ATLANTA, Aug 2, 2002 (BUSINESS WIRE) -- Cox Communications, Inc. (NYSE: COX) today announced the two-year Treasury Security and reset spread to be used to set the interest rate for the remarketing of its 7% Senior Debentures due 2004 ("Debentures") underlying its Income PRIDES securities.

Effective August 16, 2002, the interest rate for the Debentures will be the interest rate on the selected two-year benchmark Treasury Security (CUSIP No. 912828 AG 5; Maturity July 31, 2004) in effect on August 13, 2002, as selected by Merrill Lynch, Pierce, Fenner & Smith Incorporated, as reset agent, plus 200 basis points. This represents the maximum reset spread provided by the original terms of the FELINE PRIDES. An unsuccessful remarketing of these securities will have no material impact on Cox's results from operations or liquidity.

    The securities affected by this announcement are as follows:
    --  Debentures underlying the Income PRIDES of Cox Communications
        (CUSIP No. 224044 AT 4)
    --  Income Prides of Cox Communications (CUSIP No. 224044 30 5)

For additional information, please contact your Merrill Lynch, Pierce, Fenner & Smith Incorporated fixed income sales representative at (212) 449-1000 between the hours of 9 a.m. - 5 p.m. (EDT), Monday through Friday.

Cox Communications, a Fortune 500 company, is a multi-service broadband communications company serving approximately 6.3 million customers nationwide. Cox is the nation's fifth-largest cable television provider, and offers both traditional analog video programming under the Cox Cable brand as well as advanced digital video programming under the Cox Digital Cable brand. Cox provides an array of other communications and entertainment services, including local and long distance telephone under the Cox Digital Telephone brand; high-speed Internet access under the brands Cox High Speed Internet and Cox Express; and commercial voice and data services via Cox Business Services. Cox is an investor in programming networks, including Discovery Channel. More information about Cox Communications can be accessed on the Internet at www.cox.com.

Statements in this release are "forward-looking" statements, which are statements that relate to Cox's future plans, earnings, objectives, expectations, performance and similar projections, as well as any facts or assumptions underlying these statements or projections. Actual results may differ materially from the results expressed or implied in these forward-looking statements due to various risks, uncertainties or other factors. These factors include prevailing market interest rates for Cox's debt securities, competition within the broadband communications industry, our ability to achieve anticipated subscriber and revenue growth, our success in implementing new services and other operating initiatives, our ability to generate sufficient cash flow to meet our debt service obligations and finance operations and other risk factors described from time to time in Cox's filings with the Securities and Exchange Commission, including Cox's Annual Report on Form 10-K, as amended, for the year ended December 31, 2001. Cox assumes no responsibility to update any forward-looking statements as a result of new information, future events or otherwise.

CONTACT: Cox Communications, Inc. Laura Oberhelman, 404/269-7562