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On April 7, 2006, the Board of Directors of Cablevision Systems Corporation ("Cablevision") declared a special cash dividend of $10.00 per share on each outstanding share of its NY Group Class A Stock and NY Group Class B Stock. The dividend will be payable on April 24, 2006 to holders of record at the close of business on April 18, 2006. Because of the magnitude of the special cash dividend, the New York Stock Exchange has determined that the ex-dividend date will be April 25, 2006, the business day following the payment date for the special cash dividend. Shareholders of record on the April 18, 2006 record date who subsequently sell their shares of common stock prior to the April 25, 2006 ex-dividend date will also be selling their right to receive the special cash dividend. Shareholders are encouraged to consult with their financial advisors regarding the specific implications of the deferral of the ex-dividend date.
For U.S. federal income tax purposes, Cablevision expects that the special dividend should qualify as a tax-free return of capital to shareholders to the extent of each shareholder's basis in Cablevision's common stock, determined on a per share basis, with any excess generally being treated as a capital gain. Such anticipated tax treatment is based upon Cablevision's estimate of a deficit in current and accumulated earnings and profits through the end of 2006. As a result, such tax treatment is subject to change. Shareholders are encouraged to consult with their own tax and financial advisors regarding the implications of this special dividend on their individual tax position. For additional information see Cablevision's website at www.cablevision.com.
The dividend will be paid from the proceeds of a distribution of approximately $3.0 billion from Cablevision's wholly-owned subsidiary, CSC Holdings, Inc. that was approved by the Board of Directors of CSC Holdings on April 7, 2006. The CSC Holdings distribution will be funded from the proceeds of a term loan financing under its credit agreement which closed on March 29, 2006.
Cablevision Systems Corporation is one of the nation's leading entertainment, media and telecommunications companies. In addition to its broadband, cable, Internet and telephone offerings, the company owns and operates Rainbow Media Holdings LLC and its networks; Madison Square Garden and its teams; and, Clearview Cinemas. In addition, Cablevision operates New York's famed Radio City Music Hall. Additional information about Cablevision Systems Corporation is available on the Web at www.cablevision.com.
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the company and its business, operations, financial condition and the industry in which it operates and the factors described in the Company's filings with the Securities and Exchange Commission, including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The Company disclaims any obligation to update the forward-looking statements contained herein.
CONTACT: for Cablevision
Media and Community Relations
Kim Kerns, 516-803-2351
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Financial Strategy & Development
Bret Richter, 516-803-2270
SOURCE: Cablevision Systems Corporation
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