOS 13-ABC ASHEVILLE, NC
        14 WJZY 46-IND/UPN BELMONT, NC
        15 C-SPAN
      * 16 REQUEST - PAY PER VIEW
      * 17 HBO
      * 18 CINEMAX
      * 19 THE MOVIE CHANNEL
      * 20 SHOWTIME
      * 21 ENCORE
      + 22 THE DISNEY CHANNEL
        23 NICKELODEON
      = 24 WTBS 17-IN ATLANTA, GA
      + 25 THE NASHVILLE NETWORK
      + 26 THE DISCOVERY CHANNEL
      + 27 THE FAMILY CHANNEL
      + 28 COUNTRY MUSIC TV
      + 29 THE WEATHER CHANNEL
      + 30 TNT
      = 31 THE LEARNING CHANNEL
      = 32 CNN
      = 33 CNN HEADLINE NEWS
        34 NOSTALGIA
      = 35 ESPN
        36 PREVUE GUIDE
        37 CNBC
        38 COMEDY CENTRAL
        38 VH-1
        39 LIFETIME
      = 40 SPORTSOUTH NETWORK
        41 NEW INSPIRATIONAL NETWORK
      = 42 USA NETWORK
        43 WHNS 21-FOX ASHEVILLE, NC
        44 WFVT-TV 55-IND ROCK HILL, SC

RATES___________________________________________________________________________
        BASIC                                                         $17.59
        TIER (=)                                                        6.52
        SATELLITE PACKAGE 1 (+)                                        10.45
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.03
        ADDRESSABLE CONVERTER                                           2.51
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   250.00
        DAMAGED CONVERTER EQUIPMENT                                   105.00
        DISCONNECT HOLD FEE                                             2.00
        UPGRADE                                                         2.00
        NON PAY RECONNECT FEE                                          15.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        ENCORE                                                          5.95
        PAY PER VIEW MOVIE                                              3.95
________________________________________________________________________________
All Broadcast TV stations can only be received via cable through a converter
box, which is available at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   83
FALCON CABLE TV - VALDESE COUNTY, NC                        (Effective: 10/1/96)
                                                        
CHANNEL LINE-UP________________________________________________________________


         2 LOCAL - COMMUNITY ACCESS/PEG
         3 WBTV 3-CBS CHARLOTTE, NC
         4 WYFF-TV 4-NBC GREENVILLE, SC
         5 WUNE-TV 17-PBS LINVILLE, NC
         6 WCNC-TV 36-NBC CHARLOTTE, NC
         7 WSPA-TV 7-CBS SPARTANBURG, SC
         8 QVC
         9 WSOC-TV 9-ABC CHARLOTTE, NC
        10 WCCB 18-FOX CHARLOTTE, NC
        11 WHKY-TV 14-IND HICKORY, NC
        12 MTV
        13 WLOS 13-ABC ASHEVILLE, NC
        14 WJZY 46-IND/UPN BELMONT, NC
        15 C-SPAN
      * 16 REQUEST - PAY PER VIEW
      * 17 HBO
      * 18 CINEMAX
      * 19 THE MOVIE CHANNEL
      * 20 SHOWTIME
      * 21 ENCORE
      + 22 THE DISNEY CHANNEL
        23 NICKELODEON
      = 24 WTBS 17-IND ATLANTA, GA
      + 25 THE NASHVILLE NETWORK
      + 26 THE DISCOVERY CHANNEL
      + 27 THE FAMILY CHANNEL
      + 28 COUNTRY MUSIC TV
      + 29 THE WEATHER CHANNEL
      + 30 TNT
      = 31 THE LEARNING CHANNEL
      = 32 CNN
      = 33 CNN HEADLINE NEWS
        34 NOSTALGIA
      = 35 ESPN
        36 PREVUE GUIDE
        37 CNBC
        38 COMEDY CENTRAL
        38 VH-1
        39 LIFETIME
      = 40 SPORTSOUTH NETWORK
        41 NEW INSPIRATIONAL NETWORK
      = 42 USA NETWORK
        43 WHNS 21-FOX ASHEVILLE, NC
        44 WFVT-TV 55-IND ROCK HILL, SC
        
RATES___________________________________________________________________________


        BASIC                                                   $17.14 
        TIER (=)                                                  6.34
        SATELLITE PACKAGE 1(+)                                   10.44
        BASIC ON ADDITIONAL OUTLET                                0.00
        INSTALLATION/SERVICE (per hr.)                           45.00
        INSTALL MATERIALS (if any)                             At Cost       
        REMOTE                                                    0.03
        ADDRESSABLE CONVERTER                                     2.51
        RADIO SERVICE                                             1.95
        WIRE MAINTENANCE AGREEMENT                                1.50
        CABLE PROGRAM GUIDE                                       1.75
        LATE PAYMENT FEE                                          5.00
        RETURNED CHECK FEE                                       10.00
        LOST/STOLEN CONVERTER EQUIP                             250.00
        DAMAGED CONVERTER EQUIPMENT                             105.00
        DISCONNECT HOLD FEE                                       2.00
        UPGRADE                                                   2.00
        NON PAY RECONNECT FEE                                    15.00
                

PREMIUM SERVICES (*)------------------------------------------------------------

        CINEMAX                                                  10.95
        THE DISNEY CHANNEL                                       10.95
        HBO                                                      11.95
        THE MOVIE CHANNEL                                        10.95
        SHOWTIME                                                 10.95
        ENCORE                                                    5.95
        PAY PER VIEW MOVIE                                        3.95
        

________________________________________________________________________________
All Broadcast TV stations can only be received via cable through a
converter box, which is available at the low rate listed above.

The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
<PAGE>   84
FALCON CABLE TV - BARCLAY, MD                              (Effective: 10/1/96)

CHANNEL LINE-UP ---------------------------------------------------------------
        
         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL-COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTV 5-FOX WASHINGTON, DC
      *  6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON, DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
      * 15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL - COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV 24-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKLEODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E!-ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK

RATES___________________________________________________________________________
        BASIC                                                         $20.86
        TIER (=)                                                        3.55
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
<PAGE>   85
FALCON CABLE TV - BETTERTON, MD                             (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL - COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTG 5-FOX WASHINGTON, DC
      *  6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON, DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
      * 15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL - COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV 24-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKELODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E! - ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK

RATES___________________________________________________________________________
        BASIC                                                         $20.80
        TIER (=)                                                        3.89
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can
only be received via cable through a converter box, unless you have
a cable-ready TV set. Converter boxes are available for rent at the
low rate listed above.

The above rates may not include applicable taxes, fees and assessments
and do not include franchise fees of 3% of your total bill. Any
such amounts will be itemized on your bill.
<PAGE>   86
FALCON CABLE TV - CENTREVILLE, MD                          (Effective: 10/1/96)
                                                        
CHANNEL LINE-UP________________________________________________________________

        2 WMAR-TV 2-ABC BALTIMORE, MD
        3 LOCAL - COMMUNITY ACCESS/PEG
        4 QVC
        5 WTTG 5-FOX WASHINGTON, DC
      * 6 CINEMAX
        7 WJLA-TV 7-ABC WASHINGTON, DC
        8 ESPN
        9 WUSA 9-CBS WASHINGTON, DC
       10 WBFF 45-FOX BALTIMORE, MD
       11 WBAL-TV 11-NBC BALTIMORE, MD
       12 WETA-TV 26-PBS WASHINGTON, DC
       12 MOR MUSIC TV
       13 WJZ-TV 13-CBS BALTIMORE, MD
       14 WNUV-TV 54-IND/UPN BALTIMORE, MD
     * 15 SHOWTIME
       16 WBOC-TV 16-CBS SALISBURY, MD
       17 HOME TEAM SPORTS
       18 WDCA 20-IND/UPN WASHINGTON, DC
       19 LOCAL - COMMUNITY ACCESS/PEG
     * 20 HBO
     * 21 THE MOVIE CHANNEL
       22 WMPT 22-PBS ANNAPOLIS, MD
     + 23 THE DISCOVERY CHANNEL
     + 24 THE FAMILY CHANNEL
     + 25 WTBS 17-IND ATLANTA, GA
       26 WHSW-TV 24-HSN BALTIMORE, MD
       27 CNN
     = 28 USA NETWORK
     = 29 ARTS & ENTERTAINMENT
     = 30 SCI-FI CHANNEL
     = 31 THE WEATHER CHANNEL
     = 32 THE NASHVILLE NETWORK
       33 NICKELODEON
       34 TNT
       35 LIFETIME
       36 FX
       37 C-SPAN
       38 CNN HEADLINE NEWS
       39 AMERICAN MOVIE CLASSICS
       40 TRINITY BROADCASTING NETWORK
       41 THE LEARNING CHANNEL
       42 CNBC
       43 COUNTRY MUSIC TV
     + 44 THE DISNEY CHANNEL
       45 BLACK ENTERTAINMENT TV
       46 BRAVO
       47 E! - ENTERTAINMENT TV
       48 MTV
       49 HOME & GARDEN TV
       50 VH-1
     + 51 ESPN 2
     = 52 TV FOOD NETWORK

RATES___________________________________________________________________________

        BASIC                                                         $20.32
        TIER (=)                                                        3.77
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------

        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and
assessments and do not include franchise fees of 3% of your total bill. Any
such amounts will be itemized on your bill.
<PAGE>   87
FALCON CABLE TV - CHESTERTOWN, MD                          (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL-COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTG 5-FOX WASHINGTON, DC
       * 6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON, DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
      * 15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL-COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV 24-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKELODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E!-ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK

RATES___________________________________________________________________________

        BASIC                                                         $21.08
        TIER (=)                                                        2.91
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------

        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments and do
not include franchise fees of 4% of your total bill. Any such amounts will be
itemized on your bill.
<PAGE>   88
FALCON CABLE TV - MILLINGTON, MD                           (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________

         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL-COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTV 5-FOX WASHINGTON, DC
      *  6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON, DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
      * 15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL - COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV 24-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKELODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E!-ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK

RATES___________________________________________________________________________

        BASIC                                                         $20.90
        TIER (=)                                                        3.25
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------

        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments and do
not include franchise fees of 4% of your total bill. Any such amounts will be
itemized on your bill.
<PAGE>   89
FALCON CABLE TV - TRAPPE, MD                                (Effective 10/1/96)

CHANNEL LINE-UP________________________________________________________________

         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL-COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTG 5-FOX WASHINGTON, DC
       * 6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON, DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
      * 15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL - COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV 24-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKELODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E!-ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK

RATES___________________________________________________________________________

        BASIC                                                         $20.08
        TIER (=)                                                        4.07
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   at cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------

        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any 
such amounts will be itemized on your bill.


<PAGE>   90
FALCON CABLE TV - OXFORD, MD                               (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________

         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL-COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTG 5-FOX WASHINGTON, DC
      *  6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON, DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
      * 15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL - COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKELODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E!-ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK

RATES___________________________________________________________________________

        BASIC                                                         $20.12
        TIER (=)                                                        4.26
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------

        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 are available for
rent can only be received via cable through a converter box, unless you have a
cable-ready TV set converter boxes at the low rate listed above.

The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
<PAGE>   91
FALCON CABLE TV - QUEEN ANNE'S COUNTY, MD                  (Effective: 10/1/96)

CHANNEL LINE-UP ---------------------------------------------------------------
        
         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL-COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTG 5-FOX WASHINGTON, DC
      *  6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON, DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
      * 15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL - COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV 24-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKELODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E! - ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK
RATES___________________________________________________________________________
        BASIC                                                         $20.31
        TIER (=)                                                        3.72
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and
assessments and do not include franchise fees of 3% of your total bill. Any
such amounts will be itemized on your bill.
<PAGE>   92
FALCON CABLE TV - QUEENSTOWN, MD                           (Effective: 10/1/96)

CHANNEL LINE-UP ---------------------------------------------------------------
        
         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL-COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTG 5-FOX WASHINGTON, DC
      *  6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON, DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
      * 15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL - COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV 24-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKELODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E! - ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK
RATES___________________________________________________________________________
        BASIC                                                         $20.67
        TIER (=)                                                        3.33
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and
assessments and do not include franchise fees of 3% of your total bill. Any
such amounts will be itemized on your bill.
<PAGE>   93
FALCON CABLE TV - ROCK HALL, MD                           (Effective: 10/1/96)

CHANNEL LINE-UP ---------------------------------------------------------------
        
         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL-COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTG 5-FOX WASHINGTON, DC
      *  6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON, DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
      * 15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL - COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV 24-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKELODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E! - ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK
RATES___________________________________________________________________________
        BASIC                                                         $20.35
        TIER (=)                                                        3.82
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and
assessments and do not include franchise fees of 5% of your basic rate. Any
such amounts will be itemized on your bill.
<PAGE>   94
FALCON CABLE TV - ST. MICHAELS, MD                         (Effective: 10/1/96)

CHANNEL LINE-UP ---------------------------------------------------------------
        
         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL-COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTG 5-FOX WASHINGTON, DC
      *  6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON, DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
      * 15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL - COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV 24-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKELODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E! - ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK
RATES___________________________________________________________________________
        BASIC                                                         $20.84
        TIER (=)                                                        3.36
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and
assessments and do not include franchise fees of 3% of your total bill. Any
such amounts will be itemized on your bill.
<PAGE>   95
FALCON CABLE TV - SUDLERSVILLE, MD                         (Effective: 10/1/96)

CHANNEL LINE-UP ---------------------------------------------------------------
        
         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL-COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTG 5-FOX WASHINGTON, DC
      *  6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON, DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
      * 15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL - COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV 24-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKELODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E! - ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK
RATES___________________________________________________________________________
        BASIC                                                         $20.66
        TIER (=)                                                        3.58
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments and do
not include franchise fees of 3% of your total bill. Any such amounts will be
itemized on your bill.
<PAGE>   96
FALCON CABLE TV - TALBOT COUNTY, MD                        (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________

         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL-COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTG 5-FOX WASHINGTON, DC
       * 6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON, DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
      * 15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL - COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKELODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E!-ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK

RATES___________________________________________________________________________

        BASIC                                                         $21.78
        TIER (=)                                                        3.66
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------

        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
<PAGE>   97
FALCON CABLE TV - TEMPLEVILLE, MD                          (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________

         2 WMAR-TV 2-ABC BALTIMORE, MD
         3 LOCAL-COMMUNITY ACCESS/PEG
         4 QVC
         5 WTTV 5-FOX WASHINGTON, DC
         6 CINEMAX
         7 WJLA-TV 7-ABC WASHINGTON, DC
         8 ESPN
         9 WUSA 9-CBS WASHINGTON, DC
        10 WBFF 45-FOX BALTIMORE, MD
        11 WBAL-TV 11-NBC BALTIMORE, MD
        12 WETA-TV 26-PBS WASHINGTON, DC
        12 MOR MUSIC TV
        13 WJZ-TV 13-CBS BALTIMORE, MD
        14 WNUV-TV 54-IND/UPN BALTIMORE, MD
      * 15 SHOWTIME
        16 WBOC-TV 16-CBS SALISBURY, MD
        17 HOME TEAM SPORTS
        18 WDCA 20-IND/UPN WASHINGTON, DC
        19 LOCAL - COMMUNITY ACCESS/PEG
      * 20 HBO
      * 21 THE MOVIE CHANNEL
        22 WMPT 22-PBS ANNAPOLIS, MD
      + 23 THE DISCOVERY CHANNEL
      + 24 THE FAMILY CHANNEL
      + 25 WTBS 17-IND ATLANTA, GA
        26 WHSW-TV-HSN BALTIMORE, MD
        27 CNN
      = 28 USA NETWORK
      = 29 ARTS & ENTERTAINMENT
      = 30 SCI-FI CHANNEL
      = 31 THE WEATHER CHANNEL
      = 32 THE NASHVILLE NETWORK
        33 NICKELODEON
        34 TNT
        35 LIFETIME
        36 FX
        37 C-SPAN
        38 CNN HEADLINE NEWS
        39 AMERICAN MOVIE CLASSICS
        40 TRINITY BROADCAST NETWORK
        41 THE LEARNING CHANNEL
        42 CNBC
        43 COUNTRY MUSIC TV
      + 44 THE DISNEY CHANNEL
        45 BLACK ENTERTAINMENT TV
        46 BRAVO
        47 E!-ENTERTAINMENT TV
        48 MTV
        49 HOME & GARDEN TV
        50 VH-1
      + 51 ESPN 2
      = 52 TV FOOD NETWORK

RATES___________________________________________________________________________

        BASIC                                                         $21.05
        TIER (=)                                                        3.04
        SATELLITE PACKAGE 1 (+)                                         5.72
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.69
        NON-ADDRESSABLE CONVERTER                                       2.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             20.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00
        DAMAGED CONVERTER EQUIPMENT                                   200.00
        LOST/STOLEN REMOTE                                             15.00
        DAMAGED REMOTE                                                 15.00

PREMIUM SERVICES (*)------------------------------------------------------------

        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        SEGA CHANNEL                                                   12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
<PAGE>   98
FALCON CABLE TV - CALIFORNIA CITY, CA                       (Effective: 10/1/96)
                                                        
CHANNEL LINE-UP________________________________________________________________


         2 KCBS-TV 2-CBS LOS ANGELES, CA
         3 ARTS & ENTERTAINMENT
         4 KNBC 4-NBC LOS ANGELES, CA
         5 KTLA 5-IND/WBN LOS ANGELES, CA
         6 KCET 28-PBS LOS ANGELES, CA
         7 KABC-TV 7-ABC LOS ANGELES, CA
         8 KHIZ 64-IND BARSTOW, CA
         9 KCAL 9-IND LOS ANGELES, CA
        10 THE LEARNING CHANNEL
        11 FOX NETWORK
        12 WGN-TV
        13 KCOP 13-IND/UPN LOS ANGELES, CA
        14 QVC
        15 KERO-TV 23-CBS/ABC BAKERSFIELD, CA
        16 WTBS 17-IND ATLANTA, GA
        17 C-SPAN
      + 18 CNN
        19 THE WEATHER CHANNEL
        19 LOCAL - GOVERNMENT ACCESS
      + 20 NICKELODEON
      + 21 CNN HEADLINE NEWS
      + 22 THE DISCOVERY CHANNEL
      = 23 AMERICAN MOVIE CLASSICS
      = 24 THE FAMILY CHANNEL
      = 25 LIFETIME
      = 26 ESPN
      = 27 SCI-FI CHANNEL
      = 28 THE NASHVILLE NETWORK
      = 29 COUNTRY MUSIC TV
        30 COMEDY CENTRAL
        30 VH-1
        31 MTV
        32 TNT
      + 33 PRIME SPORTS
      * 34 HBO
      * 35 CINEMAX
        36 KBAK-TV 29-ABC/CBS BAKERSFIELD, CA
      * 37 SHOWTIME
      * 38 THE MOVIE CHANNEL
      + 39 THE DISNEY CHANNEL
      + 40 USA NETWORK
        41 HOME SHOPPING NETWORK
      + 42 TV FOOD NETWORK



RATES___________________________________________________________________________

        BASIC                                                   $15.80
        TIER (=)                                                  6.00
        SATELLITE PACKAGE 1(+)                                    6.70
        BASIC ON ADDITIONAL OUTLET                                0.00
        ADDL SATELLITE PACKAGE                              50% of 1st
                                                                Outlet
        INSTALLATION/SERVICE (per hr.)                           45.00
        INSTALL MATERIALS (if any)                             At Cost
        REMOTE                                                    0.34
        ADDRESSABLE CONVERTER                                     4.49
        NON-ADDRESSABLE CONVERTER                                 2.04
        RADIO SERVICE                                             1.95
        VIDEO CONTROL CENTER                                      0.89
        WIRE MAINTENANCE AGREEMENT                                1.50
        CABLE PROGRAM GUIDE                                       1.75
        LATE PAYMENT FEE                                          5.00
        RETURNED CHECK FEE                                       25.00
        CONVERTER EQUIPMENT DEPOSIT                              25.00
        LOST/STOLEN CONVERTER EQUIP                             250.00
        FIELD COLLECTION                                         15.00
        

PREMIUM SERVICES (*)------------------------------------------------------------


        CINEMAX                                                  10.95
        THE DISNEY CHANNEL                                       10.95
        HBO                                                      11.95
        THE MOVIE CHANNEL                                        10.95
        SHOWTIME                                                 10.95
        PREMIUM ON ADDL OUTLET                                    5.20


________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
<PAGE>   99
FALCON CABLE TV - REDMOND, OR                              (Effective: 10/1/96)
                                                        
CHANNEL LINE-UP________________________________________________________________

        2 KATU 2-ABC PORTLAND, OR
        3 BLAZERCABLE
        3 LOCAL - GOVERNMENT ACCESS
        4 QVC
        5 KTVZ 21-NBC BEND, OR
        6 KOIN 6-CBS PORTLAND, OR
        7 KOAB-TV 3-PBS BEND, OR
        8 THE DISCOVERY CHANNEL
        9 KEZI 9-ABC EUGENE, OR
       10 ESPN
       11 ARTS & ENTERTAINMENT
       12 KPTV 12-IND/UPN PORTLAND, OR
       13 KPDX 49-FOX VANCOUVER, WA
       14 NOSTALGIA
       15 THE WEATHER CHANNEL
       16 LIFETIME
       17 NICKELODEON
       18 BRAVO
     * 19 SHOWTIME
     * 20 HBO
     * 21 THE MOVIE CHANNEL
     * 22 ENCORE
     + 23 THE NASHVILLE NETWORK
     + 24 WTBS 17-IND ATLANTA, GA
     + 25 TNT
     + 26 CNN
     + 27 THE FAMILY CHANNEL
     + 28 THE DISNEY CHANNEL
     = 29 USA NETWORK
     = 30 SCI-FI CHANNEL
     = 31 VH-1
       60 COMEDY CENTRAL
       61 HOME & GARDEN TV

RATES___________________________________________________________________________

        BASIC                                                         $22.66
        TIER (=)                                                        2.08
        SATELLITE PACKAGE 1 (+)                                         7.83
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.22
        ADDRESSABLE CONVERTER                                           3.72
        NON-ADDRESSABLE CONVERTER                                       1.49
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        LOST/STOLEN CONVERTER EQUIP                                   150.00

PREMIUM SERVICES (*)------------------------------------------------------------

        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        ENCORE                                                          5.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   100
FALCON CABLE TV - DESCHUTES COUNTY, OR                      (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 KATU 2-ABC PORTLAND, OR
         3 BLAZERCABLE
         3 LOCAL - GOVERNMENT ACCESS
         4 QVC
         5 KTVZ 21-NBC BEND, OR
         6 KOIN 6-CBS PORTLAND, OR
         7 KOAB-TV 3-PBS BEND, OR
         8 THE DISCOVERY CHANNEL
         9 KEZI 9-ABC EUGENE, OR
        10 ESPN
        11 ARTS & ENTERTAINMENT
        12 KPTV 12-IND/UPN PORTLAND, OR
        13 KPDX 49-FOX VANCOUVER, WA
        14 NOSTALGIA
        15 THE WEATHER CHANNEL
        16 LIFETIME
        17 NICKELODEON
        18 BRAVO
      * 19 SHOWTIME
      * 20 HBO
      * 21 THE MOVIE CHANNEL
      * 22 ENCORE
      + 23 THE NASHVILLE NETWORK
      + 24 WTBS 17-IND ATLANTA, GA
      + 25 TNT
      + 26 CNN
      + 27 THE FAMILY CHANNEL
      + 28 THE DISNEY CHANNEL
      = 29 USA NETWORK
      = 30 SCI-FI CHANNEL
      = 31 VH-1
        60 COMEDY CENTRAL
        61 HOME & GARDEN TV

RATES___________________________________________________________________________
        BASIC                                                         $22.97
        TIER (=)                                                        2.09
        SATELLITE PACKAGE 1 (+)                                         7.83
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.22
        ADDRESSABLE CONVERTER                                           3.72 
        NON-ADDRESSABLE CONVERTER                                       1.49 
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        LOST/STOLEN CONVERTER EQUIP                                   150.00

PREMIUM SERVICES (*)------------------------------------------------------------
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
        ENCORE                                                          5.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can
only be received via cable through a converter box, unless you have
a cable-ready TV set. Converter boxes are available for rent at the
low rate listed above.

The above rates may not include applicable taxes, fees and assessments.
Any such amounts will be itemized on your bill.
<PAGE>   101
FALCON CABLE TV - ADAIR COUNTY, KY                          (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 WKSO-TV 29-PBS SOMERSET, KY
         3 WTBS 17-IND ATLANTA, GA
         4 ESPN
         5 WLEX-TV 18-NBC LEXINGTON, KY
         6 WKYT-TV 27-CBS LEXINGTON, KY
         7 WDKY-TV 56-FOX DANVILLE, KY
         8 LOCAL-COMMUNITY ACCESS/PEG
         9 WDRB-TV 41-FOX LOUISVILLE, KY
        10 WLKY-TV 32-CBS LOUISVILLE, KY
        11 WHAS-TV 11-ABC LOUISVILLE, KY
        12 WGRB 34-FOX CAMPBELLSVILLE, KY
        13 WBKO 13-ABC BOWLING GREEN, KY
      * 14 HBO
      * 15 CINEMAX
        16 WGN-TV
      * 17 SHOWTIME
      * 18 THE MOVIE CHANNEL
        19 QVC
        20 ARTS & ENTERTAINMENT
        21 WNBC 4-NBC NEW YORK, NY
        22 WWOR-TV
        23 CNN
      = 24 THE DISNEY CHANNEL
      = 25 ESPN 2
      = 26 USA NETWORK
      = 27 THE FAMILY CHANNEL
      = 28 THE WEATHER CHANNEL
      = 29 TNT
      = 30 THE NASHVILLE NETWORK
        31 THE DISCOVERY CHANNEL
        32 CNN HEADLINE NEWS
        33 COUNTRY MUSIC TV
        34 VH-1
        35 SCI-FI CHANNEL
        36 MTV 
        37 C-SPAN
        38 FX
        39 HOME SHOPPING NETWORK
        40 NICKELODEON

RATES___________________________________________________________________________
        BASIC                                                         $18.94
        TIER (=)                                                        5.48
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.87
        NON-ADDRESSABLE CONVERTER                                       1.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be 
received via cable through a converter box, unless you have a cable-ready 
TV set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   102
FALCON CABLE TV - COLUMBIA, KY                             (Effective: 10/1/96)
                                                        
CHANNEL LINE-UP________________________________________________________________

        2 WKSO-TV 29-PBS SOMERSET, KY
        3 WTBS 17-IND ATLANTA, GA
        4 ESPN
        5 WLEX-TV 18-NBC LEXINGTON, KY
        6 WKYT-TV 27-CBS LEXINGTON, KY
        7 WDKY-TV 56-FOX DANVILLE, KY
        8 LOCAL - COMMUNITY ACCESS/PEG
        9 WDRB-TV 41-FOX LOUISVILLE, KY
       10 WLKY-TV 32-CBS LOUISVILLE, KY
       11 WHAS-TV 11-ABC LOUISVILLE, KY
       12 WGRB 34-FOX CAMPBELLSVILLE, KY
       13 WBKO 13-ABC BOWLING GREEN, KY
     * 14 HBO
     * 15 CINEMAX
       16 WGN-TV
     * 17 SHOWTIME
     * 18 THE MOVIE CHANNEL
       19 QVC
       20 ARTS & ENTERTAINMENT
       21 WNBC 4-NBC NEW YORK, NY
       22 WWOR-TV
       23 CNN
     = 24 THE DISNEY CHANNEL
     = 25 ESPN 2
     = 26 USA NETWORK
     = 27 THE FAMILY CHANNEL
     = 28 THE WEATHER CHANNEL
     = 29 TNT
     = 30 THE NASHVILLE NETWORK
       31 THE DISCOVERY CHANNEL
       32 CNN HEADLINE NEWS
       33 COUNTRY MUSIC TV
       34 VH-1
       35 SCI-FI CHANNEL
       36 MTV
       37 C-SPAN
       38 FX
       39 HOME SHOPPING NETWORK
       40 NICKELODEON

RATES___________________________________________________________________________

        BASIC                                                         $18.54
        TIER (=)                                                        5.85
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.87
        NON-ADDRESSABLE CONVERTER                                       1.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00

PREMIUM SERVICES (*)------------------------------------------------------------

        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        SHOWTIME                                                       10.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   103
FALCON CABLE TV - EUBANK, KY                               (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 WKSO-TV 29-PBS SOMERSET, KY
         3 NICKELODEON
         4 ARTS & ENTERTAINMENT
         5 WLEX-TV 18-NBC LEXINGTON, KY
         6 WTVQ-TV 36-ABC LEXINGTON, KY
         7 WKYT-TV 27-CBS LEXINGTON, KY
         8 WDKY-TV 56-FOX DANVILLE, KY
         9 WGRB 34-FOX CAMPBELLSVILLE, KY
        10 C-SPAN
        11 CNN
        12 TNT
      + 13 THE DISNEY CHANNEL
      * 14 HBO
      * 15 CINEMAX
      * 16 THE MOVIE CHANNEL
        17 ESPN
        18 THE NASHVILLE NETWORK
        19 QVC
        20 NEW INSPIRATIONAL NETWORK
        21 MTV
        22 COUNTRY MUSIC TV
      + 23 WTBS 17-IND ATLANTA, GA
      + 24 WWOR-TV
      + 25 WGN-TV
      + 26 THE HISTORY CHANNEL
      = 27 USA NETWORK
      = 28 SCI-FI CHANNEL
      = 29 THE FAMILY CHANNEL
      = 30 THE WEATHER CHANNEL
        31 CNN HEADLINE NEWS
        32 E! - ENTERTAINMENT TV
        33 TRINITY BROADCAST NETWORK
        34 HOME SHOPPING NETWORK
        35 VH-1

RATES___________________________________________________________________________
        BASIC                                                         $20.49
        TIER (=)                                                        3.54
        SATELLITE PACKAGE 1 (+)                                         5.88
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.87
        NON-ADDRESSABLE CONVERTER                                       1.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   104
FALCON CABLE TV - LINCOLN COUNTY (EUBANK), KY              (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 WKSO-TV 29-PBS SOMERSET, KY
         3 NICKELODEON
         4 ARTS & ENTERTAINMENT
         5 WLEX-TV 18-NBC LEXINGTON, KY
         6 WTVQ-TV 36-ABC LEXINGTON, KY
         7 WKYT-TV 27-CBS LEXINGTON, KY
         8 WDKY-TV 56-FOX DANVILLE, KY
         9 WGRB 34-FOX CAMPBELLSVILLE, KY
        10 C-SPAN
        11 CNN
        12 TNT
      + 13 THE DISNEY CHANNEL
      * 14 HBO
      * 15 CINEMAX
      * 16 THE MOVIE CHANNEL
        17 ESPN
        18 THE NASHVILLE NETWORK
        19 QVC
        20 NEW INSPIRATIONAL NETWORK
        21 MTV
        22 COUNTRY MUSIC TV
      + 23 WTBS 17-IND ATLANTA, GA
      + 24 WWOR-TV
      + 25 WGN-TV
      + 26 THE HISTORY CHANNEL
      = 27 USA NETWORK
      = 28 SCI-FI CHANNEL
      = 29 THE FAMILY CHANNEL
      = 30 THE WEATHER CHANNEL
        31 CNN HEADLINE NEWS
        32 E! - ENTERTAINMENT TV
        33 TRINITY BROADCAST NETWORK
        34 HOME SHOPPING NETWORK
        35 VH-1

RATES___________________________________________________________________________
        BASIC                                                         $20.38
        TIER (=)                                                        3.53
        SATELLITE PACKAGE 1 (+)                                         5.88
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.87
        NON-ADDRESSABLE CONVERTER                                       1.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00

PREMIUM SERVICES (*)------------------------------------------------------------
        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   105
FALCON CABLE TV - PULASKI COUNTY (NORTH), KY               (Effective: 10/1/96)
                                                        
CHANNEL LINE-UP________________________________________________________________

        2 WKSO-TV 29-PBS SOMERSET, KY
        3 NICKELODEON
        4 ARTS & ENTERTAINMENT
        5 WLEX-TV 18-NBC LEXINGTON, KY
        6 WTVQ-TV 36-ABC LEXINGTON, KY
        7 WKYT-TV 27-CBS LEXINGTON, KY
        8 WDKY-TV 56-FOX DANVILLE, KY
        9 WGRB 34-FOX CAMPBELLSVILLE, KY
       10 C-SPAN
       11 CNN
       12 TNT
     + 13 THE DISNEY CHANNEL
     * 14 HBO
     * 15 CINEMAX
     * 16 THE MOVIE CHANNEL
       17 ESPN
       18 THE NASHVILLE NETWORK
       19 QVC
       20 NEW INSPIRATIONAL NETWORK
       21 MTV
       22 COUNTRY MUSIC TV
     + 23 WTBS 17-IND ATLANTA, GA
     + 24 WWOR-TV
     + 25 WGN-TV
     + 26 THE HISTORY CHANNEL
     = 27 USA NETWORK
     = 28 SCI-FI CHANNEL
     = 29 THE FAMILY CHANNEL
     = 30 THE WEATHER CHANNEL
       31 CNN HEADLINE NEWS
       32 E!-ENTERTAINMENT TV
       33 TRINITY BROADCAST NETWORK
       34 HOME SHOPPING NETWORK
       35 VH-1

RATES___________________________________________________________________________

        BASIC                                                         $20.28
        TIER (=)                                                        3.57
        SATELLITE PACKAGE 1 (+)                                         5.88
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.87
        NON-ADDRESSABLE CONVERTER                                       1.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00

PREMIUM SERVICES (*)------------------------------------------------------------

        CINEMAX                                                        10.95
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   106
FALCON CABLE TV - LINCOLN COUNTY (MCKINNEY), KY            (Effective: 10/1/96)
                                                        
CHANNEL LINE-UP________________________________________________________________

        2 WKSO-TV 29-PBS SOMERSET, KY
        3 CNN HEADLINE NEWS
        4 THE NASHVILLE NETWORK
        5 WLEX-TV 18-NBC LEXINGTON, KY
        6 WTVQ-TV 36-ABC LEXINGTON, KY
        7 WKYT-TV 27-CBS LEXINGTON, KY
        8 WDRB-TV 41-FOX LOUISVILLE, KY
        9 WGRB 34-FOX CAMPBELLSVILLE, KY
       10 WDKY-TV 56-FOX DANVILLE, KY
       11 CNN
       12 NEW INSPIRATIONAL NETWORK
       13 ESPN
     * 14 HBO
       15 E! - ENTERTAINMENT TV
     + 16 THE DISNEY CHANNEL
     + 17 WTBS 17-IND ATLANTA, GA
     + 18 WGN-TV
     + 19 WWOR-TV
     = 20 THE FAMILY CHANNEL
     = 21 USA NETWORK
     = 22 SCI-FI CHANNEL
       23 NICKELODEON
       24 COUNTRY MUSIC TV
       25 C-SPAN
       26 MTV

RATES___________________________________________________________________________

        BASIC                                                         $20.05
        TIER (=)                                                        1.96
        SATELLITE PACKAGE 1 (+)                                         4.88
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.87
        NON-ADDRESSABLE CONVERTER                                       1.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00

PREMIUM SERVICES (*)------------------------------------------------------------

        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   107
FALCON CABLE TV - LAUREL COUNTY, KY                        (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 WTVQ-TV 36-ABC LEXINGTON, KY
         3 WLEX-TV 18-NBC LEXINGTON, KY
         4 WTBS 17-IND ATLANTA, GA
         5 WKYT-TV 27-CBS LEXINGTON, KY
         6 WKSO-TV 29-PBS SOMERSET, KY
      *  7 THE MOVIE CHANNEL
         8 THE DISCOVERY CHANNEL
         9 CNN
        10 WYMT-TV 57-CBS HAZARD,KY
        11 WWOR-TV
        12 WDKY-TV 56-FOX DANVILLE, KY
        13 WGN-TV
        14 NICKELODEON
        15 COUNTRY MUSIC TV
      = 16 USA NETWORK
      = 17 THE FAMILY CHANNEL
      = 18 SCI-FI CHANNEL
      = 20 THE NASHVILLE NETWORK
        21 ESPN
        22 MTV
        23 VH-1
        24 QVC
        25 FX

RATES___________________________________________________________________________
        BASIC                                                         $18.32
        TIER (=)                                                        3.45
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.87
        NON-ADDRESSABLE CONVERTER                                       1.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00

PREMIUM SERVICES (*)------------------------------------------------------------
        THE MOVIE CHANNEL                                              10.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   108
FALCON CABLE TV - CLAY COUNTY, KY                          (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 WTVQ-TV 36-ABC LEXINGTON, KY
         3 WLEX-TV 18-NBC LEXINGTON, KY
         4 WTBS 17-IND ATLANTA, GA
         5 WKYT-TV 27-CBS LEXINGTON, KY
         6 WKSO-TV 29-PBS SOMERSET, KY
      *  7 THE MOVIE CHANNEL
         8 THE DISCOVERY CHANNEL
         9 CNN
        10 WYMT-TV 57-CBS HAZARD,KY
        11 WWOR-TV
        12 WDKY-TV 56-FOX DANVILLE, KY
        13 WGN-TV
        14 NICKELODEON
        15 COUNTRY MUSIC TV
      = 16 USA NETWORK
      = 17 THE FAMILY CHANNEL
      = 18 SCI-FI CHANNEL
      = 20 THE NASHVILLE NETWORK
        21 ESPN
        22 MTV
        23 VH-1
        24 QVC
        25 FX

RATES___________________________________________________________________________
        BASIC                                                         $18.20
        TIER (=)                                                        3.71
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.87
        NON-ADDRESSABLE CONVERTER                                       1.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00

PREMIUM SERVICES (*)------------------------------------------------------------
        THE MOVIE CHANNEL                                              10.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   109
FALCON CABLE TV - PULASKI COUNTY (NORTH), KY                (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 WKSO-TV 29-PBS SOMERSET, KY
         3 QVC
         4 CNN
         5 WLEX-TV 18-NBC LEXINGTON, KY
         6 WTVQ-TV 36-ABC LEXINGTON, KY
         7 WKYT-TV 27-CBS LEXINGTON, KY
         8 LOCAL - COMMUNITY ACCES/PEG
         9 WKXT-TV 8-CBS KNOXVILLE, TN
        10 WBIR-TV 10-NBC KNOXVILLE, TN
        11 ARTS & ENTERTAINMENT
        12 WDKY-TV 56-FOX DANVILLE, KY
        13 ESPN
      * 14 HBO
      * 15 PPV SPECIAL EVENTS
      * 16 THE MOVIE CHANNEL
        17 CNN HEADLINE NEWS
        18 VH-1
      = 19 SCI-FI CHANNEL
      = 20 USA NETWORK
      = 21 THE WEATHER CHANNEL
      = 22 TNT
      + 23 NICKELODEON
      + 24 THE NASHVILLE NETWORK
      + 25 WTBS 17-IND ATLANTA, GA
      + 26 WGN-TV
      + 27 WWOR-TV
      + 28 THE FAMILY CHANNEL
      + 29 ESPN 2
      + 30 THE DISNEY CHANNEL
        31 SPORTSCHANNEL CINCINNATTI
        32 MTV
        33 COUNTRY MUSIC TV
        34 E! - ENTERTAINMENT TV
        35 C-SPAN
        36 FX
        37 HOME SHOPPING NETWORK
        38 TRINITY BROADCAST NETWORK
      + 39 NEWSTALK TELEVISION

RATES___________________________________________________________________________
        BASIC                                                         $19.83
        TIER (=)                                                        1.72
        SATELLITE PACKAGE 1 (+)                                         7.40
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.22
        ADDRESSABLE CONVERTER                                           2.46 
        NON-ADDRESSABLE CONVERTER                                       1.00 
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00

PREMIUM SERVICES (*)------------------------------------------------------------
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        PAY PER VIEW MOVIE                                              3.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can
only be received via cable through a converter box, unless you have
a cable-ready TV set. Converter boxes are available for rent at the
low rate listed above.

The above rates may not include applicable taxes, fees and assessments.
Any such amounts will be itemized on your bill.
<PAGE>   110
FALCON CABLE TV - SCIENCE HILL, KY                         (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 WKSO-TV 29-PBS SOMERSET, KY
         3 QVC
         4 CNN
         5 WLEX-TV 18-NBC LEXINGTON, KY
         6 WTVQ-TV 36-ABC LEXINGTON, KY
         7 WKYT-TV 27-CBS LEXINGTON, KY
         8 LOCAL - COMMUNITY ACCESS/PEG
         9 WKXT-TV 8-CBS KNOXVILLE, TN
        10 WBIR-TV 10-NBC KNOXVILLE, TN
        11 ARTS & ENTERTAINMENT
        12 WDKY-TV 56-FOX DANVILLE, KY
        13 ESPN
      * 14 HBO
      * 15 PPV SPECIAL EVENTS
      * 16 THE MOVIE CHANNEL
        17 CNN HEADLINE NEWS
        18 VH-1
      = 19 SCI-FI CHANNEL
      = 20 USA NETWORK
      = 21 THE WEATHER CHANNEL
      = 22 TNT
      + 23 NICKELODEON
      + 24 THE NASHVILLE NETWORK
      + 25 WTBS 17-IND ATLANTA, GA
      + 26 WGN-TV
      + 27 WWOR-TV
      + 28 THE FAMILY CHANNEL
      + 29 ESPN 2
      + 30 THE DISNEY CHANNEL
        31 SPORTSCHANNEL CINCINNATI
        32 MTV
        33 COUNTRY MUSIC TV
        34 E! - ENTERTAINMENT TV
        35 C-SPAN
        36 FX
        37 HOME SHOPPING NETWORK
        38 TRINITY BROADCAST NETWORK
      + 39 NEWSTALK TELEVISION

RATES___________________________________________________________________________
        BASIC                                                         $19.58
        TIER (=)                                                        1.76
        SATELLITE PACKAGE 1 (+)                                         7.40
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.22
        ADDRESSABLE CONVERTER                                           2.46
        NON-ADDRESSABLE CONVERTER                                       1.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00

PREMIUM SERVICES (*)------------------------------------------------------------
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        PAY PER VIEW MOVIE                                              3.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   111
FALCON CABLE TV - SOMERSET, KY                             (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 WKSO-TV 29-PBS SOMERSET, KY
         3 QVC
         4 CNN
         5 WLEX-TV 18-NBC LEXINGTON, KY
         6 WTVQ-TV 36-ABC LEXINGTON, KY
         7 WKYT-TV 27-CBS LEXINGTON, KY
         8 LOCAL - COMMUNITY ACCESS/PEG
         9 WKXT-TV 8-CBS KNOXVILLE, TN
        10 WBIR-TV 10-NBC KNOXVILLE, TN
        11 ARTS & ENTERTAINMENT
        12 WDKY-TV 56-FOX DANVILLE, KY
        13 ESPN
      * 14 HBO
      * 15 PPV SPECIAL EVENTS
      * 16 THE MOVIE CHANNEL
        17 CNN HEADLINE NEWS
        18 VH-1
      = 19 SCI-FI CHANNEL
      = 20 USA NETWORK
      = 21 THE WEATHER CHANNEL
      = 22 TNT
      + 23 NICKELODEON
      + 24 THE NASHVILLE NETWORK
      + 25 WTBS 17-IND ATLANTA, GA
      + 26 WGN-TV
      + 27 WWOR-TV
      + 28 THE FAMILY CHANNEL
      + 29 ESPN 2
      + 30 THE DISNEY CHANNEL
        31 SPORTSCHANNEL CINCINNATI
        32 MTV
        33 COUNTRY MUSIC TV
        34 E! - ENTERTAINMENT TV
        35 C-SPAN
        36 FX
        37 HOME SHOPPING NETWORK
        38 TRINITY BROADCAST NETWORK
      + 39 NEWSTALK TELEVISION

RATES___________________________________________________________________________
        BASIC                                                         $19.65
        TIER (=)                                                        1.72
        SATELLITE PACKAGE 1 (+)                                         7.40
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.22
        ADDRESSABLE CONVERTER                                           2.46
        NON-ADDRESSABLE CONVERTER                                       1.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00

PREMIUM SERVICES (*)------------------------------------------------------------
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        PAY PER VIEW MOVIE                                              3.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   112
FALCON CABLE TV - BURNSIDE, KY                             (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 WKSO-TV 29-PBS SOMERSET, KY
         3 QVC
         4 CNN
         5 WLEX-TV 18-NBC LEXINGTON, KY
         6 WTVQ-TV 36-ABC LEXINGTON, KY
         7 WKYT-TV 27-CBS LEXINGTON, KY
         8 LOCAL - COMMUNITY ACCESS/PEG
         9 WKXT-TV 8-CBS KNOXVILLE, TN
        10 WBIR-TV 10-NBC KNOXVILLE, TN
        11 ARTS & ENTERTAINMENT
        12 WDKY-TV 56-FOX DANVILLE, KY
        13 ESPN
      * 14 HBO
      * 15 PPV SPECIAL EVENTS
      * 16 THE MOVIE CHANNEL
        17 CNN HEADLINE NEWS
        18 VH-1
      = 19 SCI-FI CHANNEL
      = 20 USA NETWORK
      = 21 THE WEATHER CHANNEL
      = 22 TNT
      + 23 NICKELODEON
      + 24 THE NASHVILLE NETWORK
      + 25 WTBS 17-IND ATLANTA, GA
      + 26 WGN-TV
      + 27 WWOR-TV
      + 28 THE FAMILY CHANNEL
      + 29 ESPN 2
      + 30 THE DISNEY CHANNEL
        31 SPORTSCHANNEL CINCINNATI
        32 MTV
        33 COUNTRY MUSIC TV
        34 E! - ENTERTAINMENT TV
        35 C-SPAN
        36 FX
        37 HOME SHOPPING NETWORK
        38 TRINITY BROADCAST NETWORK
      + 39 NEWSTALK TELEVISION

RATES___________________________________________________________________________
        BASIC                                                         $19.70
        TIER (=)                                                        1.50
        SATELLITE PACKAGE 1 (+)                                         7.40
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.22
        ADDRESSABLE CONVERTER                                           2.46
        NON-ADDRESSABLE CONVERTER                                       1.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00

PREMIUM SERVICES (*)------------------------------------------------------------
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        PAY PER VIEW MOVIE                                              3.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
<PAGE>   113
FALCON CABLE TV - FERGUSON, KY                             (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 WKSO-TV 29-PBS SOMERSET, KY
         3 QVC
         4 CNN
         5 WLEX-TV 18-NBC LEXINGTON, KY
         6 WTVQ-TV 36-ABC LEXINGTON, KY
         7 WKYT-TV 27-CBS LEXINGTON, KY
         8 LOCAL - COMMUNITY ACCESS/PEG
         9 WKXT-TV 8-CBS KNOXVILLE, TN
        10 WBIR-TV 10-NBC KNOXVILLE, TN
        11 ARTS & ENTERTAINMENT
        12 WDKY-TV 56-FOX DANVILLE, KY
        13 ESPN
      * 14 HBO
      * 15 PPV SPECIAL EVENTS
      * 16 THE MOVIE CHANNEL
        17 CNN HEADLINE NEWS
        18 VH-1
      = 19 SCI-FI CHANNEL
      = 20 USA NETWORK
      = 21 THE WEATHER CHANNEL
      = 22 TNT
      + 23 NICKELODEON
      + 24 THE NASHVILLE NETWORK
      + 25 WTBS 17-IND ATLANTA, GA
      + 26 WGN-TV
      + 27 WWOR-TV
      + 28 THE FAMILY CHANNEL
      + 29 ESPN 2
      + 30 THE DISNEY CHANNEL
        31 SPORTSCHANNEL CINCINNATI
        32 MTV
        33 COUNTRY MUSIC TV
        34 E! - ENTERTAINMENT TV
        35 C-SPAN
        36 FX
        37 HOME SHOPPING NETWORK
        38 TRINITY BROADCAST NETWORK
      + 39 NEWSTALK TELEVISION

RATES___________________________________________________________________________
        BASIC                                                         $19.51
        TIER (=)                                                        1.41
        SATELLITE PACKAGE 1 (+)                                         7.40
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.22
        ADDRESSABLE CONVERTER                                           2.46
        NON-ADDRESSABLE CONVERTER                                       1.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00

PREMIUM SERVICES (*)------------------------------------------------------------
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        PAY PER VIEW MOVIE                                              3.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments and do
not include franchise fees of 3% of your total bill. Any such amounts will be
itemized on your bill. 
<PAGE>   114
FALCON CABLE TV - PULASKI COUNTY (BURNSIDE), KY            (Effective: 10/1/96)

CHANNEL LINE-UP________________________________________________________________
         2 WKSO-TV 29-PBS SOMERSET, KY
         3 QVC
         4 CNN
         5 WLEX-TV 18-NBC LEXINGTON, KY
         6 WTVQ-TV 36-ABC LEXINGTON, KY
         7 WKYT-TV 27-CBS LEXINGTON, KY
         8 LOCAL - COMMUNITY ACCESS/PEG
         9 WKXT-TV 8-CBS KNOXVILLE, TN
        10 WBIR-TV 10-NBC KNOXVILLE, TN
        11 ARTS & ENTERTAINMENT
        12 WDKY-TV 56-FOX DANVILLE, KY
        13 ESPN
      * 14 HBO
      * 15 PPV SPECIAL EVENTS
      * 16 THE MOVIE CHANNEL
        17 CNN HEADLINE NEWS
        18 VH-1
      = 19 SCI-FI CHANNEL
      = 20 USA NETWORK
      = 21 THE WEATHER CHANNEL
      = 22 TNT
      + 23 NICKELODEON
      + 24 THE NASHVILLE NETWORK
      + 25 WTBS 17-IND ATLANTA, GA
      + 26 WGN-TV
      + 27 WWOR-TV
      + 28 THE FAMILY CHANNEL
      + 29 ESPN 2
      + 30 THE DISNEY CHANNEL
        31 SPORTSCHANNEL CINCINNATI
        32 MTV
        33 COUNTRY MUSIC TV
        34 E! - ENTERTAINMENT TV
        35 C-SPAN
        36 FX
        37 HOME SHOPPING NETWORK
        38 TRINITY BROADCAST NETWORK
      + 39 NEWSTALK TELEVISION

RATES___________________________________________________________________________
        BASIC                                                         $19.85
        TIER (=)                                                        1.41
        SATELLITE PACKAGE 1 (+)                                         7.40
        BASIC ON ADDITIONAL OUTLET                                      0.00
        INSTALLATION/SERVICE (per hr.)                                 45.00
        INSTALL MATERIALS (if any)                                   At Cost
        REMOTE                                                          0.22
        ADDRESSABLE CONVERTER                                           2.46
        NON-ADDRESSABLE CONVERTER                                       1.00
        RADIO SERVICE                                                   1.95
        WIRE MAINTENANCE AGREEMENT                                      1.50
        CABLE PROGRAM GUIDE                                             1.75
        LATE PAYMENT FEE                                                5.00
        RETURNED CHECK FEE                                             10.00
        LOST/STOLEN CONVERTER EQUIP                                   200.00

PREMIUM SERVICES (*)------------------------------------------------------------
        THE DISNEY CHANNEL                                             10.95
        HBO                                                            11.95
        THE MOVIE CHANNEL                                              10.95
        PAY PER VIEW MOVIE                                              3.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.

The above rates may not include applicable taxes, fees and assessments and do
not include franchise fees of 3% of your total bill. Any such amounts will be
itemized on your bill. 
<PAGE>   115


[LOGO - ARTHUR ANDERSEN LLP]





    ADDENDUM 2 Capital Asset Pricing Model & Weighted Average Cost of Capital



<PAGE>   116
--------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
BURKE COUNTY, NC
AS OF DECEMBER 31, 1996
--------------------------------------------

--------------------------------------------
DEVELOPMENT OF VALUATION DISCOUNT RATE
--------------------------------------------
<TABLE>
<CAPTION>
DEVELOPMENT OF EQUITY RATE                    DEVELOPMENT OF DEBT RATE
<S>                          <C>              <C>                        <C>  
Risk Free Rate               6.85%            Borrowing Rate              9.75%
Market Return               11.40%            Tax Rate (NA - Pre-tax)     0.00%
Market Premium               4.55%
Beta                         0.90
Co. Specific Risk           12.00%
Equity Return Rate          22.95%            Debt Rate                   9.75%
</TABLE>

WEIGHTED AVERAGE COST OF CAPITAL CALCULATION
<TABLE>
<CAPTION>
                                                                       WEIGHTED
                             RATIO               RATE                      RATE
<S>                          <C>              <C>                        <C>  
Debt                        60.00%              9.75%                     5.85%
Equity                      40.00%             22.95%                     9.18%

                           100.00%
</TABLE>

WEIGHTED AVERAGE COST OF CAPITAL                                         15.03%
                                                                         ----- 

PRELIMINARY & TENTATIVE - FOR DISCUSSION PURPOSES ONLY      ARTHUR ANDERSEN LLP
------------------------------------------------------
<PAGE>   117

--------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CALIFORNIA CITY, CALIFORNIA
AS OF DECEMBER 31, 1996
--------------------------------------------

--------------------------------------------
DEVELOPMENT OF VALUATION DISCOUNT RATE
--------------------------------------------
<TABLE>
<CAPTION>
DEVELOPMENT OF EQUITY RATE                    DEVELOPMENT OF DEBT RATE
<S>                          <C>              <C>                        <C>  
Risk Free Rate               6.85%            Borrowing Rate              9.75%
Market Return               11.40%            Tax Rate (NA-Pre-tax)       0.00%
Market Premium               4.55%                              
Beta                         0.90           
Co. Specific Risk           12.00%          
Equity Return Rate          22.95%            Debt Rate                   9.75%
</TABLE>
                                      
WEIGHTED AVERAGE COST OF CAPITAL CALCULATION
<TABLE>
<CAPTION>
                                                                       WEIGHTED
                             RATIO               RATE                      RATE
<S>                          <C>              <C>                        <C>  
Debt                        60.00%              9.75%                     5.85%
Equity                      40.00%             22.95%                     9.18%
                                                                
                           100.00%
</TABLE>

WEIGHTED AVERAGE COST OF CAPITAL                                         15.03%
                                                                         ----- 

PRELIMINARY & TENTATIVE - FOR DISCUSSION PURPOSES ONLY       ARTHUR ANDERSEN LLP
------------------------------------------------------

<PAGE>   118
--------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CENTREVILLE, MARYLAND
AS OF DECEMBER 31, 1996
--------------------------------------------

--------------------------------------------
DEVELOPMENT OF VALUATION DISCOUNT RATE
--------------------------------------------
<TABLE>
<CAPTION>
DEVELOPMENT OF EQUITY RATE                    DEVELOPMENT OF DEBT RATE
<S>                          <C>              <C>                        <C>  
Risk Free Rate               6.85%            Borrowing Rate              9.75%
Market Return               11.40%            Tax Rate (NA-Pre-tax)       0.00%
Market Premium               4.55%            
Beta                         0.90             
Co. Specific Risk           10.00%            
Equity Return Rate          20.95%            Debt Rate                   9.75%
</TABLE>
                                      

WEIGHTED AVERAGE COST OF CAPITAL CALCULATION
<TABLE>
<CAPTION>
                                                                       WEIGHTED
                             RATIO               RATE                      RATE
<S>                          <C>              <C>                        <C>  
Debt                        60.00%              9.75%                     5.85%
Equity                      40.00%             20.95%                     8.38%
                                                                
                           100.00%
</TABLE>

WEIGHTED AVERAGE COST OF CAPITAL                                         14.23%
                                                                         ----- 


PRELIMINARY & TENTATIVE - FOR DISCUSSION PURPOSES ONLY       ARTHUR ANDERSEN LLP
------------------------------------------------------

<PAGE>   119
--------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
REDMOND, OREGON
AS OF DECEMBER 31, 1996
--------------------------------------------

--------------------------------------------
DEVELOPMENT OF VALUATION DISCOUNT RATE
--------------------------------------------
<TABLE>
<CAPTION>
DEVELOPMENT OF EQUITY RATE                    DEVELOPMENT OF DEBT RATE
<S>                          <C>              <C>                        <C>  
Risk Free Rate               6.85%            Borrowing Rate              9.75%
Market Return               11.40%            Tax Rate (NA-Pre-tax)       0.00%
Market Premium               4.55%           
Beta                         0.90            
Co. Specific Risk           12.00%           
Equity Return Rate          22.95%            Debt Rate                   9.75%
</TABLE>
                                           
                         
WEIGHTED AVERAGE COST OF CAPITAL CALCULATION
<TABLE>
<CAPTION>
                                                                      WEIGHTED
                             RATIO               RATE                     RATE
<S>                          <C>              <C>                        <C>  
Debt                        60.00%              9.75%                     5.85%
Equity                      40.00%             22.95%                     9.18%
                                                          
                           100.00%
</TABLE>
               
WEIGHTED AVERAGE COST OF CAPITAL                                         15.03%
                                                                         ----- 
                  
                 
PRELIMINARY & TENTATIVE - FOR DISCUSSION PURPOSES ONLY      ARTHUR ANDERSEN LLP
------------------------------------------------------

<PAGE>   120
--------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SOMERSET, KY
AS OF DECEMBER 31, 1996
--------------------------------------------

--------------------------------------------
DEVELOPMENT OF VALUATION DISCOUNT RATE
--------------------------------------------
<TABLE>
<CAPTION>
DEVELOPMENT OF EQUITY RATE                    DEVELOPMENT OF DEBT RATE
<S>                          <C>              <C>                        <C>  
Risk Free Rate               6.85%            Borrowing Rate              9.75%
Market Return               11.40%            Tax Rate (NA-Pre-tax)       0.00%
Market Premium               4.55%            
Beta                         0.90             
Co. Specific Risk           10.00%            
Equity Return Rate          20.95%            Debt Rate                   9.75%
</TABLE>
                                          

WEIGHTED AVERAGE COST OF CAPITAL CALCULATION
<TABLE>
<CAPTION>
                                                                       WEIGHTED
                             RATIO                 RATE                    RATE
<S>                          <C>              <C>                        <C>  
Debt                        60.00%                9.75%                   5.85%
Equity                      40.00%               20.95%                   8.38%
                                                                
                           100.00%                            
</TABLE>
               
WEIGHTED AVERAGE COST OF CAPITAL                                         14.23%
                                                                         ----- 

PRELIMINARY & TENTATIVE - FOR DISCUSSION PURPOSES ONLY      ARTHUR ANDERSEN LLP
------------------------------------------------------
<PAGE>   121


[LOGO - ARTHUR ANDERSEN LLP]





                          ADDENDUM 3 Financial History


<PAGE>   122
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION:  BURKE, NC

<TABLE>
<CAPTION>
                                       ---------------------------------------------------------------------------------------
                                         ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS  TWELVE MONTHS 
                                           ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96    ENDING         ENDING    
                                          12/31/96      ANNUALIZED     12/31/96      ANNUALIZED      12/31/96       12/31/95   
                                       ---------------------------------------------------------------------------------------
<S>                                        <C>          <C>           <C>            <C>            <C>            <C>       
REVENUES

Primary - First Outlet                     $178,389     $2,140,668      $532,529     $2,130,116     $2,042,600     $2,040,107
Primary Commercial                             $710         $8,520        $2,130         $8,520         $8,520         $8,752
Expanded Tier                                    $0             $0            $0             $0             $0             $0
AG Tier                                          $0             $0            $0             $0             $0             $0
AJ Tier                                          $0             $0            $0             $0             $0             $0
AL Tier                                     $56,384       $676,608      $162,080       $648,320       $574,897       $406,998
Radio Services                               $2,883        $34,596        $8,871        $35,484        $39,156        $47,713
Pay Cable First Outlet                      $35,588       $427,056      $105,105       $420,420       $495,343       $583,725
Ala Carte                                        $0             $0            $0             $0             $0             $0
New Product Tier 1                          $81,726       $980,712      $246,567       $986,268       $892,061       $948,060
Mini Pay                                       $754         $9,048        $2,349         $9,396        $10,339        $12,990
Pay Per View                                 $7,256        $87,072       $27,881       $111,524       $103,952       $117,381
Primary Additional Outlet                        $0             $0            $0             $0             $0             $0
Remote Control                                 $348         $4,176          $982         $3,928         $4,148         $4,049
Converter Rental                            $38,330       $459,960      $115,280       $461,120       $472,318       $488,851
Maintenance Contracts                        $5,705        $68,460       $17,374        $69,496        $68,243        $62,257
New Customer Pay Installs                        $0             $0            $0             $0             $0             $5
New Customer Basic Installs                    $992        $11,904        $5,602        $22,408        $17,625        $28,145
Installation Materials Charge                   $45           $540          $388         $1,552         $1,095           $400
Installs Non New Customers                   $3,314        $39,768       $11,168        $44,672        $68,262        $72,044
Classified Ads                                 $157         $1,884        $1,780         $7,120         $4,631         $4,578
Ad Insertion Sales                          $16,008       $192,096       $44,506       $178,024       $130,958        $93,171
Ad Sales Other                                   $0             $0            $0             $0             $0             $0
Production & Location Origination              $297         $3,564          $773         $3,092           $773             $0
Other Late Charges                           $4,370        $52,440       $13,135        $52,540        $57,190        $63,319
Other Rent                                    ($275)       ($3,300)         $275         $1,100         $2,695         $3,025
Other Copyright Pass Through                     $0             $0            $0             $0             $0             $0
Other Miscellaneous                              $0             $0            $0             $0             $5            $40
FCC User Fees Pass Through                     $429         $5,148        $1,288         $5,152         $5,259         $5,100
Other Programmers                               $35           $420       $15,970        $63,880        $16,482             $0
QVC Monthly Commission                         $943        $11,316        $4,453        $17,812        $16,730        $15,131
QVC Carriage Payment                             $0             $0        $3,138        $12,552        $12,150        $14,020
HSN Monthly Commission                         $240         $2,880          $683         $2,732         $9,597             $0
Guides                                       $1,747        $20,964        $5,477        $21,908        $22,758        $26,072
                                           --------     ----------    ----------     ----------     ----------     ----------

Total Revenues                             $436,375     $5,236,500    $1,329,784     $5,319,136     $5,077,787     $5,045,933
</TABLE>



<TABLE>
<CAPTION>
                                                                            ---------------
                                            -----------------------------      ADJUSTED    
                                             TWELVE MONTHS TWELVE MONTHS       ONE MONTH    
                                                ENDING         ENDING        ENDING 12/31/96
                                               12/31/94       12/31/93         ANNUALIZED   
                                            -----------------------------   ---------------
<S>                                            <C>            <C>               <C>        
REVENUES                                                                                   
                                                                                           
Primary - First Outlet                         $2,064,907     $2,092,282        $2,140,668 
Primary Commercial                                 $5,349         $4,275            $8,520 
Expanded Tier                                          $0             $0                $0 
AG Tier                                                $0       $471,849                $0 
AJ Tier                                                $0       $512,290                $0 
Al Tier                                          $159,998           $861          $676,608 
Radio Services                                    $58,903        $24,419           $34,596 
Pay Cable First Outlet                           $589,479       $539,269          $427,056 
Ala Carte                                      $1,127,729       $292,192                $0 
New Product Tier 1                                     $0             $0          $980,712 
Mini Pay                                          $18,230        $34,771            $9,048 
Pay Per View                                     $124,007        $99,986           $87,072 
Primary Additional Outlet                              $0       $226,545                $0 
Remote Control                                     $4,158       $280,149            $4,176 
Converter Rental                                 $489,185       $119,585          $459,960 
Maintenance Contracts                             $47,496             $0           $68,460 
New Customer Pay Installs                              $5         $2,045                $0 
New Customer Basic Installs                       $50,357        $63,122           $11,904 
Installation Materials Charge                          $0             $0              $540 
Installs Non New Customers                        $81,141        $91,838           $39,768 
Classified Ads                                     $6,560         $1,260            $1,884 
Ad Insertion Sales                               $111,734        $54,651          $192,096 
Ad Sales Other                                         $0            $59                $0 
Production & Location Origination                    $340         $1,013            $3,564 
Other Late Charges                                $68,172        $51,488           $52,440 
Other Rent                                         $3,250         $1,300                $0 
Other Copyright Pass Through                           $0        $54,187                $0 
Other Miscellaneous                                   $10         $1,770                $0 
FCC User Fees Pass Through                           $120             $0            $5,148 
Other Programmers                                      $0             $0              $420 
QVC Monthly Commission                            $19,432        $12,899           $11,316 
QVC Carriage Payment                              $14,020        $14,018                $0 
HSN Monthly Commission                                 $0             $0            $2,880 
Guides                                            $35,416        $55,022           $20,964 
                                               ----------     ----------        ---------- 
                                                                                           
Total Revenues                                 $5,079,998     $5,103,145        $5,239,800 
</TABLE>
<PAGE>   123
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION:  BURKE, NC


<TABLE>
<CAPTION>                                                                                                                     
                                       ---------------------------------------------------------------------------------------
                                         ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS  TWELVE MONTHS
                                           ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96    ENDING         ENDING   
                                          12/31/96      ANNUALIZED     12/31/96      ANNUALIZED      12/31/96       12/31/95  
                                       ---------------------------------------------------------------------------------------
<S>                                        <C>          <C>           <C>            <C>            <C>            <C>        
EXPENSES                          
                                  
Technical Salary - Supervisor                   $0             $0            $0             $0             $0             $0 
Technical Salary - Technician              $10,403       $124,836       $31,038       $124,152       $117,953       $126,035 
Technical Salary - Dispatcher               $1,185        $14,220        $3,691        $14,764        $12,477        $14,695 
Technical Salary - Installers               $4,103        $49,236       $11,623        $46,492        $43,935        $38,074 
Overtime/Standby                            $2,018        $24,216        $5,847        $23,388        $32,158        $47,599 
Payroll Taxes                               $1,135        $13,620        $3,988        $15,952        $15,329        $17,992 
Group Insurance                             $1,020        $12,240        $4,544        $18,176        $22,443        $18,424 
Other Benefits                             ($7,906)      ($94,872)      ($6,214)      ($24,856)        $1,400        $11,514 
Tech. Allocated Personnel Expense           $1,451        $17,412        $3,504        $14,016        $17,104         $8,566 
Tech. Allocated P/R Benefit                   $325         $3,900          $737         $2,948         $3,927         $2,080 
Rent - Headend                                  $0             $0            $0             $0             $0             $0 
Rent - Poles and Ducts                     $14,014       $168,168       $42,042       $168,168       $133,373        $77,997 
R & M Plant                                     $0             $0           $15            $60           $445         $1,336 
R & M Other                                 $2,847        $34,164        $5,233        $20,932        $11,194         $3,062 
Material and Reconnect                      $1,758        $21,096        $6,625        $26,500        $18,197         $8,006 
Vehicle - Gas & Oil                         $3,569        $42,828        $7,866        $31,464        $21,596        $23,575 
Vehicle - Service                             $726         $8,712        $2,182         $8,728         $8,676         $9,952 
T & E System Travel                             $0             $0            $0             $0           $127           $222 
T & E System Non-Travel                         $0             $0            $0             $0             $0             $0 
Dues & Subscriptions                            $0             $0          $143           $572         $1,408         $1,659 
Education                                       $0             $0            $0             $0             $0           $223 
System Power Costs                          $5,632        $67,584       $17,453        $69,812        $67,968        $64,859 
Recruiting                                      $0             $0            $0             $0            $50            $44 
Loss on Converters                             $58           $696          $174           $696           $696         $1,200 
Property Taxes                             ($6,569)      ($78,828)        ($329)       ($1,316)       $24,952        $35,328 
Uniforms                                    $1,063        $12,756        $1,847         $7,388         $5,735         $4,217 
Small Tool and Safety                           $0             $0           $58           $232           $684         $1,131 
Capital Labor & OH Construction            ($7,386)      ($88,632)     ($27,202)     ($108,808)     ($185,451)      ($99,477)
Capital Labor & OH Customer                  ($644)       ($7,728)      ($2,958)      ($11,832)      ($42,463)      ($43,123)
Production & L.O. Personnel Costs               $0             $0            $0             $0             $0             $0 
Production & L.O. Other Expenses                $0             $0            $0             $0             $0             $0 
Ad Sales Payroll Taxes                          $0             $0            $0             $0            $19           $346 
Ad Sales Group Insurance                        $0             $0            $0             $0             $0          ($142)
Ad Sales Alloc. Personnel Expense           $1,264        $15,168        $3,523        $14,092        $14,251        $12,975 
Ad Sales Alloc. P/R Benefit                   $437         $5,244        $1,407         $5,628         $5,660         $4,348 
Employee Commissions                            $0             $0            $0             $0           $226         $3,941 
Other Ad Sale Expenses                      $1,271        $15,252        $4,130        $16,520        $15,287        $16,625 
</TABLE>                          

<TABLE>
<CAPTION>

                                                                            ---------------
                                            -----------------------------      ADJUSTED
                                             TWELVE MONTHS TWELVE MONTHS       ONE MONTH
                                                ENDING         ENDING        ENDING 12/31/96
                                               12/31/94       12/31/93         ANNUALIZED
                                            -----------------------------   ---------------
<S>                                            <C>            <C>               <C>        
EXPENSES
                                                                                          
Technical Salary - Supervisor                    $31,691        $30,472                $0 
Technical Salary - Technician                   $129,889       $124,671          $124,836 
Technical Salary - Dispatcher                    $14,150        $13,374           $14,220 
Technical Salary - Installers                    $39,774        $45,100           $49,236 
Overtime/Standby                                 $29,759        $26,787           $24,216 
Payroll Taxes                                    $22,200        $22,756           $13,620 
Group Insurance                                  $11,796        $28,523           $12,240 
Other Benefits                                   $16,443        $16,248                $0 
Tech. Allocated Personnel Expense                     $0             $0           $17,412 
Tech. Allocated P/R Benefit                           $0             $0            $3,900 
Rent - Headend                                        $0             $0                $0 
Rent - Poles and Ducts                           $75,962        $69,918          $168,168 
R & M Plant                                       $1,879           $292                $0 
R & M Other                                       $4,274         $2,556           $34,164 
Material and Reconnect                            $5,436         $3,000           $21,096 
Vehicle - Gas & Oil                              $19,603        $19,713           $42,828 
Vehicle - Service                                $11,954         $6,720            $8,712 
T & E System Travel                               $1,150         $2,138                $0 
T & E System Non-Travel                               $0           $194                $0 
Dues & Subscriptions                              $1,148         $1,913                $0 
Education                                             $0           $217                $0 
System Power Costs                               $67,552        $67,490           $67,584 
Recruiting                                          $149             $0                $0 
Loss on Converters                                $1,200         $1,200              $696 
Property Taxes                                   $48,689        $45,600           $25,000 
Uniforms                                          $4,481         $4,238           $12,756 
Small Tool and Safety                             $1,665         $1,342                $0 
Capital Labor & OH Construction                 ($50,080)      ($60,659)               $0 
Capital Labor & OH Customer                     ($55,017)      ($43,436)               $0 
Production & L.O. Personnel Costs                $17,224             $0                $0 
Production & L.O. Other Expenses                    $911         $1,719                $0 
Ad Sales Payroll Taxes                            $2,281         $2,760                $0 
Ad Sales Group Insurance                            $484         $4,863                $0 
Ad Sales Alloc. Personnel Expense                $13,444         $7,918           $15,168 
Ad Sales Alloc. P/R Benefit                       $4,844         $2,736            $5,244 
Employee Commissions                             $28,252        $12,134                $0 
Other Ad Sale Expenses                           $21,875        $31,647           $15,252 
</TABLE>
                                           


<PAGE>   124
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION:  BURKE, NC



<TABLE>
<CAPTION>                                                                                                                     
                                       ---------------------------------------------------------------------------------------
                                         ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS  TWELVE MONTHS
                                           ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96    ENDING         ENDING   
                                          12/31/96      ANNUALIZED     12/31/96      ANNUALIZED      12/31/96       12/31/95  
                                       ---------------------------------------------------------------------------------------
<S>                                        <C>          <C>           <C>            <C>            <C>            <C>        
Marketing Salary & Benefits                      $0             $0            $0             $0             $0             $0   
Marketing Employee Commissions                 $441         $5,292          $711         $2,844           $844           $221   
Marketing Expenses                           $6,514        $78,168        $5,421        $21,684        $36,286        $46,009   
Dues and Subscriptions                          $41           $492          $131           $524           $331         $1,333   
Pay Per View Expenses                        $1,259        $15,108        $4,552        $18,208        $20,113        $24,242   
Video Game Expenses                              $0             $0            $0             $0             $0             $0   
Miscellaneous Marketing Expenses             $3,240        $38,880        $7,322        $29,288        $12,144         $6,649   
G & A Salary - Supervisor                        $0             $0            $0             $0             $0        $23,366   
G & A Salary - CSR                           $6,917        $83,004       $20,771        $83,084        $84,179        $69,180   
G & A Overtime/Standby                         $538         $6,456        $1,217         $4,868         $8,984         $5,390   
G & A Payroll Taxes                            $530         $6,360        $1,768         $7,072         $8,051         $8,451   
G & A Group Insurance                          $472         $5,664        $2,621        $10,484        $13,489        $15,133   
G & A Other Benefits                          ($906)      ($10,872)      ($2,718)      ($10,872)      ($10,872)       ($2,489)  
Contract Labor                                   $0             $0           $48           $192         $3,648           $224   
G & A Allocated Personnel Expense            $3,596        $43,152       $11,181        $44,724        $40,231        $15,263   
G & A Allocated P/R Benefit                  $1,882        $22,584        $3,690        $14,760        $10,148         $3,400   
Rent - Office                                    $0             $0            $0             $0             $0             $0   
R & M - Office                                 $618         $7,416        $1,760         $7,040         $8,365         $6,080   
Office Supplies                                $467         $5,604        $1,287         $5,148         $6,257         $5,979   
Xerox & Printing                                $89         $1,068          $574         $2,296         $3,080         $1,938   
Vehicle - Gas & Oil                              $0             $0           $36           $144           $208           $128   
T & E System Travel                              $0             $0          $146           $584           $921           $373   
T & E System Non-Travel                          $0             $0           $17            $68           $400            $13   
Dues and Subscriptions                         $148         $1,776          $314         $1,256           $384           $635   
Conventions - Travel                             $0             $0            $0             $0           $198            $13   
Education                                        $7            $84            $6            $24           $635         $2,254   
Recruiting                                       $0             $0            $0             $0            $27             $0   
Insurance                                    $7,511        $90,132       $14,973        $59,892       $113,877        $90,917   
Legal                                          $450         $5,400        $4,850        $19,400        $10,983         $8,858   
Audit & Taxes                                  $762         $9,144        $2,285         $9,140        $11,406        $15,709   
Association - Dues                             $305         $3,660          $917         $3,668         $3,803         $4,691   
Association - Lobbying                          $68           $816          $203           $812           $837           $886   
Political Contribution                           $0             $0            $0             $0             $0             $0   
Donations/Public Relations                     $261         $3,132          $499         $1,996         $1,186         $4,291   
Customer Billing                             $4,896        $58,752       $15,069        $60,276        $62,072        $66,402   
Postage & Messengers                         $3,995        $47,940       $12,592        $50,368        $52,083        $50,460   
Utilities                                      $357         $4,284        $1,187         $4,748         $5,901         $5,960   
Telephone                                    $1,705        $20,460        $4,073        $16,292        $16,787        $16,187   
Tax & Licenses                                  $94         $1,128          $303         $1,212         $1,838           $392   
</TABLE>


<TABLE>
<CAPTION>

                                                                            ---------------
                                            -----------------------------      ADJUSTED
                                             TWELVE MONTHS TWELVE MONTHS       ONE MONTH
                                                ENDING         ENDING        ENDING 12/31/96
                                               12/31/94       12/31/93         ANNUALIZED
                                            -----------------------------   ---------------
<S>                                            <C>            <C>               <C>        
Marketing Salary & Benefits                         $0            $29                $0 
Marketing Employee Commissions                  $2,619         $3,878            $5,292 
Marketing Expenses                             $80,112        $38,090           $78,168 
Dues and Subscriptions                            $573         $2,575              $492 
Pay Per View Expenses                          $22,329        $15,732           $15,108 
Video Game Expenses                                 $0             $0                $0 
Miscellaneous Marketing Expenses                $5,592         $6,250           $38,880 
G & A Salary - Supervisor                      $67,016        $64,061                $0 
G & A Salary - CSR                             $63,316        $57,121           $83,004 
G & A Overtime/Standby                          $5,032         $4,570            $6,456 
G & A Payroll Taxes                            $12,962        $12,545            $6,360 
G & A Group Insurance                          $11,280        $26,291            $5,664 
G & A Other Benefits                            $3,057        $27,720          ($10,872)
Contract Labor                                      $0             $0                $0 
G & A Allocated Personnel Expense             ($19,531)            $0           $43,152 
G & A Allocated P/R Benefit                    ($2,469)            $0           $22,584 
Rent - Office                                       $0         $4,208                $0 
R & M - Office                                  $4,067         $5,858            $7,416 
Office Supplies                                 $6,935         $5,235            $5,604 
Xerox & Printing                                $3,027         $3,855            $1,068 
Vehicle - Gas & Oil                               $718           $524                $0 
T & E System Travel                             $5,040           $801                $0 
T & E System Non-Travel                             $0         $1,099                $0 
Dues and Subscriptions                            $687           $508            $1,776 
Conventions - Travel                               $75         $1,452                $0 
Education                                       $1,782           $715               $84 
Recruiting                                         $95             $0                $0 
Insurance                                      $95,757        $80,960           $90,132 
Legal                                           $9,400         $6,400            $5,400 
Audit & Taxes                                  $25,084        $31,758            $9,144 
Association - Dues                              $5,375         $5,804            $3,660 
Association - Lobbying                            $920             $0              $816 
Political Contribution                            $100            $29                $0 
Donations/Public Relations                      $4,826         $3,900            $3,132 
Customer Billing                               $69,564        $66,873           $58,752 
Postage & Messengers                           $52,996        $49,570           $47,940 
Utilities                                       $7,664         $6,535            $4,284 
Telephone                                      $16,972        $17,628           $20,460 
Tax & Licenses                                    $263         $1,169            $1,128 
</TABLE>


<PAGE>   125
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION:  BURKE, NC



<TABLE>
<CAPTION>                                                                                                                     
                                       ---------------------------------------------------------------------------------------
                                         ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS  TWELVE MONTHS
                                           ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96    ENDING         ENDING   
                                          12/31/96      ANNUALIZED     12/31/96      ANNUALIZED      12/31/96       12/31/95  
                                       ---------------------------------------------------------------------------------------
<S>                                        <C>          <C>           <C>            <C>            <C>            <C>        
FCC User Fees                                  $473         $5,676        $1,417         $5,668         $5,904         $5,491  
Reregulation Costs                               $4            $48        $3,505        $14,020         $9,886        $16,240  
CATV Franchise                               $6,894        $82,728       $15,692        $62,768        $45,484        $69,124  
Copyright Fees                              $14,819       $177,828       $33,726       $134,904       $120,035        $91,053  
BMI License Fees                                 $0             $0         ($567)       ($2,268)        $3,917             $0  
ASCAP License Fees                             $649         $7,788        $1,948         $7,792         $5,009             $0  
Bad Debt Expense                             $4,368        $52,416        $8,625        $34,500        $54,212        $68,861  
Cap. Labor & OH Other                         ($186)       ($2,232)        ($745)       ($2,980)       ($9,058)      ($13,263) 
G & A Miscellaneous Expense                    $602         $7,224        $1,723         $6,892         $2,501         $2,321  
Primary Satellite Fees                      $44,245       $530,940      $133,476       $533,904       $533,833       $497,181  
Program Guides                               $1,360        $16,320        $5,860        $23,440        $21,264        $20,904  
Pay TV Fees                                 $19,041       $228,492       $50,929       $203,716       $273,126       $370,035  
Pay Per View Fees                            $4,557        $54,684       $16,038        $64,152        $59,250        $54,746  
                                           --------     ----------      --------     ----------     ----------     ----------
Total Expenses                             $174,857     $2,098,284      $510,400     $2,041,600     $2,023,543     $2,094,514  

Operating Income                           $261,518     $3,138,216      $819,384     $3,277,536     $3,054,244     $2,951,419  

Operating Margin                              59.93%         59.93%        61.62%         61.62%         60.15%         58.49% 
</TABLE>

<TABLE>
<CAPTION>
                                                                            ---------------
                                            -----------------------------      ADJUSTED
                                             TWELVE MONTHS TWELVE MONTHS       ONE MONTH
                                                ENDING         ENDING        ENDING 12/31/96
                                               12/31/94       12/31/93         ANNUALIZED
                                            -----------------------------   ---------------
<S>                                            <C>            <C>               <C>        
FCC User Fees                                    $4,164             $0            $5,676 
Reregulation Costs                              $17,935        $13,149               $48 
CATV Franchise                                  $73,527       $106,468           $82,728 
Copyright Fees                                  $40,746       $144,292          $177,828 
BMI License Fees                                     $0             $0                $0 
ASCAP License Fees                                   $0             $0            $7,788 
Bad Debt Expense                                $72,445        $84,451           $52,416 
Cap. Labor & OH Other                          ($16,753)      ($14,562)               $0 
G & A Miscellaneous Expense                      $3,230         $2,921            $7,224 
Primary Satellite Fees                         $436,931       $457,835          $530,940 
Program Guides                                  $22,404        $23,984           $16,320 
Pay TV Fees                                    $381,017       $354,187          $228,492 
Pay Per View Fees                               $68,247        $60,329           $54,684 
                                             ----------     ----------        ----------                                            
Total Expenses                               $2,192,190     $2,280,941        $2,395,576 
                                                                                         
Operating Income                             $2,887,808     $2,822,204        $2,844,224 
                                                                                         
Operating Margin                                  56.85%         55.30%            54.28%
</TABLE>


<PAGE>   126

SYSTEM LOCATION:  BURKE, NC

<TABLE>
<CAPTION>
                                      ------------------------------------------------------------------------- 
                                        ADJUSTED         ADJUSTED      ADJUSTED       ADJUSTED       ADJUSTED
                                       THREE MONTHS   TWELVE MONTHS  TWELVE MONTHS TWELVE MONTHS  TWELVE MONTHS
                                      ENDING 12/31/96     ENDING        ENDING         ENDING         ENDING      
                                        ANNUALIZED       12/31/96      12/31/95       12/31/94       12/31/93
                                      -------------------------------------------------------------------------
<S>                                      <C>            <C>           <C>            <C>            <C>
REVENUES                                                                                                        
                                                                                                                
Primary - First Outlet                   $2,130,116     $2,042,600    $2,040,107     $2,064,907     $2,092,282  
Primary Commercial                           $8,520         $8,520        $8,752         $5,349         $4,275  
Expanded Tier                                    $0             $0            $0             $0             $0  
AG Tier                                          $0             $0            $0             $0       $471,849  
AJ Tier                                          $0             $0            $0             $0       $512,290  
AL Tier                                    $648,320       $574,897      $406,998       $159,998           $861  
Radio Services                              $35,484        $39,156       $47,713        $58,903        $24,419  
Pay Cable First Outlet                     $420,420       $495,343      $583,725       $589,479       $539,269  
Ala Carte                                        $0             $0            $0     $1,127,729       $292,192  
New Product Tier 1                         $986,268       $892,061      $948,060             $0             $0  
Mini Pay                                     $9,396        $10,339       $12,990        $18,230        $34,771  
Pay Per View                               $111,524       $103,952      $117,381       $124,007        $99,986  
Primary Additional Outlet                        $0             $0            $0             $0       $226,545  
Remote Control                               $3,928         $4,148        $4,049         $4,158       $280,149  
Converter Rental                           $461,120       $472,318      $488,851       $489,185       $119,585  
Maintenance Contracts                       $69,496        $68,243       $62,257        $47,496             $0  
New Customer Pay Installs                        $0             $0            $5             $5         $2,045  
New Customer Basic Installs                 $22,408        $17,625       $28,145        $50,357        $63,122  
Installation Materials Charge                $1,552         $1,095          $400             $0             $0  
Installs Non New Customers                  $44,672        $68,262       $72,044        $81,141        $91,838  
Classified Ads                               $7,120         $4,631        $4,578         $6,560         $1,260  
Ad Insertion Sales                         $178,024       $130,958       $93,171       $111,734        $54,651  
Ad Sales Other                                   $0             $0            $0             $0            $59  
Production & Location Origination            $3,092           $773            $0           $340         $1,013  
Other Late Charges                          $52,540        $57,190       $63,319        $68,172        $51,488  
Other Rent                                   $1,100         $2,695        $3,025         $3,250         $1,300  
Other Copyright Pass Through                     $0             $0            $0             $0        $54,187  
Other Miscellaneous                              $0             $5           $40            $10         $1,770  
FCC User Fees Pass Through                   $5,152         $5,259        $5,100           $120             $0  
Other Programmers                           $63,880        $16,482            $0             $0             $0  
QVC Monthly Commission                      $17,812        $16,730       $15,131        $19,432        $12,899  
QVC Carriage Payment                        $12,552        $12,150       $14,020        $14,020        $14,018  
HSN Monthly Commission                       $2,732         $9,597            $0             $0             $0  
Guides                                      $21,908        $22,758       $26,072        $35,416        $55,022  
                                         ----------     ----------    ----------     ----------     ----------  
                                                                                                                
Total Revenues                           $5,319,136     $5,077,787    $5,045,933     $5,079,998     $5,103,145
</TABLE>                                      


<PAGE>   127
SYSTEM LOCATION:  BURKE, NC 

<TABLE>
<CAPTION>
                                      ------------------------------------------------------------------------- 
                                        ADJUSTED         ADJUSTED      ADJUSTED       ADJUSTED       ADJUSTED
                                       THREE MONTHS   TWELVE MONTHS  TWELVE MONTHS TWELVE MONTHS  TWELVE MONTHS
                                      ENDING 12/31/96     ENDING        ENDING         ENDING         ENDING 
                                        ANNUALIZED       12/31/96      12/31/95       12/31/94       12/31/93
                                      -------------------------------------------------------------------------
<S>                                      <C>            <C>           <C>            <C>            <C>
EXPENSES                                                                     
                                   
Technical Salary - Supervisor                 $0             $0            $0        $31,691        $30,472 
Technical Salary - Technician           $124,152       $117,953      $126,035       $129,889       $124,671 
Technical Salary - Dispatcher            $14,764        $12,477       $14,695        $14,150        $13,374 
Technical Salary - Installers            $46,492        $43,935       $38,074        $39,774        $45,100 
Overtime/Standby                         $23,388        $32,158       $47,599        $29,759        $26,787 
Payroll Taxes                            $15,952        $15,329       $17,992        $22,200        $22,756 
Group Insurance                          $18,176        $22,443       $18,424        $11,796        $28,523 
Other Benefits                                $0         $1,400       $11,514        $16,443        $16,248 
Tech. Allocated Personnel Expense        $14,016        $17,104        $8,566             $0             $0 
Tech. Allocated P/R Benefit               $2,948         $3,927        $2,080             $0             $0 
Rent - Headend                                $0             $0            $0             $0             $0 
Rent - Poles and Ducts                  $168,168       $133,373       $77,997        $75,962        $69,918 
R & M Plant                                  $60           $445        $1,336         $1,879           $292 
R & M Other                              $20,932        $11,194        $3,062         $4,274         $2,556 
Material and Reconnect                   $26,500        $18,197        $8,006         $5,436         $3,000 
Vehicle - Gas & Oil                      $31,464        $21,596       $23,575        $19,603        $19,713 
Vehicle - Service                         $8,728         $8,676        $9,952        $11,954         $6,720 
T & E System Travel                           $0           $127          $222         $1,150         $2,138 
T & E System Non-Travel                       $0             $0            $0             $0           $194 
Dues & Subscriptions                        $572         $1,408        $1,659         $1,148         $1,913 
Education                                     $0             $0          $223             $0           $217 
System Power Costs                       $69,812        $67,968       $64,859        $67,552        $67,490 
Recruiting                                    $0            $50           $44           $149             $0 
Loss on Converters                          $696           $696        $1,200         $1,200         $1,200 
Property Taxes                           $25,000        $24,952       $35,328        $48,689        $45,600 
Uniforms                                  $7,388         $5,735        $4,217         $4,481         $4,238 
Small Tool and Safety                       $232           $684        $1,131         $1,665         $1,342 
Capital Labor & OH Construction               $0             $0            $0             $0             $0 
Capital Labor & OH Customer                   $0             $0            $0             $0             $0 
Production & L.O. Personnel Costs             $0             $0            $0        $17,224             $0 
Production & L.O. Other Expenses              $0             $0            $0           $911         $1,719 
Ad Sales Payroll Taxes                        $0            $19          $346         $2,281         $2,760 
Ad Sales Group Insurance                      $0             $0            $0           $484         $4,863 
Ad Sales Alloc. Personnel Expense        $14,092        $14,251       $12,975        $13,444         $7,918 
Ad Sales Alloc. P/R Benefit               $5,628         $5,660        $4,348         $4,844         $2,736 
Employee Commissions                          $0           $226        $3,941        $28,252        $12,134 
Other Ad Sale Expenses                   $16,520        $15,287       $16,625        $21,875        $31,647 
</TABLE> 
<PAGE>   128
SYSTEM LOCATION:  BURKE, NC


<TABLE>
<CAPTION>
                                      ------------------------------------------------------------------------- 
                                        ADJUSTED         ADJUSTED      ADJUSTED       ADJUSTED       ADJUSTED
                                       THREE MONTHS   TWELVE MONTHS  TWELVE MONTHS TWELVE MONTHS  TWELVE MONTHS
                                      ENDING 12/31/96     ENDING        ENDING         ENDING         ENDING    
                                        ANNUALIZED       12/31/96      12/31/95       12/31/94       12/31/93
                                      -------------------------------------------------------------------------
<S>                                      <C>            <C>           <C>            <C>            <C>
Marketing Salary & Benefits                 $0             $0            $0             $0            $29  
Marketing Employee Commissions          $2,844           $844          $221         $2,619         $3,878  
Marketing Expenses                     $21,684        $36,286       $46,009        $80,112        $38,090  
Dues and Subscriptions                    $524           $331        $1,333           $573         $2,575  
Pay Per View Expenses                  $18,208        $20,113       $24,242        $22,329        $15,732  
Video Game Expenses                         $0             $0            $0             $0             $0  
Miscellaneous Marketing Expenses       $29,288        $12,144        $6,649         $5,592         $6,250  
G & A Salary - Supervisor                   $0             $0       $23,366        $67,016        $64,061  
G & A Salary - CSR                     $83,084        $84,179       $69,180        $63,316        $57,121  
G & A Overtime/Standby                  $4,868         $8,984        $5,390         $5,032         $4,570  
G & A Payroll Taxes                     $7,072         $8,051        $8,451        $12,962        $12,545  
G & A Group Insurance                  $10,484        $13,489       $15,133        $11,280        $26,291  
G & A Other Benefits                  ($10,872)      ($10,872)      ($2,489)        $3,057        $27,720  
Contract Labor                            $192         $3,648          $224             $0             $0  
G & A Allocated Personnel Expense      $44,724        $40,231       $15,263       ($19,531)            $0  
G & A Allocated P/R Benefit            $14,760        $10,148        $3,400        ($2,469)            $0  
Rent - Office                               $0             $0            $0             $0         $4,208  
R & M - Office                          $7,040         $8,365        $6,080         $4,067         $5,858  
Office Supplies                         $5,148         $6,257        $5,979         $6,935         $5,235  
Xerox & Printing                        $2,296         $3,080        $1,938         $3,027         $3,855  
Vehicle - Gas & Oil                       $144           $208          $128           $718           $524  
T & E System Travel                       $584           $921          $373         $5,040           $801  
T & E System Non-Travel                    $68           $400           $13             $0         $1,099  
Dues and Subscriptions                  $1,256           $384          $635           $687           $508  
Conventions - Travel                        $0           $198           $13            $75         $1,452  
Education                                  $24           $635        $2,254         $1,782           $715  
Recruiting                                  $0            $27            $0            $95             $0  
Insurance                              $59,892       $113,877       $90,917        $95,757        $80,960  
Legal                                  $19,400        $10,983        $8,858         $9,400         $6,400  
Audit & Taxes                           $9,140        $11,406       $15,709        $25,084        $31,758  
Association - Dues                      $3,668         $3,803        $4,691         $5,375         $5,804  
Association - Lobbying                    $812           $837          $886           $920             $0  
Political Contribution                      $0             $0            $0           $100            $29  
Donations/Public Relations              $1,996         $1,186        $4,291         $4,826         $3,900  
Customer Billing                       $60,276        $62,072       $66,402        $69,564        $66,873  
Postage & Messengers                   $50,368        $52,083       $50,460        $52,996        $49,570  
Utilities                               $4,748         $5,901        $5,960         $7,664         $6,535  
Telephone                              $16,292        $16,787       $16,187        $16,972        $17,628  
Tax & Licenses                          $1,212         $1,838          $392           $263         $1,169  
</TABLE>                              

<PAGE>   129
SYSTEM LOCATION:  BURKE, NC

<TABLE>
<CAPTION>
                                      ------------------------------------------------------------------------- 
                                        ADJUSTED         ADJUSTED      ADJUSTED       ADJUSTED       ADJUSTED
                                       THREE MONTHS   TWELVE MONTHS  TWELVE MONTHS TWELVE MONTHS  TWELVE MONTHS
                                      ENDING 12/31/96     ENDING        ENDING         ENDING         ENDING    
                                        ANNUALIZED       12/31/96      12/31/95       12/31/94       12/31/93
                                      -------------------------------------------------------------------------
<S>                                      <C>            <C>           <C>            <C>            <C>
FCC User Fees                             $5,668         $5,904        $5,491         $4,164             $0    
Reregulation Costs                       $14,020         $9,886       $16,240        $17,935        $13,149    
CATV Franchise                           $62,768        $45,484       $69,124        $73,527       $106,468    
Copyright Fees                          $134,904       $120,035       $91,053        $40,746       $144,292    
BMI License Fees                              $0         $3,917            $0             $0             $0    
ASCAP License Fees                        $7,792         $5,009            $0             $0             $0    
Bad Debt Expense                         $34,500        $54,212       $68,861        $72,445        $84,451    
Cap. Labor & OH Other                         $0             $0            $0             $0             $0    
G & A Miscellaneous Expense               $6,892         $2,501        $2,321         $3,230         $2,921    
Primary Satellite Fees                  $533,904       $533,833      $497,181       $436,931       $457,835    
Program Guides                           $23,440        $21,264       $20,904        $22,404        $23,984    
Pay TV Fees                             $203,716       $273,126      $370,035       $381,017       $354,187    
Pay Per View Fees                        $64,152        $59,250       $54,746        $68,247        $60,329    
                                         --------       --------      --------       --------       -------    
Total Expenses                        $2,218,660     $2,260,515    $2,250,519     $2,314,040     $2,399,598

Operating Income                      $3,100,476     $2,817,272    $2,795,414     $2,765,958     $2,703,547

Operating Margin                           58.29%         55.48%        55.40%         54.45%         52.98%

</TABLE>                              

                                      
<PAGE>   130
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION: CALIFORNIA CITY

<TABLE>
<CAPTION>
                                       ----------------------------------------------------------------------------------------
                                         ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS  TWELVE MONTHS 
                                           ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96    ENDING         ENDING    
                                          12/31/96      ANNUALIZED     12/31/96      ANNUALIZED      12/31/96       12/31/95   
                                       ----------------------------------------------------------------------------------------
<S>                                         <C>           <C>            <C>           <C>            <C>            <C>       
REVENUES                                                                                                                       
                                                                                                                               
Primary First Outlet                        $30,304       $363,648       $90,303       $361,212       $351,579       $361,745  
Primary Commercial                           $1,082        $12,984        $3,246        $12,984        $12,984         $5,244  
Expanded Tier                                    $0             $0            $0             $0             $0             $0  
AG Tier                                          $0             $0            $0             $0             $0             $0  
AL Tier                                     $10,926       $131,112       $32,871       $131,484       $136,376       $145,695  
Radio Services                                 $501         $6,012        $1,509         $6,036         $6,423         $7,683  
Pay Cable First Outlet                       $6,553        $78,636       $19,861        $79,444        $90,571       $103,443  
Pay Cable Additional Outlet                    $273         $3,276          $827         $3,308         $3,889         $4,328  
Ala Carte                                        $0             $0            $0             $0             $0             $0  
New Product Tier 1                           $5,066        $60,792       $15,171        $60,684        $51,265        $40,814  
Primary Additional Outlet                        $0             $0            $0             $0             $0             $0  
Remote Control                                 $272         $3,264          $817         $3,268         $3,515         $3,622  
Converter Rental                             $4,155        $49,860       $12,570        $50,280        $54,098        $55,694  
Maintenance Contracts                          $355         $4,260        $1,099         $4,396         $4,679         $4,286  
New Customer Basic Installs                      $0             $0            $0             $0         $2,425        $14,401  
Installation Materials Charge                    $7            $84            $7            $28            $12           $249  
Installs - Non New Customers                 $1,445        $17,340        $3,730        $14,920        $14,443        $10,272  
Guides                                          $67           $804          $247           $988           $752             $0  
Other Late Charges                             $575         $6,900        $2,065         $8,260         $8,695         $7,930  
Other Miscellaneous                              $0             $0            $0             $0             $0             $0  
FCC User Fees Pass Through                      $79           $948          $241           $964           $991           $985  
Ad Sales Other                                   $0             $0            $0             $0             $0             $0  
Other Programmers                                $6            $72        $2,988        $11,952         $3,432             $0  
QVC Monthly Commission                         $224         $2,688          $650         $2,600         $3,064         $6,129  
HSN Monthly Commission                         $170         $2,040          $486         $1,944         $2,222         $1,933  
HSN Carriage Payment                           $152         $1,824          $457         $1,828         $1,829         $1,829  
                                            -------       --------      --------       --------       --------       --------  
                                                                                                                               
Total Revenues                              $62,212       $746,544      $189,145       $756,580       $753,244       $776,282  
                                                                                                                               
EXPENSES                                                                                                                       
                                                                                                                               
Technical Allocated Personnel Expense          $858        $10,296        $3,883        $15,532         $7,650        $10,773  
Technical Allocated P/R Benefit                $268         $3,216        $1,189         $4,756         $7,448         $6,757  
Technical Allocated Department Expense         $335         $4,020        $1,398         $5,592        $14,934        $22,749  
Rent - Headend                                 $494         $5,928        $2,928        $11,712         $5,928         $5,800  
Rent - Poles and Ducts                       $1,169        $14,028        $3,401        $13,604        $10,495         $8,000  
R & M Plant                                      $0             $0            $0             $0         $1,735             $0 
</TABLE>

<TABLE>
<CAPTION>
                                                                         --------------      
                                          ------------------------------      ADJUSTED       
                                           TWELVE MONTHS TWELVE MONTHS       ONE MONTH       
                                              ENDING         ENDING        ENDING 12/31/96   
                                             12/31/94       12/31/93         ANNUALIZED      
                                          ------------------------------   ---------------   
<S>                                          <C>             <C>               <C>
REVENUES
                                                                                             
Primary First Outlet                          $417,802       $349,297          $363,648
Primary Commercial                              $5,244         $7,988           $12,984
Expanded Tier                                       $0             $0                $0
AG Tier                                             $0        $19,353                $0
AL Tier                                        $80,045           ($27)         $131,112
Radio Services                                  $9,082         $3,756            $6,012
Pay Cable First Outlet                         $91,449        $83,463           $78,636
Pay Cable Additional Outlet                     $4,464         $4,066            $3,276
Ala Carte                                      $35,580        $65,132                $0
New Product Tier 1                                  $0             $0           $60,792
Primary Additional Outlet                           $0        $21,440                $0
Remote Control                                  $3,419        $17,133            $3,264
Converter Rental                               $57,579        $20,434           $49,860
Maintenance Contracts                           $1,788             $0            $4,260
New Customer Basic Installs                    $19,922        $11,333                $0
Installation Materials Charge                       $0             $0               $84
Installs - Non New Customers                    $6,687         $7,047           $17,340
Guides                                              $0             $3              $804
Other Late Charges                              $7,110         $7,900            $6,900
Other Miscellaneous                                 $0            $47                $0
FCC User Fees Pass Through                         $12             $0              $948
Ad Sales Other                                      $0             $9                $0
Other Programmers                                   $0             $0               $72
QVC Monthly Commission                              $0             $0            $2,688
HSN Monthly Commission                              $0             $0            $2,040
HSN Carriage Payment                                $0             $0            $1,824
                                              --------       --------          --------      
Total Revenues                                $740,183       $618,374          $746,544
                                              
EXPENSES                                                                                     
                                                                                             
Technical Allocated Personnel Expense          $37,783        $35,695           $10,296
Technical Allocated P/R Benefit                 $9,279         $9,378            $3,216
Technical Allocated Department Expense         $12,079         $7,598            $4,020
Rent - Headend                                  $5,800         $2,366            $5,928
Rent - Poles and Ducts                          $6,775         $5,794           $14,028
R & M Plant                                         $0             $0                $0
                                               
</TABLE>                                          


<PAGE>   131
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION: CALIFORNIA CITY


<TABLE>
<CAPTION>
                                       ----------------------------------------------------------------------------------------
                                         ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS  TWELVE MONTHS 
                                           ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96    ENDING         ENDING    
                                          12/31/96      ANNUALIZED     12/31/96      ANNUALIZED      12/31/96       12/31/95   
                                       ----------------------------------------------------------------------------------------
<S>                                         <C>           <C>            <C>           <C>            <C>            <C>       
R & M Other                                    $175         $2,100          $174           $696           $829         $1,644   
Material and Reconnect                       $1,011        $12,132        $2,137         $8,548        $10,030         $6,546   
Vehicle - Gas & Oil                              $1            $12           $21            $84            $41            $68   
Vehicle - Service                                $0             $0            $2             $8             $6           $159   
T & E System Travel                              $0             $0            $0             $0            $39             $4   
T & E System Non-Travel                         $58           $696          $258         $1,032           $321             $0   
System Power Costs                           $1,256        $15,072        $3,590        $14,360        $14,559        $15,088   
Property Taxes                               $1,113        $13,356        $3,340        $13,360        $13,980        $13,274   
Small Tool and Safety                            $0             $0            $0             $0             $0           $359   
Capital Labor & OH Construction             ($1,126)      ($13,512)      ($7,098)      ($28,392)      ($15,030)      ($15,418)  
Capital Labor & OH Customer                      $0             $0            $0             $0             $0        ($3,091)  
Production & LO Alloc. Personnel Benefit         $0             $0            $0             $0            $76             $0   
Production & LO Alloc. P/R Benefit               $0             $0            $0             $0            $17             $0   
Ad Sales                                         $0             $0            $0             $0             $0             $0   
Marketing Employee Commissions                   $0             $0            $0             $0             $0             $0   
Marketing Expenses                             $838        $10,056        $1,528         $6,112         $5,131        $10,013   
Dues and Subscriptions                           $8            $96           $26           $104            $91           $201   
Pay Per View Expenses                           $11           $132           $35           $140           $136            $38   
Miscellaneous Marketing Expenses              ($210)       ($2,520)          $60           $240           $833         $1,425   
G & A Allocated Personnel Expense              $478         $5,736        $1,432         $5,728         $4,961         $9,255   
G & A Allocated P/R Expense                    $532         $6,384          $802         $3,208         $2,355         $2,086   
G & A Allocated Department Expense           $1,221        $14,652        $3,844        $15,376        $19,852        $25,265   
R & M - Office                                   $0             $0            $2             $8           $319           $444   
Office Supplies                                  $0             $0            $0             $0            $99            $93   
Xerox & Printing                                 $0             $0            $0             $0             $0           $375   
T & E System Travel                              $0             $0            $0             $0             $0            $70   
T & E System Non-Travel                          $0             $0           $28           $112           $118             $0   
Dues and Subscriptions                           $0             $0           $66           $264           $429           $189   
Conventions - Travel                             $0             $0            $0             $0             $0             $0   
Insurance                                      $801         $9,612        $2,528        $10,112         $9,976         $9,381   
Legal                                          $131         $1,572          $393         $1,572         $1,572         $1,301   
Audit & Taxes                                  $762         $9,144        $2,285         $9,140        $14,539         $2,764   
Association - Dues                             $115         $1,380          $213           $852           $804         $1,174   
Association - Lobbying                          $11           $132           $33           $132           $158           $228   
Political Contribution                          $63           $756           $62           $248           $125           $425   
Donations/Public Relations                     ($24)         ($288)          $23            $92           $276           $274   
Customer Billing                             $1,716        $20,592        $5,220        $20,880        $19,645        $21,873   
Postage & Messengers                           $766         $9,192        $2,163         $8,652         $8,451         $9,423   
Telephone                                        $0             $0            $1             $4             $4             $5   
</TABLE>




<TABLE>
<CAPTION>
                                                                           ---------------  
                                          ------------------------------      ADJUSTED    
                                           TWELVE MONTHS TWELVE MONTHS       ONE MONTH    
                                              ENDING         ENDING        ENDING 12/31/96
                                             12/31/94       12/31/93         ANNUALIZED   
                                          ------------------------------   ---------------
<S>                                        <C>                <C>                <C>
R & M Other                                        $845         $3,313            $2,100  
Material and Reconnect                           $2,511             $0           $12,132  
Vehicle - Gas & Oil                                 $68            $96               $12  
Vehicle - Service                                  $151            $73                $0  
T & E System Travel                                  $0             $0                $0  
T & E System Non-Travel                              $0             $0              $696  
System Power Costs                              $11,654        $10,888           $15,072  
Property Taxes                                   $9,659         $6,980           $13,356  
Small Tool and Safety                                $0           $102                $0  
Capital Labor & OH Construction                ($30,323)      ($29,683)               $0  
Capital Labor & OH Customer                    ($13,116)      ($16,816)               $0  
Production & LO Alloc. Personnel Benefit             $0             $0                $0  
Production & LO Alloc. P/R Benefit                   $0             $0                $0  
Ad Sales                                             $0             $0                $0  
Marketing Employee Commissions                     $328             $0                $0  
Marketing Expenses                              $12,919          ($772)          $10,056  
Dues and Subscriptions                             $144           $365               $96  
Pay Per View Expenses                                $0             $0              $132  
Miscellaneous Marketing Expenses                 $2,453         $5,716            $1,000  
G & A Allocated Personnel Expense               $22,790        $20,988            $5,736  
G & A Allocated P/R Expense                      $7,705         $2,998            $6,384  
G & A Allocated Department Expense              $21,013        $23,533           $14,652  
R & M - Office                                     $154            $99                $0  
Office Supplies                                    $111           $378                $0  
Xerox & Printing                                     $0           $412                $0  
T & E System Travel                                 $10             $0                $0  
T & E System Non-Travel                              $0            $40                $0  
Dues and Subscriptions                             $123           $201                $0  
Conventions - Travel                                 $0             $0                $0  
Insurance                                        $8,071         $6,446            $9,612  
Legal                                            $1,573         $1,260            $1,572  
Audit & Taxes                                    $4,330         $1,079            $9,144  
Association - Dues                               $1,234           $906            $1,380  
Association - Lobbying                             $153             $0              $132  
Political Contribution                             $278             $0              $756  
Donations/Public Relations                         $227         $2,996                $0  
Customer Billing                                $20,697        $19,485           $20,592  
Postage & Messengers                             $8,187         $6,836            $9,192  
Telephone                                          $357           $749                $0  
</TABLE>
<PAGE>   132
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION: CALIFORNIA CITY



                                            
<TABLE>
<CAPTION>
                                       ----------------------------------------------------------------------------------------
                                           ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS  TWELVE MONTHS 
                                             ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96    ENDING         ENDING    
                                            12/31/96      ANNUALIZED     12/31/96      ANNUALIZED      12/31/96       12/31/95   
                                       ----------------------------------------------------------------------------------------
<S>                                         <C>           <C>            <C>           <C>            <C>            <C>       
Tax & Licenses                                   $0             $0            $0             $0           $340            $20   
FCC User Fees                                   $85         $1,020          $159           $636         $1,112         $1,007   
Reregulation Costs                               $0             $0        $1,032         $4,128         $1,674           $520   
CATV Franchise                                  $30           $360          $208           $832         $1,596        $15,249   
Copyright Fees                                 $174         $2,088          $515         $2,060         $2,477         $1,630   
ASCAP License Fees                             $103         $1,236          $309         $1,236           $795             $0   
Bad Debt Expense                               $573         $6,876       ($2,648)      ($10,592)        $2,526        $10,706   
Cap. Labor & OH Other                            $0             $0         ($399)       ($1,596)       ($1,197)      ($12,534)  
G & A Miscellaneous Expense                     $48           $576           $67           $268           $177           $171   
Primary Satellite Fees                       $7,979        $95,748       $24,127        $96,508        $97,000       $110,042   
Program Guides                                 $254         $3,048          $580         $2,320         $2,199         $2,769   
Pay TV Fees                                  $2,914        $34,968        $7,489        $29,956        $46,657        $64,295   
                                            -------       --------      --------       --------       --------       -------- 
Total Expenses                              $24,991       $299,892       $67,406       $269,624       $318,288       $362,889   

Operating Income                            $37,221       $446,652      $121,739       $486,956       $434,956       $413,393   

Operating Margin                              59.83%         59.83%        64.36%         64.36%         57.74%         53.25%  
</TABLE>






<TABLE> 
<CAPTION>
                                                                         --------------   
                                          ------------------------------      ADJUSTED    
                                           TWELVE MONTHS TWELVE MONTHS       ONE MONTH    
                                              ENDING         ENDING        ENDING 12/31/96
                                             12/31/94       12/31/93         ANNUALIZED   
                                          ------------------------------   ---------------
<S>                                          <C>             <C>              <C>
Tax & Licenses                                    $20           $111                $0  
FCC User Fees                                    $739             $0            $1,020  
Reregulation Costs                             $2,932         $5,782                $0  
CATV Franchise                                $14,627        $12,422              $360  
Copyright Fees                                 $3,365         $2,502            $2,088  
ASCAP License Fees                                 $0             $0            $1,236  
Bad Debt Expense                               $6,658        $21,430            $6,876  
Cap. Labor & OH Other                        ($12,204)      ($33,161)               $0  
G & A Miscellaneous Expense                      $451           $130              $576  
Primary Satellite Fees                       $100,086        $80,667           $95,748  
Program Guides                                 $2,618         $2,413            $3,048  
Pay TV Fees                                   $61,038        $52,887           $34,968  
                                             --------       --------          --------                                           
Total Expenses                               $346,352       $274,682          $317,212  
                                                                                        
Operating Income                             $393,831       $343,692          $429,332  
                                                                                        
Operating Margin                                53.21%         55.58%            57.51% 
</TABLE>
<PAGE>   133

SYSTEM LOCATION: CALIFORNIA CITY

<TABLE>
<CAPTION>
                                           --------------------------------------------- ----------------------------- 
                                             ADJUSTED         ADJUSTED      ADJUSTED       ADJUSTED       ADJUSTED     
                                            THREE MONTHS   TWELVE MONTHS  TWELVE MONTHS TWELVE MONTHS  TWELVE MONTHS   
                                           ENDING 12/31/96     ENDING        ENDING         ENDING         ENDING      
                                             ANNUALIZED       12/31/96      12/31/95       12/31/94       12/31/93     
                                           ---------------------------------------------------------------------------
                                                                                                                       
<S>                                               <C>            <C>           <C>            <C>            <C>       
REVENUES                                                                                                               
                                                                                                                       
Primary First Outlet                              $361,212       $351,579      $361,745       $417,802       $349,297  
Primary Commercial                                 $12,984        $12,984        $5,244         $5,244         $7,988  
Expanded Tier                                           $0             $0            $0             $0             $0  
AG Tier                                                 $0             $0            $0             $0        $19,353  
AL Tier                                           $131,484       $136,376      $145,695        $80,045           ($27) 
Radio Services                                      $6,036         $6,423        $7,683         $9,082         $3,756  
Pay Cable First Outlet                             $79,444        $90,571      $103,443        $91,449        $83,463  
Pay Cable Additional Outlet                         $3,308         $3,889        $4,328         $4,464         $4,066  
Ala Carte                                               $0             $0            $0        $35,580        $65,132  
New Product Tier 1                                 $60,684        $51,265       $40,814             $0             $0  
Primary Additional Outlet                               $0             $0            $0             $0        $21,440  
Remote Control                                      $3,268         $3,515        $3,622         $3,419        $17,133  
Converter Rental                                   $50,280        $54,098       $55,694        $57,579        $20,434  
Maintenance Contracts                               $4,396         $4,679        $4,286         $1,788             $0  
New Customer Basic Installs                             $0         $2,425       $14,401        $19,922        $11,333  
Installation Materials Charge                          $28            $12          $249             $0             $0  
Installs - Non New Customers                       $14,920        $14,443       $10,272         $6,687         $7,047  
Guides                                                $988           $752            $0             $0             $3  
Other Late Charges                                  $8,260         $8,695        $7,930         $7,110         $7,900  
Other Miscellaneous                                     $0             $0            $0             $0            $47  
FCC User Fees Pass Through                            $964           $991          $985            $12             $0  
Ad Sales Other                                          $0             $0            $0             $0             $9  
Other Programmers                                  $11,952         $3,432            $0             $0             $0  
QVC Monthly Commission                              $2,600         $3,064        $6,129             $0             $0  
HSN Monthly Commission                              $1,944         $2,222        $1,933             $0             $0  
HSN Carriage Payment                                $1,828         $1,829        $1,829             $0             $0  
                                                  --------       --------      --------       --------       --------  
                                                                                                                       
Total Revenues                                    $756,580       $753,244      $776,282       $740,183       $618,374  
                                                                                                                       
EXPENSES                                                                                                               
                                                                                                                       
Technical Allocated Personnel Expense              $15,532         $7,650       $10,773        $37,783        $35,695  
Technical Allocated P/R Benefit                     $4,756         $7,448        $6,757         $9,279         $9,378  
Technical Allocated Department Expense              $5,592        $14,934       $22,749        $12,079         $7,598  
Rent - Headend                                     $11,712         $5,928        $5,800         $5,800         $2,366  
Rent - Poles and Ducts                             $13,604        $10,495        $8,000         $6,775         $5,794  
R & M Plant                                             $0         $1,735            $0             $0             $0  

</TABLE>
<PAGE>   134

SYSTEM LOCATION: CALIFORNIA CITY

<TABLE>
<CAPTION>
                                           --------------------------------------------- ----------------------------- 
                                             ADJUSTED         ADJUSTED      ADJUSTED       ADJUSTED       ADJUSTED     
                                            THREE MONTHS   TWELVE MONTHS  TWELVE MONTHS TWELVE MONTHS  TWELVE MONTHS   
                                           ENDING 12/31/96     ENDING        ENDING         ENDING         ENDING      
                                             ANNUALIZED       12/31/96      12/31/95       12/31/94       12/31/93     
                                           ---------------------------------------------------------------------------
                                                                                                                       
<S>                                              <C>            <C>           <C>            <C>            <C>        
R & M Other                                       $696             $829        $1,644           $845         $3,313  
Material and Reconnect                            $8,548        $10,030        $6,546         $2,511             $0 
Vehicle - Gas & Oil                                  $84            $41           $68            $68            $96 
Vehicle - Service                                     $8             $6          $159           $151            $73 
T & E System Travel                                   $0            $39            $4             $0             $0 
T & E System Non-Travel                           $1,032           $321            $0             $0             $0 
System Power Costs                               $14,360        $14,559       $15,088        $11,654        $10,888 
Property Taxes                                   $13,360        $13,980       $13,274         $9,659         $6,980 
Small Tool and Safety                                 $0             $0          $359             $0           $102 
Capital Labor & OH Construction                       $0             $0            $0             $0             $0 
Capital Labor & OH Customer                           $0             $0            $0             $0             $0 
Production & LO Alloc. Personnel Benefit              $0            $76            $0             $0             $0 
Production & LO Alloc. P/R Benefit                    $0            $17            $0             $0             $0 
Ad Sales                                              $0             $0            $0             $0             $0 
Marketing Employee Commissions                        $0             $0            $0           $328             $0 
Marketing Expenses                                $6,112         $5,131       $10,013        $12,919             $0 
Dues and Subscriptions                              $104            $91          $201           $144           $365 
Pay Per View Expenses                               $140           $136           $38             $0             $0 
Miscellaneous Marketing Expenses                    $240           $833        $1,425         $2,453         $5,716 
G & A Allocated Personnel Expense                 $5,728         $4,961        $9,255        $22,790        $20,988 
G & A Allocated P/R Expense                       $3,208         $2,355        $2,086         $7,705         $2,998 
G & A Allocated Department Expense               $15,376        $19,852       $25,265        $21,013        $23,533 
R & M - Office                                        $8           $319          $444           $154            $99 
Office Supplies                                       $0            $99           $93           $111           $378 
Xerox & Printing                                      $0             $0          $375             $0           $412 
T & E System Travel                                   $0             $0           $70            $10             $0 
T & E System Non-Travel                             $112           $118            $0             $0            $40 
Dues and Subscriptions                              $264           $429          $189           $123           $201 
Conventions - Travel                                  $0             $0            $0             $0             $0 
Insurance                                        $10,112         $9,976        $9,381         $8,071         $6,446 
Legal                                             $1,572         $1,572        $1,301         $1,573         $1,260 
Audit & Taxes                                     $9,140        $14,539        $2,764         $4,330         $1,079 
Association - Dues                                  $852           $804        $1,174         $1,234           $906 
Association - Lobbying                              $132           $158          $228           $153             $0 
Political Contribution                              $248           $125          $425           $278             $0 
Donations/Public Relations                           $92           $276          $274           $227         $2,996 
Customer Billing                                 $20,880        $19,645       $21,873        $20,697        $19,485 
Postage & Messengers                              $8,652         $8,451        $9,423         $8,187         $6,836 
Telephone                                             $4             $4            $5           $357           $749 
</TABLE>

<PAGE>   135

SYSTEM LOCATION: CALIFORNIA CITY


<TABLE>
<CAPTION>
                                           --------------------------------------------- ----------------------------- 
                                             ADJUSTED         ADJUSTED      ADJUSTED       ADJUSTED       ADJUSTED     
                                            THREE MONTHS   TWELVE MONTHS  TWELVE MONTHS TWELVE MONTHS  TWELVE MONTHS   
                                           ENDING 12/31/96     ENDING        ENDING         ENDING         ENDING      
                                             ANNUALIZED       12/31/96      12/31/95       12/31/94       12/31/93     
                                           ---------------------------------------------------------------------------
                                                                                                                       
<S>                                         <C>            <C>           <C>            <C>            <C>        
Tax & Licenses                                  $0             $340           $20            $20           $111    
FCC User Fees                                   $636         $1,112        $1,007           $739             $0    
Reregulation Costs                            $4,128         $1,674          $520         $2,932         $5,782    
CATV Franchise                                  $832         $1,596       $15,249        $14,627        $12,422    
Copyright Fees                                $2,060         $2,477        $1,630         $3,365         $2,502    
ASCAP License Fees                            $1,236           $795            $0             $0             $0    
Bad Debt Expense                              $3,000         $2,526       $10,706         $6,658        $21,430    
Cap. Labor & OH Other                             $0             $0            $0             $0             $0    
G & A Miscellaneous Expense                     $268           $177          $171           $451           $130    
Primary Satellite Fees                       $96,508        $97,000      $110,042       $100,086        $80,667    
Program Guides                                $2,320         $2,199        $2,769         $2,618         $2,413    
Pay TV Fees                                  $29,956        $46,657       $64,295        $61,038        $52,887    
                                            --------       --------      --------       --------       --------    
Total Expenses                              $313,204       $334,515      $393,932       $401,995       $355,114    

Operating Income                            $443,376       $418,729      $382,350       $338,188       $263,260    

Operating Margin                               58.60%         55.59%        49.25%         45.69%         42.57%

</TABLE>

<PAGE>   136
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION:  CENTREVILLE, MD

<TABLE>
<CAPTION>
                                                                                                                            
                                    ----------------------------------------------------------------------------------------
                                      ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS TWELVE MONTHS  
                                        ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96   ENDING         ENDING     
                                       12/31/96      ANNUALIZED     12/31/96      ANNUALIZED     12/31/96       12/31/95    
                                    ----------------------------------------------------------------------------------------
<S>                                       <C>          <C>           <C>            <C>           <C>            <C>        
REVENUES

Primary First Outlet                      $246,374     $2,956,488      $737,776     $2,951,104    $2,754,855     $2,478,829 
Primary Commercial                          $7,571        $90,852       $22,580        $90,320       $79,007        $53,512 
Expanded Tier                                   $0             $0            $0             $0            $0             $0 
AG Tier                                         $0             $0            $0             $0            $0             $0 
AJ Tier                                         $0             $0            $0             $0            $0             $0 
AL Tier                                    $41,814       $501,768      $125,325       $501,300      $424,950       $340,506 
Radio Services                              $2,088        $25,056        $6,408        $25,632       $28,104        $33,305 
Pay Cable First Outlet                     $62,372       $748,464      $190,678       $762,712      $845,121       $931,201 
Ala Carte                                       $0             $0            $0             $0            $0             $0 
New Product Tier 1                         $63,453       $761,436      $192,101       $768,404      $580,639       $361,832 
Commercial Pay                              $1,192        $14,304        $3,578        $14,312       $14,665        $13,779 
Video                                       $3,085        $37,020        $9,674        $38,696       $41,088         $5,414 
Primary Additional Outlet                       $0             $0            $0             $0            $0             $0 
Remote Control                                $462         $5,544        $1,391         $5,564        $5,704         $6,215 
Converter Rental                            $3,666        $43,992       $11,197        $44,788       $34,794        $25,258 
Maintenance Contracts                       $3,504        $42,048       $10,833        $43,332       $39,325        $31,186 
New Customer Pay Installs                       $0             $0          $300         $1,200          $300             $0 
New Customer Basic Installs                   $470         $5,640        $1,930         $7,720        $7,307        $15,003 
Installation Materials Charge                   $0             $0            $0             $0            $8             $1 
Installs - Non New Customers                $2,020        $24,240        $9,258        $37,032       $47,807        $28,795 
Other Late Charges                          $7,058        $84,696       $20,331        $81,324       $74,032        $64,609 
Other Rent                                  $1,922        $23,064        $5,758        $23,032       $23,455        $14,778 
Other Franchise Pass Thru                   $9,090       $109,080       $27,707       $110,828      $104,885       $101,381 
Other Miscellaneous                             $0             $0            $0             $0            $0            $25 
FCC User Fees Pass Through                    $509         $6,108        $1,528         $6,112        $6,036         $5,454 
Video Game Activation                           $0             $0            $0             $0            $0             $0 
Other Programmers                              $42           $504       $18,419        $73,676       $24,709             $0 
QVC Monthly Commission                      $1,133        $13,596        $3,642        $14,568       $13,209         $9,020 
QVC Carriage Payment                            $0             $0        $5,478        $21,912       $31,486             $0 
HSN Monthly Commission                      $1,601        $19,212        $5,407        $21,628       $22,193        $18,635 
HSN Carriage Payment                          $173         $2,076          $519         $2,076        $2,076         $2,076 
Ad Insertion Sales                         $13,313       $159,756       $35,084       $140,336      $122,640       $113,707 
Ad Sales Other                                  $0             $0            $0             $0            $0             $0 
Interconnect Services                           $0             $0            $0             $0            $0             $0 
Production & Local Origination                  $0             $0          $200           $800          $400           $675 
Guides                                      $1,851        $22,212        $5,254        $21,016       $13,842         $8,799 
                                            -------       --------       -------       --------      --------        -------

Total Revenues                            $474,763     $5,697,156    $1,452,356     $5,809,424    $5,342,637     $4,663,995 
</TABLE>


<TABLE>
<CAPTION>
                                                                         ---------------  
                                         -----------------------------     ADJUSTED       
                                         TWELVE MONTHS TWELVE MONTHS       ONE MONTH      
                                            ENDING         ENDING        ENDING 12/31/96  
                                           12/31/94       12/31/93        ANNUALIZED      
                                         -----------------------------   ---------------  
                                            <C>            <C>              <C>           
REVENUES                                                                                  
                                                                                          
Primary First Outlet                        $2,377,380     $1,913,174       $2,956,488    
Primary Commercial                             $38,888        $36,739          $90,852    
Expanded Tier                                       $0             $0               $0    
AG Tier                                             $0       $306,438               $0    
AJ Tier                                             $0       $177,195               $0    
AL Tier                                       $129,308             $0         $501,768    
Radio Services                                 $39,699        $12,573          $25,056                                        
Pay Cable First Outlet                        $805,144       $805,207         $748,464    
Ala Carte                                     $290,512        $70,058               $0    
New Product Tier 1                                  $0             $0         $761,436    
Commercial Pay                                 $13,779        $13,008          $14,304    
Video                                               $0             $0          $37,020    
Primary Additional Outlet                         ($52)      $125,547               $0    
Remote Control                                  $5,173        $16,434           $5,544    
Converter Rental                               $25,948         $7,688          $43,992    
Maintenance Contracts                          $18,646             $0          $42,048    
New Customer Pay Installs                           $0           $240               $0    
New Customer Basic Installs                    $20,729        $41,595           $5,640    
Installation Materials Charge                                                       $0    
Installs - Non New Customers                   $16,487        $16,692          $24,240    
Other Late Charges                             $72,245        $67,845          $84,696    
Other Rent                                     $12,784         $2,780          $23,064    
Other Franchise Pass Thru                      $95,659        $93,775         $109,080    
Other Miscellaneous                                 $0             $0               $0    
FCC User Fees Pass Through                        $155             $0           $6,108    
Video Game Activation                               $0             $0               $0    
Other Programmers                                   $0             $0             $504    
QVC Monthly Commission                          $8,406         $9,676          $13,596    
QVC Carriage Payment                          ($10,190)       $10,190               $0    
HSN Monthly Commission                              $0             $0          $19,212    
HSN Carriage Payment                              $867             $0           $2,076    
Ad Insertion Sales                             $83,674        $31,494         $159,756    
Ad Sales Other                                      $0            $49               $0    
Interconnect Services                           $3,150             $0               $0    
Production & Local Origination                      $0             $0               $0    
Guides                                          $8,841         $8,623          $22,212    
                                            ----------     ----------       ----------    
                                                                                          
Total Revenues                              $4,057,232     $3,767,020       $5,697,156    
</TABLE>


<PAGE>   137
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION:  CENTREVILLE, MD



<TABLE>
<CAPTION>
                                                                                                                            
                                    ----------------------------------------------------------------------------------------
                                      ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS TWELVE MONTHS  
                                        ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96   ENDING         ENDING     
                                       12/31/96      ANNUALIZED     12/31/96      ANNUALIZED     12/31/96       12/31/95    
                                    ----------------------------------------------------------------------------------------
<S>                                       <C>          <C>           <C>            <C>           <C>            <C>        
EXPENSES

Technical Salary - Supervisor               $2,924        $35,088        $8,773        $35,092       $35,091        $33,746   
Technical Salary - Technician               $8,157        $97,884       $24,416        $97,664       $97,848        $94,041   
Technical Salary - Dispatcher                   $0             $0        $1,259         $5,036        $9,221        $11,147   
Technical Salary - Installers               $1,962        $23,544        $4,302        $17,208       $20,736        $21,926   
Overtime/Standby                            $5,097        $61,164       $12,764        $51,056       $50,078        $53,793   
Payroll Taxes                               $1,339        $16,068        $4,311        $17,244       $19,034        $18,612   
Group Insurance                             $3,581        $42,972        $6,089        $24,356       $20,855        $14,432   
Other Benefits                             ($2,541)      ($30,492)        ($699)       ($2,796)       $7,590         $7,536   
Rent - Headend                              $1,475        $17,700        $4,791        $19,164       $20,665        $19,894   
Rent - Poles and Ducts                      $9,733       $116,796       $29,199       $116,796      $116,796       $107,707   
R & M Plant                                 $1,202        $14,424        $3,918        $15,672        $9,086         $4,383   
R & M Other                                 $1,391        $16,692        $2,582        $10,328       $13,569        $12,310   
Material and Reconnect                      $3,951        $47,412       $10,000        $40,000       $35,973        $28,849   
Vehicle - Gas & Oil                         $2,165        $25,980        $6,357        $25,428       $27,790        $25,169   
Vehicle - Service                           $2,612        $31,344        $3,022        $12,088       $14,473        $12,420   
T & E System Travel                             $0             $0            $0             $0           $38           $518   
T & E System Non-Travel                         $0             $0            $0             $0            $0           $107   
Dues & Subscriptions                          $331         $3,972          $668         $2,672        $3,532         $4,997   
Education                                       $0             $0            $0             $0          $109           $411   
System Power Costs                          $7,760        $93,120       $27,322       $109,288       $96,548        $93,635   
Recruiting                                      $0             $0            $0             $0            $0           $399   
Loss on Converters                            $100         $1,200          $300         $1,200        $1,200         $1,200   
Property Taxes                            ($19,763)     ($237,156)     ($19,289)      ($77,156)     ($17,116)          $504   
Uniforms                                      $180         $2,160          $825         $3,300        $3,475         $3,354   
Small Tool and Safety                       $1,273        $15,276        $1,511         $6,044        $3,936         $4,635   
Capital Labor & OH Construction           ($15,198)     ($182,376)     ($38,708)     ($154,832)    ($143,194)     ($103,364)  
Capital Labor & OH Customer               ($15,006)     ($180,072)     ($24,400)      ($97,600)     ($52,954)      ($24,007)  
Ad Sales Payroll Taxes                        $117         $1,404          $475         $1,900        $1,847         $1,584   
Ad Sales Group Insurance                      $573         $6,876        $1,037         $4,148        $3,265         $3,956   
Ad Sales Alloc. Personnel Benefit           $1,484        $17,808        $4,137        $16,548       $16,021        $13,189   
Ad Sales Alloc. P/R Benefit                   $513         $6,156        $1,653         $6,612        $6,364         $4,464   
Employee Commissions                        $1,605        $19,260        $6,482        $25,928       $22,735        $18,879   
Other Ad Sale Expenses                      $2,123        $25,476       $10,729        $42,916       $29,349        $22,107   
Marketing Salary & Benefits                ($1,211)      ($14,532)         ($87)         ($348)       $6,680         $6,801   
Marketing Employee Commissions              $1,215        $14,580        $2,006         $8,024       $18,612        $82,475   
Marketing Expenses                          $5,322        $63,864       $25,790       $103,160       $56,104        $41,331   
Dues and Subscriptions                         $46           $552          $149           $596          $508         $1,060   
Pay Per View Expenses                           $0             $0            $9            $36           $13           $201   
Video Game Expenses                             $0             $0            $0             $0        $5,914         $7,475   
</TABLE>


<TABLE>
<CAPTION>
                                                                         ---------------  
                                         -----------------------------     ADJUSTED       
                                         TWELVE MONTHS TWELVE MONTHS       ONE MONTH      
                                            ENDING         ENDING        ENDING 12/31/96  
                                           12/31/94       12/31/93        ANNUALIZED      
                                         -----------------------------   ---------------  
<S>                                        <C>             <C>              <C>
EXPENSES                                                                   
                                  
Technical Salary - Supervisor                $32,448        $31,200          $35,088   
Technical Salary - Technician                $77,899        $78,628          $97,884   
Technical Salary - Dispatcher                $10,645        $12,237               $0   
Technical Salary - Installers                $30,390        $25,459          $23,544   
Overtime/Standby                             $64,383        $36,401          $61,164   
Payroll Taxes                                $18,606        $16,313          $16,068   
Group Insurance                              $12,160        $25,863          $42,972   
Other Benefits                               $11,842        $12,660           $7,500   
Rent - Headend                               $20,311        $20,487          $17,700   
Rent - Poles and Ducts                       $76,445        $64,016         $116,796   
R & M Plant                                   $1,964         $1,247          $14,424   
R & M Other                                   $5,191         $3,057          $16,692   
Material and Reconnect                        $9,122         $2,400          $47,412   
Vehicle - Gas & Oil                          $21,566        $21,639          $25,980   
Vehicle - Service                            $11,358         $6,024          $31,344   
T & E System Travel                             $210           $566               $0   
T & E System Non-Travel                         $347           $284               $0   
Dues & Subscriptions                          $3,611         $2,563           $3,972   
Education                                       $225            $96               $0   
System Power Costs                           $81,087        $74,920          $93,120   
Recruiting                                      $143           $274               $0   
Loss on Converters                            $1,200         $1,200           $1,200   
Property Taxes                              ($84,426)       $49,901               $0   
Uniforms                                      $3,177         $2,933           $2,160   
Small Tool and Safety                         $3,397         $2,485          $15,276   
Capital Labor & OH Construction            ($100,780)      ($58,994)              $0   
Capital Labor & OH Customer                  ($8,868)      ($18,371)              $0   
Ad Sales Payroll Taxes                        $1,603         $1,486           $1,404   
Ad Sales Group Insurance                      $2,681         $2,675           $6,876   
Ad Sales Alloc. Personnel Benefit            $10,740         $5,958          $17,808   
Ad Sales Alloc. P/R Benefit                   $3,855         $2,060           $6,156   
Employee Commissions                         $17,641        $17,382          $19,260   
Other Ad Sale Expenses                       $28,710        $20,338          $25,476   
Marketing Salary & Benefits                     $554            $20           $7,000   
Marketing Employee Commissions                $7,814         $2,200          $14,580   
Marketing Expenses                          $162,690       $140,606          $63,864   
Dues and Subscriptions                          $545         $2,029             $552   
Pay Per View Expenses                           $236             $0               $0   
Video Game Expenses                               $0             $0               $0   
</TABLE>                                   
<PAGE>   138

                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION:  CENTREVILLE, MD


<TABLE>
<CAPTION>
                                    ----------------------------------------------------------------------------------------
                                      ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS TWELVE MONTHS  
                                        ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96   ENDING         ENDING     
                                       12/31/96      ANNUALIZED     12/31/96      ANNUALIZED     12/31/96       12/31/95    
                                    ----------------------------------------------------------------------------------------
<S>                                       <C>          <C>           <C>            <C>           <C>            <C>        
Miscellaneous Marketing Expenses            $2,250        $27,000        $8,130        $32,520       $13,956         $9,544  
G & A Salary - Supervisor                   $3,562        $42,744       $10,686        $42,744       $53,014        $58,858  
G & A Salary - CSR                          $3,348        $40,176        $9,880        $39,520       $48,667        $51,810  
G & A Overtime/Standby                        $264         $3,168        $1,064         $4,256        $2,173         $3,877  
G & A Payroll Taxes                           $563         $6,756        $1,985         $7,940        $9,251        $10,460  
G & A Group Insurance                       $1,202        $14,424        $2,244         $8,976        $8,517         $9,155  
G & A Other Benefits                       ($2,722)      ($32,664)      ($3,376)      ($13,504)         $429        $10,326  
G & A Allocated Personnel Expense               $0             $0            $0             $0        $1,834             $0  
G & A Allocated P/R Expense                     $0             $0            $0             $0          $371             $0  
Rent - Office                               $2,084        $25,008        $6,241        $24,964       $24,446        $18,607  
R & M - Office                                $385         $4,620        $2,588        $10,352        $8,770         $8,339  
Office Supplies                               $508         $6,096        $1,515         $6,060        $9,714         $9,103  
Xerox & Printing                               $22           $264           $21            $84        $2,113         $3,385  
Vehicle - Gas & Oil                            $50           $600          $119           $476        $1,046         $1,085  
T & E System Travel                           $268         $3,216          $550         $2,200        $2,032           $873  
T & E System Non-Travel                         $0             $0           $12            $48          $513           $618  
Dues and Subscriptions                        $118         $1,416          $266         $1,064        $1,909           $717  
Conventions - Travel                            $0             $0            $0             $0           $55            $13  
Education                                       $7            $84           $17            $68        $3,507         $2,693  
Recruiting                                      $0             $0            $0             $0          $941           $233  
Insurance                                   $6,811        $81,732       $21,726        $86,904      $155,888        $82,303  
Legal                                       $4,311        $51,732        $9,639        $38,556       $16,389         $7,599  
Audit & Taxes                                 $762         $9,144        $2,285         $9,140       $11,744        $14,311  
Association - Dues                            $337         $4,044        $1,009         $4,036        $4,156         $4,467  
Association - Lobbying                         $75           $900          $224           $896          $878           $794  
Political Contribution                          $0             $0            $0             $0            $0             $0  
Donations/Public Relations                    ($63)         ($756)         $301         $1,204        $1,967         $1,810  
Customer Billing                            $4,093        $49,116       $13,411        $53,644       $63,687        $68,758  
Postage & Messengers                        $5,543        $66,516       $15,356        $61,424       $59,685        $54,234  
Utilities                                     $897        $10,764        $2,712        $10,848        $9,580         $7,995  
Telephone                                   $2,132        $25,584       $11,736        $46,944       $47,138        $41,672  
Tax & Licenses                                 $73           $876          $221           $884        $1,219           $548  
FCC User Fees                                 $577         $6,924        $1,732         $6,928        $6,686         $5,709  
Reregulation Costs                              $1            $12        $5,438        $21,752       $14,035         $3,876  
CATV Franchise                             $15,157       $181,884       $33,549       $134,196      $112,159       $118,639  
Copyright Fees                              $4,885        $58,620       $23,200        $92,800      $107,032        $85,156  
BMI License Fees                                $0             $0         ($383)       ($1,532)       $3,254             $0  
ASCAP License Fees                            $656         $7,872        $1,968         $7,872        $5,062             $0  
Bad Debt Expense                            $6,877        $82,524        $8,569        $34,276       $33,754        $56,738  
Cap. Labor & OH Other                           $0             $0            $0             $0      ($10,621)      ($19,977) 
G & A Miscellaneous Expense                 $1,456        $17,472        $2,111         $8,444        $3,792         $4,727  
</TABLE>

<TABLE>
<CAPTION>
                                                                         ---------------  
                                         -----------------------------     ADJUSTED       
                                         TWELVE MONTHS TWELVE MONTHS       ONE MONTH      
                                            ENDING         ENDING        ENDING 12/31/96  
                                           12/31/94       12/31/93        ANNUALIZED      
                                         -----------------------------   ---------------  
<S>                                          <C>             <C>              <C>
Miscellaneous Marketing Expenses                $5,639         $4,203          $27,000 
G & A Salary - Supervisor                      $59,683        $54,074          $42,744 
G & A Salary - CSR                             $45,096        $41,565          $40,176 
G & A Overtime/Standby                          $2,439           $898           $3,168 
G & A Payroll Taxes                            $10,488         $8,513           $6,756 
G & A Group Insurance                           $6,643         $8,242          $14,424 
G & A Other Benefits                          ($38,690)        $8,592               $0 
G & A Allocated Personnel Expense                   $0             $0               $0 
G & A Allocated P/R Expense                         $0             $0               $0 
Rent - Office                                  $16,800        $14,600          $25,008 
R & M - Office                                  $6,894         $5,955           $4,620 
Office Supplies                                 $6,420         $5,289           $6,096 
Xerox & Printing                                $5,119         $6,327             $264 
Vehicle - Gas & Oil                             $1,882           $839             $600 
T & E System Travel                             $1,576         $1,841           $3,216 
T & E System Non-Travel                           $550           $490               $0 
Dues and Subscriptions                            $766           $686           $1,416 
Conventions - Travel                              $600         $2,115               $0 
Education                                         $785           $905              $84 
Recruiting                                         $64             $0               $0 
Insurance                                      $56,394        $67,186          $81,732 
Legal                                           $9,000        $21,250          $51,732 
Audit & Taxes                                  $22,254        $24,001           $9,144 
Association - Dues                              $4,867         $4,347           $4,044 
Association - Lobbying                            $720             $0             $900 
Political Contribution                             $50             $0               $0 
Donations/Public Relations                      $2,672         $2,462               $0 
Customer Billing                               $60,389        $55,869          $49,116 
Postage & Messengers                           $51,889        $46,479          $66,516 
Utilities                                       $7,294         $7,245          $10,764 
Telephone                                      $45,588        $39,583          $25,584 
Tax & Licenses                                    $655            $66             $876 
FCC User Fees                                   $3,734             $0           $6,924 
Reregulation Costs                             $16,274        $11,202              $12 
CATV Franchise                                $102,244       $129,731         $181,884 
Copyright Fees                                 $88,307        $79,921          $58,620 
BMI License Fees                                    $0             $0               $0 
ASCAP License Fees                                  $0             $0           $7,872 
Bad Debt Expense                               $76,907        $92,197          $82,524 
Cap. Labor & OH Other                         ($13,367)      ($18,934)              $0 
G & A Miscellaneous Expense                     $4,914         $3,834          $17,472 
</TABLE>                                  
<PAGE>   139

                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION:  CENTREVILLE, MD



<TABLE>
<CAPTION>
                                    ----------------------------------------------------------------------------------------
                                      ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS TWELVE MONTHS  
                                        ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96   ENDING         ENDING     
                                       12/31/96      ANNUALIZED     12/31/96      ANNUALIZED     12/31/96       12/31/95    
                                    ----------------------------------------------------------------------------------------
<S>                                   <C>          <C>           <C>            <C>           <C>            <C>        
Primary Satellite Fees                 $68,195       $818,340      $205,446       $821,784      $775,456       $661,699   
Program Guides                          $1,115        $13,380        $2,383         $9,532        $8,628         $9,484   
Pay TV Fees                            $32,463       $389,556       $93,428       $373,712      $420,459       $524,646   
Video Game Fees                         $1,243        $14,916        $3,854        $15,416       $16,199         $1,590   
                                      --------     ----------      --------     ----------    ----------     ----------   

Total Expenses                        $184,017     $2,208,204      $623,550     $2,494,200    $2,623,275     $2,588,350   

Operating Income                      $290,746     $3,488,952      $828,806     $3,315,224    $2,719,362     $2,075,645   

Operating Margin                         61.24%         61.24%        57.07%         57.07%        50.90%         44.50%  
</TABLE>



<TABLE>
<CAPTION>
                                                                         ---------------  
                                         -----------------------------     ADJUSTED       
                                         TWELVE MONTHS TWELVE MONTHS       ONE MONTH      
                                            ENDING         ENDING        ENDING 12/31/96  
                                           12/31/94       12/31/93        ANNUALIZED      
                                         -----------------------------   ---------------  
<S>                                       <C>            <C>              <C>
Primary Satellite Fees                      $478,562       $434,114         $818,340 
Program Guides                               $10,392        $11,463          $13,380 
Pay TV Fees                                 $444,068       $455,873         $389,556 
Video Game Fees                                   $0             $0          $14,916 
                                          ----------     ----------       ---------- 
                                                                                     
Total Expenses                            $2,147,283     $2,243,265       $2,900,752 
                                                                                     
Operating Income                          $1,909,949     $1,523,755       $2,796,404 
                                                                                     
Operating Margin                               47.08%         40.45%           49.08%
</TABLE>
<PAGE>   140

SYSTEM LOCATION:  CENTREVILLE, MD



<TABLE>
<CAPTION>
                                         --------------------------------------------------------------------------  
                                           ADJUSTED        ADJUSTED       ADJUSTED      ADJUSTED       ADJUSTED      
                                          THREE MONTHS   TWELVE MONTHS TWELVE MONTHS  TWELVE MONTHS TWELVE MONTHS    
                                         ENDING 12/31/96    ENDING         ENDING        ENDING         ENDING       
                                           ANNUALIZED      12/31/96       12/31/95      12/31/94       12/31/93      
                                         --------------------------------------------------------------------------  
<S>                                           <C>           <C>            <C>           <C>            <C>          
REVENUES
                                                                                                                     
Primary First Outlet                          $2,951,104    $2,754,855     $2,478,829    $2,377,380     $1,913,174   
Primary Commercial                               $90,320       $79,007        $53,512       $38,888        $36,739   
Expanded Tier                                         $0            $0             $0            $0             $0   
AG Tier                                               $0            $0             $0            $0       $306,438   
AJ Tier                                               $0            $0             $0            $0       $177,195   
AL Tier                                         $501,300      $424,950       $340,506      $129,308             $0   
Radio Services                                   $25,632       $28,104        $33,305       $39,699        $12,573   
Pay Cable First Outlet                          $762,712      $845,121       $931,201      $805,144       $805,207   
Ala Carte                                             $0            $0             $0      $290,512        $70,058   
New Product Tier 1                              $768,404      $580,639       $361,832            $0             $0   
Commercial Pay                                   $14,312       $14,665        $13,779       $13,779        $13,008   
Video                                            $38,696       $41,088         $5,414            $0             $0   
Primary Additional Outlet                             $0            $0             $0          ($52)      $125,547   
Remote Control                                    $5,564        $5,704         $6,215        $5,173        $16,434   
Converter Rental                                 $44,788       $34,794        $25,258       $25,948         $7,688   
Maintenance Contracts                            $43,332       $39,325        $31,186       $18,646             $0   
New Customer Pay Installs                         $1,200          $300             $0            $0           $240   
New Customer Basic Installs                       $7,720        $7,307        $15,003       $20,729        $41,595   
Installation Materials Charge                         $0            $8             $1            $0             $0   
Installs - Non New Customers                     $37,032       $47,807        $28,795       $16,487        $16,692   
Other Late Charges                               $81,324       $74,032        $64,609       $72,245        $67,845   
Other Rent                                       $23,032       $23,455        $14,778       $12,784         $2,780   
Other Franchise Pass Thru                       $110,828      $104,885       $101,381       $95,659        $93,775   
Other Miscellaneous                                   $0            $0            $25            $0             $0   
FCC User Fees Pass Through                        $6,112        $6,036         $5,454          $155             $0   
Video Game Activation                                 $0            $0             $0            $0             $0   
Other Programmers                                $73,676       $24,709             $0            $0             $0   
QVC Monthly Commission                           $14,568       $13,209         $9,020        $8,406         $9,676   
QVC Carriage Payment                             $21,912       $31,486             $0            $0             $0   
HSN  Monthly Commission                          $21,628       $22,193        $18,635            $0             $0   
HSN Carriage Payment                              $2,076        $2,076         $2,076          $867             $0   
Ad Insertion Sales                              $140,336      $122,640       $113,707       $83,674        $31,494   
Ad Sales Other                                        $0            $0             $0            $0            $49   
Interconnect Services                                 $0            $0             $0        $3,150             $0   
Production & Local Origination                      $800          $400           $675            $0             $0   
Guides                                           $21,016       $13,842         $8,799        $8,841         $8,623   
                                                 --------      --------        -------       -------        ------   
                                                                                                                     
Total Revenues                                $5,809,424    $5,342,637     $4,663,995    $4,067,422     $3,756,830   
</TABLE>                                 

<PAGE>   141

SYSTEM LOCATION:  CENTREVILLE, MD



<TABLE>
<CAPTION>
                                         --------------------------------------------------------------------------  
                                           ADJUSTED        ADJUSTED       ADJUSTED      ADJUSTED       ADJUSTED      
                                          THREE MONTHS   TWELVE MONTHS TWELVE MONTHS  TWELVE MONTHS TWELVE MONTHS    
                                         ENDING 12/31/96    ENDING         ENDING        ENDING         ENDING       
                                           ANNUALIZED      12/31/96       12/31/95      12/31/94       12/31/93      
                                         --------------------------------------------------------------------------  
<S>                                         <C>           <C>            <C>           <C>            <C>          
EXPENSES                          
                                  
Technical Salary - Supervisor                $35,092       $35,091        $33,746       $32,448        $31,200  
Technical Salary - Technician                $97,664       $97,848        $94,041       $77,899        $78,628  
Technical Salary - Dispatcher                 $5,036        $9,221        $11,147       $10,645        $12,237  
Technical Salary - Installers                $17,208       $20,736        $21,926       $30,390        $25,459  
Overtime/Standby                             $51,056       $50,078        $53,793       $64,383        $36,401  
Payroll Taxes                                $17,244       $19,034        $18,612       $18,606        $16,313  
Group Insurance                              $24,356       $20,855        $14,432       $12,160        $25,863  
Other Benefits                                $7,500        $7,590         $7,536       $11,842        $12,660  
Rent - Headend                               $19,164       $20,665        $19,894       $20,311        $20,487  
Rent - Poles and Ducts                      $116,796      $116,796       $107,707       $76,445        $64,016  
R & M Plant                                  $15,672        $9,086         $4,383        $1,964         $1,247  
R & M Other                                  $10,328       $13,569        $12,310        $5,191         $3,057  
Material and Reconnect                       $40,000       $35,973        $28,849        $9,122         $2,400  
Vehicle - Gas & Oil                          $25,428       $27,790        $25,169       $21,566        $21,639  
Vehicle - Service                            $12,088       $14,473        $12,420       $11,358         $6,024  
T & E System Travel                               $0           $38           $518          $210           $566  
T & E System Non-Travel                           $0            $0           $107          $347           $284  
Dues & Subscriptions                          $2,672        $3,532         $4,997        $3,611         $2,563  
Education                                         $0          $109           $411          $225            $96  
System Power Costs                          $109,288       $96,548        $93,635       $81,087        $74,920  
Recruiting                                        $0            $0           $399          $143           $274  
Loss on Converters                            $1,200        $1,200         $1,200        $1,200         $1,200  
Property Taxes                                    $0            $0           $504            $0        $49,901  
Uniforms                                      $3,300        $3,475         $3,354        $3,177         $2,933  
Small Tool and Safety                         $6,044        $3,936         $4,635        $3,397         $2,485  
Capital Labor & OH Construction                   $0            $0             $0            $0             $0  
Capital Labor & OH Customer                       $0            $0             $0            $0             $0  
Ad Sales Payroll Taxes                        $1,900        $1,847         $1,584        $1,603         $1,486  
Ad Sales Group Insurance                      $4,148        $3,265         $3,956        $2,681         $2,675  
Ad Sales Alloc. Personnel Benefit            $16,548       $16,021        $13,189       $10,740         $5,958  
Ad Sales Alloc. P/R Benefit                   $6,612        $6,364         $4,464        $3,855         $2,060  
Employee Commissions                         $25,928       $22,735        $18,879       $17,641        $17,382  
Other Ad Sale Expenses                       $42,916       $29,349        $22,107       $28,710        $20,338  
Marketing Salary & Benefits                   $7,000        $6,680         $6,801          $554            $20  
Marketing Employee Commissions                $8,024       $18,612        $82,475        $7,814         $2,200  
Marketing Expenses                          $103,160       $56,104        $41,331      $162,690       $140,606  
Dues and Subscriptions                          $596          $508         $1,060          $545         $2,029  
Pay Per View Expenses                            $36           $13           $201          $236             $0  
Video Game Expenses                               $0        $5,914         $7,475            $0             $0  
</TABLE>                                   

<PAGE>   142

SYSTEM LOCATION:  CENTREVILLE, MD



<TABLE>
<CAPTION>
                                         --------------------------------------------------------------------------  
                                           ADJUSTED        ADJUSTED       ADJUSTED      ADJUSTED       ADJUSTED      
                                          THREE MONTHS   TWELVE MONTHS TWELVE MONTHS  TWELVE MONTHS TWELVE MONTHS    
                                         ENDING 12/31/96    ENDING         ENDING        ENDING         ENDING       
                                           ANNUALIZED      12/31/96       12/31/95      12/31/94       12/31/93      
                                         --------------------------------------------------------------------------  
<S>                                        <C>           <C>            <C>           <C>            <C>          
Miscellaneous Marketing Expenses            $32,520       $13,956         $9,544        $5,639         $4,203
G & A Salary - Supervisor                   $42,744       $53,014        $58,858       $59,683        $54,074  
G & A Salary - CSR                          $39,520       $48,667        $51,810       $45,096        $41,565  
G & A Overtime/Standby                       $4,256        $2,173         $3,877        $2,439           $898  
G & A Payroll Taxes                          $7,940        $9,251        $10,460       $10,488         $8,513  
G & A Group Insurance                        $8,976        $8,517         $9,155        $6,643         $8,242  
G & A Other Benefits                             $0          $429        $10,326            $0         $8,592  
G & A Allocated Personnel Expense                $0        $1,834             $0            $0             $0  
G & A Allocated P/R Expense                      $0          $371             $0            $0             $0  
Rent - Office                               $24,964       $24,446        $18,607       $16,800        $14,600  
R & M - Office                              $10,352        $8,770         $8,339        $6,894         $5,955  
Office Supplies                              $6,060        $9,714         $9,103        $6,420         $5,289  
Xerox & Printing                                $84        $2,113         $3,385        $5,119         $6,327  
Vehicle - Gas & Oil                            $476        $1,046         $1,085        $1,882           $839  
T & E System Travel                          $2,200        $2,032           $873        $1,576         $1,841  
T & E System Non-Travel                         $48          $513           $618          $550           $490  
Dues and Subscriptions                       $1,064        $1,909           $717          $766           $686  
Conventions - Travel                             $0           $55            $13          $600         $2,115  
Education                                       $68        $3,507         $2,693          $785           $905  
Recruiting                                       $0          $941           $233           $64             $0  
Insurance                                   $86,904      $155,888        $82,303       $56,394        $67,186  
Legal                                       $38,556       $16,389         $7,599        $9,000        $21,250  
Audit & Taxes                                $9,140       $11,744        $14,311       $22,254        $24,001  
Association - Dues                           $4,036        $4,156         $4,467        $4,867         $4,347  
Association - Lobbying                         $896          $878           $794          $720             $0  
Political Contribution                           $0            $0             $0           $50             $0  
Donations/Public Relations                   $1,204        $1,967         $1,810        $2,672         $2,462  
Customer Billing                            $53,644       $63,687        $68,758       $60,389        $55,869  
Postage & Messengers                        $61,424       $59,685        $54,234       $51,889        $46,479  
Utilities                                   $10,848        $9,580         $7,995        $7,294         $7,245  
Telephone                                   $46,944       $47,138        $41,672       $45,588        $39,583  
Tax & Licenses                                 $884        $1,219           $548          $655            $66  
FCC User Fees                                $6,928        $6,686         $5,709        $3,734             $0  
Reregulation Costs                          $21,752       $14,035         $3,876       $16,274        $11,202  
CATV Franchise                             $134,196      $112,159       $118,639      $102,244       $129,731  
Copyright Fees                              $92,800      $107,032        $85,156       $88,307        $79,921  
BMI License Fees                                 $0        $3,254             $0            $0             $0  
ASCAP License Fees                           $7,872        $5,062             $0            $0             $0  
Bad Debt Expense                            $34,276       $33,754        $56,738       $76,907        $92,197  
Cap. Labor & OH Other                            $0            $0             $0            $0             $0  
G & A Miscellaneous Expense                  $8,444        $3,792         $4,727        $4,914         $3,834  
</TABLE>                                  

<PAGE>   143
SYSTEM LOCATION:  CENTREVILLE, MD



<TABLE>
<CAPTION>
                                         --------------------------------------------------------------------------  
                                           ADJUSTED        ADJUSTED       ADJUSTED      ADJUSTED       ADJUSTED      
                                          THREE MONTHS   TWELVE MONTHS TWELVE MONTHS  TWELVE MONTHS TWELVE MONTHS    
                                         ENDING 12/31/96    ENDING         ENDING        ENDING         ENDING       
                                           ANNUALIZED      12/31/96       12/31/95      12/31/94       12/31/93      
                                         --------------------------------------------------------------------------  
<S>                                      <C>           <C>             <C>           <C>            <C>          
Primary Satellite Fees                     $821,784      $775,456        $661,699      $478,562       $434,114 
Program Guides                               $9,532        $8,628          $9,484       $10,392        $11,463 
Pay TV Fees                                $373,712      $420,459        $524,646      $444,068       $455,873 
Video Game Fees                             $15,416       $16,199          $1,590            $0             $0 
                                            --------      --------         -------           ---            -- 
                                                                                                               
Total Expenses                           $2,856,468    $2,847,160      $2,735,698    $2,393,414     $2,339,564 
                                                                                                               
Operating Income                         $2,952,956    $2,495,477      $1,928,297    $1,674,008     $1,417,266 
                                                                                                               
Operating Margin                              50.83%        46.71%          41.34%        41.16%         37.73%
</TABLE>                                                          

<PAGE>   144


                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION: REDMOND, OR


<TABLE>
<CAPTION>
                                  -----------------------------------------------------------------------------------------------
                                    ONE MONTH       ONE MONTH     THREE MONTHS    THREE MONTHS    TWELVE MONTHS   TWELVE MONTHS  
                                      ENDING     ENDING 12/31/96     ENDING      ENDING 12/31/96     ENDING          ENDING      
                                     12/31/96      ANNUALIZED       12/31/96       ANNUALIZED       12/31/96        12/31/95     
                                  -----------------------------------------------------------------------------------------------
<S>                                     <C>           <C>               <C>           <C>             <C>             <C>
REVENUES

Primary-1st Outlet                       $78,150        $937,800        $233,216        $932,864        $922,548        $932,155 
Primary Commercial                        $5,332         $63,984         $15,505         $62,020         $69,928         $74,523 
AG Tier                                       $0              $0              $0              $0              $0              $0 
AJ Tier                                       $0              $0              $0              $0              $0              $0 
AL Tier                                   $5,845         $70,140         $17,491         $69,964         $69,638         $74,131 
Radio Services                              $627          $7,524          $1,919          $7,676          $8,730         $11,473 
Pay Cable 1st Outlet                      $4,597         $55,164         $14,539         $58,156         $71,992         $99,639 
New Product Tier 1                       $22,825        $273,900         $68,678        $274,712        $245,465        $219,116 
Pay Cable Add'l Outlet                        $0              $0              $0              $0              $0              $0 
Ala Carte                                     $0              $0              $0              $0              $0              $0 
Commercial Pay                                $0              $0              $0              $0              $0              $0 
Mini Pay                                    $187          $2,244            $546          $2,184          $2,529          $2,371 
Primary Additional Outlet                     $0              $0              $0              $0              $0              $0 
Remote Control                              $192          $2,304            $588          $2,352          $2,535          $2,868 
Converter Rental                          $2,697         $32,364          $8,066         $32,264         $35,576         $39,429 
Maintenance Contracts                       $511          $6,132          $1,587          $6,348          $7,002          $7,842 
New Customer Pay Installs                     $0              $0              $0              $0              $0              $9 
New Customer Basic Installs                 $535          $6,420          $2,575         $10,300          $5,607          $5,334 
Installs Non New Customers                  $152          $1,824            $448          $1,792          $8,008          $9,167 
Classified Ads                               $10            $120             $15             $60            $150          $1,100 
Ad Insertion Sales                       $11,803        $141,636         $20,378         $81,512         $66,601         $67,548 
Ad Sales Other                                $0              $0              $0              $0              $0              $0 
Production and Loc. Origination          ($5,360)       ($64,320)          ($200)          ($800)           $489            $760 
Other Late Charges                          $780          $9,360          $2,930         $11,720         $13,540         $13,990 
Other Copyright Pass Thru                     $0              $0              $0              $0              $0              $0 
Other Miscellaneous                         $525          $6,300          $1,575          $6,300          $6,300          $5,897 
FCC User Fees Pass Through                  $147          $1,764            $436          $1,744          $1,822          $1,841 
Other - Programmers                           $0              $0          $5,594         $22,376          $6,386              $0 
QVC Monthly Commission                      $657          $7,884          $2,084          $8,336          $7,529          $6,633 
QVC Carriage Payment                        $654          $7,848          $1,308          $5,232          $6,965          $1,204 
Other Networks Monthly Comm.                  $0              $0              $0              $0              $0             $20 
Guides                                      $271          $3,252            $848          $3,392          $2,253              $3 
                                        --------      ----------        --------      ----------      ----------      ---------- 

Total Revenues                          $131,137      $1,573,644        $400,126      $1,600,504      $1,561,593      $1,577,053 
</TABLE>

<TABLE>
<CAPTION>
                                          ------------------------------- 
                                          TWELVE MONTHS   TWELVE MONTHS   
                                              ENDING         ENDING       
                                             12/31/94       12/31/93      
                                          ------------------------------- 
<S>                                           <C>             <C>
REVENUES                                                                  
                                                                          
Primary-1st Outlet                            $1,015,166        $924,178  
Primary Commercial                               $65,937         $45,745  
AG Tier                                               $0        $159,727  
AJ Tier                                               $0        $166,375  
AL Tier                                          $32,963              $0  
Radio Services                                   $15,045         $11,067  
Pay Cable 1st Outlet                             $92,242        $117,344  
New Product Tier 1                                    $0              $0  
Pay Cable Add'l Outlet                              ($19)             $0  
Ala Carte                                       $212,349         $43,578  
Commercial Pay                                        $0         $17,545  
Mini Pay                                          $2,746          $4,336  
Primary Additional Outlet                             $7         $44,916  
Remote Control                                    $2,995         $20,722  
Converter Rental                                 $45,270         $21,765  
Maintenance Contracts                             $4,809              $0  
New Customer Pay Installs                            $49            $139  
New Customer Basic Installs                       $5,511          $6,837  
Installs Non New Customers                       $13,227         $11,317  
Classified Ads                                      $912          $9,941  
Ad Insertion Sales                               $73,634         $12,173  
Ad Sales Other                                        $0             $21  
Production and Loc. Origination                   $4,320              $0  
Other Late Charges                               $14,685         $14,925  
Other Copyright Pass Thru                             $0         $12,451  
Other Miscellaneous                               $6,300          $7,834  
FCC User Fees Pass Through                           $98              $0  
Other - Programmers                                   $0              $0  
QVC Monthly Commission                            $6,522          $7,028  
QVC Carriage Payment                              $1,204          $1,204  
Other Networks Monthly Comm.                          $0              $0  
Guides                                                $0              $0  
                                              ----------      ----------  
                                                                          
Total Revenues                                $1,615,972      $1,661,168  
</TABLE>                                                                  

<PAGE>   145
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION: REDMOND, OR




<TABLE>
<CAPTION>
                                  ------------------------------------------------------------------------------
                                    ONE MONTH       ONE MONTH     THREE MONTHS    THREE MONTHS    TWELVE MONTHS 
                                      ENDING     ENDING 12/31/96     ENDING      ENDING 12/31/96     ENDING     
                                     12/31/96      ANNUALIZED       12/31/96       ANNUALIZED       12/31/96    
                                  ------------------------------------------------------------------------------
<S>                                  <C>            <C>            <C>             <C>             <C>
EXPENSES

Technical Salary - Supervisor         $2,721         $32,652         $8,162         $32,648         $32,971
Technical Salary - Technician         $1,684         $20,208         $5,011         $20,044         $20,180
Technical Salary - Dispatcher             $0              $0             $0              $0              $0
Technical Salary - Installers         $1,560         $18,720         $4,680         $18,720         $17,658
Overtime/Standby                      $1,133         $13,596         $4,865         $19,460         $12,805
Payroll Taxes                           $495          $5,940         $2,526         $10,104          $8,129
Group Insurance                         $504          $6,048         $1,762          $7,048          $7,475
Other Benefits                       ($4,643)       ($55,716)       ($3,615)       ($14,460)         $1,011
Contract Labor                            $0              $0           $160            $640            $160
Allocated Department Expense              $0              $0           $496          $1,984            $496
Rent - Headend                            $0              $0          ($160)          ($640)             $0
Rent - Poles and Ducts               ($3,437)       ($41,244)         ($311)        ($1,244)        $13,566
R & M Plant                             $220          $2,640           $529          $2,116          $1,629
R & M Converter                           $0              $0             $0              $0              $0
R & M Other                              $55            $660            $55            $220            $671
Material and Reconnect                  $448          $5,376         $1,239          $4,956          $7,459
Vehicle - Gas & Oil                     $471          $5,652         $1,889          $7,556          $6,895
Vehicle - Service                       $200          $2,400           $473          $1,892          $2,176
T & E System Travel                       $0              $0             $0              $0             $41
T & E System Non-Travel                   $0              $0             $0              $0             $15
Dues & Subscriptions                      $0              $0             $0              $0             $42
Education                                 $0              $0             $0              $0             $61
System Power Costs                    $1,253         $15,036         $3,132         $12,528         $12,085
Recruiting                                $0              $0             $0              $0             $42
Loss on Converters                       $75            $900           $225            $900            $900
Property Taxes                       ($8,294)       ($99,528)       ($6,300)       ($25,200)           $429
Uniforms                                $322          $3,864           $645          $2,580          $1,906
Small Tool and Safety                   $101          $1,212           $160            $640            $385
Capital Labor & OH Construction      ($7,349)       ($88,188)      ($21,816)       ($87,264)       ($63,520)
Capital Labor & OH Customer          ($1,093)       ($13,116)       ($4,695)       ($18,780)       ($18,795)
Production and Local Origination   
    Allocated                           $541          $6,492           $777          $3,108          $1,966
P and L Allocated P/R Benefit            ($3)           ($36)           $79            $316            $450
P and L Other Expense                   $144          $1,728           $478          $1,912          $1,541
Ad Sales Payroll Taxes                  $136          $1,632           $687          $2,748          $2,250
Ad Sales Group Insurance               ($215)        ($2,580)          $339          $1,356          $2,063
</TABLE>


<TABLE>
<CAPTION>
                                                               -------------------------------------------------
                                                                TWELVE MONTHS    TWELVE MONTHS   TWELVE MONTHS
                                                                    ENDING          ENDING          ENDING
                                                                   12/31/95        12/31/94        12/31/93
                                                               -------------------------------------------------
<S>                                                                  <C>             <C>            <C>      
EXPENSES

Technical Salary - Supervisor                                         $31,888              $0             $0
Technical Salary - Technician                                         $20,563         $51,573        $48,776
Technical Salary - Dispatcher                                              $0              $0             $0
Technical Salary - Installers                                         $14,674         $17,424        $17,264
Overtime/Standby                                                       $6,535         $10,460        $14,538
Payroll Taxes                                                          $6,399          $6,689         $7,401
Group Insurance                                                        $6,999          $2,865         $8,152
Other Benefits                                                         $3,240          $4,116         $4,956
Contract Labor                                                           $260              $0             $0
Allocated Department Expense                                              $27              $0             $0
Rent - Headend                                                             $0              $0             $0
Rent - Poles and Ducts                                                $17,546          $8,902        $16,819
R & M Plant                                                              $916            $986         $2,234
R & M Converter                                                            $0              $0            $61
R & M Other                                                              $540            $561           $695
Material and Reconnect                                                 $5,898          $1,309             $0
Vehicle - Gas & Oil                                                    $6,606          $6,157         $6,874
Vehicle - Service                                                      $1,991          $3,461         $2,379
T & E System Travel                                                       $76            $203           $152
T & E System Non-Travel                                                    $0              $0            $83
Dues & Subscriptions                                                      $80              $0            $45
Education                                                                $234              $0             $0
System Power Costs                                                    $10,772         $11,245        $10,733
Recruiting                                                               $287              $0             $0
Loss on Converters                                                       $900            $900           $900
Property Taxes                                                        $13,710         $14,013        $14,081
Uniforms                                                               $1,280          $1,271         $1,336
Small Tool and Safety                                                    $522            $120           $723
Capital Labor & OH Construction                                      ($12,184)       ($12,346)      ($15,878)
Capital Labor & OH Customer                                          ($24,215)       ($32,947)      ($20,441)
Production and Local Origination 
   Allocated                                                             $947              $0           $654
P and L Allocated P/R Benefit                                            $270              $0            $86
P and L Other Expense                                                    $292              $0             $0
Ad Sales Payroll Taxes                                                 $1,053          $1,089           $763
Ad Sales Group Insurance                                               $1,291          $2,095           $299
</TABLE>
<PAGE>   146
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION: REDMOND, OR


<TABLE>
<CAPTION>
                                  ------------------------------------------------------------------------------
                                    ONE MONTH       ONE MONTH     THREE MONTHS    THREE MONTHS    TWELVE MONTHS 
                                      ENDING     ENDING 12/31/96     ENDING      ENDING 12/31/96     ENDING     
                                     12/31/96      ANNUALIZED       12/31/96       ANNUALIZED       12/31/96    
                                  ------------------------------------------------------------------------------
<S>                                   <C>            <C>             <C>            <C>             <C>
Ad Sales Alloc. Personnel Benefit        $394          $4,728         $1,192          $4,768          $5,189
Ad Sales Alloc. P/R Benefit               $63            $756           $258          $1,032          $1,351
Employee Commissions                   $1,800         $21,600         $6,300         $25,200         $23,451
Other Ad Sale Expenses                 $1,730         $20,760         $3,780         $15,120         $17,912
Marketing Payroll Taxes                   $84          $1,008           $181            $724            $181
Allocated P/R Benefit                      $0              $0             $0              $0              $0
Marketing Employee Commissions           $949         $11,388         $1,933          $7,732          $2,127
Marketing Expenses                     $1,791         $21,492         $6,997         $27,988         $41,591
Dues and Subscriptions                    $14            $168            $30            $120            $154
Rebates                                    $0              $0             $0              $0              $0
Pay Per View Expenses                      $0              $0             $2              $8              $9
Video Game Expenses                        $0              $0             $0              $0              $0
Miscellaneous Marketing Expenses       $1,556         $18,672         $4,096         $16,384          $5,433
G & A Salary - Supervisor              $2,947         $35,364         $8,842         $35,368         $35,368
G & A Salary - CSR                     $2,999         $35,988         $9,195         $36,780         $34,892
G & A Overtime/Standby                     $0              $0             $0              $0              $0
G & A Payroll Taxes                      $561          $6,732         $2,222          $8,888          $7,232
G & A Group Insurance                    $276          $3,312         $1,055          $4,220          $4,405
G & A Other Benefits                  ($3,414)       ($40,968)       ($2,658)       ($10,632)           $744
G & A Contract Labor                       $0              $0             $0              $0              $0
G & A Allocated Personnel Expense          $0              $0             $0              $0              $0
G & A Allocated Department Expense         $0              $0             $0              $0          $1,276
Rent - Office                              $0              $0             $0              $0              $0
R & M - Office                           $547          $6,564         $1,387          $5,548          $6,215
Office Supplies                           $48            $576           $917          $3,668          $3,477
Xerox & Printing                         $124          $1,488           $386          $1,544            $697
Vehicle - Gas & Oil                        $0              $0            $40            $160            $367
T & E System Travel                       $20            $240           $447          $1,788            $582
T & E System Non-Travel                    $0              $0             $0              $0             $22
Dues and Subscriptions                   $113          $1,356           $365          $1,460          $1,807
Conventions - Travel                       $0              $0             $0              $0            $200
Education                                  $7             $84             $6             $24            $550
Recruiting                                 $0              $0             $0              $0              $0
Insurance                              $3,170         $38,040         $8,379         $33,516          $7,860
Legal                                    $500          $6,000         $1,519          $6,076          $6,019
Audit & Taxes                            $762          $9,144         $2,285          $9,140         $13,154
Association - Dues                       $184          $2,208           $551          $2,204          $2,299
</TABLE>


<TABLE>
<CAPTION>
                                                     -------------------------------------------------
                                                      TWELVE MONTHS     TWELVE MONTHS   TWELVE MONTHS
                                                         ENDING            ENDING          ENDING
                                                        12/31/95          12/31/94         12/31/93
                                                     -------------------------------------------------
<S>                                                        <C>             <C>             <C>
Ad Sales Alloc. Personnel Benefit                           $4,895          $4,549          $3,161 
Ad Sales Alloc. P/R Benefit                                 $1,320          $1,240            $821 
Employee Commissions                                       $12,715         $13,072          $7,286 
Other Ad Sale Expenses                                     $12,671         $14,157         $10,449 
Marketing Payroll Taxes                                         $0              $0            $722 
Allocated P/R Benefit                                           $0              $0             $10 
Marketing Employee Commissions                                $644            $503          $8,750 
Marketing Expenses                                         $31,634         $35,140         $16,153 
Dues and Subscriptions                                        $455            $226          $1,028 
Rebates                                                         $0           ($603)             $0 
Pay Per View Expenses                                          $84             $35              $0 
Video Game Expenses                                             $0              $0              $0 
Miscellaneous Marketing Expenses                            $2,914          $4,463          $4,760 
G & A Salary - Supervisor                                  $34,008         $28,621         $51,916 
G & A Salary - CSR                                         $35,386         $25,245         $19,032 
G & A Overtime/Standby                                        $119              $0              $0 
G & A Payroll Taxes                                         $6,242          $5,019          $7,444 
G & A Group Insurance                                       $4,101           ($636)         $7,340 
G & A Other Benefits                                       ($4,286)        $11,892         $23,112 
G & A Contract Labor                                           $40          $9,448          $1,775 
G & A Allocated Personnel Expense                               $0              $0              $0 
G & A Allocated Department Expense                            $479              $0              $0 
Rent - Office                                                   $0              $0              $0 
R & M - Office                                              $6,015          $5,578          $5,125 
Office Supplies                                             $2,416          $1,944          $2,072 
Xerox & Printing                                            $1,607          $1,671          $2,278 
Vehicle - Gas & Oil                                           $427            $515          $1,099 
T & E System Travel                                           $404            $335            $911 
T & E System Non-Travel                                     $1,674              $0            $208 
Dues and Subscriptions                                      $2,238          $1,470          $2,769 
Conventions - Travel                                          $676            $620          $2,221 
Education                                                     $248            $851            $545 
Recruiting                                                      $8              $0              $0 
Insurance                                                  $26,414         $45,772         $32,315 
Legal                                                       $3,266          $6,000          $5,304 
Audit & Taxes                                               $8,511          $8,954         $10,844 
Association - Dues                                          $1,961          $2,440          $3,327 
</TABLE>                                              
<PAGE>   147

                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION: REDMOND, OR


<TABLE>
<CAPTION>
                                  ------------------------------------------------------------------------------
                                    ONE MONTH       ONE MONTH     THREE MONTHS    THREE MONTHS    TWELVE MONTHS 
                                      ENDING     ENDING 12/31/96     ENDING      ENDING 12/31/96     ENDING     
                                     12/31/96      ANNUALIZED       12/31/96       ANNUALIZED       12/31/96    
                                  ------------------------------------------------------------------------------
<S>                                  <C>          <C>               <C>           <C>               <C>
Association - Lobbying                   $50            $600            $151            $604            $623   
Political Contribution                    $0              $0              $0              $0              $0   
Donations/Public Relations             ($129)        ($1,548)           $663          $2,652          $3,754   
Customer Billing                      $1,617         $19,404          $5,765         $23,060         $21,933   
Postage & Messengers                  $1,533         $18,396          $4,608         $18,432         $18,757   
Utilities                               $334          $4,008          $1,016          $4,064          $4,703   
Telephone                               $664          $7,968          $2,197          $8,788          $8,582   
Tax & Licenses                           $60            $720            $429          $1,716          $1,584   
FCC User Fees                           $160          $1,920            $480          $1,920          $2,051   
Reregulation Costs                        $0              $0          $1,931          $7,724          $4,167   
CATV Franchise                        $1,295         $15,540          $3,757         $15,028         $15,186   
Copyright Fees                        $1,996         $23,952          $5,872         $23,488         $24,743   
BMI License Fees                          $0              $0            ($42)          ($168)         $1,216   
ASCAP License Fees                      $291          $3,492            $873          $3,492          $2,244   
Bad Debt Expense                      $2,031         $24,372          $5,627         $22,508         $20,654   
Cap. Labor & OH Other                  ($380)        ($4,560)        ($1,267)        ($5,068)        ($6,525)  
G & A Miscellaneous Expense             $471          $5,652            $709          $2,836            $807   
Primary Satellite Fees               $13,005        $156,060         $37,226        $148,904        $147,138   
Program Guides                          $659          $7,908          $2,306          $9,224          $6,777   
Pay TV Fees                           $4,372         $52,464         $12,211         $48,844         $54,532   
Video Game Fees                           $0              $0              $0              $0              $0   
Pay Per View Fees                         $0              $0              $0              $0              $0   
                                     -------      ----------        --------      ----------        --------   

Total Expenses                       $32,283        $387,396        $145,691        $582,764        $632,632   

Operating Income                     $98,854      $1,186,248        $254,435      $1,017,740        $928,961   

Operating Margin                       75.38%          75.38%          63.59%          63.59%          59.49%  
</TABLE>


<TABLE>
<CAPTION>
                                       -------------------------------------------------
                                        TWELVE MONTHS     TWELVE MONTHS   TWELVE MONTHS
                                           ENDING            ENDING          ENDING
                                          12/31/95          12/31/94         12/31/93
                                       -------------------------------------------------
<S>                                      <C>             <C>             <C>
Association - Lobbying                       $315            $429              $0    
Political Contribution                         $0              $0              $0    
Donations/Public Relations                 $3,215          $3,161          $2,786    
Customer Billing                          $24,870         $25,987         $24,510    
Postage & Messengers                      $19,538         $18,465         $19,239    
Utilities                                  $3,931          $4,275          $3,746    
Telephone                                  $8,653          $9,565          $7,412    
Tax & Licenses                             $1,021            $375            $326    
FCC User Fees                              $2,002          $1,820              $0    
Reregulation Costs                         $1,321          $6,987          $8,026    
CATV Franchise                            $19,447         $20,851         $25,970    
Copyright Fees                            $20,334         $21,299         $22,096    
BMI License Fees                               $0              $0              $0    
ASCAP License Fees                             $0              $0              $0    
Bad Debt Expense                          $21,437         $20,372         $19,263    
Cap. Labor & OH Other                     ($4,704)        ($1,142)        ($3,152)   
G & A Miscellaneous Expense                $1,912            $684            $530    
Primary Satellite Fees                   $166,294        $145,095        $152,834    
Program Guides                             $4,829          $4,115          $4,312    
Pay TV Fees                               $78,767         $72,138         $84,799    
Video Game Fees                                $0              $0              $0    
Pay Per View Fees                              $0              $0              $0    
                                         --------        --------        --------    
                                                                                     
Total Expenses                           $691,865        $683,143        $729,159    
                                                                                     
Operating Income                         $885,188        $932,829        $932,009    
                                                                                     
Operating Margin                            56.13%          57.73%          56.11%
</TABLE>
                                        
<PAGE>   148

SYSTEM LOCATION: REDMOND, OR

                                            
<TABLE>
<CAPTION>
                                  ------------------------------------------------------------------------------------------------  
                                     ADJUSTED         ADJUSTED        ADJUSTED        ADJUSTED        ADJUSTED       ADJUSTED       
                                     ONE MONTH      THREE MONTHS    TWELVE MONTHS  TWELVE MONTHS   TWELVE MONTHS   TWELVE MONTHS    
                                  ENDING 12/31/96  ENDING 12/31/96     ENDING          ENDING         ENDING          ENDING        
                                     ANNUALIZED      ANNUALIZED       12/31/96        12/31/95       12/31/94        12/31/93       
                                  ------------------------------------------------------------------------------------------------  
<S>                                   <C>             <C>             <C>            <C>             <C>             <C>          
REVENUES                                                                                                                          
                                                                                                                                  
Primary-1st Outlet                      $937,800        $932,864        $922,548       $932,155      $1,015,166        $924,178   
Primary Commercial                       $63,984         $62,020         $69,928        $74,523         $65,937         $45,745   
AG Tier                                       $0              $0              $0             $0              $0        $159,727   
AJ Tier                                       $0              $0              $0             $0              $0        $166,375   
AL Tier                                  $70,140         $69,964         $69,638        $74,131         $32,963              $0   
Radio Services                            $7,524          $7,676          $8,730        $11,473         $15,045         $11,067   
Pay Cable 1st Outlet                     $55,164         $58,156         $71,992        $99,639         $92,242        $117,344   
New Product Tier 1                      $273,900        $274,712        $245,465       $219,116              $0              $0   
Pay Cable Add'l Outlet                        $0              $0              $0             $0            ($19)             $0   
Ala Carte                                     $0              $0              $0             $0        $212,349         $43,578   
Commercial Pay                                $0              $0              $0             $0              $0         $17,545   
Mini Pay                                  $2,244          $2,184          $2,529         $2,371          $2,746          $4,336   
Primary Additional Outlet                     $0              $0              $0             $0              $7         $44,916   
Remote Control                            $2,304          $2,352          $2,535         $2,868          $2,995         $20,722   
Converter Rental                         $32,364         $32,264         $35,576        $39,429         $45,270         $21,765   
Maintenance Contracts                     $6,132          $6,348          $7,002         $7,842          $4,809              $0   
New Customer Pay Installs                     $0              $0              $0             $9             $49            $139   
New Customer Basic Installs               $6,420         $10,300          $5,607         $5,334          $5,511          $6,837   
Installs Non New Customers                $1,824          $1,792          $8,008         $9,167         $13,227         $11,317   
Classified Ads                              $120             $60            $150         $1,100            $912          $9,941   
Ad Insertion Sales                      $141,636         $81,512         $66,601        $67,548         $73,634         $12,173   
Ad Sales Other                                $0              $0              $0             $0              $0             $21   
Production and Loc. Origination               $0              $0            $489           $760          $4,320              $0   
Other Late Charges                        $9,360         $11,720         $13,540        $13,990         $14,685         $14,925   
Other Copyright Pass Thru                     $0              $0              $0             $0              $0         $12,451   
Other Miscellaneous                       $6,300          $6,300          $6,300         $5,897          $6,300          $7,834   
FCC User Fees Pass Through                $1,764          $1,744          $1,822         $1,841             $98              $0   
Other - Programmers                           $0         $22,376          $6,386             $0              $0              $0   
QVC Monthly Commission                    $7,884          $8,336          $7,529         $6,633          $6,522          $7,028   
QVC Carriage Payment                      $7,848          $5,232          $6,965         $1,204          $1,204          $1,204   
Other Networks Monthly Comm.                  $0              $0              $0            $20              $0              $0   
Guides                                    $3,252          $3,392          $2,253             $3              $0              $0   
                                      ----------      ----------      ----------     ----------      ----------      ----------   
                                                                                                                                  
Total Revenues                        $1,637,964      $1,601,304      $1,561,593     $1,577,053      $1,615,972      $1,661,168   
</TABLE>
<PAGE>   149

SYSTEM LOCATION: REDMOND, OR

                                            
<TABLE>
<CAPTION>
                                  ------------------------------------------------------------------------------------------------  
                                     ADJUSTED         ADJUSTED        ADJUSTED        ADJUSTED        ADJUSTED       ADJUSTED       
                                     ONE MONTH      THREE MONTHS    TWELVE MONTHS  TWELVE MONTHS   TWELVE MONTHS   TWELVE MONTHS    
                                  ENDING 12/31/96  ENDING 12/31/96     ENDING          ENDING         ENDING          ENDING        
                                     ANNUALIZED      ANNUALIZED       12/31/96        12/31/95       12/31/94        12/31/93       
                                  ------------------------------------------------------------------------------------------------  
<S>                                   <C>             <C>             <C>            <C>             <C>             <C>          
EXPENSES                                                            
                                    
Technical Salary - Supervisor         $32,652         $32,648         $32,971        $31,888              $0              $0   
Technical Salary - Technician         $20,208         $20,044         $20,180        $20,563         $51,573         $48,776   
Technical Salary - Dispatcher              $0              $0              $0             $0              $0              $0   
Technical Salary - Installers         $18,720         $18,720         $17,658        $14,674         $17,424         $17,264   
Overtime/Standby                      $13,596         $19,460         $12,805         $6,535         $10,460         $14,538   
Payroll Taxes                          $5,940         $10,104          $8,129         $6,399          $6,689          $7,401   
Group Insurance                        $6,048          $7,048          $7,475         $6,999          $2,865          $8,152   
Other Benefits                             $0              $0          $1,011         $3,240          $4,116          $4,956   
Contract Labor                             $0            $640            $160           $260              $0              $0   
Allocated Department Expense               $0          $1,984            $496            $27              $0              $0   
Rent - Headend                             $0              $0              $0             $0              $0              $0   
Rent - Poles and Ducts                $14,000         $14,000         $13,566        $17,546          $8,902         $16,819   
R & M Plant                            $2,640          $2,116          $1,629           $916            $986          $2,234   
R & M Converter                            $0              $0              $0             $0              $0             $61   
R & M Other                              $660            $220            $671           $540            $561            $695   
Material and Reconnect                 $5,376          $4,956          $7,459         $5,898          $1,309              $0   
Vehicle - Gas & Oil                    $5,652          $7,556          $6,895         $6,606          $6,157          $6,874   
Vehicle - Service                      $2,400          $1,892          $2,176         $1,991          $3,461          $2,379   
T & E System Travel                        $0              $0             $41            $76            $203            $152   
T & E System Non-Travel                    $0              $0             $15             $0              $0             $83   
Dues & Subscriptions                       $0              $0             $42            $80              $0             $45   
Education                                  $0              $0             $61           $234              $0              $0   
System Power Costs                    $15,036         $12,528         $12,085        $10,772         $11,245         $10,733   
Recruiting                                 $0              $0             $42           $287              $0              $0   
Loss on Converters                       $900            $900            $900           $900            $900            $900   
Property Taxes                             $0              $0            $429        $13,710         $14,013         $14,081   
Uniforms                               $3,864          $2,580          $1,906         $1,280          $1,271          $1,336   
Small Tool and Safety                  $1,212            $640            $385           $522            $120            $723   
Capital Labor & OH Construction            $0              $0              $0             $0              $0              $0   
Capital Labor & OH Customer                $0              $0              $0             $0              $0              $0   
Production and Local Origination      
   Allocated                           $6,492          $3,108          $1,966           $947              $0            $654  
P and L Allocated P/R Benefit            ($36)           $316            $450           $270              $0             $86  
P and L Other Expense                  $1,728          $1,912          $1,541           $292              $0              $0  
Ad Sales Payroll Taxes                 $1,632          $2,748          $2,250         $1,053          $1,089            $763  
Ad Sales Group Insurance               $2,000          $1,356          $2,063         $1,291          $2,095            $299  
</TABLE>
                                           
<PAGE>   150
SYSTEM LOCATION: REDMOND, OR

<TABLE>
<CAPTION>
                                        ------------------------------------------------------
                                             ADJUSTED            ADJUSTED          ADJUSTED
                                             ONE MONTH         THREE MONTHS      TWELVE MONTHS
                                          ENDING 12/31/96    ENDING 12/31/96        ENDING
                                            ANNUALIZED          ANNUALIZED         12/31/96
                                        ------------------------------------------------------
<S>                                     <C>                  <C>                 <C>
Ad Sales Alloc. Personnel Benefit                $4,728             $4,768            $5,189
Ad Sales Alloc. P/R Benefit                        $756             $1,032            $1,351
Employee Commissions                            $21,600            $25,200           $23,451
Other Ad Sale Expenses                          $20,760            $15,120           $17,912
Marketing Payroll Taxes                          $1,008               $724              $181
Allocated P/R Benefit                                $0                 $0                $0
Marketing Employee Commissions                  $11,388             $7,732            $2,127
Marketing Expenses                              $21,492            $27,988           $41,591
Dues and Subscriptions                             $168               $120              $154
Rebates                                              $0                 $0                $0
Pay Per View Expenses                                $0                 $8                $9
Video Game Expenses                                  $0                 $0                $0
Miscellaneous Marketing Expenses                $18,672            $16,384            $5,433
G & A Salary - Supervisor                       $35,364            $35,368           $35,368
G & A Salary - CSR                              $35,988            $36,780           $34,892
G & A Overtime/Standby                               $0                 $0                $0
G & A Payroll Taxes                              $6,732             $8,888            $7,232
G & A Group Insurance                            $3,312             $4,220            $4,405
G & A Other Benefits                                 $0                 $0              $744
G & A Contract Labor                                 $0                 $0                $0
G & A Allocated Personnel Expense                    $0                 $0                $0
G & A Allocated Department Expense                   $0                 $0            $1,276
Rent - Office                                        $0                 $0                $0
R & M - Office                                   $6,564             $5,548            $6,215
Office Supplies                                    $576             $3,668            $3,477
Xerox & Printing                                 $1,488             $1,544              $697
Vehicle - Gas & Oil                                  $0               $160              $367
T & E System Travel                                $240             $1,788              $582
T & E System Non-Travel                              $0                 $0               $22
Dues and Subscriptions                           $1,356             $1,460            $1,807
Conventions - Travel                                 $0                 $0              $200
Education                                           $84                $24              $550
Recruiting                                           $0                 $0                $0
Insurance                                       $38,040            $33,516            $7,860
Legal                                            $6,000             $6,076            $6,019
Audit & Taxes                                    $9,144             $9,140           $13,154
Association - Dues                               $2,208             $2,204            $2,299
</TABLE>


<TABLE>
<CAPTION>
                                        ---------------------------------------------------
                                            ADJUSTED          ADJUSTED          ADJUSTED
                                          TWELVE MONTHS     TWELVE MONTHS    TWELVE MONTHS
                                             ENDING            ENDING            ENDING
                                            12/31/95          12/31/94          12/31/93
                                        ---------------------------------------------------
<S>                                       <C>               <C>              <C>   
Ad Sales Alloc. Personnel Benefit                $4,895            $4,549           $3,161
Ad Sales Alloc. P/R Benefit                      $1,320            $1,240             $821
Employee Commissions                            $12,715           $13,072           $7,286
Other Ad Sale Expenses                          $12,671           $14,157          $10,449
Marketing Payroll Taxes                              $0                $0             $722
Allocated P/R Benefit                                $0                $0              $10
Marketing Employee Commissions                     $644              $503           $8,750
Marketing Expenses                              $31,634           $35,140          $16,153
Dues and Subscriptions                             $455              $226           $1,028
Rebates                                              $0             ($603)              $0
Pay Per View Expenses                               $84               $35               $0
Video Game Expenses                                  $0                $0               $0
Miscellaneous Marketing Expenses                 $2,914            $4,463           $4,760
G & A Salary - Supervisor                       $34,008           $28,621          $51,916
G & A Salary - CSR                              $35,386           $25,245          $19,032
G & A Overtime/Standby                             $119                $0               $0
G & A Payroll Taxes                              $6,242            $5,019           $7,444
G & A Group Insurance                            $4,101                $0           $7,340
G & A Other Benefits                                 $0           $11,892          $23,112
G & A Contract Labor                                $40            $9,448           $1,775
G & A Allocated Personnel Expense                    $0                $0               $0
G & A Allocated Department Expense                 $479                $0               $0
Rent - Office                                        $0                $0               $0
R & M - Office                                   $6,015            $5,578           $5,125
Office Supplies                                  $2,416            $1,944           $2,072
Xerox & Printing                                 $1,607            $1,671           $2,278
Vehicle - Gas & Oil                                $427              $515           $1,099
T & E System Travel                                $404              $335             $911
T & E System Non-Travel                          $1,674                $0             $208
Dues and Subscriptions                           $2,238            $1,470           $2,769
Conventions - Travel                               $676              $620           $2,221
Education                                          $248              $851             $545
Recruiting                                           $8                $0               $0
Insurance                                       $26,414           $45,772          $32,315
Legal                                            $3,266            $6,000           $5,304
Audit & Taxes                                    $8,511            $8,954          $10,844
Association - Dues                               $1,961            $2,440           $3,327
</TABLE>


<PAGE>   151

SYSTEM LOCATION: REDMOND, OR

<TABLE>
<CAPTION>
                                        -----------------------------------------------------
                                             ADJUSTED            ADJUSTED          ADJUSTED
                                             ONE MONTH         THREE MONTHS     TWELVE MONTHS
                                          ENDING 12/31/96    ENDING 12/31/96        ENDING
                                            ANNUALIZED          ANNUALIZED         12/31/96
                                        -----------------------------------------------------
<S>                                       <C>                <C>               <C> 
Association - Lobbying                             $600               $604              $623
Political Contribution                               $0                 $0                $0
Donations/Public Relations                       $3,000             $2,652            $3,754
Customer Billing                                $19,404            $23,060           $21,933
Postage & Messengers                            $18,396            $18,432           $18,757
Utilities                                        $4,008             $4,064            $4,703
Telephone                                        $7,968             $8,788            $8,582
Tax & Licenses                                     $720             $1,716            $1,584
FCC User Fees                                    $1,920             $1,920            $2,051
Reregulation Costs                                   $0             $7,724            $4,167
CATV Franchise                                  $15,540            $15,028           $15,186
Copyright Fees                                  $23,952            $23,488           $24,743
BMI License Fees                                     $0                 $0            $1,216
ASCAP License Fees                               $3,492             $3,492            $2,244
Bad Debt Expense                                $24,372            $22,508           $20,654
Cap. Labor & OH Other                                $0                 $0                $0
G & A Miscellaneous Expense                      $5,652             $2,836              $807
Primary Satellite Fees                         $156,060           $148,904          $147,138
Program Guides                                   $7,908             $9,224            $6,777
Pay TV Fees                                     $52,464            $48,844           $54,532
Video Game Fees                                      $0                 $0                $0
Pay Per View Fees                                    $0                 $0                $0
                                                    ---                ---               ---

Total Expenses                                 $753,844           $760,220          $721,472

Operating Income                               $884,120           $841,084          $840,121

Operating Margin                                 53.98%             52.52%            53.80%
</TABLE>


<TABLE>
<CAPTION>
                                         ----------------------------------------------------
                                             ADJUSTED         ADJUSTED           ADJUSTED
                                          TWELVE MONTHS     TWELVE MONTHS     TWELVE MONTHS
                                              ENDING           ENDING             ENDING
                                            12/31/95          12/31/94           12/31/93
                                         ----------------------------------------------------
<S>                                       <C>               <C>                <C>
Association - Lobbying                               $315              $429               $0
Political Contribution                                 $0                $0               $0
Donations/Public Relations                         $3,215            $3,161           $2,786
Customer Billing                                  $24,870           $25,987          $24,510
Postage & Messengers                              $19,538           $18,465          $19,239
Utilities                                          $3,931            $4,275           $3,746
Telephone                                          $8,653            $9,565           $7,412
Tax & Licenses                                     $1,021              $375             $326
FCC User Fees                                      $2,002            $1,820               $0
Reregulation Costs                                 $1,321            $6,987           $8,026
CATV Franchise                                    $19,447           $20,851          $25,970
Copyright Fees                                    $20,334           $21,299          $22,096
BMI License Fees                                       $0                $0               $0
ASCAP License Fees                                     $0                $0               $0
Bad Debt Expense                                  $21,437           $20,372          $19,263
Cap. Labor & OH Other                                  $0                $0               $0
G & A Miscellaneous Expense                        $1,912              $684             $530
Primary Satellite Fees                           $166,294          $145,095         $152,834
Program Guides                                     $4,829            $4,115           $4,312
Pay TV Fees                                       $78,767           $72,138          $84,799
Video Game Fees                                        $0                $0               $0
Pay Per View Fees                                      $0                $0               $0
                                                       ---               ---              --

Total Expenses                                   $737,254          $730,214         $768,630

Operating Income                                 $839,799          $885,758         $892,538

Operating Margin                                   53.25%            54.81%           53.73%
</TABLE>

<PAGE>   152
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.


SYSTEM LOCATION:  SOMERSET, KY

<TABLE>
<CAPTION>
                                    -------------------------------------------------------------------------
                                      ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS
                                        ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96   ENDING
                                       12/31/96      ANNUALIZED     12/31/96      ANNUALIZED     12/31/96
                                    -------------------------------------------------------------------------
<S>                                   <C>          <C>           <C>            <C>           <C>
REVENUES

Primary - First Outlet                    $365,957     $4,391,484    $1,081,892     $4,327,568    $4,085,262
Primary Commercial                          $5,310        $63,720       $17,526        $70,104       $73,145
Expanded Tier                                   $0             $0            $0             $0            $0
A-G Tier                                        $6            $72           $21            $84           $83
A-J Tier                                       $15           $180           $48           $192          $149
A-L Tier                                   $44,521       $534,252      $131,572       $526,288      $474,908
Radio Services                                  $5            $60           $17            $68          $102
Pay Cable First Outlet                     $32,923       $395,076       $98,341       $393,364      $440,217
Pay Cable Additional Outlet                   $299         $3,588          $867         $3,468        $4,085
Ala Carte                                       $0             $0            $0             $0            $0
New Product Tier 1                         $99,755     $1,197,060      $296,279     $1,185,116    $1,005,944
Commercial Pay                                $857        $10,284        $4,080        $16,320       $20,604
Pay Per View                                  $623         $7,476        $3,560        $14,240       $11,912
Primary Additional Outlet                       $0             $0            $0             $0            $0
Remote Control                              $1,544        $18,528        $4,624        $18,496       $28,564
Converter Rental                            $8,108        $97,296       $23,900        $95,600       $83,054
Maintenance Contracts                       $3,264        $39,168        $9,959        $39,836       $41,057
New Customer Pay Installs                       $0             $0            $0             $0            $0
New Customer Basic Installs                   $910        $10,920        $4,257        $17,028       $24,787
Installation Materials Charge                   $0             $0          ($10)          ($40)           $5
Installs - Non New Customers                $4,083        $48,996       $15,801        $63,204       $88,319
Guide Revenue                                 $406         $4,872        $1,263         $5,052        $3,762
Other - Late Charges                        $6,590        $79,080       $18,325        $73,300       $70,610
Other - Rent                                $1,164        $13,968        $2,400         $9,600        $9,600
Other - Franchise Pass Through              $2,061        $24,732        $6,146        $24,584       $22,934
Other - Miscellaneous                           $0             $0          $660         $2,640          $905
FCC User Fees Pass Through                    $780         $9,360        $2,346         $9,384        $9,413
Other - Programmers                        $45,922       $551,064      $163,871       $655,484      $168,073
QVC Monthly Commission                      $1,943        $23,316        $6,898        $27,592       $26,495
QVC Carriage Payment                            $0             $0        $3,103        $12,412       $12,307
HSN Monthly Commission                        $707         $8,484       ($8,332)      ($33,328)      $10,667
HSN Carriage Payment                        $2,234        $26,808       $17,748        $70,992       $28,827
Classifed Ads                               $6,770        $81,240       $21,790        $87,160      $101,632
Ad Insertion Sales                         $28,650       $343,800       $72,005       $288,020      $198,116
Ad Sales Other                                  $0             $0            $0             $0            $0
Production & Local Origination              $8,453       $101,436       $17,325        $69,300       $45,327
                                            -------      ---------      --------       --------      -------

Total Revenues                            $673,860     $8,086,320    $2,018,282     $8,073,128    $7,090,865
</TABLE>


SYSTEM LOCATION:  SOMERSET, KY

<TABLE>
<CAPTION>
                                                                                   -------------- 
                                    --------------------------------------------     ADJUSTED     
                                    TWELVE MONTHS  TWELVE MONTHS   TWELVE MONTHS     ONE MONTH
                                        ENDING         ENDING        ENDING        ENDING 12/31/96
                                       12/31/95       12/31/94      12/31/93        ANNUALIZED
                                    --------------------------------------------   --------------
<S>                                 <C>            <C>           <C>              <C>       
REVENUES

Primary - First Outlet                  $3,780,392     $3,827,585    $3,171,423       $4,391,484
Primary Commercial                         $69,778        $68,505       $67,614          $63,720
Expanded Tier                                   $0             $0            $0               $0
A-G Tier                                       $60        $23,815      $457,868              $72
A-J Tier                                       $74        $23,544      $815,239             $180
A-L Tier                                  $412,199       $165,567            $0         $534,252
Radio Services                                 $98             $0            $0              $60
Pay Cable First Outlet                    $466,915       $390,766      $354,268         $395,076
Pay Cable Additional Outlet                 $6,672         $8,484        $7,591           $3,588
Ala Carte                                       $0       $717,997      $173,276               $0
New Product Tier 1                        $813,889             $0            $0       $1,197,060
Commercial Pay                             $32,976        $12,816       $12,567          $10,284
Pay Per View                                $6,818         $7,417        $6,523           $7,476
Primary Additional Outlet                       $0         $1,470       $40,225               $0
Remote Control                             $44,680        $42,696       $50,444          $18,528
Converter Rental                           $49,650        $48,193       $14,060          $97,296
Maintenance Contracts                      $37,671        $21,269            $0          $39,168
New Customer Pay Installs                      $78            $78          $275               $0
New Customer Basic Installs                $33,786        $53,663       $65,766          $10,920
Installation Materials Charge                 $301             $0            $0               $0
Installs - Non New Customers               $92,532        $83,947       $78,466          $48,996
Guide Revenue                                   $8             $0            $0           $4,872
Other - Late Charges                       $67,905        $85,715       $73,700          $79,080
Other - Rent                                $8,960         $9,498       $10,407          $13,968
Other - Franchise Pass Through              $5,519             $0            $0          $24,732
Other - Miscellaneous                          $33           $382        $1,403               $0
FCC User Fees Pass Through                  $8,848           $455            $0           $9,360
Other - Programmers                             $0             $0            $0         $551,064
QVC Monthly Commission                     $25,290        $23,479       $23,297          $23,316
QVC Carriage Payment                       $14,516        $14,516       $14,515               $0
HSN Monthly Commission                      $7,489             $0            $0           $8,484
HSN Carriage Payment                       $14,772             $0            $0          $26,808
Classifed Ads                              $91,439        $71,510       $60,097          $81,240
Ad Insertion Sales                        $183,458       $171,423      $127,342         $343,800
Ad Sales Other                                  $0             $0           $91               $0
Production & Local Origination             $22,396        $13,511        $9,175         $101,436
                                           --------       --------       -------        --------

Total Revenues                          $6,299,202     $5,888,301    $5,635,632       $8,086,320
</TABLE>

<PAGE>   153
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION:  SOMERSET, KY


<TABLE>
<CAPTION>
                                    -------------------------------------------------------------------------
                                      ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS
                                        ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96   ENDING
                                       12/31/96      ANNUALIZED     12/31/96      ANNUALIZED     12/31/96
                                    -------------------------------------------------------------------------
<S>                                   <C>           <C>           <C>            <C>           <C>    
EXPENSES

Technical Salary - Supervisor               $5,576        $66,912       $16,729        $66,916       $66,916
Technical Salary - Technician              $35,569       $426,828      $109,714       $438,856      $428,056
Technical Salary - Dispatcher                   $0             $0            $0             $0            $0
Technical Salary - Installers              $13,103       $157,236       $38,269       $153,076      $148,029
Overtime/Standby                           $18,599       $223,188       $60,220       $240,880      $158,241
Payroll Taxes                               $4,992        $59,904       $17,547        $70,188       $66,258
Group Insurance                             $5,467        $65,604       $16,982        $67,928       $69,287
Other Benefits                            ($23,842)     ($286,104)     ($17,070)      ($68,280)      $13,404
Allocated Personnel Expense               ($41,600)     ($499,200)    ($122,898)     ($491,592)    ($449,977)
Allocated P/R Benefit                       $7,278        $87,336      ($10,058)      ($40,232)     ($87,450)
Allocated Department Expense                    $0             $0           $92           $368           $92
Rent - Headend                              $2,800        $33,600        $8,400        $33,600       $34,100
Rent - Poles and Ducts                    ($10,459)     ($125,508)       $3,603        $14,412       $67,017
R & M Plant                                   $564         $6,768        $4,063        $16,252       $15,538
R & M Converter                               $867        $10,404        $4,351        $17,404       $18,647
R & M Other                                   $484         $5,808        $3,354        $13,416        $6,072
Material and Reconnect                        $818         $9,816        $2,903        $11,612        $9,544
Vehicle - Gas & Oil                         $1,756        $21,072        $7,568        $30,272       $28,896
Vehicle - Service                             $652         $7,824        $2,743        $10,972       $14,128
Leased Vehicles                                 $0             $0            $0             $0            $0
T & E System Travel                             $0             $0            $0             $0            $0
T & E System Non-Travel                       $141         $1,692          $483         $1,932          $578
Dues & Subscriptions                            $9           $108           $28           $112          $203
Education                                       $0             $0            $0             $0          $409
System Power Costs                          $5,581        $66,972       $18,295        $73,180       $68,318
Recruiting                                      $0             $0            $0             $0            $0
Loss on Converters                            $150         $1,800          $450         $1,800        $1,800
Property Taxes                             $87,028     $1,044,336      $137,789       $551,156      $364,690
Uniforms                                      $738         $8,856        $1,915         $7,660        $7,304
Small Tool and Safety                           $0             $0            $0             $0          $800
Capital Labor & OH Construction           ($24,618)     ($295,416)     ($94,369)     ($377,476)    ($206,921)
Capital Labor & OH Customer                ($6,293)      ($75,516)     ($24,657)      ($98,628)     ($81,887)
P & L Salary - Producer Assistant           $1,908        $22,896        $5,716        $22,864       $22,738
Payroll Taxes                                 $159         $1,908          $544         $2,176        $1,899
Group Insurance                                $98         $1,176          $347         $1,388        $1,500
Other Benefits                                $190         $2,280          $664         $2,656        $1,744
Employee Commissions                            $0             $0            $0             $0            $0
P & L Other Expenses                          $808         $9,696        $2,860        $11,440        $6,113
Ad Sales Salary Supervisor                    $451         $5,412        $1,353         $5,412        $5,412
</TABLE>

<TABLE>
<CAPTION>
                                                                                   -------------- 
                                    --------------------------------------------     ADJUSTED     
                                    TWELVE MONTHS  TWELVE MONTHS   TWELVE MONTHS     ONE MONTH
                                        ENDING         ENDING        ENDING        ENDING 12/31/96
                                       12/31/95       12/31/94      12/31/93        ANNUALIZED
                                    --------------------------------------------   --------------
<S>                                 <C>            <C>             <C>              <C>
EXPENSES

Technical Salary - Supervisor              $64,342        $61,868       $59,488          $66,912
Technical Salary - Technician             $405,137       $394,220      $395,567         $426,828
Technical Salary - Dispatcher                   $0             $0            $0               $0
Technical Salary - Installers             $132,929       $114,762      $124,670         $157,236
Overtime/Standby                          $125,429       $133,982      $101,432         $223,188
Payroll Taxes                              $61,895        $59,987       $55,772          $59,904
Group Insurance                            $53,433        $30,569       $98,650          $65,604
Other Benefits                             $25,668        $37,410       $44,592          $15,000
Allocated Personnel Expense              ($405,626)     ($408,422)    ($390,803)       ($499,200)
Allocated P/R Benefit                     ($84,926)      ($76,166)    ($122,091)         $87,336
Allocated Department Expense                    $0             $0         ($433)              $0
Rent - Headend                             $34,900        $33,600       $33,600          $33,600
Rent - Poles and Ducts                     $78,490        $97,371       $53,318          $60,000
R & M Plant                                $10,113         $5,916        $4,751           $6,768
R & M Converter                            $14,051         $4,852        $1,581          $10,404
R & M Other                                 $6,202         $4,084        $2,138           $5,808
Material and Reconnect                      $9,481         $7,208        $4,800           $9,816
Vehicle - Gas & Oil                        $22,128        $22,015       $21,404          $21,072
Vehicle - Service                          $17,710        $16,800        $7,986           $7,824
Leased Vehicles                                 $0             $0       $13,384               $0
T & E System Travel                            $58             $0          $150               $0
T & E System Non-Travel                         $0            $63           $78           $1,692
Dues & Subscriptions                          $522           $925          $586             $108
Education                                     $132           $497          $506               $0
System Power Costs                         $72,792        $77,598       $62,774          $66,972
Recruiting                                      $0             $0            $0               $0
Loss on Converters                          $1,800         $1,800        $1,800           $1,800
Property Taxes                            $264,900       $184,185      $309,246       $1,044,336
Uniforms                                    $6,791         $5,435        $6,621           $8,856
Small Tool and Safety                         $400           $156          $169               $0
Capital Labor & OH Construction          ($156,243)      ($95,119)     ($68,332)              $0
Capital Labor & OH Customer               ($77,658)      ($49,598)     ($86,936)              $0
P & L Salary - Producer Assistant          $22,198        $20,016       $15,600          $22,896
Payroll Taxes                               $1,886         $1,669        $1,227           $1,908
Group Insurance                             $1,240         $1,571        $1,993           $1,176
Other Benefits                              $1,488         $1,512        $1,230           $2,280
Employee Commissions                        $2,320            $25            $0               $0
P & L Other Expenses                          $568             $0            $0           $9,696
Ad Sales Salary Supervisor                  $5,412        $20,810       $20,290           $5,412
</TABLE>


<PAGE>   154
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION:  SOMERSET, KY


<TABLE>
<CAPTION>
                                    -------------------------------------------------------------------------
                                      ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS
                                        ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96   ENDING
                                       12/31/96      ANNUALIZED     12/31/96      ANNUALIZED     12/31/96
                                    -------------------------------------------------------------------------
<S>                                 <C>             <C>           <C>            <C>           <C>   
Ad Sales Payroll Taxes                        $535         $6,420        $1,845         $7,380        $7,630
Ad Sales Group Insurance                      $532         $6,384        $1,698         $6,792        $7,730
Ad Sales Other Benefits                       ($22)         ($264)          $34           $136          $286
Ad Sales Alloc. Personnel Benefit             $958        $11,496        $3,023        $12,092       $11,163
Ad Sales Alloc. P/R Benefit                   $937        $11,244         ($485)       ($1,940)      ($6,535)
Employee Commissions                        $1,904        $22,848        $5,428        $21,712       $25,626
Other Ad Sale Expenses                    ($12,225)     ($146,700)      ($6,420)      ($25,680)      $13,751
Marketing Payroll Taxes                         $0             $0            $0             $0            $0
Marketing Salary & Benefits                     $0             $0            $0             $0            $0
Marketing Allocated P/R Benefit                 $0             $0            $0             $0            $0
Marketing Employee Commissions                $526         $6,312          $526         $2,104          $978
Marketing Expenses                          $3,180        $38,160       $31,522       $126,088       $88,866
Dues and Subscriptions                         $73           $876          $238           $952          $727
Rebates                                         $0             $0            $0             $0            $0
Pay Per View Expenses                          $30           $360          $158           $632        $3,346
Video Game Expenses                             $0             $0            $0             $0            $0
Miscellaneous Marketing Expenses              $770         $9,240        $3,830        $15,320        $8,772
G & A Salary - Supervisor                   $5,319        $63,828        $9,414        $37,656       $42,579
G & A Salary - CSR                         $20,044       $240,528       $61,422       $245,688      $238,058
G & A Overtime/Standby                      $1,144        $13,728        $2,905        $11,620        $8,125
G & A Payroll Taxes                         $4,411        $52,932        $8,484        $33,936       $28,519
G & A Group Insurance                       $2,575        $30,900        $8,181        $32,724       $34,834
G & A Other Benefits                       ($8,930)     ($107,160)      ($6,790)      ($27,160)       $2,840
G & A Contract Labor                            $0             $0            $0             $0            $0
G & A Allocated Personnel Expense         ($14,510)     ($174,120)     ($38,089)     ($152,356)    ($152,428)
G & A Allocated P/R Expense                   ($20)         ($240)      ($6,033)      ($24,132)     ($37,524)
Allocated Department Expense               ($5,723)      ($68,676)     ($17,100)      ($68,400)     ($38,441)
Rent - Office                                 $525         $6,300        $1,575         $6,300        $6,300
R & M - Office                                $755         $9,060        $2,573        $10,292       $11,845
Office Supplies                               $732         $8,784        $1,764         $7,056        $8,291
Xerox & Printing                                $0             $0        $1,113         $4,452        $5,224
Vehicle - Gas & Oil                           $299         $3,588          $498         $1,992        $2,322
T & E System Travel                         $1,318        $15,816        $2,154         $8,616        $5,803
T & E System Non-Travel                       $180         $2,160          $269         $1,076          $386
Dues and Subscriptions                         $21           $252           $81           $324        $1,442
Conventions - Travel                            $0             $0            $0             $0          $310
Conventions - Non Travel                        $0             $0            $0             $0            $0
Education                                     $943        $11,316        $1,153         $4,612        $3,691
Recruiting                                      $0             $0            $0             $0           $21
Insurance                                  $18,028       $216,336       $51,355       $205,420      $137,803
Legal                                       $1,050        $12,600        $6,421        $25,684       $15,871
</TABLE>


<TABLE>
<CAPTION>
                                                                                   --------------
                                    --------------------------------------------     ADJUSTED
                                    TWELVE MONTHS  TWELVE MONTHS   TWELVE MONTHS     ONE MONTH
                                        ENDING         ENDING        ENDING        ENDING 12/31/96
                                       12/31/95       12/31/94      12/31/93        ANNUALIZED
                                    --------------------------------------------   --------------
<S>                                 <C>            <C>             <C>              <C>
Ad Sales Payroll Taxes                      $7,577         $7,271        $4,587           $6,420
Ad Sales Group Insurance                    $5,863         $3,813        $7,225           $6,384
Ad Sales Other Benefits                       $336         $1,334        $1,824               $0
Ad Sales Alloc. Personnel Benefit          $15,788       ($23,115)      ($1,733)         $11,496
Ad Sales Alloc. P/R Benefit                  ($666)       ($1,626)         $552          $11,244
Employee Commissions                       $44,203        $74,049       $37,482          $22,848
Other Ad Sale Expenses                     $21,732        $23,572       $16,294          $10,000
Marketing Payroll Taxes                         $0             $0            $0               $0
Marketing Salary & Benefits                     $0             $0            $0               $0
Marketing Allocated P/R Benefit                 $0             $0           $43               $0
Marketing Employee Commissions                $314         $1,718        $8,039           $6,312
Marketing Expenses                         $48,533        $95,148       $44,100          $38,160
Dues and Subscriptions                      $2,002         $1,071        $4,022             $876
Rebates                                         $0        ($2,316)           $0               $0
Pay Per View Expenses                       $1,594         $1,259        $8,552             $360
Video Game Expenses                             $0             $0            $0               $0
Miscellaneous Marketing Expenses            $7,778        $14,530        $9,203           $9,240
G & A Salary - Supervisor                  $76,266        $73,332       $70,512          $63,828
G & A Salary - CSR                        $219,595       $210,635      $219,528         $240,528
G & A Overtime/Standby                      $4,440         $4,369        $3,662          $13,728
G & A Payroll Taxes                        $26,888        $25,899       $24,930          $52,932
G & A Group Insurance                      $24,036        $13,087       $42,772          $30,900
G & A Other Benefits                        $6,897          ($172)      $32,992               $0
G & A Contract Labor                        $1,538           $644            $0               $0
G & A Allocated Personnel Expense        ($166,526)     ($166,962)    ($164,094)       ($174,120)
G & A Allocated P/R Expense               ($34,543)      ($33,445)     ($51,431)           ($240)
Allocated Department Expense              ($62,558)      ($70,956)     ($66,737)        ($68,676)
Rent - Office                               $6,300         $6,200        $5,700           $6,300
R & M - Office                              $9,379        $10,703       $13,365           $9,060
Office Supplies                             $9,775        $10,288        $7,292           $8,784
Xerox & Printing                            $4,344         $4,396        $4,273               $0
Vehicle - Gas & Oil                         $1,613         $1,585        $1,209           $3,588
T & E System Travel                           $542           $251        $1,490          $15,816
T & E System Non-Travel                       $984           $951          $672           $2,160
Dues and Subscriptions                      $1,380           $890        $1,164             $252
Conventions - Travel                           $13           $650          $484               $0
Conventions - Non Travel                       $28             $0            $0               $0
Education                                   $3,889         $2,096        $2,613          $11,316
Recruiting                                      $0             $0            $0               $0
Insurance                                 $165,149       $162,277      $175,848         $216,336
Legal                                      $12,263        $12,000        $7,000          $12,600
</TABLE>


<PAGE>   155
                  FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.

SYSTEM LOCATION:  SOMERSET, KY


<TABLE>
<CAPTION>
                                    -------------------------------------------------------------------------
                                      ONE MONTH      ONE MONTH    THREE MONTHS   THREE MONTHS  TWELVE MONTHS
                                        ENDING     ENDING 12/31/96   ENDING     ENDING 12/31/96   ENDING
                                       12/31/96      ANNUALIZED     12/31/96      ANNUALIZED     12/31/96
                                    -------------------------------------------------------------------------
<S>                                   <C>          <C>            <C>           <C>            <C>   
Audit & Taxes                                 $762         $9,144        $2,285         $9,140        $9,010
Association - Dues                          $1,162        $13,944        $3,391        $13,564       $13,832
Association - Lobbying                        $186         $2,232          $651         $2,604        $2,271
Political Contribution                          $0             $0          $100           $400          $100
Donations/Public Relations                    $163         $1,956        $1,184         $4,736        $7,848
Customer Billing                            $7,148        $85,776       $21,250        $85,000       $85,197
Postage & Messengers                        $7,090        $85,080       $21,110        $84,440       $85,890
Utilities                                     $988        $11,856        $3,375        $13,500       $13,060
Telephone                                   $3,567        $42,804       $10,112        $40,448       $32,119
Tax & Licenses                                 $97         $1,164          $291         $1,164        $1,563
FCC User Fees                                 $886        $10,632        $2,658        $10,632       $10,619
Reregulation Costs                              $0             $0       $13,232        $52,928       $30,024
CATV Franchise                             $10,626       $127,512       $39,927       $159,708      $164,256
Copyright Fees                              $7,722        $92,664       $22,881        $91,524       $98,852
BMI License Fees                                $0             $0         ($448)       ($1,792)       $4,526
ASCAP License Fees                          $1,094        $13,128        $3,284        $13,136        $8,445
Bad Debt Expense                            $9,255       $111,060        $7,646        $30,584       $51,395
Cap. Labor & OH Other                      ($1,812)      ($21,744)      ($4,813)      ($19,252)     ($10,782)
G & A Miscellaneous Expense                 $3,287        $39,444        $6,623        $26,492       $10,069
Primary Satellite Fees                     $81,022       $972,264      $244,728       $978,912      $925,578
Program Guides                                $331         $3,972        $1,087         $4,348       $10,712
Pay TV Fees                                $18,758       $225,096       $55,151       $220,604      $251,372
Pay Per View Fees                             $384         $4,608        $2,067         $8,268        $6,730
Video Game Fees                                 $0             $0            $0             $0            $0
                                                ---            ---           ---            ---           --

Total Expenses                            $267,049     $3,204,588      $788,449     $3,153,796    $3,102,395

Operating Income                          $406,811     $4,881,732    $1,229,833     $4,919,332    $3,988,470

Operating Margin                            60.37%         60.37%        60.93%         60.93%        56.25%
</TABLE>


<TABLE>
<CAPTION>
                                                                                   --------------  
                                    --------------------------------------------      ADJUSTED
                                    TWELVE MONTHS  TWELVE MONTHS   TWELVE MONTHS     ONE MONTH
                                        ENDING         ENDING        ENDING        ENDING 12/31/96
                                       12/31/95       12/31/94      12/31/93        ANNUALIZED
                                    --------------------------------------------   --------------
<S>                                 <C>            <C>             <C>              <C>
Audit & Taxes                              $25,604        $39,812       $16,246           $9,144
Association - Dues                          $6,574         $7,318        $7,312          $13,944
Association - Lobbying                      $1,212         $1,202            $0           $2,232
Political Contribution                          $0             $0            $0               $0
Donations/Public Relations                  $6,135         $5,021        $4,256           $1,956
Customer Billing                           $95,517        $98,893       $88,898          $85,776
Postage & Messengers                       $83,629        $78,104       $77,033          $85,080
Utilities                                  $12,222        $11,663       $11,281          $11,856
Telephone                                  $27,776        $27,991       $28,860          $42,804
Tax & Licenses                              $1,437           $270          $753           $1,164
FCC User Fees                               $8,678         $7,257            $0          $10,632
Reregulation Costs                          $7,841        $25,519       $13,010               $0
CATV Franchise                            $179,949       $148,978      $160,945         $127,512
Copyright Fees                             $78,077        $73,468       $63,629          $92,664
BMI License Fees                                $0             $0            $0               $0
ASCAP License Fees                              $0             $0            $0          $13,128
Bad Debt Expense                           $65,460        $96,890       $69,142         $111,060
Cap. Labor & OH Other                     ($32,458)      ($15,411)      ($5,946)              $0
G & A Miscellaneous Expense                 $9,182         $7,050        $7,250          $39,444
Primary Satellite Fees                    $803,806       $657,702      $649,739         $972,264
Program Guides                             $20,788        $16,367       $13,018           $3,972
Pay TV Fees                               $275,154       $234,780      $218,302         $225,096
Pay Per View Fees                            ($237)        $4,149        $3,914           $4,608
Video Game Fees                                 $0             $0            $0               $0
                                               ---            ---           ---              ---

Total Expenses                          $2,863,054     $2,704,050    $2,677,884       $4,348,000

Operating Income                        $3,436,148     $3,184,251    $2,957,748       $3,738,320

Operating Margin                            54.55%         54.08%        52.48%           46.23%
</TABLE>


<PAGE>   156

SYSTEM LOCATION:  SOMERSET, KY

<TABLE>
<CAPTION>
                                    -------------------------------------------------------------------------
                                       ADJUSTED       ADJUSTED      ADJUSTED       ADJUSTED      ADJUSTED
                                     THREE MONTHS  TWELVE MONTHS  TWELVE MONTHS TWELVE MONTHS  TWELVE MONTHS
                                    ENDING 12/31/96    ENDING        ENDING         ENDING        ENDING
                                      ANNUALIZED      12/31/96      12/31/95       12/31/94      12/31/93
                                    -------------------------------------------------------------------------
<S>                                 <C>            <C>            <C>           <C>            <C>
REVENUES

Primary - First Outlet                  $4,327,568     $4,085,262    $3,780,392     $3,827,585    $3,171,423
Primary Commercial                         $70,104        $73,145       $69,778        $68,505       $67,614
Expanded Tier                                   $0             $0            $0             $0            $0
A-G Tier                                       $84            $83           $60        $23,815      $457,868
A-J Tier                                      $192           $149           $74        $23,544      $815,239
A-L Tier                                  $526,288       $474,908      $412,199       $165,567            $0
Radio Services                                 $68           $102           $98             $0            $0
Pay Cable First Outlet                    $393,364       $440,217      $466,915       $390,766      $354,268
Pay Cable Additional Outlet                 $3,468         $4,085        $6,672         $8,484        $7,591
Ala Carte                                       $0             $0            $0       $717,997      $173,276
New Product Tier 1                      $1,185,116     $1,005,944      $813,889             $0            $0
Commercial Pay                             $16,320        $20,604       $32,976        $12,816       $12,567
Pay Per View                               $14,240        $11,912        $6,818         $7,417        $6,523
Primary Additional Outlet                       $0             $0            $0         $1,470       $40,225
Remote Control                             $18,496        $28,564       $44,680        $42,696       $50,444
Converter Rental                           $95,600        $83,054       $49,650        $48,193       $14,060
Maintenance Contracts                      $39,836        $41,057       $37,671        $21,269            $0
New Customer Pay Installs                       $0             $0           $78            $78          $275
New Customer Basic Installs                $17,028        $24,787       $33,786        $53,663       $65,766
Installation Materials Charge                 ($40)            $5          $301             $0            $0
Installs - Non New Customers               $63,204        $88,319       $92,532        $83,947       $78,466
Guide Revenue                               $5,052         $3,762            $8             $0            $0
Other - Late Charges                       $73,300        $70,610       $67,905        $85,715       $73,700
Other - Rent                                $9,600         $9,600        $8,960         $9,498       $10,407
Other - Franchise Pass Through             $24,584        $22,934        $5,519             $0            $0
Other - Miscellaneous                       $2,640           $905           $33           $382        $1,403
FCC User Fees Pass Through                  $9,384         $9,413        $8,848           $455            $0
Other - Programmers                       $655,484       $168,073            $0             $0            $0
QVC Monthly Commission                     $27,592        $26,495       $25,290        $23,479       $23,297
QVC Carriage Payment                       $12,412        $12,307       $14,516        $14,516       $14,515
HSN Monthly Commission                     $10,000        $10,667        $7,489             $0            $0
HSN Carriage Payment                       $70,992        $28,827       $14,772             $0            $0
Classifed Ads                              $87,160       $101,632       $91,439        $71,510       $60,097
Ad Insertion Sales                        $288,020       $198,116      $183,458       $171,423      $127,342
Ad Sales Other                                  $0             $0            $0             $0           $91
Production & Local Origination             $69,300        $45,327       $22,396        $13,511        $9,175
                                          --------       --------      --------       --------       -------

Total Revenues                          $8,116,456     $7,090,865    $6,299,202     $5,888,301    $5,635,632
</TABLE>


<PAGE>   157

SYSTEM LOCATION:  SOMERSET, KY

<TABLE>
<CAPTION>
                                    -------------------------------------------------------------------------
                                       ADJUSTED       ADJUSTED      ADJUSTED       ADJUSTED      ADJUSTED
                                     THREE MONTHS  TWELVE MONTHS  TWELVE MONTHS TWELVE MONTHS  TWELVE MONTHS
                                    ENDING 12/31/96    ENDING        ENDING         ENDING        ENDING
                                      ANNUALIZED      12/31/96      12/31/95       12/31/94      12/31/93
                                    -------------------------------------------------------------------------
<S>                                 <C>            <C>            <C>           <C>            <C>
EXPENSES

Technical Salary - Supervisor              $66,916        $66,916       $64,342        $61,868       $59,488
Technical Salary - Technician             $438,856       $428,056      $405,137       $394,220      $395,567
Technical Salary - Dispatcher                   $0             $0            $0             $0            $0
Technical Salary - Installers             $153,076       $148,029      $132,929       $114,762      $124,670
Overtime/Standby                          $240,880       $158,241      $125,429       $133,982      $101,432
Payroll Taxes                              $70,188        $66,258       $61,895        $59,987       $55,772
Group Insurance                            $67,928        $69,287       $53,433        $30,569       $98,650
Other Benefits                             $15,000        $13,404       $25,668        $37,410       $44,592
Allocated Personnel Expense              ($491,592)     ($449,977)    ($405,626)     ($408,422)    ($390,803)
Allocated P/R Benefit                     ($40,232)      ($87,450)     ($84,926)      ($76,166)    ($122,091)
Allocated Department Expense                  $368            $92            $0             $0         ($433)
Rent - Headend                             $33,600        $34,100       $34,900        $33,600       $33,600
Rent - Poles and Ducts                     $14,412        $67,017       $78,490        $97,371       $53,318
R & M Plant                                $16,252        $15,538       $10,113         $5,916        $4,751
R & M Converter                            $17,404        $18,647       $14,051         $4,852        $1,581
R & M Other                                $13,416         $6,072        $6,202         $4,084        $2,138
Material and Reconnect                     $11,612         $9,544        $9,481         $7,208        $4,800
Vehicle - Gas & Oil                        $30,272        $28,896       $22,128        $22,015       $21,404
Vehicle - Service                          $10,972        $14,128       $17,710        $16,800        $7,986
Leased Vehicles                                 $0             $0            $0             $0       $13,384
T & E System Travel                             $0             $0           $58             $0          $150
T & E System Non-Travel                     $1,932           $578            $0            $63           $78
Dues & Subscriptions                          $112           $203          $522           $925          $586
Education                                       $0           $409          $132           $497          $506
System Power Costs                         $73,180        $68,318       $72,792        $77,598       $62,774
Recruiting                                      $0             $0            $0             $0            $0
Loss on Converters                          $1,800         $1,800        $1,800         $1,800        $1,800
Property Taxes                            $551,156       $364,690      $264,900       $184,185      $309,246
Uniforms                                    $7,660         $7,304        $6,791         $5,435        $6,621
Small Tool and Safety                           $0           $800          $400           $156          $169
Capital Labor & OH Construction                 $0             $0            $0             $0            $0
Capital Labor & OH Customer                     $0             $0            $0             $0            $0
P&L Salary - Producer Assistant            $22,864        $22,738       $22,198        $20,016       $15,600
Payroll Taxes                               $2,176         $1,899        $1,886         $1,669        $1,227
Group Insurance                             $1,388         $1,500        $1,240         $1,571        $1,993
Other Benefits                              $2,656         $1,744        $1,488         $1,512        $1,230
Employee Commissions                            $0             $0        $2,320            $25            $0
P&L, Other expenses                        $11,440         $6,113          $568             $0            $0
Ad Sales Salary Supervisor                  $5,412         $5,412        $5,412        $20,810       $20,290
Ad Sales Payroll Taxes                      $7,380         $7,630        $7,577         $7,271        $4,587
Ad Sales Group Insurance                    $6,792         $7,730        $5,863         $3,813        $7,225
Ad Sales Other Benefits                       $136           $286          $336         $1,334        $1,824
Ad Sales Alloc. Personnel Benefit          $12,092        $11,163       $15,788       ($23,115)      ($1,733)
Ad Sales Alloc. P/R Benefit                ($1,940)       ($6,535)        ($666)       ($1,626)         $552
Employee Commissions                       $21,712        $25,626       $44,203        $74,049       $37,482
Other Ad Sale Expenses                     $10,000        $13,751       $21,732        $23,572       $16,294
Marketing Payroll Taxes                         $0             $0            $0             $0            $0
Marketing Salary & Benefits                     $0             $0            $0             $0            $0
Marketing Allocated P/R Benefit                 $0             $0            $0             $0           $43
Marketing Employee Commissions              $2,104           $978          $314         $1,718        $8,039
Marketing Expenses                        $126,088        $88,866       $48,533        $95,148       $44,100
Dues and Subscriptions                        $952           $727        $2,002         $1,071        $4,022
Rebates                                         $0             $0            $0        ($2,316)           $0
Pay Per View Expenses                         $632         $3,346        $1,594         $1,259        $8,552
Video Game Expenses                             $0             $0            $0             $0            $0
Miscellaneous Marketing Expenses           $15,320         $8,772        $7,778        $14,530        $9,203
G&A Salary - Supervisor                    $37,656        $42,579       $76,266        $73,332       $70,512
G&A Salary - CSR                          $245,688       $238,058      $219,595       $210,635      $219,528
G&A Overtime/Standby                       $11,620         $8,125        $4,440         $4,369        $3,662
G&A Payroll Taxes                          $33,936        $28,519       $26,888        $25,899       $24,930
G&A Group Insurance                        $32,724        $34,834       $24,036        $13,087       $42,772
G&A Other Benefits                              $0         $2,840        $6,897             $0       $32,992
G&A Contract Labor                              $0             $0        $1,538           $644            $0
G&A Allocated Personnel Expense          ($152,356)     ($152,428)    ($166,526)     ($166,962)    ($164,094)
G&A Allocated P/R Expense                 ($24,132)      ($37,524)     ($34,543)      ($33,445)     ($51,431)
Allocated Department Expense              ($68,400)      ($38,441)     ($62,558)      ($70,956)     ($66,737)
Rent - Office                               $6,300         $6,300        $6,300         $6,200        $5,700
R&M - Office                               $10,292        $11,845        $9,379        $10,703       $13,365
Office Supplies                             $7,056         $8,291        $9,775        $10,288        $7,292
Xerox & Printing                            $4,452         $5,224        $4,344         $4,396        $4,273
Vehicle - Gas & Oil                         $1,992         $2,322        $1,613         $1,585        $1,209
T&E System Travel                           $8,616         $5,803          $542           $251        $1,490
T&E System Non-Travel                       $1,076           $386          $984           $951          $672
Dues and Subscriptions                        $324         $1,442        $1,380           $890        $1,164
Conventions - Travel                            $0           $310           $13           $650          $484
Conventions - Non Travel                        $0             $0           $28             $0            $0
Education                                   $4,612         $3,691        $3,889         $2,096        $2,613
Recruiting                                      $0            $21            $0             $0            $0
Insurance                                 $205,420       $137,803      $165,149       $162,277      $175,848
Legal                                      $25,684        $15,871       $12,263        $12,000        $7,000
</TABLE>



<PAGE>   158

SYSTEM LOCATION:  SOMERSET, KY

<TABLE>
<CAPTION>
                                    -------------------------------------------------------------------------
                                       ADJUSTED       ADJUSTED      ADJUSTED       ADJUSTED      ADJUSTED
                                     THREE MONTHS  TWELVE MONTHS  TWELVE MONTHS TWELVE MONTHS  TWELVE MONTHS
                                    ENDING 12/31/96    ENDING        ENDING         ENDING        ENDING
                                      ANNUALIZED      12/31/96      12/31/95       12/31/94      12/31/93
                                    -------------------------------------------------------------------------
<S>                                 <C>            <C>            <C>           <C>            <C>
Audit & Taxes                               $9,140         $9,010       $25,604        $39,812       $16,246
Association - Dues                         $13,564        $13,832        $6,574         $7,318        $7,312
Association - Lobbying                      $2,604         $2,271        $1,212         $1,202            $0
Political Contribution                        $400           $100            $0             $0            $0
Donations/Public Relations                  $4,736         $7,848        $6,135         $5,021        $4,256
Customer Billing                           $85,000        $85,197       $95,517        $98,893       $88,898
Postage & Messengers                       $84,440        $85,890       $83,629        $78,104       $77,033
Utilities                                  $13,500        $13,060       $12,222        $11,663       $11,281
Telephone                                  $40,448        $32,119       $27,776        $27,991       $28,860
Tax & Licenses                              $1,164         $1,563        $1,437           $270          $753
FCC User Fees                              $10,632        $10,619        $8,678         $7,257            $0
Reregulation Costs                         $52,928        $30,024        $7,841        $25,519       $13,010
CATV Franchise                            $159,708       $164,256      $179,949       $148,978      $160,945
Copyright Fees                             $91,524        $98,852       $78,077        $73,468       $63,629
BMI License Fees                                $0         $4,526            $0             $0            $0
ASCAP License Fees                         $13,136         $8,445            $0             $0            $0
Bad Debt Expense                           $30,584        $51,395       $65,460        $96,890       $69,142
Cap. Labor & OH Other                           $0             $0            $0             $0            $0
G & A Miscellaneous Expense                $26,492        $10,069        $9,182         $7,050        $7,250
Primary Satellite Fees                    $978,912       $925,578      $803,806       $657,702      $649,739
Program Guides                              $4,348        $10,712       $20,788        $16,367       $13,018
Pay TV Fees                               $220,604       $251,372      $275,154       $234,780      $218,302
Pay Per View Fees                           $8,268         $6,730         ($237)        $4,149        $3,914
Video Game Fees                                 $0             $0            $0             $0            $0
                                               ---            ---           ---            ---           ---

Total Expenses                          $3,797,064     $3,401,985    $3,129,413     $2,864,350    $2,839,098

Operating Income                        $4,319,392     $3,688,880    $3,169,789     $3,023,951    $2,796,534

Operating Margin                            53.22%         52.02%        50.32%         51.36%        49.62%
</TABLE>

<PAGE>   159


[LOGO - ARTHUR ANDERSEN LLP]





                             ADDENDUM 4 Demographics

<PAGE>   160
                            SERVICE AREA DEMOGRAPHICS

<TABLE>
<CAPTION>
                                                                                ANNUAL
                                                    1/1/96         1/1/01       CHANGE
                                                    ------         ------      -------
<S>                                           <C>             <C>           <C>  
BURKE COUNTY, NC

POPULATION                                          81,000          85,500       1.09%
HOUSEHOLDS                                          31,200          33,200       1.25%
MEDIAN AGE                                            37.1           N/A
AVERAGE HOUSEHOLD EBI                              $32,427         $38,191       3.33%

STATE OF NORTH CAROLINA

POPULATION                                       7,527,800       7,845,900       0.83%
HOUSEHOLDS                                       2,775,800       3,056,700       1.95%
MEDIAN AGE                                            33.5           N/A
AVERAGE HOUSEHOLD EBI                              $36,360         $43,414       3.61%

KERN COUNTY, CALIFORNIA

POPULATION                                         627,900         674,300       1.44%
HOUSEHOLDS                                         203,400         218,200       1.41%
MEDIAN AGE                                            30.9           N/A
AVERAGE HOUSEHOLD EBI                              $35,099         $38,197       1.71%

STATE OF CALIFORNIA

POPULATION                                      32,362,300      33,276,700       0.56%
HOUSEHOLDS                                      10,898,600      11,190,500       0.53%
MEDIAN AGE                                            32.9           N/A
AVERAGE HOUSEHOLD EBI                              $43,427         $46,677       1.45%

KENT COUNTY, MARYLAND

POPULATION                                          18,900          19,400       0.52%
HOUSEHOLDS                                           7,300           7,800       1.33%
MEDIAN AGE                                            38.5           N/A
AVERAGE HOUSEHOLD EBI                              $37,878         $40,407       1.30%

QUEEN ANNE'S COUNTY, MARYLAND

POPULATION                                          36,700          38,800       1.12%
HOUSEHOLDS                                          13,700          14,800       1.56%
MEDIAN AGE                                            37.1           N/A
AVERAGE HOUSEHOLD EBI                              $43,959         $47,376       1.51%

TALBOT COUNTY, MARYLAND

POPULATION                                          32,600          34,500       1.14%
HOUSEHOLDS                                          13,500          14,500       1.44%
MEDIAN AGE                                            41.1           N/A
AVERAGE HOUSEHOLD EBI                              $45,806         $54,151       3.40%
</TABLE>


<PAGE>   161

<TABLE>
<S>                                           <C>             <C>           <C>  
STATE OF MARYLAND

POPULATION                                       5,072,900       5,299,500       0.88%
HOUSEHOLDS                                       1,859,100       1,964,800       1.11%
MEDIAN AGE                                            35.0           N/A
AVERAGE HOUSEHOLD EBI                              $46,295         $51,496       2.15%

TOTAL SERVICE AREA - 
  STATE OF MARYLAND

POPULATION                                          88,200          92,700       1.00%
HOUSEHOLDS                                          34,500          37,100       1.46%

DESCHUTES COUNTY, OREGON

POPULATION                                          95,600         110,900       3.01%
HOUSEHOLDS                                          37,500          44,000       3.25%
MEDIAN AGE                                            37.3           N/A
AVERAGE HOUSEHOLD EBI                              $34,515         $39,764       2.87%


STATE OF OREGON

POPULATION                                       3,166,800       3,431,000       1.62%
HOUSEHOLDS                                       1,227,300       1,342,200       1.81%
MEDIAN AGE                                            38.7           N/A
AVERAGE HOUSEHOLD EBI                              $25,986         $31,884       4.18%

ADAIR COUNTY, KENTUCKY

POPULATION                                          16,300          17,300       1.20%
HOUSEHOLDS                                           6,300           6,800       1.54%
MEDIAN AGE                                            36.9           N/A
AVERAGE HOUSEHOLD EBI                              $25,986         $31,884       4.18%


PULASKI COUNTY, KENTUCKY

POPULATION                                          55,000          59,900       1.72%
HOUSEHOLDS                                          21,100          23,400       2.09%
MEDIAN AGE                                            37.0           N/A
AVERAGE HOUSEHOLD EBI                              $27,746         $34,345       4.36%


LAUREL COUNTY, KENTUCKY

POPULATION                                          48,600          53,000       1.75%
HOUSEHOLDS                                          17,600          19,600       2.18%
MEDIAN AGE                                            34.2           N/A
AVERAGE HOUSEHOLD EBI                              $27,345         $32,701       3.64%
</TABLE>

<PAGE>   162

<TABLE>
<S>                                           <C>             <C>           <C>  
LINCOLN COUNTY, KENTUCKY

POPULATION                                          21,700          23,200       1.35%
HOUSEHOLDS                                           8,100           8,600       1.21%
MEDIAN AGE                                            35.7           N/A
AVERAGE HOUSEHOLD EBI                              $27,595         $36,183       5.57%


TOTAL SERVICE AREA - 
  STATE OF KENTUCKY

POPULATION                                         141,600         153,400       1.61%
HOUSEHOLDS                                          53,100          58,400       1.92%

STATE OF KENTUCKY

POPULATION                                       3,876,100       4,020,000       0.73%
HOUSEHOLDS                                       1,457,000       1,537,200       1.08%
MEDIAN AGE                                            34.7           N/A
AVERAGE HOUSEHOLD EBI                              $33,594         $41,428       4.28%

UNITED STATES

POPULATION                                     264,900,090     276,107,000       0.83%
HOUSEHOLDS                                      97,647,400     102,813,100       1.04%
MEDIAN AGE                                            34.8           N/A
AVERAGE HOUSEHOLD EBI                              $40,598         $47,002       2.97%


TOTAL SERVICE AREA - 
  ENTIRE SYSTEM

POPULATION                                      40,924,400      42,239,400       0.63%
HOUSEHOLDS                                      14,034,100      14,638,100       0.85%
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