##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-Q


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|  
|   |  | For the quarterly period ended March 31, 2005                                               
|  
|OR
|  
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|  
|   |  | For the transition period
    from           to                                             

Commission file number 000-50671


Liberty Media International, Inc.


(Exact name of Registrant as specified in its charter)


|                                                                                        |  |                                         
|--------------------------------------------------------------------------------------- |  | ----------------------------------------
|State of Delaware                                                                       |  | 20-0893138                              
|(State or other jurisdiction of
    incorporation or organization)                      |  | (I.R.S. Employer
    Identification No.)
|                                                                                       
|12300 Liberty Boulevard
    Englewood, Colorado(Address of principal executive offices) |  | 80112(Zip Code)                         

Registrants telephone number, including area code:


(720) 875-5800


þ o


o þ
















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TABLE OF CONTENTS



|                                                                   |  |  |  |  |  |  |  | 
|------------------------------------------------------------------ |  |  |  |  |  |  |  | 
|CONDENSED CONSOLIDATED BALANCE SHEETS                             
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                   
|CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS)
|CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY          
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                   
|NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS              
|PART II -- OTHER INFORMATION                                      
|SIGNATURES                                                        
|EXHIBIT INDEX                                                     
|Rule 13a-14(a)/15d-14(a) Certification                            
|Rule 13a-14(a)/15d-14(a) Certification                            
|Rule 13a-14(a)/15d-14(a) Certification                            
|Section 1350 Certification                                        



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)







CONDENSED CONSOLIDATED BALANCE SHEETS


(unaudited)


|                                                                                                       |                            |                      |           |              |            |  |           |           |            | 
|------------------------------------------------------------------------------------------------------ | -------------------------- | -------------------- | --------- | ------------ | ---------- |  | --------- | --------- | ---------- | 
|                                                                                                       |                            | March 31,            |           | December 31,
|                                                                                                       |                            | 2005                 |           | 2004        
|                                                                                                       |                            |                      |           |             
|                                                                                                       |                            | amounts in thousands
|ASSETS                                                                                                
|Current assets:                                                                                        |                            |                      |           |              |            |  |           |          
|                                                                                                       | Cash and cash equivalents  |                      | $         | 3,076,092    |            |  |           | 2,531,486 |           
|                                                                                                       | Trade receivables, net     |                      |           | 270,946      |            |  |           | 201,519   |           
|                                                                                                       | Other receivables, net     |                      |           | 68,098       |            |  |           | 165,631   |           
|                                                                                                       | Other current assets       |                      |           | 318,873      |            |  |           | 293,947   |           
|                                                                                                       |                            |                      |           |              |            |  |           |          
|                                                                                                       |                            | Total current assets |           |              | 3,734,009  |  |           |           | 3,192,583  | 
|                                                                                                       |                            |                      |           |              |            |  |           |          
|Investments in affiliates, accounted for using the equity
    method, and related receivables (note 6) |                            |                      | 755,093   |              |            |  | 1,865,642 |          
|                                                                                                      
|Other investments                                                                                      |                            |                      | 864,623   |              |            |  | 838,608   |          
|                                                                                                      
|Property and equipment, net (note 8)                                                                   |                            |                      | 6,460,367 |              |            |  | 4,303,099 |          
|                                                                                                      
|Intangible assets not subject to amortization:                                                         |                            |                      |           |              |            |  |           |          
|                                                                                                       | Goodwill (note 8)          |                      |           | 4,520,803    |            |  |           | 2,667,279 |           
|                                                                                                       | Franchise rights and other |                      |           | 227,807      |            |  |           | 230,674   |           
|                                                                                                       |                            |                      |           |              |            |  |           |          
|                                                                                                       |                            |                      | 4,748,610 |              |            |  | 2,897,953 |          
|                                                                                                       |                            |                      |           |              |            |  |           |          
|                                                                                                      
|Intangible assets subject to amortization, net                                                         |                            |                      | 371,391   |              |            |  | 382,599   |          
|                                                                                                      
|Deferred tax assets                                                                                    |                            |                      | 38,953    |              |            |  | 77,313    |          
|                                                                                                      
|Other assets, net                                                                                      |                            |                      | 302,227   |              |            |  | 144,566   |          
|                                                                                                       |                            |                      |           |              |            |  |           |          
|                                                                                                       |                            | Total assets         |           | $            | 17,275,273 |  |           |           | 13,702,363 | 
|                                                                                                       |                            |                      |           |              |            |  |           |          

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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


CONDENSED CONSOLIDATED BALANCE
SHEETS  (Continued)


(unaudited)


|                                                      |                                                                                                                                                                                   |                                            |           |              |            |  |           |            |            | 
|----------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | --------- | ------------ | ---------- |  | --------- | ---------- | ---------- | 
|                                                      |                                                                                                                                                                                   | March 31,                                  |           | December 31,
|                                                      |                                                                                                                                                                                   | 2005                                       |           | 2004        
|                                                      |                                                                                                                                                                                   |                                            |           |             
|                                                      |                                                                                                                                                                                   | amounts in thousands                      
|                                                     
|LIABILITIES AND STOCKHOLDERS EQUITY                 
|Current liabilities:                                  |                                                                                                                                                                                   |                                            |           |              |            |  |           |           
|                                                      | Accounts payable                                                                                                                                                                  |                                            | $         | 454,767      |            |  |           | 363,549    |           
|                                                      | Accrued liabilities and other                                                                                                                                                     |                                            |           | 613,695      |            |  |           | 667,647    |           
|                                                      | Subscriber advance payments and deposits                                                                                                                                          |                                            |           | 343,970      |            |  |           | 353,069    |           
|                                                      | Current portion of debt and capital lease obligations
    (note 9)                                                                                                                |                                            |           | 170,480      |            |  |           | 36,827     |           
|                                                      |                                                                                                                                                                                   |                                            |           |              |            |  |           |           
|                                                      |                                                                                                                                                                                   | Total current liabilities                  |           |              | 1,582,912  |  |           |            | 1,421,092  | 
|                                                     
|Long-term debt and capital lease obligations (note 9) |                                                                                                                                                                                   |                                            | 6,471,308 |              |            |  | 4,955,919 |           
|Deferred revenue (note 10)                            |                                                                                                                                                                                   |                                            | 402,332   |              |            |  | 161       |           
|Deferred tax liabilities                              |                                                                                                                                                                                   |                                            | 457,862   |              |            |  | 458,138   |           
|Other long-term liabilities                           |                                                                                                                                                                                   |                                            | 447,389   |              |            |  | 409,837   |           
|                                                      |                                                                                                                                                                                   |                                            |           |              |            |  |           |           
|                                                      |                                                                                                                                                                                   | Total liabilities                          |           |              | 9,361,803  |  |           |            | 7,245,147  | 
|                                                      |                                                                                                                                                                                   |                                            |           |              |            |  |           |           
|Commitments and contingencies (note 13)               |                                                                                                                                                                                   |                                            |           |              |            |  |           |           
|                                                     
|Minority interests in subsidiaries                    |                                                                                                                                                                                   |                                            | 2,641,180 |              |            |  | 1,216,710 |           
|                                                     
|Stockholders Equity:                                 |                                                                                                                                                                                   |                                            |           |              |            |  |           |           
|                                                      | Series A common stock, $.01 par value. Authorized
    500,000,000 shares; issued 168,555,331 and
    168,514,962 shares at March 31, 2005 and
    December 31, 2004, respectively |                                            |           | 1,685        |            |  |           | 1,685      |           
|                                                      | Series B common stock, $.01 par value. Authorized
    50,000,000 shares; issued and outstanding
    7,264,300 shares                                                              |                                            |           | 73           |            |  |           | 73         |           
|                                                      | Series C common stock, $.01 par value. Authorized
    500,000,000 shares; no shares issued                                                                                        |                                            |           |             |            |  |           |           |           
|                                                      | Additional paid-in capital                                                                                                                                                        |                                            |           | 7,110,525    |            |  |           | 7,001,635  |           
|                                                      | Accumulated deficit                                                                                                                                                               |                                            |           | (1,622,673   | )          |  |           | (1,649,007 | )         
|                                                      | Accumulated other comprehensive earnings (loss), net of taxes                                                                                                                     |                                            |           | (89,430      | )          |  |           | 14,010     |           
|                                                      | Treasury stock, at cost                                                                                                                                                           |                                            |           | (127,890     | )          |  |           | (127,890   | )         
|                                                      |                                                                                                                                                                                   |                                            |           |              |            |  |           |           
|                                                      |                                                                                                                                                                                   | Total stockholders equity                 |           |              | 5,272,290  |  |           |            | 5,240,506  | 
|                                                      |                                                                                                                                                                                   |                                            |           |              |            |  |           |           
|                                                      |                                                                                                                                                                                   | Total liabilities and stockholders equity |           | $            | 17,275,273 |  |           |            | 13,702,363 | 
|                                                      |                                                                                                                                                                                   |                                            |           |              |            |  |           |           



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)







CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


(unaudited)


|                                                                                           |                                                                                    |                                                            |           |         |        |  |         |         |          |  
|------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------- | ---------------------------------------------------------- | --------- | ------- | ------ |  | ------- | ------- | -------- | -
|                                                                                           |                                                                                    | Three months ended                                        
|                                                                                           |                                                                                    | March 31,                                                 
|                                                                                           |                                                                                    |                                                           
|                                                                                           |                                                                                    | 2005                                                       |           | 2004   
|                                                                                           |                                                                                    |                                                            |           |        
|                                                                                           |                                                                                    | amounts in thousands,                                     
|                                                                                           |                                                                                    | except per share amounts                                  
|Revenue (note 11)                                                                          |                                                                                    | $                                                          | 1,235,250 |         |        |  | 576,200 |        
|                                                                                           |                                                                                    |                                                            |           |         |        |  |         |        
|Operating costs and expenses:                                                              |                                                                                    |                                                            |           |         |        |  |         |        
|                                                                                           | Operating (other than depreciation) (note 11)                                      |                                                            |           | 502,275 |        |  |         | 222,760 |         
|                                                                                           | Selling, general and administrative (SG&A) (note 11)                               |                                                            |           | 284,100 |        |  |         | 148,012 |         
|                                                                                           | Stock-based compensation expense  primarily SG&A
    (note 3)                     |                                                            |           | 18,655  |        |  |         | 63,745  |         
|                                                                                           | Depreciation and amortization (note 8)                                             |                                                            |           | 327,591 |        |  |         | 221,512 |         
|                                                                                           | Restructuring and other charges (note 14)                                          |                                                            |           | 4,863   |        |  |         | 3,901   |         
|                                                                                           |                                                                                    |                                                            |           |         |        |  |         |        
|                                                                                           |                                                                                    |                                                            | 1,137,484 |         |        |  | 659,930 |        
|                                                                                           |                                                                                    |                                                            |           |         |        |  |         |        
|                                                                                           |                                                                                    | Operating income (loss)                                    |           |         | 97,766 |  |         |         | (83,730  | )
|                                                                                           |                                                                                    |                                                            |           |         |        |  |         |        
|Other income (expense):                                                                    |                                                                                    |                                                            |           |         |        |  |         |        
|                                                                                           | Interest expense (note 11)                                                         |                                                            |           | (91,028 | )      |  |         | (72,485 | )       
|                                                                                           | Interest and dividend income (note 11)                                             |                                                            |           | 20,536  |        |  |         | 8,966   |         
|                                                                                           | Share of earnings (losses) of affiliates, net (note 6)                             |                                                            |           | (21,324 | )      |  |         | 16,090  |         
|                                                                                           | Realized and unrealized gains (losses) on derivative
    instruments, net (note 7) |                                                            |           | 85,868  |        |  |         | (13,031 | )       
|                                                                                           | Foreign currency transaction losses, net                                           |                                                            |           | (64,762 | )      |  |         | (20,858 | )       
|                                                                                           | Gain (loss) on extinguishment of debt                                              |                                                            |           | (11,980 | )      |  |         | 31,916  |         
|                                                                                           | Gains (losses) on disposition of assets, net (notes 5 and
    12)                  |                                                            |           | 69,572  |        |  |         | (1,842  | )       
|                                                                                           | Other income (expense), net                                                        |                                                            |           | 684     |        |  |         | (8,178  | )       
|                                                                                           |                                                                                    |                                                            |           |         |        |  |         |        
|                                                                                           |                                                                                    |                                                            | (12,434   | )       |        |  | (59,422 | )      
|                                                                                           |                                                                                    |                                                            |           |         |        |  |         |        
|                                                                                           |                                                                                    | Earnings (loss) before income taxes and minority interests |           |         | 85,332 |  |         |         | (143,152 | )
|Income tax expense                                                                         |                                                                                    |                                                            | (45,697   | )       |        |  | (9,743  | )      
|Minority interests in losses (earnings) of subsidiaries, net                               |                                                                                    |                                                            | (13,301   | )       |        |  | 68,944  |        
|                                                                                           |                                                                                    |                                                            |           |         |        |  |         |        
|                                                                                           |                                                                                    | Net earnings (loss)                                        |           | $       | 26,334 |  |         |         | (83,951  | )
|                                                                                           |                                                                                    |                                                            |           |         |        |  |         |        
|Historical and pro forma earnings (loss) per common
    share  basic and diluted (note 2) |                                                                                    | $                                                          | 0.15      |         |        |  | (0.55   | )      
|                                                                                           |                                                                                    |                                                            |           |         |        |  |         |        



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)







CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(LOSS)


(unaudited)


|                                            |                                                                                                        |                                     |         |          |          |   |         |        |        | 
|------------------------------------------- | ------------------------------------------------------------------------------------------------------ | ----------------------------------- | ------- | -------- | -------- | - | ------- | ------ | ------ | 
|                                            |                                                                                                        | Three months ended                 
|                                            |                                                                                                        | March 31,                          
|                                            |                                                                                                        |                                    
|                                            |                                                                                                        | 2005                                |         | 2004    
|                                            |                                                                                                        |                                     |         |         
|                                            |                                                                                                        | amounts in thousands               
|Net earnings (loss)                         |                                                                                                        | $                                   | 26,334  |          |          |   | (83,951 | )     
|                                            |                                                                                                        |                                     |         |          |          |   |         |       
|Other comprehensive earnings, net of taxes: |                                                                                                        |                                     |         |          |          |   |         |       
|                                            | Foreign currency translation adjustments                                                               |                                     |         | (100,170 | )        |   |         | 6,774  |       
|                                            | Reclassification adjustment for foreign currency translation
    gains included in net earnings (loss) |                                     |         | (855     | )        |   |         |       |       
|                                            | Unrealized gains (losses) on available-for-sale securities                                             |                                     |         | (1,889   | )        |   |         | 12,174 |       
|                                            | Unrealized loss on cash flow hedge                                                                     |                                     |         | (526     | )        |   |         |       |       
|                                            |                                                                                                        |                                     |         |          |          |   |         |       
|                                            |                                                                                                        | Other comprehensive earnings (loss) |         |          | (103,440 | ) |         |        | 18,948 | 
|                                            |                                                                                                        |                                     |         |          |          |   |         |       
|Comprehensive loss                          |                                                                                                        | $                                   | (77,106 | )        |          |   | (65,003 | )     
|                                            |                                                                                                        |                                     |         |          |          |   |         |       



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)







CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS
EQUITY


(unaudited)


|                           |                                                                         |                                   |       |             |  |             |    |                  |  |          |   |               |  |         |           |         |   |  |            |        |  |  |         |          |   |  |          |   |  |  |           |          |  
|-------------------------- | ----------------------------------------------------------------------- | --------------------------------- | ----- | ----------- |  | ----------- | -- | ---------------- |  | -------- | - | ------------- |  | ------- | --------- | ------- | - |  | ---------- | ------ |  |  | ------- | -------- | - |  | -------- | - |  |  | --------- | -------- | -
|                           |                                                                         | Three months ended March 31, 2005
|                           |                                                                         |                                  
|                           |                                                                         |                                   |       | Accumulated |  |            
|                           |                                                                         |                                   |       |             |  | other       |    |                 
|                           |                                                                         | Common stock                      |       | Additional  |  |             |    | comprehensive    |  | Treasury |   | Total        
|                           |                                                                         |                                   |       | Paid-In     |  | Accumulated |    | earnings (loss), |  | stock,   |   | stockholders
|                           |                                                                         | Series A                          |       | Series B    |  | Series C    |    | Capital          |  | Deficit  |   | net of taxes  |  | at cost |           | equity 
|                           |                                                                         |                                   |       |             |  |             |    |                  |  |          |   |               |  |         |           |        
|                           |                                                                         | amounts in thousands             
|Balance at January 1, 2005 |                                                                         | $                                 | 1,685 |             |  |             | 73 |                  |  |          |  |               |  |         | 7,001,635 |         |   |  | (1,649,007 | )      |  |  | 14,010  |          |   |  | (127,890 | ) |  |  | 5,240,506 |         
|                           | Net earnings                                                            |                                   |       |            |  |             |    |                 |  |          |   |              |  |         |           |        |   |  |            | 26,334 |  |  |         |         |   |  |          |  |  |  |           | 26,334   |  
|                           | Other comprehensive loss, net of taxes                                  |                                   |       |            |  |             |    |                 |  |          |   |              |  |         |           |        |   |  |            |       |  |  |         | (103,440 | ) |  |          |  |  |  |           | (103,440 | )
|                           | Adjustment due to issuance of stock by J:COM (note 5)                   |                                   |       |            |  |             |    |                 |  |          |   |              |  |         |           | 110,512 |   |  |            |       |  |  |         |         |   |  |          |  |  |  |           | 110,512  |  
|                           | Stock issued in connection with equity incentive plans                  |                                   |       |            |  |             |    |                 |  |          |   |              |  |         |           | 1,369   |   |  |            |       |  |  |         |         |   |  |          |  |  |  |           | 1,369    |  
|                           | Stock-based compensation, net of taxes (note 3)                         |                                   |       |            |  |             |    |                 |  |          |   |              |  |         |           | (2,648  | ) |  |            |       |  |  |         |         |   |  |          |  |  |  |           | (2,648   | )
|                           | Adjustments due to other changes in subsidiary equity, net of
    taxes |                                   |       |            |  |             |    |                 |  |          |   |              |  |         |           | (343    | ) |  |            |       |  |  |         |         |   |  |          |  |  |  |           | (343     | )
|                           |                                                                         |                                   |       |             |  |             |    |                  |  |          |   |               |  |         |           |         |   |  |            |        |  |  |         |          |   |  |          |   |  |  |           |         
|Balance at March 31, 2005  |                                                                         | $                                 | 1,685 |             |  |             | 73 |                  |  |          |  |               |  |         | 7,110,525 |         |   |  | (1,622,673 | )      |  |  | (89,430 | )        |   |  | (127,890 | ) |  |  | 5,272,290 |         
|                           |                                                                         |                                   |       |             |  |             |    |                  |  |          |   |               |  |         |           |         |   |  |            |        |  |  |         |          |   |  |          |   |  |  |           |         



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)







CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(unaudited)


|                                      |                                                                                                |                                                                                      |                       |                                                  |         |          |         |         |         |        |         | 
|------------------------------------- | ---------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------ | --------------------- | ------------------------------------------------ | ------- | -------- | ------- | ------- | ------- | ------ | ------- | 
|                                      |                                                                                                | Three months ended                                                                  
|                                      |                                                                                                | March 31,                                                                           
|                                      |                                                                                                |                                                                                     
|                                      |                                                                                                | 2005                                                                                 |                       | 2004                                            
|                                      |                                                                                                |                                                                                      |                       |                                                 
|                                      |                                                                                                | amounts in thousands                                                                
|Cash flows from operating activities: |                                                                                                |                                                                                      |                       |                                                  |         |          |         |        
|                                      | Net earnings (loss)                                                                            |                                                                                      | $                     | 26,334                                           |         |          |         | (83,951 | )      
|                                      | Adjustments to reconcile net earnings (loss) to net cash
    provided by operating activities: |                                                                                      |                       |                                                  |         |          |         |         |        
|                                      |                                                                                                | Stock-based compensation expense                                                     |                       |                                                  | 18,655  |          |         |         | 63,745  |       
|                                      |                                                                                                | Depreciation and amortization                                                        |                       |                                                  | 327,591 |          |         |         | 221,512 |       
|                                      |                                                                                                | Restructuring and other charges                                                      |                       |                                                  | 4,863   |          |         |         | 3,901   |       
|                                      |                                                                                                | Accretion of interest expense and amortization of deferred
    financing costs       |                       |                                                  | 15,992  |          |         |         | 2,931   |       
|                                      |                                                                                                | Share of losses (earnings) of affiliates, net                                        |                       |                                                  | 21,324  |          |         |         | (16,090 | )     
|                                      |                                                                                                | Realized and unrealized losses (gains) on derivative
    instruments, net            |                       |                                                  | (85,868 | )        |         |         | 13,031  |       
|                                      |                                                                                                | Foreign currency transaction losses, net                                             |                       |                                                  | 64,762  |          |         |         | 20,858  |       
|                                      |                                                                                                | Loss (gain) on extinguishment of debt                                                |                       |                                                  | 11,980  |          |         |         | (31,916 | )     
|                                      |                                                                                                | Losses (gains) on disposition of assets, net                                         |                       |                                                  | (69,572 | )        |         |         | 1,842   |       
|                                      |                                                                                                | Deferred income tax expense                                                          |                       |                                                  | 29,062  |          |         |         | 12,813  |       
|                                      |                                                                                                | Minority interests in earnings (losses) of subsidiaries                              |                       |                                                  | 13,301  |          |         |         | (68,944 | )     
|                                      |                                                                                                | Non-cash recognition of deferred revenue                                             |                       |                                                  | (7,826  | )        |         |         |        |       
|                                      |                                                                                                | Other noncash items                                                                  |                       |                                                  |        |          |         |         | 1,419   |       
|                                      |                                                                                                | Changes in operating assets and liabilities, net of the effects
    of acquisitions: |                       |                                                  |         |          |         |         |         |       
|                                      |                                                                                                |                                                                                      | Receivables and other |                                                  |         | 99,732   |         |         |         | 753    |        
|                                      |                                                                                                |                                                                                      | Payables and accruals |                                                  |         | (167,313 | )       |         |         | (7,185 | )      
|                                      |                                                                                                |                                                                                      |                       |                                                  |         |          |         |        
|                                      |                                                                                                |                                                                                      |                       | Net cash provided by operating activities        |         |          | 303,017 |         |         |        | 134,719 | 
|                                      |                                                                                                |                                                                                      |                       |                                                  |         |          |         |        
|Cash flows from investing activities: |                                                                                                |                                                                                      |                       |                                                  |         |          |         |        
|                                      | Capital expended for property and equipment                                                    |                                                                                      |                       | (248,690                                         | )       |          |         | (89,546 | )      
|                                      | Proceeds received upon disposition of assets                                                   |                                                                                      |                       | 91,137                                           |         |          |         |        |        
|                                      | Cash received (paid) for acquisitions, net of cash acquired                                    |                                                                                      |                       | (78,122                                          | )       |          |         | 294,534 |        
|                                      | Return of cash previously paid into escrow in connection with
    2004 acquisition             |                                                                                      |                       | 56,493                                           |         |          |         |        |        
|                                      | Net cash received (paid) to purchase or settle derivative
    instruments                      |                                                                                      |                       | 65,876                                           |         |          |         | (32,754 | )      
|                                      | Purchases of short-term liquid investments                                                     |                                                                                      |                       | (16,233                                          | )       |          |         | (17,487 | )      
|                                      | Proceeds from sale of short-term liquid investments                                            |                                                                                      |                       | 46,869                                           |         |          |         |        |        
|                                      | Change in restricted cash                                                                      |                                                                                      |                       | 26,019                                           |         |          |         | 6,105   |        
|                                      | Investments in and loans to affiliates and others                                              |                                                                                      |                       | (332                                             | )       |          |         | (62,705 | )      
|                                      | Other investing activities, net                                                                |                                                                                      |                       | (4,523                                           | )       |          |         | (4,357  | )      
|                                      |                                                                                                |                                                                                      |                       |                                                  |         |          |         |        
|                                      |                                                                                                |                                                                                      |                       | Net cash provided (used) by investing activities |         | $        | (61,506 | )       |         |        | 93,790  | 
|                                      |                                                                                                |                                                                                      |                       |                                                  |         |          |         |        

I-6



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS  (Continued)


(unaudited)


|                                      |                                                  |                                           |                         |            |         |           |  |          |           |           | 
|------------------------------------- | ------------------------------------------------ | ----------------------------------------- | ----------------------- | ---------- | ------- | --------- |  | -------- | --------- | --------- | 
|                                      |                                                  | Three months ended                       
|                                      |                                                  | March 31,                                
|                                      |                                                  |                                          
|                                      |                                                  | 2005                                      |                         | 2004      
|                                      |                                                  |                                           |                         |           
|                                      |                                                  | amounts in thousands                     
|Cash flows from financing activities: |                                                  |                                           |                         |            |         |           |  |         
|                                      | Borrowings of debt                               |                                           | $                       | 3,340,448  |         |           |  | 18,773   |          
|                                      | Repayments of debt and capital lease obligations |                                           |                         | (3,704,802 | )       |           |  | (113,594 | )        
|                                      | Proceeds from issuance of stock by subsidiaries  |                                           |                         | 775,796    |         |           |  | 475,404  |          
|                                      | Deferred financing costs                         |                                           |                         | (44,329    | )       |           |  | (20,724  | )        
|                                      | Contributions from Liberty Media Corporation     |                                           |                         |           |         |           |  | 694,710  |          
|                                      | Other financing activities, net                  |                                           |                         | 1,369      |         |           |  | 833      |          
|                                      |                                                  |                                           |                         |            |         |           |  |         
|                                      |                                                  | Net cash provided by financing activities |                         |            | 368,482 |           |  |          | 1,055,402 |          
|                                      |                                                  |                                           |                         |            |         |           |  |         
|                                     
|                                      |                                                  | Effect of exchange rates on cash          |                         |            | (65,387 | )         |  |          | (9,741    | )        
|                                      |                                                  |                                           |                         |            |         |           |  |         
|                                      |                                                  | Net increase in cash and cash equivalents |                         |            | 544,606 |           |  |          | 1,274,170 |          
|                                      |                                                  | Cash and cash equivalents:                |                         |            |         |           |  |          |           |          
|                                      |                                                  |                                           | Beginning of period     |            |         | 2,531,486 |  |          |           | 12,753    | 
|                                      |                                                  |                                           |                         |            |         |           |  |         
|                                      |                                                  |                                           | End of period           |            | $       | 3,076,092 |  |          |           | 1,286,923 | 
|                                      |                                                  |                                           |                         |            |         |           |  |         
|                                     
|                                      |                                                  |                                           | Cash paid for interest  |            | $       | 125,587   |  |          |           | 106,809   | 
|                                      |                                                  |                                           |                         |            |         |           |  |         
|                                      |                                                  |                                           | Net cash paid for taxes |            | $       | 16,397    |  |          |           | 4,099     | 
|                                      |                                                  |                                           |                         |            |         |           |  |         



I-7



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)







NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(unaudited)




|    |                      
|--- | ---------------------
|(1) | Basis of Presentation







| |   |                                                                                             
| | - | --------------------------------------------------------------------------------------------
| |  | UnitedGlobalCom, Inc. (UGC)                                                                 
|
| |  | LMI/ Sumisho Super Media LLC (Super Media)/ Jupiter
    Telecommunications Co., Ltd. (J:COM)
|
| |  | Liberty Cablevision of Puerto Rico Ltd. (Liberty Cablevision
    Puerto Rico)               
|
| |  | Pramer S.C.A. (Pramer)                                                                      

UGC




Super Media/J:COM


Liberty Cablevision Puerto Rico and Pramer




I-8



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)










|    |                                 
|--- | --------------------------------
|(2) | Earnings (Loss) per Common Share









I-9



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




|                                                                                                           |                                             |                              |             |             |  |  |             |             | 
|---------------------------------------------------------------------------------------------------------- | ------------------------------------------- | ---------------------------- | ----------- | ----------- |  |  | ----------- | ----------- | 
|                                                                                                           |                                             | Three months ended March 31,
|                                                                                                           |                                             |                             
|                                                                                                           |                                             | 2005                         |             | 2004       
|                                                                                                           |                                             |                              |             |            
|Basic:                                                                                                     |                                             |                              |             |             |  |  |             |            
|Weighted average common shares outstanding before adjustment                                               |                                             |                              | 172,791,920 |             |  |  | 145,974,318 |            
|Adjustment for July 2004 LMI Rights Offering                                                               |                                             |                              |            |             |  |  | 6,866,484   |            
|                                                                                                           |                                             |                              |             |             |  |  |             |            
|                                                                                                           | Weighted average common shares, as adjusted |                              |             | 172,791,920 |  |  |             | 152,840,802 | 
|                                                                                                           |                                             |                              |             |             |  |  |             |            
|Diluted:                                                                                                   |                                             |                              |             |             |  |  |             |            
|Weighted average common shares outstanding before adjustment                                               |                                             |                              | 172,791,920 |             |  |  | 145,974,318 |            
|Adjustment for July 2004 LMI Rights Offering                                                               |                                             |                              |            |             |  |  | 6,866,484   |            
|Incremental shares attributable to the assumed exercise of
    outstanding options (treasury stock method) |                                             |                              | 681,164     |             |  |  |            |            
|                                                                                                           |                                             |                              |             |             |  |  |             |            
|                                                                                                           | Weighted average common shares, as adjusted |                              |             | 173,473,084 |  |  |             | 152,840,802 | 
|                                                                                                           |                                             |                              |             |             |  |  |             |            





|    |                         
|--- | ------------------------
|(3) | Stock-Based Compensation



| |                  
| | -----------------
| | Fair Value Method





| |                       
| | ----------------------
| | Intrinsic Value Method



I-10



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




















I-11



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




|                                             |                                                                                                       |                       |        |         |   |  |         |         |  
|-------------------------------------------- | ----------------------------------------------------------------------------------------------------- | --------------------- | ------ | ------- | - |  | ------- | ------- | -
|                                             |                                                                                                       | Three months ended   
|                                             |                                                                                                       | March 31,            
|                                             |                                                                                                       |                      
|                                             |                                                                                                       | 2005                  |        | 2004   
|                                             |                                                                                                       |                       |        |        
|                                             |                                                                                                       | amounts in thousands,
|                                             |                                                                                                       | except per share     
|                                             |                                                                                                       | amounts              
|Net earnings (loss)                          |                                                                                                       | $                     | 26,334 |         |   |  | (83,951 | )      
|                                             | Add stock-based compensation expense as determined under the
    intrinsic value method, net of taxes |                       |        | 2,066   |   |  |         | 16,969  |  
|                                             | Deduct stock-based compensation expense as determined under the
    fair value method, net of taxes   |                       |        | (16,124 | ) |  |         | (13,879 | )
|                                             |                                                                                                       |                       |        |         |   |  |         |        
|Pro forma net earnings (loss)                |                                                                                                       | $                     | 12,276 |         |   |  | (80,861 | )      
|                                             |                                                                                                       |                       |        |         |   |  |         |        
|Basic and diluted earnings (loss) per share: |                                                                                                       |                       |        |         |   |  |         |        
|                                             | As reported                                                                                           |                       | $      | 0.15    |   |  |         | (0.55   | )
|                                             |                                                                                                       |                       |        |         |   |  |         |        
|                                             | Pro forma                                                                                             |                       | $      | 0.07    |   |  |         | (0.53   | )
|                                             |                                                                                                       |                       |        |         |   |  |         |        



| |                         
| | ------------------------
| | J:COM Stock Option Plans





|                                            |  |          
|------------------------------------------- |  | ---------
|Options outstanding                         |  | 208,494  
|Weighted average exercise price             |  | ¥80,000  
|Weighted average remaining contractual life |  | 6.5 years
|Options exercisable                         |  | 152,758  



|    |                                 
|--- | --------------------------------
|(4) | Recent Accounting Pronouncements

Share-Based Payment


I-12



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)






|    |                              
|--- | -----------------------------
|(5) | Acquisitions and Dispositions



| |                                              
| | ---------------------------------------------
| | Proposed Acquisition of UGC Minority Interest







| |                                       
| | --------------------------------------
| | Consolidation of Super Media and J:COM



I-13



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)










I-14



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




|                                      |                                              |                                            |   |           |           | 
|------------------------------------- | -------------------------------------------- | ------------------------------------------ | - | --------- | --------- | 
|                                      |                                              | Increase                                  
|                                      |                                              | (decrease)                                
|                                      |                                              |                                           
|                                      |                                              | amounts                                   
|                                      |                                              | in                                        
|                                      |                                              | thousands                                 
|Assets:                               |                                              |                                            |   |          
|                                      | Cash                                         |                                            | $ | 101,749   |          
|                                      | Other current assets                         |                                            |   | 158,587   |          
|                                      | Property and equipment, net                  |                                            |   | 2,427,315 |          
|                                      | Goodwill                                     |                                            |   | 1,875,285 |          
|                                      | Investments in affiliates                    |                                            |   | (985,289  | )        
|                                      | Other assets, net                            |                                            |   | 127,491   |          
|                                      |                                              |                                            |   |          
|                                      |                                              | Total assets                               |   | $         | 3,705,138 | 
|                                      |                                              |                                            |   |          
|                                     
|Liabilities and stockholders equity: |                                              |                                            |   |          
|                                      | Current liabilities                          |                                            | $ | 372,650   |          
|                                      | Long-term debt and capital lease obligations |                                            |   | 1,895,210 |          
|                                      | Deferred income tax liabilities              |                                            |   | 32,979    |          
|                                      | Other long-term liabilities                  |                                            |   | 591,802   |          
|                                      | Minority interests in subsidiaries           |                                            |   | 812,497   |          
|                                      |                                              |                                            |   |          
|                                      |                                              | Total liabilities and stockholders equity |   | $         | 3,705,138 | 
|                                      |                                              |                                            |   |          





I-15



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




| |                                                                                           
| | ------------------------------------------------------------------------------------------
| | Acquisitions of Noos and the Remaining 19.9% Minority
    Interest in UPC Broadband France









| |               
| | --------------
| | Pro Forma Data



|                                 |  |                          |           |  
|-------------------------------- |  | ------------------------ | --------- | -
|                                 |  | Three months ended      
|                                 |  | March 31, 2004          
|                                 |  |                         
|                                 |  | amounts in thousands,   
|                                 |  | except per share amounts
|Revenue                          |  | $                        | 1,028,247 |  
|Net loss                         |  | $                        | (91,189   | )
|Basic and diluted loss per share |  | $                        | (0.60     | )



| |            
| | -----------
| | NTL Ireland



I-16



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)


 






 


Consolidation of Variable Interest
Entities


I-17



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)






| |                   
| | ------------------
| | Other Acquisitions

Zone Vision






Telemach 


Chofu


Accounting Treatment of Zone Vision, Telemach and Chofu
Acquisitions


I-18



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)






| |             
| | ------------
| | Dispositions

EWT Holding GmbH  








|    |                                                                    
|--- | -------------------------------------------------------------------
|(6) | Investments in Affiliates Accounted for Using the Equity
    Method



|                                         |  |                             |         |              |  |          |         |  |  |  |           | 
|---------------------------------------- |  | --------------------------- | ------- | ------------ |  | -------- | ------- |  |  |  | --------- | 
|                                         |  |                             |         | December 31,
|                                         |  | March 31, 2005              |         | 2004        
|                                         |  |                             |         |             
|                                         |  | Percentage                  |         | Carrying     |  | Carrying
|                                         |  | ownership                   |         | amount       |  | amount  
|                                         |  |                             |         |              |  |         
|                                         |  | dollar amounts in thousands
|Super Media/ J:COM                       |  |                             | *       |              |  | $        |        |  |  |  | 1,052,468 | 
|Jupiter Programming Co., Ltd. (JPC)      |  |                             | 50%     |              |  |          | 272,242 |  |  |  | 290,224   | 
|Telenet Group Holdings N.V. (Telenet)    |  |                             | 19%     |              |  |          | 205,281 |  |  |  | 232,649   | 
|Mediatti Communications, Inc. (Mediatti) |  |                             | 37%     |              |  |          | 52,006  |  |  |  | 58,586    | 
|Metrópolis-Intercom S.A. (Metrópolis)    |  |                             | 50%     |              |  |          | 47,812  |  |  |  | 57,344    | 
|Other                                    |  |                             | Various |              |  |          | 177,752 |  |  |  | 174,371   | 
|                                         |  |                             |         |              |  |          |         |  |  |  |           | 
|                                         |  |                             |         |              |  | $        | 755,093 |  |  |  | 1,865,642 | 
|                                         |  |                             |         |              |  |          |         |  |  |  |           | 






|  |                                                                                                                                    
|- | -----------------------------------------------------------------------------------------------------------------------------------
|* | For information concerning our ownership interest in Super Media
    and Super Medias ownership interest in J:COM, see
    note 5.

I-19



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




|                   |  |                      |         |      |  |  |        |  
|------------------ |  | -------------------- | ------- | ---- |  |  | ------ | -
|                   |  | Three months ended  
|                   |  | March 31,           
|                   |  |                     
|                   |  | 2005                 |         | 2004
|                   |  |                      |         |     
|                   |  | amounts in thousands
|Super Media/ J:COM |  | $                    |        |      |  |  | 16,414 |  
|JPC                |  |                      | 8,612   |      |  |  | 3,331  |  
|Telenet            |  |                      | (5,939  | )    |  |  |       |  
|Mediatti           |  |                      | (4,088  | )    |  |  | (867   | )
|Metrópolis         |  |                      | (6,782  | )    |  |  | (3,281 | )
|TyC                |  |                      | (18,468 | )    |  |  | 1,883  |  
|Other              |  |                      | 5,341   |      |  |  | (1,390 | )
|                   |  |                      |         |      |  |  |        |  
|                   |  | $                    | (21,324 | )    |  |  | 16,090 |  
|                   |  |                      |         |      |  |  |        |  



| |                   
| | ------------------
| | Super Media/ J:COM





|                                 |                                      |              |           |           | 
|-------------------------------- | ------------------------------------ | ------------ | --------- | --------- | 
|                                 |                                      | December 31,
|                                 |                                      | 2004        
|                                 |                                      |             
|Financial Position               |                                      |              |           |          
|Investments                      |                                      | $            | 65,178    |          
|Property and equipment, net      |                                      |              | 2,441,196 |          
|Intangible and other assets, net |                                      |              | 1,783,162 |          
|                                 |                                      |              |           |          
|                                 | Total assets                         |              | $         | 4,289,536 | 
|                                 |                                      |              |           |          
|Debt                             |                                      | $            | 2,260,805 |          
|Other liabilities                |                                      |              | 677,595   |          
|Owners equity                   |                                      |              | 1,351,136 |          
|                                 |                                      |              |           |          
|                                 | Total liabilities and owners equity |              | $         | 4,289,536 | 
|                                 |                                      |              |           |          

I-20



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)


|                                                        |                  |           |          |        | 
|------------------------------------------------------- | ---------------- | --------- | -------- | ------ | 
|                                                        |                  | Three    
|                                                        |                  | months   
|                                                        |                  | ended    
|                                                        |                  | March 31,
|                                                        |                  | 2004     
|                                                        |                  |          
|Results of Operations                                   |                  |           |          |       
|Revenue                                                 |                  | $         | 359,367  |       
|Operating, selling, general and administrative expenses |                  |           | (217,839 | )     
|Stock compensation expense                              |                  |           | (156     | )     
|Depreciation and amortization                           |                  |           | (84,832  | )     
|                                                        |                  |           |          |       
|                                                        | Operating income |           |          | 56,540 | 
|Interest expense, net                                   |                  |           | (18,530  | )     
|Other, net                                              |                  |           | (1,695   | )     
|                                                        |                  |           |          |       
|                                                        | Net earnings     |           | $        | 36,315 | 
|                                                        |                  |           |          |       



| |        
| | -------
| | Telenet





| |                          
| | -------------------------
| | VTR and Metrópolis Merger



I-21



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)








| |                                         
| | ----------------------------------------
| | Disposition of Interests in TyC and FPAS



I-22



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




|    |                       
|--- | ----------------------
|(7) | Derivative Instruments



|                                                                   |          |                      |         |              |  |  |         |        | 
|------------------------------------------------------------------ | -------- | -------------------- | ------- | ------------ |  |  | ------- | ------ | 
|                                                                   |          | March 31,            |         | December 31,
|                                                                   |          | 2005                 |         | 2004        
|                                                                   |          |                      |         |             
|                                                                   |          | amounts in thousands
|UGC cross-currency and interest rate swaps                         |          | $                    | 6,512   |              |  |  | (25,648 | )     
|UGC interest rate caps                                             |          |                      | (5,597  | )            |  |  | 2,384   |       
|Foreign exchange contracts                                         |          |                      | 3,707   |              |  |  | (5,257  | )     
|Variable forward transaction (News Corp. Class A common
    stock) |          |                      | 1,643   |              |  |  | (3,305  | )     
|Call agreements on LMI Series A common stock                       |          |                      |        |              |  |  | 49,218  |       
|Total return debt swaps                                            |          |                      |        |              |  |  | 23,731  |       
|Other                                                              |          |                      | (1,043  | )            |  |  | (48     | )     
|                                                                   |          |                      |         |              |  |  |         |       
|                                                                   | Total(1) |                      | $       | 5,222        |  |  |         | 41,075 | 
|                                                                   |          |                      |         |              |  |  |         |       
|Current asset                                                      |          | $                    | 6,005   |              |  |  | 73,507  |       
|Current liability                                                  |          |                      | (496    | )            |  |  | (14,636 | )     
|Long-term asset                                                    |          |                      | 16,680  |              |  |  | 2,568   |       
|Long-term liability                                                |          |                      | (16,967 | )            |  |  | (20,364 | )     
|                                                                   |          |                      |         |              |  |  |         |       
|                                                                   | Total(1) |                      | $       | 5,222        |  |  |         | 41,075 | 
|                                                                   |          |                      |         |              |  |  |         |       






|    |                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Excludes embedded derivative component of UGC Convertible Notes
    as amount is presented in long-term debt and capital lease
    obligations in the accompanying condensed consolidated balance
    sheet. See note 9.



|                                                                   |  |                      |         |      |  |  |         |  
|------------------------------------------------------------------ |  | -------------------- | ------- | ---- |  |  | ------- | -
|                                                                   |  | Three months ended  
|                                                                   |  | March 31,           
|                                                                   |  |                     
|                                                                   |  | 2005                 |         | 2004
|                                                                   |  |                      |         |     
|                                                                   |  | amounts in thousands
|UGC embedded derivatives                                           |  | $                    | 55,159  |      |  |  |        |  
|UGC cross-currency and interest rate swaps                         |  |                      | 30,388  |      |  |  | 3,475   |  
|UGC interest rate caps                                             |  |                      | (10,208 | )    |  |  | (7,500  | )
|Foreign exchange contracts                                         |  |                      | 7,046   |      |  |  | (9,476  | )
|Variable forward transaction (News Corp. Class A common
    stock) |  |                      | 4,947   |      |  |  |        |  
|Total return debt swaps                                            |  |                      | (1,633  | )    |  |  | 470     |  
|Other                                                              |  |                      | 169     |      |  |  |        |  
|                                                                   |  |                      |         |      |  |  |         |  
|                                                                   |  | $                    | 85,868  |      |  |  | (13,031 | )
|                                                                   |  |                      |         |      |  |  |         |  



| |                         
| | ------------------------
| | UGC Embedded Derivatives



I-23



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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




| |                                                    
| | ---------------------------------------------------
| | UGC Cross-currency and Interest Rate Swaps and Caps

 




   




| |                           
| | --------------------------
| | Foreign Exchange Contracts





| |                             
| | ----------------------------
| | Variable Forward Transaction



I-24



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)






| |                                             
| | --------------------------------------------
| | Call Agreements on LMI Series A common stock





| |                        
| | -----------------------
| | Total Return Debt Swaps





| |                  
| | -----------------
| | J:COM Derivatives

Foreign Currency Forward Contracts


Interest Rate Swaps and Caps




I-25



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




|    |                  
|--- | -----------------
|(8) | Long-Lived Assets



| |                            
| | ---------------------------
| | Property and equipment, net



|                                      |  |                      |            |              |  |  |            |  
|------------------------------------- |  | -------------------- | ---------- | ------------ |  |  | ---------- | -
|                                      |  | March 31,            |            | December 31,
|                                      |  | 2005                 |            | 2004        
|                                      |  |                      |            |             
|                                      |  | amounts in thousands
|Cable distribution systems            |  | $                    | 8,530,423  |              |  |  | 5,280,307  |  
|Support equipment, buildings and land |  |                      | 157,738    |              |  |  | 23,601     |  
|                                      |  |                      |            |              |  |  |            |  
|                                      |  |                      | 8,688,161  |              |  |  | 5,303,908  |  
|Accumulated depreciation              |  |                      | (2,227,794 | )            |  |  | (1,000,809 | )
|                                      |  |                      |            |              |  |  |            |  
|Property and equipment, net           |  | $                    | 6,460,367  |              |  |  | 4,303,099  |  
|                                      |  |                      |            |              |  |  |            |  









| |         
| | --------
| | Goodwill



|                                |           |                      |           |              |  |                 |        |                  |  |           |        |         |   |  |         |          |   |  |           |           | 
|------------------------------- | --------- | -------------------- | --------- | ------------ |  | --------------- | ------ | ---------------- |  | --------- | ------ | ------- | - |  | ------- | -------- | - |  | --------- | --------- | 
|                                |           |                      |           |              |  | Release of      |        |                  |  |          
|                                |           |                      |           |              |  | pre-acquisition |        |                  |  |          
|                                |           |                      |           |              |  | valuation       |        | Foreign currency |  |          
|                                |           | January 1,           |           |              |  | allowance and   |        | translation      |  | March 31,
|                                |           | 2005                 |           | Acquisitions |  | other           |        | adjustments      |  | 2005     
|                                |           |                      |           |              |  |                 |        |                  |  |          
|                                |           | amounts in thousands
|UGC Broadband  The Netherlands |           | $                    | 823,496   |              |  |                 |       |                  |  |           | (1,634 | )       |   |  | (33,609 | )        |   |  | 788,253   |          
|UGC Broadband  France          |           |                      | 6,494     |              |  |                 |       |                  |  |           | 541    |         |   |  | (216    | )        |   |  | 6,819     |          
|UGC Broadband  Austria         |           |                      | 545,214   |              |  |                 |       |                  |  |           | (1,840 | )       |   |  | (22,251 | )        |   |  | 521,123   |          
|UGC Broadband  Other Europe    |           |                      | 596,415   |              |  |                 | 63,416 |                  |  |           | (5,113 | )       |   |  | (22,188 | )        |   |  | 632,530   |          
|UGC Broadband  Chile (VTR)     |           |                      | 199,086   |              |  |                 |       |                  |  |           | (1,471 | )       |   |  | (9,509  | )        |   |  | 188,106   |          
|J:COM(1)                        |           |                      | 2,077,861 |              |  |                 | 37,792 |                  |  |           | (4,380 | )       |   |  | (61,273 | )        |   |  | 2,050,000 |          
|All other                       |           |                      | 293,998   |              |  |                 | 40,255 |                  |  |           |       |         |   |  | (281    | )        |   |  | 333,972   |          
|                                |           |                      |           |              |  |                 |        |                  |  |           |        |         |   |  |         |          |   |  |           |          
|                                | Total LMI |                      | $         | 4,542,564    |  |                 |        | 141,463          |  |           |        | (13,897 | ) |  |         | (149,327 | ) |  |           | 4,520,803 | 
|                                |           |                      |           |              |  |                 |        |                  |  |           |        |         |   |  |         |          |   |  |           |          






|    |                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The January 1, 2005 balance for J:COM includes
    $1,875,285,000 that is associated with the January 1, 2005
    consolidation of Super Media and J:COM. See note 5.

I-26



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




|    |                                   
|--- | ----------------------------------
|(9) | Debt and Capital Lease Obligations



|                                            |                                                    |                      |          |              |  |  |         |           | 
|------------------------------------------- | -------------------------------------------------- | -------------------- | -------- | ------------ |  |  | ------- | --------- | 
|                                            |                                                    | March 31,            |          | December 31,
|                                            |                                                    | 2005                 |          | 2004        
|                                            |                                                    |                      |          |             
|                                            |                                                    | amounts in thousands
|Debt (excluding capital lease obligations): |                                                    |                      |          |              |  |  |         |          
|                                            | UGC                                                |                      | $        | 4,752,420    |  |  |         | 4,804,554 | 
|                                            | J:COM                                              |                      |          | 1,401,376    |  |  |         |          | 
|                                            | Liberty Cablevision Puerto Rico and Pramer         |                      |          | 137,834      |  |  |         | 139,838   | 
|Capital lease obligations of UGC and J:COM  |                                                    |                      | 350,158  |              |  |  | 48,354  |          
|                                            |                                                    |                      |          |              |  |  |         |          
|                                            | Total debt and capital lease obligations           |                      |          | 6,641,788    |  |  |         | 4,992,746 | 
|Current maturities                          |                                                    |                      | (170,480 | )            |  |  | (36,827 | )        
|                                            |                                                    |                      |          |              |  |  |         |          
|                                            | Total long-term debt and capital lease obligations |                      | $        | 6,471,308    |  |  |         | 4,955,919 | 
|                                            |                                                    |                      |          |              |  |  |         |          



| |         
| | --------
| | UGC Debt



|                                                    |       |                      |           |              |  |  |           |           | 
|--------------------------------------------------- | ----- | -------------------- | --------- | ------------ |  |  | --------- | --------- | 
|                                                    |       | March 31,            |           | December 31,
|                                                    |       | 2005                 |           | 2004        
|                                                    |       |                      |           |             
|                                                    |       | amounts in thousands
|UPC Broadband Bank Facility                         |       | $                    | 3,985,596 |              |  |  | 3,927,830 |          
|UGC Convertible Notes                               |       |                      | 588,997   |              |  |  | 655,809   |          
|Other UGC debt, excluding capital lease obligations |       |                      | 177,827   |              |  |  | 220,915   |          
|                                                    |       |                      |           |              |  |  |           |          
|                                                    | Total |                      | $         | 4,752,420    |  |  |           | 4,804,554 | 
|                                                    |       |                      |           |              |  |  |           |          



| |                            
| | ---------------------------
| | UPC Broadband Bank Facility





I-27



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)


     




|         |       |              |      |                  |  |                      |                |              |  |   |           |           |  |  |           |           | 
|-------- | ----- | ------------ | ---- | ---------------- |  | -------------------- | -------------- | ------------ |  | - | --------- | --------- |  |  | --------- | --------- | 
|         |       |              |      | March 31, 2005   |  |                     
|         |       |              |      |                  |  |                     
|         |       | Denomination |      |                  |  | Outstanding          |                | December 31,
|Facility |       | Currency     |      | Interest rate(4) |  | principal amount     |                | 2004        
|         |       |              |      |                  |  |                      |                |             
|         |       |              |      |                  |  | amounts in thousands
|A(1)(2)  |       |              | Euro |                  |  |                      | EURIBOR + 2.75 | %            |  | $ |          |           |  |  |          |          
|B        |       |              | Euro |                  |  |                      |               |              |  |   |          |           |  |  | 1,581,927 |          
|C1       |       |              | Euro |                  |  |                      |               |              |  |   |          |           |  |  | 60,464    |          
|C2       |       |              | USD  |                  |  |                      |               |              |  |   |          |           |  |  | 176,020   |          
|E        |       |              | Euro |                  |  |                      |               |              |  |   |          |           |  |  | 1,393,501 |          
|F1(1)    |       |              | Euro |                  |  |                      | EURIBOR + 4.00 | %            |  |   | 183,126   |           |  |  | 190,918   |          
|F2(1)    |       |              | USD  |                  |  |                      | LIBOR + 3.50   | %            |  |   | 525,000   |           |  |  | 525,000   |          
|G        |       |              | Euro |                  |  |                      | EURIBOR + 2.50 | %            |  |   | 1,308,045 |           |  |  |          |          
|H1       |       |              | Euro |                  |  |                      | EURIBOR + 2.75 | %            |  |   | 719,425   |           |  |  |          |          
|H2       |       |              | USD  |                  |  |                      | LIBOR + 2.75   | %            |  |   | 1,250,000 |           |  |  |          |          
|I(1)(2)  |       |              | Euro |                  |  |                      | EURIBOR + 2.50 | %            |  |   |          |           |  |  |          |          
|         |       |              |      |                  |  |                      |                |              |  |   |           |           |  |  |           |          
|         | Total |              |      |                  |  |                      |                |              |  |   | $         | 3,985,596 |  |  |           | 3,927,830 | 
|         |       |              |      |                  |  |                      |                |              |  |   |           |           |  |  |           |          






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The interest rate margin is variable based on certain leverage
    ratios.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(2) | Facilities A and I are revolving credit facilities, and each
    provides up to
    500 million
    ($654 million) of borrowing capacity that can be used to
    finance additional permitted acquisitions and for general
    corporate purposes, subject to covenant compliance. Based on
    March 31, 2005 covenants, the aggregate amount that was
    available for borrowing under these Facilities was approximately
    500 million
    ($654 million). As a result of scheduled changes in
    required covenants at December 31, 2005 and future
    compliance dates, the ability of UGC to maintain or increase the
    borrowing availability under these Facilities is dependent on
    its ability to increase its EBITDA or reduce its senior debt.
    Facility A provides for an annual commitment fee of 0.5%, and
    Facility I provides for an annual commitment fee of 0.75%, of
    the unused portion of each Facility.

I-28



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




|    |                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | As of March 31, 2005, six month EURIBOR and LIBOR rates
    were approximately 2.2% and 3.4%, respectively. The
    weighted-average interest rate on all Facilities at
    March 31, 2005 was approximately 5.0%.



| |                      
| | ---------------------
| | UGC Convertible Notes

 3 4  




|                           |  |                      |         |              |  |  |         | 
|-------------------------- |  | -------------------- | ------- | ------------ |  |  | ------- | 
|                           |  | March 31,            |         | December 31,
|                           |  | 2005                 |         | 2004        
|                           |  |                      |         |             
|                           |  | amounts in thousands
|Debt host contract         |  | $                    | 450,344 |              |  |  | 462,164 | 
|Embedded equity derivative |  |                      | 138,653 |              |  |  | 193,645 | 
|                           |  |                      |         |              |  |  |         | 
|                           |  | $                    | 588,997 |              |  |  | 655,809 | 
|                           |  |                      |         |              |  |  |         | 

I-29



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




| |               
| | --------------
| | Other UGC Debt





| |           
| | ----------
| | J:COM Debt



|                                                      |  |            |           | 
|----------------------------------------------------- |  | ---------- | --------- | 
|                                                      |  | March 31, 
|                                                      |  | 2005      
|                                                      |  |           
|                                                      |  | amounts in
|                                                      |  | thousands 
|Senior Facility (Term Loan Facility)                  |  | $          | 1,213,252 | 
|Other J:COM debt, excluding capital lease obligations |  |            | 188,124   | 
|                                                      |  |            |           | 
|                                                      |  | $          | 1,401,376 | 
|                                                      |  |            |           | 



| |                
| | ---------------
| | Senior Facility









I-30



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)












| |                 
| | ----------------
| | Other J:COM Debt







| |                                                
| | -----------------------------------------------
| | Liberty Cablevision Puerto Rico and Pramer Debt



I-31



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




| |                                                 
| | ------------------------------------------------
| | Maturities of Debt and Capital Lease Obligations



|                                                                                                   |                       |                    |           |           |           |  
|-------------------------------------------------------------------------------------------------- | --------------------- | ------------------ | --------- | --------- | --------- | -
|Nine months ended December 31, 2005                                                                |                       | $                  | 51,850    |          
|Year ended December 31, 2006                                                                       |                       |                    | 134,790   |          
|Year ended December 31, 2007                                                                       |                       |                    | 220,494   |          
|Year ended December 31, 2008                                                                       |                       |                    | 325,006   |          
|Year ended December 31, 2009                                                                       |                       |                    | 433,710   |          
|Thereafter                                                                                         |                       |                    | 5,190,805 |          
|                                                                                                   |                       |                    |           |          
|                                                                                                   | Total debt maturities |                    |           | 6,356,655 |          
|Unamortized discount on UGC Convertible Notes, net of fair value
    of embedded equity derivative |                       |                    | (65,025   | )        
|                                                                                                   |                       |                    |           |          
|                                                                                                   | Total debt            |                    |           | 6,291,630 |          
|                                                                                                   |                       | Current portion    |           |           | (78,152   | )
|                                                                                                   |                       |                    |           |          
|                                                                                                   |                       | Noncurrent portion |           | $         | 6,213,478 |  
|                                                                                                   |                       |                    |           |          



|                                    |                                             |                    |         |         |         |  
|----------------------------------- | ------------------------------------------- | ------------------ | ------- | ------- | ------- | -
|Nine months ended December 31, 2005 |                                             | $                  | 81,585  |        
|Year ended December 31, 2006        |                                             |                    | 89,371  |        
|Year ended December 31, 2007        |                                             |                    | 68,189  |        
|Year ended December 31, 2008        |                                             |                    | 51,027  |        
|Year ended December 31, 2009        |                                             |                    | 38,662  |        
|Thereafter                          |                                             |                    | 71,951  |        
|                                    |                                             |                    |         |        
|                                    |                                             |                    | 400,785 |        
|Less: amount representing interest  |                                             |                    | (50,627 | )      
|                                    |                                             |                    |         |        
|                                    | Present value of net minimum lease payments |                    |         | 350,158 |        
|                                    |                                             | Current portion    |         |         | (92,328 | )
|                                    |                                             |                    |         |        
|                                    |                                             | Noncurrent portion |         | $       | 257,830 |  
|                                    |                                             |                    |         |        



|     |                 
|---- | ----------------
|(10) | Deferred Revenue



I-32



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)






|     |                           
|---- | --------------------------
|(11) | Related Party Transactions



















I-33



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)












|     |                                         
|---- | ----------------------------------------
|(12) | Transactions with Officers and Directors



| |                      
| | ---------------------
| | VLG Acquisition Corp.





I-34



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)






|     |                              
|---- | -----------------------------
|(13) | Commitments and Contingencies



| |            
| | -----------
| | Commitments



|                                           |  |                      |         |                          |  |      |         |      |  |      |         |            |  |       |        |  |  |  |        |  |  |  |         |  |  |  |         | 
|------------------------------------------ |  | -------------------- | ------- | ------------------------ |  | ---- | ------- | ---- |  | ---- | ------- | ---------- |  | ----- | ------ |  |  |  | ------ |  |  |  | ------- |  |  |  | ------- | 
|                                           |  | Payments due during: |         |                         
|                                           |  |                      |         |                         
|                                           |  | Nine months ended    |         | Years ended December 31, |  |      |         |     
|                                           |  | December 31,         |         |                          |  |      |         |     
|                                           |  | 2005                 |         | 2006                     |  | 2007 |         | 2008 |  | 2009 |         | Thereafter |  | Total
|                                           |  |                      |         |                          |  |      |         |      |  |      |         |            |  |      
|                                           |  | amounts in thousands
|Operating leases                           |  | $                    | 125,563 |                          |  |      | 90,210  |      |  |      | 81,623  |            |  |       | 58,633 |  |  |  | 49,383 |  |  |  | 128,214 |  |  |  | 533,626 | 
|Programming and other purchase obligations |  |                      | 114,562 |                          |  |      | 29,799  |      |  |      | 11,292  |            |  |       | 7,962  |  |  |  | 4,403  |  |  |  | 18,090  |  |  |  | 186,108 | 
|Other commitments                          |  |                      | 55,217  |                          |  |      | 7,919   |      |  |      | 7,694   |            |  |       | 5,289  |  |  |  | 5,585  |  |  |  | 23,303  |  |  |  | 105,007 | 
|                                           |  |                      |         |                          |  |      |         |      |  |      |         |            |  |       |        |  |  |  |        |  |  |  |         |  |  |  |         | 
|                                           |  | $                    | 295,342 |                          |  |      | 127,928 |      |  |      | 100,609 |            |  |       | 71,884 |  |  |  | 59,371 |  |  |  | 169,607 |  |  |  | 824,741 | 
|                                           |  |                      |         |                          |  |      |         |      |  |      |         |            |  |       |        |  |  |  |        |  |  |  |         |  |  |  |         | 







I-35



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




| |                       
| | ----------------------
| | Contingent Obligations















| |                                         
| | ----------------------------------------
| | Guarantees and Other Credit Enhancements





I-36



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)






| |                                          
| | -----------------------------------------
| | Legal Proceedings and Other Contingencies

Cignal


Class Action Lawsuits Relating to the Merger Transaction
with UGC


The Netherlands 2004 Rate Increases


I-37



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)


Income Taxes






|     |                      
|---- | ---------------------
|(14) | Restructuring Charges



|                                              |       |                      |        |          |  |              |        |        |  |       |        |        |  |  |       |       |  |  |        |        | 
|--------------------------------------------- | ----- | -------------------- | ------ | -------- |  | ------------ | ------ | ------ |  | ----- | ------ | ------ |  |  | ----- | ----- |  |  | ------ | ------ | 
|                                              |       | Employee             |        |          |  | Programming  |        |        |  |      
|                                              |       | severance            |        |          |  | and lease    |        |        |  |      
|                                              |       | and                  |        | Office   |  | contract     |        |        |  |      
|                                              |       | termination          |        | closures |  | terminations |        | Other  |  | Total
|                                              |       |                      |        |          |  |              |        |        |  |      
|                                              |       | amounts in thousands
|Restructuring liability as of January 1, 2005 |       | $                    | 10,623 |          |  |              | 29,925 |        |  |       | 30,528 |        |  |  | 1,522 |       |  |  | 72,598 |       
|Restructuring charges                         |       |                      | 528    |          |  |              |       |        |  |       | 4,335  |        |  |  |      |       |  |  | 4,863  |       
|Cash paid and other releases                  |       |                      | (3,922 | )        |  |              | (2,366 | )      |  |       | (1,340 | )      |  |  | (39   | )     |  |  | (7,667 | )     
|Foreign currency translation adjustments      |       |                      | (431   | )        |  |              | (1,157 | )      |  |       | 117    |        |  |  | (19   | )     |  |  | (1,490 | )     
|                                              |       |                      |        |          |  |              |        |        |  |       |        |        |  |  |       |       |  |  |        |       
|Restructuring liability as of March 31, 2005  |       | $                    | 6,798  |          |  |              | 26,402 |        |  |       | 33,640 |        |  |  | 1,464 |       |  |  | 68,304 |       
|                                              |       |                      |        |          |  |              |        |        |  |       |        |        |  |  |       |       |  |  |        |       
|Short-term portion                            |       | $                    | 2,769  |          |  |              | 4,666  |        |  |       | 4,535  |        |  |  | 267   |       |  |  | 12,237 |       
|Long-term portion                             |       |                      | 4,029  |          |  |              | 21,736 |        |  |       | 29,105 |        |  |  | 1,197 |       |  |  | 56,067 |       
|                                              |       |                      |        |          |  |              |        |        |  |       |        |        |  |  |       |       |  |  |        |       
|                                              | Total |                      | $      | 6,798    |  |              |        | 26,402 |  |       |        | 33,640 |  |  |       | 1,464 |  |  |        | 68,304 | 
|                                              |       |                      |        |          |  |              |        |        |  |       |        |        |  |  |       |       |  |  |        |       



|     |                                     
|---- | ------------------------------------
|(15) | Information about Operating Segments



I-38



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)








| |   |                                
| | - | -------------------------------
| |  | UGC Broadband  The Netherlands
|
| |  | UGC Broadband  France         
|
| |  | UGC Broadband  Austria        
|
| |  | UGC Broadband  Other Europe   
|
| |  | UGC Broadband  Chile (VTR)    
|
| |  | J:COM                          







I-39



---



##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)








| |                     
| | --------------------
| | Performance Measures

|                                         |                        |                              |         |           |  |         |         |           |  |  |          |         |  |  |          |         | 
|---------------------------------------- | ---------------------- | ---------------------------- | ------- | --------- |  | ------- | ------- | --------- |  |  | -------- | ------- |  |  | -------- | ------- | 
|                                         |                        | Three months ended March 31,
|                                         |                        |                             
|                                         |                        | 2005                         |         | 2004     
|                                         |                        |                              |         |          
|                                         |                        |                              |         | Operating |  |         |         | Operating
|                                         |                        | Revenue                      |         | cash flow |  | Revenue |         | cash flow
|                                         |                        |                              |         |           |  |         |         |          
|                                         |                        | amounts in thousands        
|UGC Broadband  The Netherlands          |                        | $                            | 201,442 |           |  |         | 113,168 |           |  |  | 171,595  |         |  |  | 97,654   |        
|UGC Broadband  France                   |                        |                              | 131,858 |           |  |         | 29,749  |           |  |  | 31,245   |         |  |  | 3,861    |        
|UGC Broadband  Austria                  |                        |                              | 83,448  |           |  |         | 39,418  |           |  |  | 74,720   |         |  |  | 34,831   |        
|UGC Broadband  Other Europe             |                        |                              | 239,798 |           |  |         | 104,023 |           |  |  | 163,888  |         |  |  | 71,602   |        
|UGC Broadband  Chile (VTR)              |                        |                              | 84,889  |           |  |         | 30,675  |           |  |  | 71,683   |         |  |  | 25,030   |        
|J:COM                                    |                        |                              | 406,137 |           |  |         | 168,412 |           |  |  | 359,367  |         |  |  | 141,528  |        
|Corporate and all other                  |                        |                              | 105,558 |           |  |         | (36,570 | )         |  |  | 74,725   |         |  |  | (27,550  | )      
|Elimination of intercompany transactions |                        |                              | (17,880 | )         |  |         |        |           |  |  | (11,656  | )       |  |  |         |        
|Elimination of equity affiliate (J:COM)  |                        |                              |        |           |  |         |        |           |  |  | (359,367 | )       |  |  | (141,528 | )      
|                                         |                        |                              |         |           |  |         |         |           |  |  |          |         |  |  |          |        
|                                         | Total consolidated LMI |                              | $       | 1,235,250 |  |         |         | 448,875   |  |  |          | 576,200 |  |  |          | 205,428 | 
|                                         |                        |                              |         |           |  |         |         |           |  |  |          |         |  |  |          |        

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##### Table of Contents



LIBERTY MEDIA INTERNATIONAL, INC.


(See note 1)


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


March 31, 2005


(unaudited)




|                                                                          |                                                            |                      |          |        |  |  |          |          |  
|------------------------------------------------------------------------- | ---------------------------------------------------------- | -------------------- | -------- | ------ |  |  | -------- | -------- | -
|                                                                          |                                                            | Three months ended  
|                                                                          |                                                            | March 31,           
|                                                                          |                                                            |                     
|                                                                          |                                                            | 2005                 |          | 2004  
|                                                                          |                                                            |                      |          |       
|                                                                          |                                                            | amounts in thousands
|Total segment operating cash flow                                         |                                                            | $                    | 448,875  |        |  |  | 205,428  |         
|Stock-based compensation expense                                          |                                                            |                      | (18,655  | )      |  |  | (63,745  | )       
|Depreciation and amortization                                             |                                                            |                      | (327,591 | )      |  |  | (221,512 | )       
|Restructuring and other charges                                           |                                                            |                      | (4,863   | )      |  |  | (3,901   | )       
|                                                                          |                                                            |                      |          |        |  |  |          |         
|                                                                          | Operating income (loss)                                    |                      |          | 97,766 |  |  |          | (83,730  | )
|Interest expense                                                          |                                                            |                      | (91,028  | )      |  |  | (72,485  | )       
|Interest and dividend income                                              |                                                            |                      | 20,536   |        |  |  | 8,966    |         
|Share of earnings (losses) of affiliates, net                             |                                                            |                      | (21,324  | )      |  |  | 16,090   |         
|Realized and unrealized gains (losses) on derivative
    instruments, net |                                                            |                      | 85,868   |        |  |  | (13,031  | )       
|Foreign currency transaction losses, net                                  |                                                            |                      | (64,762  | )      |  |  | (20,858  | )       
|Gain (loss) on extinguishment of debt                                     |                                                            |                      | (11,980  | )      |  |  | 31,916   |         
|Gains (losses) on dispositions of assets, net                             |                                                            |                      | 69,572   |        |  |  | (1,842   | )       
|Other income (expense), net                                               |                                                            |                      | 684      |        |  |  | (8,178   | )       
|                                                                          |                                                            |                      |          |        |  |  |          |         
|                                                                          | Earnings (loss) before income taxes and minority interests |                      | $        | 85,332 |  |  |          | (143,152 | )
|                                                                          |                                                            |                      |          |        |  |  |          |         

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|        |                                                                                           
|------- | ------------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations.







| |   |                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | economic and business conditions and industry trends in the
    countries in which we operate;                                                                                                                 
|
| |  | currency exchange risks;                                                                                                                                                                                       
|
| |  | consumer disposable income and spending levels, including the
    availability and amount of individual consumer debt;                                                                                         
|
| |  | changes in television viewing preferences and habits by our
    subscribers and potential subscribers;                                                                                                         
|
| |  | consumer acceptance of existing service offerings, including our
    newer digital video, voice and Internet access services;                                                                                  
|
| |  | consumer acceptance of new technology, programming alternatives
    and broadband services that we may offer;                                                                                                  
|
| |  | our ability to manage rapid technological changes, and grow our
    digital video, voice and Internet access services;                                                                                         
|
| |  | the regulatory and competitive environment in the broadband
    communications and programming industries in the countries in
    which we, and the entities in which we have interests, operate;              
|
| |  | continued consolidation of the foreign broadband distribution
    industry;                                                                                                                                    
|
| |  | uncertainties inherent in the development and integration of new
    business lines and business strategies;                                                                                                   
|
| |  | the expanded deployment of personal video recorders and the
    impact on television advertising revenue;                                                                                                      
|
| |  | capital spending for the acquisition and/or development of
    telecommunications networks and services;                                                                                                       
|
| |  | uncertainties associated with product and service development
    and market acceptance, including the development and provision
    of programming for new television and telecommunications
    technologies;
|
| |  | future financial performance, including availability, terms and
    deployment of capital;                                                                                                                     
|
| |  | the ability of suppliers and vendors to timely deliver products,
    equipment, software and services;                                                                                                         
|
| |  | the outcome of any pending or threatened litigation;                                                                                                                                                           
|
| |  | availability of qualified personnel;                                                                                                                                                                           
|
| |  | changes in, or failure or inability to comply with, government
    regulations in the countries in which we operate and adverse
    outcomes from regulatory proceedings;                                      
|
| |  | government intervention which opens our broadband distribution
    networks to competitors;                                                                                                                    
|
| |  | our ability to successfully negotiate rate increases with local
    authorities;                                                                                                                               

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| |   |                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | changes in the nature of key strategic relationships with
    partners and joint venturers;                                                                     
|
| |  | uncertainties associated with our ability to satisfy conditions
    imposed by competition and other regulatory authorities in
    connection with acquisitions;
|
| |  | uncertainties associated with our ability to comply with the
    internal control requirements of the Sarbanes Oxley Act of 2002;                               
|
| |  | competitor responses to our products and services, and the
    products and services of the entities in which we have interests;                                
|
| |  | spending on television advertising; and                                                                                                                         
|
| |  | threatened terrorist attacks and ongoing military action in the
    Middle East and other parts of the world.                                                   







Overview






| |   |                                
| | - | -------------------------------
| |  | UGC                            
|
| |  | Super Media/ J:COM             
|
| |  | Liberty Cablevision Puerto Rico
|
| |  | Pramer                         

UGC


Super Media/J:COM


Liberty Cablevision Puerto Rico and Pramer


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##### Table of Contents







Results of Operations


Discussion and Analysis of
Reportable Segments










| |                                                            
| | -----------------------------------------------------------
| | Discussion and Analysis of Historical Operating
    Results

Discussion and Analysis of
Reportable Segments


I-44



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| |                                 
| | --------------------------------
| | Stock-based compensation expense



|      |  |                      |        |      |  |  |        | 
|----- |  | -------------------- | ------ | ---- |  |  | ------ | 
|      |  | Three months ended  
|      |  | March 31,           
|      |  |                     
|      |  | 2005                 |        | 2004
|      |  |                      |        |     
|      |  | amounts in thousands
|LMI   |  | $                    | 735    |      |  |  | 1,893  | 
|UGC   |  |                      | 8,738  |      |  |  | 61,852 | 
|J:COM |  |                      | 9,182  |      |  |  |       | 
|      |  |                      |        |      |  |  |        | 
|      |  | $                    | 18,655 |      |  |  | 63,745 | 
|      |  |                      |        |      |  |  |        | 





| |                              
| | -----------------------------
| | Depreciation and amortization





| |                 
| | ----------------
| | Interest expense





| |                             
| | ----------------------------
| | Interest and dividend income



I-45



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| |                                              
| | ---------------------------------------------
| | Share of earnings (losses) of affiliates, net



|                   |       |                      |         |         |   |  |        |        | 
|------------------ | ----- | -------------------- | ------- | ------- | - |  | ------ | ------ | 
|                   |       | Three months ended  
|                   |       | March 31,           
|                   |       |                     
|                   |       | 2005                 |         | 2004   
|                   |       |                      |         |        
|                   |       | amounts in thousands
|Super Media/ J:COM |       | $                    |        |         |   |  | 16,414 |       
|JPC                |       |                      | 8,612   |         |   |  | 3,331  |       
|Telenet            |       |                      | (5,939  | )       |   |  |       |       
|Mediatti           |       |                      | (4,088  | )       |   |  | (867   | )     
|Metropolis         |       |                      | (6,782  | )       |   |  | (3,281 | )     
|TyC                |       |                      | (18,468 | )       |   |  | 1,883  |       
|Other              |       |                      | 5,341   |         |   |  | (1,390 | )     
|                   |       |                      |         |         |   |  |        |       
|                   | Total |                      | $       | (21,324 | ) |  |        | 16,090 | 
|                   |       |                      |         |         |   |  |        |       





| |                                                                          
| | -------------------------------------------------------------------------
| | Realized and unrealized gains (losses) on derivative
    instruments, net



|                                                                   |       |                      |         |        |  |  |        |         |  
|------------------------------------------------------------------ | ----- | -------------------- | ------- | ------ |  |  | ------ | ------- | -
|                                                                   |       | Three months ended  
|                                                                   |       | March 31,           
|                                                                   |       |                     
|                                                                   |       | 2005                 |         | 2004  
|                                                                   |       |                      |         |       
|                                                                   |       | amounts in thousands
|UGC embedded derivatives                                           |       | $                    | 55,159  |        |  |  |       |        
|UGC cross-currency and interest rate swaps                         |       |                      | 30,388  |        |  |  | 3,475  |        
|UGC interest rate caps                                             |       |                      | (10,208 | )      |  |  | (7,500 | )      
|Foreign exchange contracts                                         |       |                      | 7,046   |        |  |  | (9,476 | )      
|Variable forward transaction (News Corp. Class A common
    stock) |       |                      | 4,947   |        |  |  |       |        
|Total return debt swaps                                            |       |                      | (1,633  | )      |  |  | 470    |        
|Other                                                              |       |                      | 169     |        |  |  |       |        
|                                                                   |       |                      |         |        |  |  |        |        
|                                                                   | Total |                      | $       | 85,868 |  |  |        | (13,031 | )
|                                                                   |       |                      |         |        |  |  |        |        





I-46



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| |                                         
| | ----------------------------------------
| | Foreign currency transaction losses, net



|                                                                                              |       |                      |         |         |   |  |         |         |  
|--------------------------------------------------------------------------------------------- | ----- | -------------------- | ------- | ------- | - |  | ------- | ------- | -
|                                                                                              |       | Three months ended  
|                                                                                              |       | March 31,           
|                                                                                              |       |                     
|                                                                                              |       | 2005                 |         | 2004   
|                                                                                              |       |                      |         |        
|                                                                                              |       | amounts in thousands
|U.S. dollar debt issued by UGCs European subsidiaries                                        |       | $                    | (41,692 | )       |   |  |        |        
|Euro denominated debt issued by UGC                                                           |       |                      | 18,879  |         |   |  |        |        
|Euro denominated cash held by UGC                                                             |       |                      | (14,908 | )       |   |  | (8,548  | )      
|Yen denominated cash held by LMI                                                              |       |                      | (12,380 | )       |   |  |        |        
|Intercompany notes denominated in a currency other than the
    entities functional currency |       |                      | (11,485 | )       |   |  | (11,086 | )      
|Other                                                                                         |       |                      | (3,176  | )       |   |  | (1,224  | )      
|                                                                                              |       |                      |         |         |   |  |         |        
|                                                                                              | Total |                      | $       | (64,762 | ) |  |         | (20,858 | )
|                                                                                              |       |                      |         |         |   |  |         |        



| |                                      
| | -------------------------------------
| | Gain (loss) on extinguishment of debt





| |                                             
| | --------------------------------------------
| | Gains (losses) on disposition of assets, net





| |                   
| | ------------------
| | Income tax expense



I-47



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| |                                                   
| | --------------------------------------------------
| | Discussion and Analysis of Reportable
    Segments









| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)   | UGC Broadband  France acquired Noos on July 1,
    2004. Accordingly, increases in the amounts presented for UGC
    Broadband  France during the 2005 interim period, as
    compared to the 2004 interim period, are primarily attributable
    to the Noos acquisition.                                                                                                                                                                                                       
|
| | (ii)  | UGC Broadband  Other Europe acquired Chorus, a cable
    operator in Ireland, on June 1, 2004 and Telemach, a
    broadband communications provider in Slovenia, on
    February 10, 2005. Accordingly, increases in the amounts
    presented for UGC Broadband  Other Europe during the
    2005 interim period, as compared to the 2004 interim period, are
    partially attributable to the inclusion of Chorus and Telemach
    in the results for the 2005 interim period.
|
| | (iii) | UGC acquired Zone Vision on January 7, 2005. The operating
    results of Zone Vision are included in Corporate and all other
    in the tables presented below. Accordingly, increases in the
    amounts presented for Corporate and all other during the 2005
    interim period, as compared to the 2004 interim period, are
    partially attributable to the inclusion of Zone Vision in the
    results for the 2005 interim period.                                        





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| |                                   
| | ----------------------------------
| | Revenue of our Reportable Segments

|                                         |                              |                                        |         |                     |           |                    |          |         |         |   |         |         |         |  |       |      |    |  |        |         |    |  |       |      |    | 
|---------------------------------------- | ---------------------------- | -------------------------------------- | ------- | ------------------- | --------- | ------------------ | -------- | ------- | ------- | - | ------- | ------- | ------- |  | ----- | ---- | -- |  | ------ | ------- | -- |  | ----- | ---- | -- | 
|                                         |                              | Three months ended                     |         |                     |           | Increase excluding
|                                         |                              | March 31,                              |         | Increase (decrease) |           | FX                
|                                         |                              |                                        |         |                     |           |                   
|                                         |                              | 2005                                   |         | 2004                |           | $                  |          | %       |         | $ |         | %      
|                                         |                              |                                        |         |                     |           |                    |          |         |         |   |         |        
|                                         |                              | amounts in thousands, except % amounts
|UGC Broadband  The Netherlands          |                              | $                                      | 201,442 |                     |           |                    | 171,595  |         |         |   | 29,847  |         |         |  | 17.4  |      |    |  | 20,420 |         |    |  | 11.9  |     
|UGC Broadband  France                   |                              |                                        | 131,858 |                     |           |                    | 31,245   |         |         |   | 100,613 |         |         |  | 322.0 |      |    |  | 98,893 |         |    |  | 316.5 |     
|UGC Broadband  Austria                  |                              |                                        | 83,448  |                     |           |                    | 74,720   |         |         |   | 8,728   |         |         |  | 11.7  |      |    |  | 4,857  |         |    |  | 6.5   |     
|UGC Broadband  Other Europe             |                              |                                        | 239,798 |                     |           |                    | 163,888  |         |         |   | 75,910  |         |         |  | 46.3  |      |    |  | 52,012 |         |    |  | 31.7  |     
|                                         |                              |                                        |         |                     |           |                    |          |         |         |   |         |         |         |  |       |      |    |  |        |         |    |  |       |     
|                                         | UGC Broadband  Total Europe |                                        |         | 656,546             |           |                    |          | 441,448 |         |   |         | 215,098 |         |  |       | 48.7 |    |  |        | 176,182 |    |  |       | 39.9 |   
|UGC Broadband  Chile (VTR)              |                              |                                        | 84,889  |                     |           |                    | 71,683   |         |         |   | 13,206  |         |         |  | 18.4  |      |    |  | 11,829 |         |    |  | 16.5  |     
|J:COM                                    |                              |                                        | 406,137 |                     |           |                    | 359,367  |         |         |   | 46,770  |         |         |  | 13.0  |      |    |  | 38,882 |         |    |  | 10.8  |     
|Corporate and all other                  |                              |                                        | 105,558 |                     |           |                    | 74,725   |         |         |   | 30,833  |         |         |  | 41.3  |      |    |  | 23,855 |         |    |  | 31.9  |     
|Elimination of intercompany transactions |                              |                                        | (17,880 | )                   |           |                    | (11,656  | )       |         |   | (6,224  | )       |         |  | NM    |      |    |  | NM     |         |    |  | NM    |     
|Elimination of equity affiliate (J:COM)  |                              |                                        |        |                     |           |                    | (359,367 | )       |         |   | 359,367 |         |         |  | NM    |      |    |  | NM     |         |    |  | NM    |     
|                                         |                              |                                        |         |                     |           |                    |          |         |         |   |         |         |         |  |       |      |    |  |        |         |    |  |       |     
|                                         |                              | Total consolidated LMI                 |         | $                   | 1,235,250 |                    |          |         | 576,200 |   |         |         | 659,050 |  |       |      | NM |  |        |         | NM |  |       |      | NM | 
|                                         |                              |                                        |         |                     |           |                    |          |         |         |   |         |         |         |  |       |      |    |  |        |         |    |  |       |     






UGC Broadband  The Netherlands.


UGC Broadband  France.


UGC Broadband  Austria.


UGC Broadband  Other Europe.


I-49



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##### Table of Contents





UGC Broadband  Chile (VTR).


J:COM.




| |                                              
| | ---------------------------------------------
| | Operating Expenses of our Reportable Segments

|                                         |                              |                                        |         |                     |         |                    |          |         |         |   |         |        |         |  |       |      |    |  |        |        |    |  |       |      |    | 
|---------------------------------------- | ---------------------------- | -------------------------------------- | ------- | ------------------- | ------- | ------------------ | -------- | ------- | ------- | - | ------- | ------ | ------- |  | ----- | ---- | -- |  | ------ | ------ | -- |  | ----- | ---- | -- | 
|                                         |                              | Three months ended                     |         |                     |         | Increase excluding
|                                         |                              | March 31,                              |         | Increase (decrease) |         | FX                
|                                         |                              |                                        |         |                     |         |                   
|                                         |                              | 2005                                   |         | 2004                |         | $                  |          | %       |         | $ |         | %     
|                                         |                              |                                        |         |                     |         |                    |          |         |         |   |         |       
|                                         |                              | amounts in thousands, except % amounts
|UGC Broadband  The Netherlands          |                              | $                                      | 53,813  |                     |         |                    | 48,446   |         |         |   | 5,367   |        |         |  | 11.1  |      |    |  | 2,858  |        |    |  | 5.9   |     
|UGC Broadband  France                   |                              |                                        | 66,003  |                     |         |                    | 18,060   |         |         |   | 47,943  |        |         |  | 265.5 |      |    |  | 47,004 |        |    |  | 260.3 |     
|UGC Broadband  Austria                  |                              |                                        | 30,478  |                     |         |                    | 28,111   |         |         |   | 2,367   |        |         |  | 8.4   |      |    |  | 956    |        |    |  | 3.4   |     
|UGC Broadband  Other Europe             |                              |                                        | 96,575  |                     |         |                    | 68,066   |         |         |   | 28,509  |        |         |  | 41.9  |      |    |  | 19,085 |        |    |  | 28.0  |     
|                                         |                              |                                        |         |                     |         |                    |          |         |         |   |         |        |         |  |       |      |    |  |        |        |    |  |       |     
|                                         | UGC Broadband  Total Europe |                                        |         | 246,869             |         |                    |          | 162,683 |         |   |         | 84,186 |         |  |       | 51.7 |    |  |        | 69,903 |    |  |       | 43.0 |   
|UGC Broadband  Chile (VTR)              |                              |                                        | 31,636  |                     |         |                    | 27,625   |         |         |   | 4,011   |        |         |  | 14.5  |      |    |  | 3,508  |        |    |  | 12.7  |     
|J:COM                                    |                              |                                        | 161,142 |                     |         |                    | 148,499  |         |         |   | 12,643  |        |         |  | 8.5   |      |    |  | 9,514  |        |    |  | 6.4   |     
|Corporate and all other                  |                              |                                        | 77,650  |                     |         |                    | 41,468   |         |         |   | 36,182  |        |         |  | 87.3  |      |    |  | 27,375 |        |    |  | 66.0  |     
|Elimination of intercompany transactions |                              |                                        | (15,022 | )                   |         |                    | (9,016   | )       |         |   | (6,006  | )      |         |  | NM    |      |    |  | NM     |        |    |  | NM    |     
|Elimination of equity affiliate (J:COM)  |                              |                                        |        |                     |         |                    | (148,499 | )       |         |   | 148,499 |        |         |  | NM    |      |    |  | NM     |        |    |  | NM    |     
|                                         |                              |                                        |         |                     |         |                    |          |         |         |   |         |        |         |  |       |      |    |  |        |        |    |  |       |     
|                                         |                              | Total consolidated LMI                 |         | $                   | 502,275 |                    |          |         | 222,760 |   |         |        | 279,515 |  |       |      | NM |  |        |        | NM |  |       |      | NM | 
|                                         |                              |                                        |         |                     |         |                    |          |         |         |   |         |        |         |  |       |      |    |  |        |        |    |  |       |     






General.


I-50



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UGC Broadband  Total Europe.




| |     |                                                                                                                                                                                                                                                                                      
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) | An increase in direct programming and copyright costs, primarily
    due to subscriber growth on the digital and direct-to-home
    platforms, and to a lesser extent, increased content, higher
    chellomedia charges for programming and consumer price index
    rate increases;



| |      |                                                                                                                                                                                                                                       
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | An increase in salaries and other staff related costs,
    reflecting increased staffing levels (including increased use of
    temporary personnel), particularly in the customer care and
    customer operations areas, to sustain:



| |     |                                                                                                                                                                           
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | the higher levels of activity resulting from the higher
    subscriber numbers;                                                                                           
|
| | (b) | the greater volume of calls per subscriber that the increased
    proportion of digital, data and telephone subscribers give rise
    to compared to an analog subscriber;
|
| | (c) | increased customer service standard levels; and                                                                                                                           
|
| | (d) | annual wage increases;                                                                                                                                                    



| |       |                                                                                        
| | ----- | ---------------------------------------------------------------------------------------
| | (iii) | An increase in call overflow service fees, related to these
    higher activity levels;



| |      |                                                                                                                                                                                                                          
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iv) | An increase in network related expenses, where a portion of the
    costs are driven by the impact of increased subscriber numbers,
    offset by more effective procurement and investment to increase
    capacity; and
|
| | (v)  | An increase in franchise fees, primarily in The Netherlands,
    reflecting the impact of rate increase negotiations with various
    municipalities during 2004.                                                        

UGC Broadband  Chile (VTR).


J:COM.


I-51



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##### Table of Contents





| |                                         
| | ----------------------------------------
| | SG&A Expenses of our Reportable Segments

|                                         |                              |                                        |        |                     |  |                     |         |         |  |   |        |         |  |  |       |      |  |  |        |        |  |  |       |      | 
|---------------------------------------- | ---------------------------- | -------------------------------------- | ------ | ------------------- |  | ------------------- | ------- | ------- |  | - | ------ | ------- |  |  | ----- | ---- |  |  | ------ | ------ |  |  | ----- | ---- | 
|                                         |                              | Three months ended                     |        |                     |  | Increase (decrease)
|                                         |                              | March 31,                              |        | Increase (decrease) |  | excluding FX       
|                                         |                              |                                        |        |                     |  |                    
|                                         |                              | 2005                                   |        | 2004                |  | $                   |         | %       |  | $ |        | %      
|                                         |                              |                                        |        |                     |  |                     |         |         |  |   |        |        
|                                         |                              | amounts in thousands, except % amounts
|UGC Broadband  The Netherlands          |                              | $                                      | 34,461 |                     |  |                     | 25,495  |         |  |   | 8,966  |         |  |  | 35.2  |      |  |  | 7,292  |        |  |  | 28.6  |     
|UGC Broadband  France                   |                              |                                        | 36,106 |                     |  |                     | 9,324   |         |  |   | 26,782 |         |  |  | 287.2 |      |  |  | 26,276 |        |  |  | 281.8 |     
|UGC Broadband  Austria                  |                              |                                        | 13,552 |                     |  |                     | 11,778  |         |  |   | 1,774  |         |  |  | 15.1  |      |  |  | 1,149  |        |  |  | 9.8   |     
|UGC Broadband  Other Europe             |                              |                                        | 39,200 |                     |  |                     | 24,220  |         |  |   | 14,980 |         |  |  | 61.8  |      |  |  | 11,032 |        |  |  | 45.5  |     
|                                         |                              |                                        |        |                     |  |                     |         |         |  |   |        |         |  |  |       |      |  |  |        |        |  |  |       |     
|                                         | UGC Broadband  Total Europe |                                        |        | 123,319             |  |                     |         | 70,817  |  |   |        | 52,502  |  |  |       | 74.1 |  |  |        | 45,749 |  |  |       | 64.6 | 
|UGC Broadband  Chile (VTR)              |                              |                                        | 22,578 |                     |  |                     | 19,028  |         |  |   | 3,550  |         |  |  | 18.7  |      |  |  | 3,139  |        |  |  | 16.5  |     
|J:COM                                    |                              |                                        | 76,583 |                     |  |                     | 69,340  |         |  |   | 7,243  |         |  |  | 10.4  |      |  |  | 5,757  |        |  |  | 8.3   |     
|Corporate and all other                  |                              |                                        | 64,478 |                     |  |                     | 60,807  |         |  |   | 3,671  |         |  |  | 6.0   |      |  |  | (3,966 | )      |  |  | (6.5  | )   
|Elimination of intercompany transactions |                              |                                        | (2,858 | )                   |  |                     | (2,640  | )       |  |   | (218   | )       |  |  | NM    |      |  |  | NM     |        |  |  | NM    |     
|Elimination of equity affiliate (J:COM)  |                              |                                        |       |                     |  |                     | (69,340 | )       |  |   | 69,340 |         |  |  | NM    |      |  |  | NM     |        |  |  | NM    |     
|                                         |                              |                                        |        |                     |  |                     |         |         |  |   |        |         |  |  |       |      |  |  |        |        |  |  |       |     
|                                         | Total consolidated LMI       |                                        | $      | 284,100             |  |                     |         | 148,012 |  |   |        | 136,088 |  |  |       | NM   |  |  |        | NM     |  |  |       | NM   | 
|                                         |                              |                                        |        |                     |  |                     |         |         |  |   |        |         |  |  |       |      |  |  |        |        |  |  |       |     






General.


UGC Broadband  Total Europe.




| |       |                                                                                                                                                                                                                                                       
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)   | An increase in sales and marketing expenses and commissions,
    reflecting the cost of campaigns and the greater number of
    subscriber additions for data, telephone and video;                                                                   
|
| | (ii)  | An increase in salaries and other staff related costs,
    reflecting increased staffing levels in sales and marketing and
    information technology functions, as well as annual wage
    increases; and                                            
|
| | (iii) | An increase in consulting and contractor costs, reflecting an
    increased level of support for certain information technology
    projects, as well as professional advisor fees with respect to
    compliance with the Sarbanes-Oxley Act of 2002.

UGC Broadband  Chile (VTR).


J:COM.


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| |                                               
| | ----------------------------------------------
| | Operating Cash Flow of our Reportable Segments



|                                        |                              |                                        |         |            |  |              |          |         |  |   |         |         |  |  |       |      |  |  |        |        |  |  |       |      | 
|--------------------------------------- | ---------------------------- | -------------------------------------- | ------- | ---------- |  | ------------ | -------- | ------- |  | - | ------- | ------- |  |  | ----- | ---- |  |  | ------ | ------ |  |  | ----- | ---- | 
|                                        |                              |                                        |         |            |  | Increase    
|                                        |                              | Three months ended                     |         | Increase   |  | (decrease)  
|                                        |                              | March 31,                              |         | (decrease) |  | excluding FX
|                                        |                              |                                        |         |            |  |             
|                                        |                              | 2005                                   |         | 2004       |  | $            |          | %       |  | $ |         | %      
|                                        |                              |                                        |         |            |  |              |          |         |  |   |         |        
|                                        |                              | amounts in thousands, except % amounts
|UGC Broadband  The Netherlands         |                              | $                                      | 113,168 |            |  |              | 97,654   |         |  |   | 15,514  |         |  |  | 15.9  |      |  |  | 10,270 |        |  |  | 10.5  |     
|UGC Broadband  France                  |                              |                                        | 29,749  |            |  |              | 3,861    |         |  |   | 25,888  |         |  |  | 670.5 |      |  |  | 25,613 |        |  |  | 663.4 |     
|UGC Broadband  Austria                 |                              |                                        | 39,418  |            |  |              | 34,831   |         |  |   | 4,587   |         |  |  | 13.2  |      |  |  | 2,752  |        |  |  | 7.9   |     
|UGC Broadband  Other Europe            |                              |                                        | 104,023 |            |  |              | 71,602   |         |  |   | 32,421  |         |  |  | 45.3  |      |  |  | 21,895 |        |  |  | 30.6  |     
|                                        |                              |                                        |         |            |  |              |          |         |  |   |         |         |  |  |       |      |  |  |        |        |  |  |       |     
|                                        | UGC Broadband  Total Europe |                                        |         | 286,358    |  |              |          | 207,948 |  |   |         | 78,410  |  |  |       | 37.7 |  |  |        | 60,530 |  |  |       | 29.1 | 
|UGC Broadband  Chile (VTR)             |                              |                                        | 30,675  |            |  |              | 25,030   |         |  |   | 5,645   |         |  |  | 22.6  |      |  |  | 5,182  |        |  |  | 20.7  |     
|J:COM                                   |                              |                                        | 168,412 |            |  |              | 141,528  |         |  |   | 26,884  |         |  |  | 19.0  |      |  |  | 23,611 |        |  |  | 16.7  |     
|Corporate and all other                 |                              |                                        | (36,570 | )          |  |              | (27,550  | )       |  |   | (9,020  | )       |  |  | 32.7  |      |  |  | 446    |        |  |  | (1.6  | )   
|Elimination of equity affiliate (J:COM) |                              |                                        |        |            |  |              | (141,528 | )       |  |   | 141,528 |         |  |  | NM    |      |  |  | NM     |        |  |  | NM    |     
|                                        |                              |                                        |         |            |  |              |          |         |  |   |         |         |  |  |       |      |  |  |        |        |  |  |       |     
|                                        | Total consolidated LMI       |                                        | $       | 448,875    |  |              |          | 205,428 |  |   |         | 243,447 |  |  |       | NM   |  |  |        | NM     |  |  |       | NM   | 
|                                        |                              |                                        |         |            |  |              |          |         |  |   |         |         |  |  |       |      |  |  |        |        |  |  |       |     








Liquidity and Capital Resources




| |                         
| | ------------------------
| | Sources and Uses of Cash



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| |                    
| | -------------------
| | Corporate Liquidity











I-54



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| |                     
| | --------------------
| | Subsidiary Liquidity

UGC.


  
















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Condensed Consolidated
Cash Flow Statements




J:COM.








Condensed Consolidated
Cash Flow Statements




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Other Subsidiaries.




| |                                            
| | -------------------------------------------
| | Condensed Consolidated Cash Flow Statements















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Off Balance Sheet Arrangements and Aggregate Contractual
Obligations




| |                               
| | ------------------------------
| | Off Balance Sheet Arrangements

















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| |                        
| | -----------------------
| | Contractual Commitments



|                                            |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |           | 
|------------------------------------------- | --------------------------------------------------------------------------- | -------------------- | ------- | ------------------------ |  | ---- | ------- | ------- |  | ---- | ------- | ---------- |  | ----- | ------- | ------- |  |  | ------- | ------- |  |  | --------- | --------- |  |  | --------- | --------- | 
|                                            |                                                                             | Payments due during: |         |                         
|                                            |                                                                             |                      |         |                         
|                                            |                                                                             | Nine months          |         |                          |  |      |         |        
|                                            |                                                                             | ended                |         | Years ended December 31, |  |      |         |        
|                                            |                                                                             | December 31,         |         |                          |  |      |         |        
|                                            |                                                                             | 2005                 |         | 2006                     |  | 2007 |         | 2008    |  | 2009 |         | Thereafter |  | Total
|                                            |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |      
|                                            |                                                                             | amounts in thousands
|Debt (excluding interest):                  |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|                                            | U.S. dollar                                                                 |                      | $       | 498                      |  |      |         | 8,170   |  |      |         | 8,833      |  |       |         | 10,683  |  |  |         | 10,275  |  |  |           | 1,874,375 |  |  |           | 1,912,834 | 
|                                            | Euro                                                                        |                      |         |                         |  |      |         |        |  |      |         |           |  |       |         |        |  |  |         | 916     |  |  |           | 2,935,970 |  |  |           | 2,936,886 | 
|                                            | Japanese Yen                                                                |                      |         | 46,926                   |  |      |         | 109,108 |  |      |         | 192,166    |  |       |         | 294,894 |  |  |         | 402,253 |  |  |           | 356,029   |  |  |           | 1,401,376 | 
|                                            | Other                                                                       |                      |         | 4,426                    |  |      |         | 17,512  |  |      |         | 19,495     |  |       |         | 19,429  |  |  |         | 20,266  |  |  |           | 24,431    |  |  |           | 105,559   | 
|                                            |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|                                            |                                                                             |                      | 51,850  |                          |  |      | 134,790 |         |  |      | 220,494 |            |  |       | 325,006 |         |  |  | 433,710 |         |  |  | 5,190,805 |           |  |  | 6,356,655 |          
|                                            |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|Capital leases (excluding interest):        |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|                                            | Euro                                                                        |                      |         | 2,712                    |  |      |         | 2,955   |  |      |         | 3,044      |  |       |         | 3,329   |  |  |         | 3,657   |  |  |           | 30,267    |  |  |           | 45,964    | 
|                                            | Japanese Yen                                                                |                      |         | 68,570                   |  |      |         | 76,269  |  |      |         | 57,564     |  |       |         | 42,132  |  |  |         | 30,943  |  |  |           | 28,716    |  |  |           | 304,194   | 
|                                            |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|                                            |                                                                             |                      | 71,282  |                          |  |      | 79,224  |         |  |      | 60,608  |            |  |       | 45,461  |         |  |  | 34,600  |         |  |  | 58,983    |           |  |  | 350,158   |          
|                                            |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|Operating leases:                           |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|                                            | U.S. dollar                                                                 |                      |         | 107,968                  |  |      |         | 4,011   |  |      |         | 3,758      |  |       |         | 3,361   |  |  |         | 3,061   |  |  |           | 12,681    |  |  |           | 134,840   | 
|                                            | Euro                                                                        |                      |         | 8,559                    |  |      |         | 74,918  |  |      |         | 68,649     |  |       |         | 47,427  |  |  |         | 39,078  |  |  |           | 105,358   |  |  |           | 343,989   | 
|                                            | Japanese Yen                                                                |                      |         | 5,968                    |  |      |         | 7,054   |  |      |         | 5,591      |  |       |         | 4,220   |  |  |         | 3,624   |  |  |           | 6,604     |  |  |           | 33,061    | 
|                                            | Other                                                                       |                      |         | 3,068                    |  |      |         | 4,227   |  |      |         | 3,625      |  |       |         | 3,625   |  |  |         | 3,620   |  |  |           | 3,571     |  |  |           | 21,736    | 
|                                            |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|                                            |                                                                             |                      | 125,563 |                          |  |      | 90,210  |         |  |      | 81,623  |            |  |       | 58,633  |         |  |  | 49,383  |         |  |  | 128,214   |           |  |  | 533,626   |          
|Programming and other purchase obligations: |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|                                            | U.S. dollar                                                                 |                      |         | 105,996                  |  |      |         | 20,606  |  |      |         | 11,292     |  |       |         | 7,962   |  |  |         | 4,403   |  |  |           | 18,090    |  |  |           | 168,349   | 
|                                            | Euro                                                                        |                      |         | 8,566                    |  |      |         | 9,193   |  |      |         |           |  |       |         |        |  |  |         |        |  |  |           |          |  |  |           | 17,759    | 
|                                            |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|                                            |                                                                             |                      | 114,562 |                          |  |      | 29,799  |         |  |      | 11,292  |            |  |       | 7,962   |         |  |  | 4,403   |         |  |  | 18,090    |           |  |  | 186,108   |          
|                                            |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|Other commitments:                          |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|                                            | Euro                                                                        |                      |         | 52,916                   |  |      |         | 6,429   |  |      |         | 6,084      |  |       |         | 4,001   |  |  |         | 4,020   |  |  |           | 14,005    |  |  |           | 87,455    | 
|                                            | Japanese Yen                                                                |                      |         | 987                      |  |      |         | 1,084   |  |      |         | 1,610      |  |       |         | 1,288   |  |  |         | 1,565   |  |  |           | 9,298     |  |  |           | 15,832    | 
|                                            | Other                                                                       |                      |         | 1,314                    |  |      |         | 406     |  |      |         |           |  |       |         |        |  |  |         |        |  |  |           |          |  |  |           | 1,720     | 
|                                            |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|                                            |                                                                             |                      | 55,217  |                          |  |      | 7,919   |         |  |      | 7,694   |            |  |       | 5,289   |         |  |  | 5,585   |         |  |  | 23,303    |           |  |  | 105,007   |          
|                                            |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|Total:                                      |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|                                            | U.S. dollar                                                                 |                      |         | 214,462                  |  |      |         | 32,787  |  |      |         | 23,883     |  |       |         | 22,006  |  |  |         | 17,739  |  |  |           | 1,905,146 |  |  |           | 2,216,023 | 
|                                            | Euro                                                                        |                      |         | 72,746                   |  |      |         | 93,495  |  |      |         | 77,777     |  |       |         | 54,757  |  |  |         | 47,671  |  |  |           | 3,085,600 |  |  |           | 3,432,046 | 
|                                            | Japanese Yen                                                                |                      |         | 122,451                  |  |      |         | 193,515 |  |      |         | 256,931    |  |       |         | 342,534 |  |  |         | 438,385 |  |  |           | 400,647   |  |  |           | 1,754,463 | 
|                                            | Other                                                                       |                      |         | 8,815                    |  |      |         | 22,145  |  |      |         | 23,120     |  |       |         | 23,054  |  |  |         | 23,886  |  |  |           | 28,002    |  |  |           | 129,022   | 
|                                            |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|                                            |                                                                             | $                    | 418,474 |                          |  |      | 341,942 |         |  |      | 381,711 |            |  |       | 442,351 |         |  |  | 527,681 |         |  |  | 5,419,395 |           |  |  | 7,531,554 |          
|                                            |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          
|                                            | Projected cash interest payments on debt and capital lease
    obligations* |                      | $       | 210,067                  |  |      |         | 271,430 |  |      |         | 266,442    |  |       |         | 259,477 |  |  |         | 240,628 |  |  |           | 607,651   |  |  |           | 1,855,694 | 
|                                            |                                                                             |                      |         |                          |  |      |         |         |  |      |         |            |  |       |         |         |  |  |         |         |  |  |           |           |  |  |           |          






|  |                                                                                       
|- | --------------------------------------------------------------------------------------
|* | Based on interest rates and contractual maturities in effect as
    of March 31, 2005.

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|        |                                                                
|------- | ---------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures about Market
    Risk.





| |                     
| | --------------------
| | Cash and Investments







| |                      
| | ---------------------
| | Foreign Currency Risk



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|                  |  |           |        |          |  |         |        |  |  |  |        | 
|----------------- |  | --------- | ------ | -------- |  | ------- | ------ |  |  |  | ------ | 
|                  |  | Spot rate
|                  |  |          
|                  |  |           |        | Japanese |  | Chilean
|                  |  | Euro      |        | yen      |  | peso   
|                  |  |           |        |          |  |        
|December 31, 2004 |  |           | 0.7333 |          |  |         | 102.41 |  |  |  | 559.19 | 
|March 31, 2005    |  |           | 0.7645 |          |  |         | 107.15 |  |  |  | 587.41 | 

|                    |                |              |  |          |  |         |  |        |  |  |  |        | 
|------------------- | -------------- | ------------ |  | -------- |  | ------- |  | ------ |  |  |  | ------ | 
|                    |                | Average rate
|                    |                |             
|                    |                |              |  | Japanese |  | Chilean
|                    |                | Euro         |  | yen      |  | peso   
|                    |                |              |  |          |  |        
|Three months ended: |                |              |  |          |  |         |  |        |  |  |  |       
|                    | March 31, 2004 |              |  | 0.7989   |  |         |  | 106.62 |  |  |  | 587.35 | 
|                    | March 31, 2005 |              |  | 0.7619   |  |         |  | 104.55 |  |  |  | 577.85 | 



| |                                      
| | -------------------------------------
| | Inflation and Foreign Investment Risk



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| |                    
| | -------------------
| | Interest Rate Risks



 




   






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| |                       
| | ----------------------
| | Derivative Instruments



|                           |  |                      |         |              |  |  |         | 
|-------------------------- |  | -------------------- | ------- | ------------ |  |  | ------- | 
|                           |  | March 31,            |         | December 31,
|                           |  | 2005                 |         | 2004        
|                           |  |                      |         |             
|                           |  | amounts in thousands
|Debt host contract         |  | $                    | 450,344 |              |  |  | 462,164 | 
|Embedded equity derivative |  |                      | 138,653 |              |  |  | 193,645 | 
|                           |  |                      |         |              |  |  |         | 
|                           |  | $                    | 588,997 |              |  |  | 655,809 | 
|                           |  |                      |         |              |  |  |         | 









| |            
| | -----------
| | Credit Risk



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|        |                         
|------- | ------------------------
|Item 4. | Controls and Procedures.



| |                                                 
| | ------------------------------------------------
| | Evaluation of disclosure controls and procedures











| |                                                         
| | --------------------------------------------------------
| | Changes in internal control over financial
    reporting





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PART II  OTHER INFORMATION




|        |                   
|------- | ------------------
|Item 1. | Legal Proceedings.

Class Action Lawsuits Relating to the Merger Transaction
with UGC


Cignal




|        |          
|------- | ---------
|Item 6. | Exhibits.





| |   |    |  |  |  |                                                                                                                                                                                                                                                                                                                                                                         
| | - | -- |  |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2 | .1 |  |  |  | Agreement and Plan of Merger, dated as of January 17, 2005,
    among New Cheetah, Inc. (now known as Liberty Global, Inc.), the
    Registrant, UnitedGlobalCom, Inc. (UGC), Cheetah Acquisition
    Corp. and Tiger Global Acquisition Corp. (incorporated by
    reference to Exhibit 2.1 to the Registrants Current
    Report on Form 8-K, dated January 17, 2005)

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##### Table of Contents





| |    |    |  |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -- | -- |  |  |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 4  | .1 |  |  |  | Amendment and Restatement Agreement, dated March 7, 2005,
    among UPC Broadband Holding B.V. (UPC Broadband) and UPC
    Financing Partnership (UPC Financing), as Borrowers, the
    guarantors listed therein, and TD Bank Europe Limited, as
    Facility Agent and Security Agent, including as Schedule 3
    thereto the
    Restated 1,072,000,000
    Senior Secured Credit Facility, originally dated
    January 16, 2004, among UPC Broadband, as Borrower, the
    guarantors listed therein, the banks and financial institutions
    listed therein as Initial Facility D Lenders, TD Bank Europe
    Limited, as Facility Agent and Security Agent, and the facility
    agents under the Existing Facility (as defined therein) (the
    2004 Credit Agreement) (incorporated by reference to
    Exhibit 10.32 to UGCs Annual Report on Form 10-K,
    dated March 14, 2005 (File No. 000-496-58) (the UGC
    2004 10-K))
| | 4  | .2 |  |  |  | Additional Facility Accession Agreement, dated March 9,
    2005, among UPC Broadband, as Borrower, TD Bank Europe Limited,
    as Facility Agent and Security Agent, and the banks and
    financial institutions listed therein as Additional Facility G
    Lenders, under the 2004 Credit Agreement (incorporated by
    reference to Exhibit 10.39 to the UGC 2004 10-K)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 4  | .3 |  |  |  | Additional Facility Accession Agreement, dated March 7,
    2005, among UPC Broadband, as Borrower, TD Bank Europe Limited,
    as Facility Agent and Security Agent, and the banks and
    financial institutions listed therein as Additional Facility H
    Lenders, under the 2004 Credit Agreement (incorporated by
    reference to Exhibit 10.40 to the UGC 2004 10-K)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 4  | .4 |  |  |  | Additional Facility Accession Agreement, dated March 9,
    2005, among UPC Broadband, as Borrower, TD Bank Europe Limited,
    as Facility Agent and Security Agent, and the banks and
    financial institutions listed therein as Additional Facility I
    Lenders, under the 2004 Credit Agreement (incorporated by
    reference to Exhibit 10.41 to the UGC 2004 10-K)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 4  | .5 |  |  |  | Amendment and Restatement Agreement, dated March 7, 2005,
    among UPC Broadband and UPC Financing, as Borrowers, the
    guarantors listed therein, TD Bank Europe Limited and Toronto
    Dominion (Texas), Inc., as Facility Agents, and TD Bank Europe
    Limited, as Security Agent, including as Schedule 3 thereto the
    Restated Credit Agreement,
    3,500,000,000
    and US$347,500,000 and
    95,000,000
    Senior Secured Credit Facility, originally dated
    October 26, 2000, among UPC Broadband and UPC Financing, as
    Borrowers, the guarantors listed therein, the Lead Arrangers
    listed therein, the banks and financial institutions listed
    therein as Original Lenders, TD Bank Europe Limited and
    Toronto-Dominion (Texas) Inc., as Facility Agents, and TD Bank
    Europe Limited, as Security Agent (incorporated by reference to
    Exhibit 10.33 to the UGC 2004 10-K)                  
| | 10 | .1 |  |  |  | Liberty Media International, Inc. 2004 Incentive Plan (As
    Amended and Restated Effective March 9, 2005) (incorporated
    by reference to Exhibit 10.6 to the Registrants
    Annual Report on Form 10-K/A (Amendment No. 3) dated
    April 28, 2005 (File No. 000-50671) (LMI 10-K
    Amendment No. 3))                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | 10 | .2 |  |  |  | Form of Liberty Media International, Inc. 2004 Incentive Plan
    (As Amended and Restated Effective March 9, 2005)
    Non-Qualified Stock Option Agreement (incorporated by reference
    to Exhibit 10.9 to the LMI 10-K Amendment
    No. 3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | 31 |    |  |  |  | Rule 13a-14(a)/15d-14(a) Certification:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | 31 | .1 |  |  |  | Certification of President and Chief Executive Officer.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | 31 | .2 |  |  |  | Certification of Senior Vice President and Treasurer.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | 31 | .3 |  |  |  | Certification of Senior Vice President and Controller.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | 32 |    |  |  |  | Section 1350 Certification.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   






|  |               
|- | --------------
|* | Filed herewith

II-2



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##### Table of Contents






SIGNATURES




|                   |  |     |  |                                                                                             
|------------------ |  | --- |  | --------------------------------------------------------------------------------------------
|                   |  |     |  | Liberty Media
    International, Inc.                                                       
|                  
|Date: May 13, 2005 |  | By: |  | /s/ John C. Malone                                                                          
|                   |  |     |  | John
    C. MalonePresident and Chief Executive Officer                                     
|                  
|                  
|Date: May 13, 2005 |  | By: |  | /s/ Graham E. Hollis                                                                        
|                   |  |     |  | Graham
    E. HollisSenior Vice President and Treasurer
    (Principal Financial Officer)   
|                  
|Date: May 13, 2005 |  | By: |  | /s/ Bernard G. Dvorak                                                                       
|                   |  |     |  | Bernard
    G. DvorakSenior Vice President and Controller
    (Principal Accounting Officer)

II-3



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##### Table of Contents






EXHIBIT INDEX




| |   |    |  |  |  |                                                                                                                                                                                                                                                                                                                                                                         
| | - | -- |  |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2 | .1 |  |  |  | Agreement and Plan of Merger, dated as of January 17, 2005,
    among New Cheetah, Inc. (now known as Liberty Global, Inc.), the
    Registrant, UnitedGlobalCom, Inc. (UGC), Cheetah Acquisition
    Corp. and Tiger Global Acquisition Corp. (incorporated by
    reference to Exhibit 2.1 to the Registrants Current
    Report on Form 8-K, dated January 17, 2005)



| |    |    |  |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -- | -- |  |  |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 4  | .1 |  |  |  | Amendment and Restatement Agreement, dated March 7, 2005,
    among UPC Broadband Holding B.V. (UPC Broadband) and UPC
    Financing Partnership (UPC Financing), as Borrowers, the
    guarantors listed therein, and TD Bank Europe Limited, as
    Facility Agent and Security Agent, including as Schedule 3
    thereto the
    Restated 1,072,000,000
    Senior Secured Credit Facility, originally dated
    January 16, 2004, among UPC Broadband, as Borrower, the
    guarantors listed therein, the banks and financial institutions
    listed therein as Initial Facility D Lenders, TD Bank Europe
    Limited, as Facility Agent and Security Agent, and the facility
    agents under the Existing Facility (as defined therein) (the
    2004 Credit Agreement) (incorporated by reference to
    Exhibit 10.32 to UGCs Annual Report on Form 10-K,
    dated March 14, 2005 (File No. 000-496-58) (the UGC
    2004 10-K))
| | 4  | .2 |  |  |  | Additional Facility Accession Agreement, dated March 9,
    2005, among UPC Broadband, as Borrower, TD Bank Europe Limited,
    as Facility Agent and Security Agent, and the banks and
    financial institutions listed therein as Additional Facility G
    Lenders, under the 2004 Credit Agreement (incorporated by
    reference to Exhibit 10.39 to the UGC 2004 10-K)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 4  | .3 |  |  |  | Additional Facility Accession Agreement, dated March 7,
    2005, among UPC Broadband, as Borrower, TD Bank Europe Limited,
    as Facility Agent and Security Agent, and the banks and
    financial institutions listed therein as Additional Facility H
    Lenders, under the 2004 Credit Agreement (incorporated by
    reference to Exhibit 10.40 to the UGC 2004 10-K)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 4  | .4 |  |  |  | Additional Facility Accession Agreement, dated March 9,
    2005, among UPC Broadband, as Borrower, TD Bank Europe Limited,
    as Facility Agent and Security Agent, and the banks and
    financial institutions listed therein as Additional Facility I
    Lenders, under the 2004 Credit Agreement (incorporated by
    reference to Exhibit 10.41 to the UGC 2004 10-K)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 4  | .5 |  |  |  | Amendment and Restatement Agreement, dated March 7, 2005,
    among UPC Broadband and UPC Financing, as Borrowers, the
    guarantors listed therein, TD Bank Europe Limited and Toronto
    Dominion (Texas), Inc., as Facility Agents, and TD Bank Europe
    Limited, as Security Agent, including as Schedule 3 thereto the
    Restated Credit Agreement,
    3,500,000,000
    and US$347,500,000 and
    95,000,000
    Senior Secured Credit Facility, originally dated
    October 26, 2000, among UPC Broadband and UPC Financing, as
    Borrowers, the guarantors listed therein, the Lead Arrangers
    listed therein, the banks and financial institutions listed
    therein as Original Lenders, TD Bank Europe Limited and
    Toronto-Dominion (Texas) Inc., as Facility Agents, and TD Bank
    Europe Limited, as Security Agent (incorporated by reference to
    Exhibit 10.33 to the UGC 2004 10-K)                  
| | 10 | .1 |  |  |  | Liberty Media International, Inc. 2004 Incentive Plan (As
    Amended and Restated Effective March 9, 2005) (incorporated
    by reference to Exhibit 10.6 to the Registrants
    Annual Report on Form 10-K/A (Amendment No. 3) dated
    April 28, 2005 (File No. 000-50671) (LMI 10-K
    Amendment No. 3))                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | 10 | .2 |  |  |  | Form of Liberty Media International, Inc. 2004 Incentive Plan
    (As Amended and Restated Effective March 9, 2005)
    Non-Qualified Stock Option Agreement (incorporated by reference
    to Exhibit 10.9 to the LMI 10-K Amendment
    No. 3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | 31 |    |  |  |  | Rule 13a-14(a)/15d-14(a) Certification:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | 31 | .1 |  |  |  | Certification of President and Chief Executive Officer.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | 31 | .2 |  |  |  | Certification of Senior Vice President and Treasurer.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | 31 | .3 |  |  |  | Certification of Senior Vice President and Controller.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | 32 |    |  |  |  | Section 1350 Certification.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   






|  |               
|- | --------------
|* | Filed herewith