Rogers Reports Strong Fourth Quarter 2007 Results



    Consolidated Revenue Grows 13% to $2.7 Billion, Adjusted Operating Profit
    Increases 25% to $957 Million, and Net Income Increases 44% to
    $254 Million;

    Wireless Postpaid ARPU Grows 6% and Postpaid Churn Falls to 1.17%, While
    Cable Maintains Strong Net Additions of Revenue Generating Units

    TORONTO, Feb. 22 /CNW/ - Rogers Communications Inc. today announced its
consolidated financial and operating results for the three and twelve months
ended December 31, 2007.

    

    Financial highlights are as follows:

    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------
    (In millions of
     dollars, except
     per share amounts)    2007     2006    % Chg     2007     2006    % Chg
    -------------------------------------------------------------------------

    Operating revenue   $ 2,687  $ 2,370       13  $10,123  $ 8,838       15
    Operating profit(1)     884      752       18    3,099    2,875        8
    Net income              254      176       44      637      622        2
    Net income per
     share:
      Basic             $  0.40  $  0.28       43  $  1.00  $  0.99        1
      Diluted              0.40     0.27       48     0.99     0.97        2

    As adjusted:(2)
      Operating profit  $   957  $   768       25  $ 3,703  $ 2,942       26
      Net income            302      192       57    1,066      684       56
      Net income per
       share:
        Basic           $  0.47  $  0.30       57  $  1.67  $  1.08       55
        Diluted            0.47     0.30       57     1.66     1.07       55
    -------------------------------------------------------------------------

    (1) Operating profit should not be considered as a substitute or
        alternative for operating income or net income, in each case
        determined in accordance with Canadian generally accepted accounting
        principles ("GAAP"). See the "Reconciliation of Net Income to
        Operating Profit and Adjusted Operating Profit for the Period"
        section for a reconciliation of operating profit and adjusted
        operating profit to operating income and net income under Canadian
        GAAP and see the "Key Performance Indicators and Non-GAAP Measures
        and "Supplementary Information" sections. The introduction of a cash
        settlement feature for stock options resulted in a one-time non-cash
        charge upon adoption of $452 million on May 28, 2007, which is
        included in operating profit for the twelve months ended December 31,
        2007. See the section entitled "Stock-based Compensation Expense".
    (2) For details on the determination of the 'as adjusted' amounts, which
        are non-GAAP measures, see the "Supplementary Information" and the
        "Key Performance Indicators and Non-GAAP Measures" sections. The 'as
        adjusted' amounts presented above are reviewed regularly by
        management and our Board of Directors in assessing our performance
        and in making decisions regarding the ongoing operations of the
        business and the ability to generate cash flows. The 'as adjusted'
        amounts exclude (i) the impact of a one-time non-cash charge related
        to the introduction of a cash settlement feature for employee stock
        options; (ii) stock-based compensation expense; (iii) integration and
        restructuring expenses; (iv) the impact of a one-time charge
        resulting from the renegotiation of an Internet-related services
        agreement; and (v) in respect of net income and net income per share,
        the loss on repayment of long-term debt. Adjusted net income and net
        income per share also exclude the related income tax impact of the
        above amounts.


    Highlights of the fourth quarter of 2007 include the following:

    -   Generated continued strong double-digit growth in quarterly revenue
        and adjusted operating profit of 13% and 25%, respectively, while net
        income increased 44% to $254 million, (or by 57% to $302 million on
        an adjusted basis).

    -   Wireless subscriber postpaid net additions were 158,000, while
        postpaid subscriber monthly churn fell to 1.17% versus 1.24% in the
        fourth quarter of 2006. Wireless postpaid monthly ARPU (average
        revenue per user) increased 6% year-over-year to $73.33 driven in
        part by the 48% growth in data revenue to $192 million, or 14.1% of
        network revenue.

    -   Wireless announced that its High-Speed Packet Access ("HSPA") network
        and related new advanced services were available in 25 markets across
        the country, representing approximately 58% of the Canadian
        population. Rogers' HSPA network, the fastest wireless network in
        Canada, operates on a next generation wireless protocol which
        significantly increases download speeds on wireless devices,
        providing a user experience similar to broadband high-speed services.

    -   Cable ended the quarter with 656,000 residential voice-over-cable
        telephony subscriber lines. Net additions of voice-over-cable
        telephony lines were 65,000 for the quarter, of which approximately
        2,000 were migrations from the circuit-switched platform.

    -   Cable's Internet subscriber base grew by 46,000 in the quarter to
        1,465,000, while basic cable subscribers increased by 20,000 to
        2,295,000 and digital cable households increased by 61,000 to reach
        1,353,000.

    -   Cable entered into a renegotiated agreement with Yahoo! that will
        eliminate monthly per subscriber fees and see both companies work
        jointly on advertising revenue opportunities leveraging Rogers' high-
        speed Internet access portal and subscriber base. In connection with
        this new agreement, Rogers made a one-time payment to Yahoo!, and
        Cable's cost of providing its Internet service will be reduced
        over the four year term of the new agreement.

    -   Media closed the acquisition of five Citytv television stations on
        October 31, 2007. This acquisition gives Media a significantly
        enhanced broadcast television presence in the largest Canadian
        markets outside of Quebec and is a natural complement to Media's
        existing television, radio and specialty channel assets.

    -   Subsequent to the end of the fourth quarter, on January 7, 2008,
        Rogers' Board of Directors approved an increase in the annual
        dividend from $0.50 to $1.00 per share to be paid in quarterly
        amounts of $0.25 per share effective with its next quarterly
        dividend. At the same time, Rogers also announced a Normal Course
        Issuer Bid ("NCIB") to repurchase up to the lesser of 15 million of
        its Class B Non-Voting shares and that number of Class B Non-Voting
        shares that can be purchased under the NCIB for an aggregate purchase
        price of $300 million.


    "2007 was a year of continued solid growth in customers, revenues and cash
flow while at the same time we further deleveraged our balance sheet,
simplified our corporate structure and laid the groundwork for returning
increasing amounts of cash to our shareholders," said Ted Rogers, President
and CEO of Rogers Communications Inc. "While we have much to do in continuing
to reinforce our services and systems, I am confident that we are
exceptionally well positioned to carry on our growth and success in 2008 and
beyond."
    This earnings release should be read in conjunction with our 2006 Annual
MD&A and our 2006 Annual Audited Consolidated Financial Statements and Notes
thereto, as well as our 2007 quarterly interim financial and other recent
securities filings available on SEDAR at www.sedar.com. As this earnings
release includes forward-looking statements and assumptions, readers should
carefully review the sections of this release entitled "Caution Regarding
Forward-Looking Statements, Risks and Assumptions".
    In this release, the terms "we", "us", "our", "Rogers" and "the Company"
refer to Rogers Communications Inc. and our subsidiaries, which are reported
in the following segments:

    -   "Wireless", which refers to our wireless communications operations,
        including Rogers Wireless Partnership ("RWP") and Fido Solutions Inc.
        ("Fido");

    -   "Cable" (formerly "Cable and Telecom"), which refers to our wholly
        owned cable television subsidiaries, including Rogers Cable
        Communications Inc. ("RCCI"). In January 2007, we completed an
        internal reorganization whereby the Cable and Internet and Rogers
        Home Phone segments were combined into one segment known as Cable
        Operations. As a result, beginning in 2007, the Cable segment
        consists of the following segments: Cable Operations, Rogers Business
        Solutions ("RBS") and Rogers Retail. Comparative figures have been
        reclassified to reflect this new segmented reporting;

    -   "Media", which refers to our wholly owned subsidiary Rogers Media
        Inc. and its subsidiaries, including: Rogers Broadcasting, which owns
        Rogers Sportsnet, a group of AM and FM Radio stations, OMNI
        television, The Biography Channel Canada, G4TechTV Canada, and The
        Shopping Channel; Rogers Publishing; and Rogers Sports Entertainment,
        which owns the Toronto Blue Jays and the Rogers Centre. Media also
        holds ownership interests in entities involved in specialty TV
        content, TV production and broadcast sales. In addition, the
        operating results of Citytv are included in Media's results of
        operations from the date of acquisition on October 31, 2007.

    Substantially all of our operations are in Canada.

    "RCI" refers to the legal entity Rogers Communications Inc. excluding our
subsidiaries.

    Throughout this release, percentage changes are calculated using numbers
rounded to which they appear.


    SUMMARIZED CONSOLIDATED FINANCIAL RESULTS (Unaudited)

    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------
    (In millions of
     dollars, except
     per share amounts)    2007     2006    % Chg     2007     2006    % Chg
    -------------------------------------------------------------------------

    Operating revenue
      Wireless          $ 1,466  $ 1,257       17  $ 5,503  $ 4,580       20
      Cable
        Cable Operations    680      604       13    2,603    2,299       13
        RBS                 140      155      (10)     571      596       (4)
        Rogers Retail       105       84       25      393      310       27
        Corporate items
         and eliminations    (2)      (1)     100       (9)      (4)     125
                        -----------------------------------------------------
                            923      842       10    3,558    3,201       11
      Media                 364      317       15    1,317    1,210        9
      Corporate items
       and eliminations     (66)     (46)      43     (255)    (153)      67
                        -----------------------------------------------------
    Total                 2,687    2,370       13   10,123    8,838       15
                        -----------------------------------------------------
                        -----------------------------------------------------

    Adjusted operating
     profit (loss)(1)
      Wireless              658      521       26    2,589    1,987       30
      Cable
        Cable Operations    260      224       16    1,008      854       18
        RBS                   8       12      (33)      12       49      (76)
        Rogers Retail        (3)       2      n/m       (4)      13      n/m
                        -----------------------------------------------------
                            265      238       11    1,016      916       11
      Media                  63       48       31      176      156       13
      Corporate items
       and eliminations     (29)     (39)     (26)     (78)    (117)     (33)
                        -----------------------------------------------------
                        -----------------------------------------------------
    Adjusted operating
     profit(1)              957      768       25    3,703    2,942       26
    Stock option plan
     amendment(2)             -        -      n/m     (452)       -      n/m
    Stock-based
     compensation
     expense(2)              (4)     (12)     (67)     (62)     (49)      27
    Integration and
     restructuring
     expenses(3)            (17)      (4)     n/m      (38)     (18)     111
    Contract
     renegotiation
     fee(4)                 (52)       -      n/m      (52)       -      n/m
                        -----------------------------------------------------
    Operating
     profit(1)              884      752       18    3,099    2,875        8
    Other income and
     expense, net(5)        630      576        9    2,462    2,253        9
                        -----------------------------------------------------
    Net income          $   254  $   176       44  $   637  $   622        2
                        -----------------------------------------------------
                        -----------------------------------------------------

    Net income per
     share:
      Basic             $  0.40  $  0.28       43  $  1.00  $  0.99        1
      Diluted              0.40     0.27       48     0.99     0.97        2

    As adjusted:(1)
      Net income        $   302  $   192       57  $ 1,066  $   684       56
      Net income per
       share:
        Basic           $  0.47  $  0.30       57  $  1.67  $  1.08       55
        Diluted            0.47     0.30       57     1.66     1.07       55

    Additions to
     property, plant
     and equipment
     ("PP&E")(1)
      Wireless          $   252  $   201       25  $   822  $   684       20
      Cable
        Cable Operations    246      259       (5)     710      685        4
        RBS                  25       48      (48)      83       98      (15)
        Rogers Retail         9        6       50       21       11       91
                        -----------------------------------------------------
                            280      313      (11)     814      794        3
      Media                  32       16      100       77       48       60
      Corporate(6)           60       24      150       83      186      (55)
                        -----------------------------------------------------
    Total               $   624  $   554       13  $ 1,796  $ 1,712        5
                        -----------------------------------------------------
                        -----------------------------------------------------

    (1)  As defined. See the "Supplementary Information" and the "Key
         Performance Indicators and Non-GAAP Measures" sections.
    (2)  See the section entitled "Stock-based Compensation Expense".
    (3)  Costs incurred related to the integration of Fido and Call-Net
         Enterprises Inc. ("Call-Net"), the restructuring of RBS and the
         closure of 21 Retail stores in the first quarter of 2006.
    (4)  One-time charge resulting from the renegotiation of an
         Internet-related services agreement. See the section entitled
         "Cable Operations Operating Expenses".
    (5)  See the "Reconciliation of Net Income to Operating Profit and
         Adjusted Operating Profit for the Period" section for details of
         these amounts.
    (6)  Corporate additions to property, plant and equipment ("PP&E")
         include the acquisition of various corporate properties and related
         building improvements.
    n/m: not meaningful.

    For discussions of the results of operations of each of these segments,
refer to the respective segment sections of this release.

    Reconciliation of Net Income to Operating Profit and Adjusted Operating
    Profit for the Period

    The items listed below represent the consolidated income and expense
amounts that are required to reconcile net income as defined under Canadian
GAAP to the non-GAAP measures operating profit and adjusted operating profit
for the period. See the "Supplementary Information" section for a full
reconciliation to adjusted operating profit, adjusted net income and adjusted
net income per share. For details of these amounts on a segment-by-segment
basis and for an understanding of intersegment eliminations on consolidation,
the following section should be read in conjunction with tables in the
Supplemental Information section entitled "Segmented Information".

    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------
    (In millions of
     dollars)              2007     2006    % Chg     2007     2006    % Chg
    -------------------------------------------------------------------------

    Net income          $   254  $   176       44  $   637  $   622        2
    Income tax expense       84       13      n/m      249       56      n/m
    Other expense
     (income)                (2)       1      n/m        4      (10)     n/m
    Change in the fair
     value of derivative
     instruments              3      (24)     n/m       34        4      n/m
    Loss on repayment
     of long-term debt        -        1     (100)      47        1      n/m
    Foreign exchange
     loss (gain)             (1)      39      n/m      (54)      (2)     n/m
    Interest on long-
     term debt              138      151       (9)     579      620       (7)
                        -----------------------------------------------------
    Operating income        476      357       33    1,496    1,291       16
    Depreciation and
     amortization           408      395        3    1,603    1,584        1
                        -----------------------------------------------------
    Operating profit        884      752       18    3,099    2,875        8
    Stock option plan
     amendment                -        -      n/m      452        -      n/m
    Stock-based
     compensation
     expense                  4       12      (67)      62       49       27
    Integration and
     restructuring
     expenses                17        4      n/m       38       18      111
    Contract
     renegotiation fee       52        -      n/m       52        -      n/m
                        -----------------------------------------------------
    Adjusted operating
     profit             $   957  $   768       25  $ 3,703  $ 2,942       26
                        -----------------------------------------------------


    Net Income and Net Income Per Share

    As a result of the changes discussed below, we recorded net income of $254
million for the three months ended December 31, 2007, or basic and diluted
earnings per share of $0.40, compared to net income of $176 million or basic
earnings per share of $0.28 (diluted - $0.27) in the corresponding period in
2006.

    Income Tax Expense

    Due to our non-capital loss carryforwards, our income tax expense for the
three months ended December 31, 2007 and 2006 substantially represents non-
cash income taxes. As illustrated in the table below, our effective income tax
rate for the three months ended December 31, 2007 and 2006 was 24.9% and 6.9%,
respectively. The effective income tax rates for the three months ended
December 31, 2007 and 2006 differed from the respective statutory income tax
rates of 35.2% and 35.8%, primarily due to benefits realized from changes to
prior year tax filing positions and other adjustments.
    Income tax expense varies from the amounts that would be computed by
applying the statutory income tax rate to income before income taxes for the
following reasons:

                                              Three months     Twelve months
                                                     ended             ended
                                               December 31,      December 31,
                                          -----------------------------------
    (In millions of dollars)                 2007     2006     2007     2006
    -------------------------------------------------------------------------

    Statutory income tax rate               35.2%    35.8%    35.2%    35.8%
    -------------------------------------------------------------------------

    Income before income taxes            $   338  $   189  $   886  $   678

    Computed income tax expense           $   119  $    68  $   312  $   243
    Increase (decrease) in income taxes
     resulting from:
      Difference between rates applicable
       to subsidiaries in other
       jurisdictions                           (3)      (2)     (12)     (12)
      Change in the valuation allowance
       for future income tax assets           (13)      (8)     (20)    (168)
      Videotron termination payment             -        -      (25)      25
      Adjustments to future income tax
       assets and liabilities for changes
       in substantively enacted income
       tax rates                               21      (17)      47      (14)
      Stock-based compensation                  2        4      (17)      15
      Benefits realized from changes to
       prior year income tax filing
       positions and other adjustments        (42)     (32)     (36)     (33)
                                          -----------------------------------
    Income tax expense                    $    84  $    13  $   249  $    56
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Effective income tax rate               24.9%     6.9%    28.1%     8.3%
    -------------------------------------------------------------------------

    Change in Fair Value of Derivative Instruments

    The changes in fair value of the derivative instruments in the
three months ended December 31, 2007 was primarily the result of the changes
in measurement of hedge ineffectiveness and the change in fair value of the
embedded prepayment option on long-term debt.

    Loss on Repayment of Long-Term Debt

    During the twelve months ended December 31, 2007, we redeemed Wireless'
US$155 million 9.75% Senior Debentures due 2016 and Wireless' US$550 million
Floating Rate Senior Notes due 2010. These redemptions resulted in a loss on
repayment of long-term debt of $47 million, including aggregate redemption
premiums of $59 million offset by a write-off of the fair value increment
arising from purchase accounting of $12 million.

    Foreign Exchange Gain

    During the three months ended December 31, 2007, the Canadian dollar
strengthened by 0.8 cents versus the U.S. dollar. This resulted in a foreign
exchange gain of $1 million during the three months ended December 31, 2007.
During the corresponding period of 2006, there was a foreign exchange loss of
$39 million primarily related to foreign exchange on long-term debt not hedged
for accounting purposes given a 5 cent decrease in the Canadian dollar in this
period.

    Interest on Long-Term Debt

    Interest expense decreased by $13 million for the three months ended
December 31, 2007 compared to the corresponding period in 2006. The decrease
in interest expense is primarily due to the repayment of long-term debt in
2007, including the settlement of certain of our cross-currency interest rate
exchange agreements.
    The decrease in debt was largely the result of the February 2007 repayment
at maturity of Cable's $450 million 7.60% Senior Notes due 2007, the May 2007
redemption of Wireless' US$550 million Floating Rate Senior Notes due 2010 and
the June 2007 redemption of Wireless' US$155 million 9.75% Senior Debentures
due 2016. These repayments were partially offset by the $1,080 million net
increase in bank debt as at December 31, 2007, compared to December 31, 2006.

    Operating Income

    The 33% increase in our operating income to $476 million from $357 million
for the three months ended December 31, 2007 compared to the corresponding
period of the prior year is primarily due to the growth in revenue of $317
million exceeding the growth in operating expenses and depreciation and
amortization of $198 million. See the section entitled "Operating Unit Review"
for a detailed discussion of operating unit results.

    Depreciation and Amortization Expense

    Depreciation and amortization expense for the three months ended
December 31, 2007 increased nominally over the corresponding period of the
prior year. An increase in depreciation and amortization related to PP&E was
partially offset by a decrease in amortization of intangible assets resulting
from the reduction in the carrying value of certain intangible assets due to
the reduction in the valuation allowance recorded in 2006 related to future
income tax assets acquired as part of business acquisitions in prior periods.

    Stock-based Compensation Expense

    A summary of stock-based compensation expense is as follows:

                               Stock-based Compensation Expense (Recovery)
                                     Included in Operating, General
                                      and Administrative Expenses
                    One-time  -----------------------------------------------
                    Non-cash         Three months           Twelve months
                     Charge             ended                   ended
                      Upon           December 31,            December 31,
    (In millions    Adoption  -----------------------------------------------
    of dollars)     in Q207        2007        2006        2007        2006
    -------------------------------------------------------------------------

    Wireless       $      46   $       2   $       4   $      11   $      15
    Cable                113          (2)          3          11          11
    Media                 84           1           1          10           5
    Corporate            209           3           4          30          18
                  -----------------------------------------------------------
                   $     452   $       4   $      12   $      62   $      49
    -------------------------------------------------------------------------


    Adjusted Operating Profit

    Wireless, Cable and Media all contributed to the increase in adjusted
operating profit. Refer to the individual segment discussions for details of
the respective increases in adjusted operating profit.
    For the three months ended December 31, 2007, adjusted operating profit
increased to $957 million, from $768 million in the corresponding period of
the prior year. Adjusted operating profit for the three months ended
December 31, 2007 and 2006, respectively excludes: (i) stock-based
compensation expense of $4 million and $12 million; (ii) integration and
restructuring expenses of $17 million and $4 million; and (iii) the impact of
a one-time charge of $52 million resulting from the renegotiation of an
Internet-related services agreement in the three months ended December 31,
2007.
    For the twelve months ended December 31, 2007, adjusted operating profit
increased to $3,703 million, from $2,942 million in 2006. Adjusted operating
profit excludes: (i) the impact of a $452 million one-time non-cash charge
related to the introduction of a cash settlement feature for stock options for
the twelve months ended December 31, 2007; (ii) stock-based compensation
expense of $62 million and $49 million for the twelve months ended
December 31, 2007 and 2006, respectively; (iii) integration and restructuring
expenses of $38 million and $18 million for the twelve months ended
December 31, 2007 and 2006, respectively; and (iv) the impact of a one-time
charge of $52 million resulting from the renegotiation of an Internet-related
services agreement in the twelve months ended December 31, 2007.
    For details on the determination of adjusted operating profit, which is a
non-GAAP measure, see the "Supplementary Information" and the "Key Performance
Indicators and Non-GAAP Measures" sections.

    OPERATING UNIT REVIEW

    WIRELESS
    --------

    Summarized Wireless Financial Results

    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------
    (In millions of
     dollars, except
     margin)               2007     2006    % Chg     2007     2006    % Chg
    -------------------------------------------------------------------------

    Operating revenue
      Postpaid          $ 1,283  $ 1,095       17  $ 4,868  $ 4,084       19
      Prepaid                70       61       15      273      214       28
      One-way messaging       3        4      (25)      13       15      (13)
                        -----------------------------------------------------
      Network revenue     1,356    1,160       17    5,154    4,313       19
      Equipment sales       110       97       13      349      267       31
                        -----------------------------------------------------
    Total operating
     revenue              1,466    1,257       17    5,503    4,580       20
                        -----------------------------------------------------

    Operating expenses
     before the
     undernoted
      Cost of equipment
       sales                208      189       10      703      628       12
      Sales and
       marketing
       expenses             186      186        -      653      604        8
      Operating,
       general and
       administrative
       expenses             414      361       15    1,558    1,361       14
                        -----------------------------------------------------
                            808      736       10    2,914    2,593       12
                        -----------------------------------------------------
    Adjusted operating
     profit(1)(2)           658      521       26    2,589    1,987       30
    Stock option plan
     amendment(3)             -        -      n/m      (46)       -      n/m
    Stock-based
     compensation
     expense(3)              (2)      (4)     (50)     (11)     (15)     (27)
    Integration
     expenses(4)              -        -      n/m        -       (3)     n/m
                        -----------------------------------------------------
    Operating profit(1) $   656  $   517       27  $ 2,532  $ 1,969       29
                        -----------------------------------------------------
                        -----------------------------------------------------

    Adjusted operating
     profit margin as
     % of network
     revenue(1)           48.5%    44.9%             50.2%    46.1%

    Additions to
     PP&E(1)            $   252  $   201       25  $   822  $   684       20
                        -----------------------------------------------------

    (1) As defined. See the "Key Performance Indicators and Non-GAAP
        Measures" and the "Supplementary Information" sections.
    (2) Adjusted operating profit includes a loss of $8 million and
        $31 million related to the Inukshuk wireless broadband initiative for
        the three and twelve months ended December 31, 2007, respectively,
        and a loss of $10 million and $25 million for the three and
        twelve months ended December 31, 2006, respectively.
    (3) See the section entitled "Stock-based Compensation Expense".
    (4) Costs incurred related to the integration of Fido.


    Summarized Wireless Subscriber Results


    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------

    (Subscriber
     statistics
     in thousands,
     except ARPU,
     churn and usage)      2007     2006      Chg     2007     2006      Chg
    -------------------------------------------------------------------------

    Postpaid
      Gross additions       362      385      (23)   1,352    1,375      (23)
      Net additions         158      189      (31)     581      580        1
      Adjustment to
       postpaid
       subscriber
       base(1)                -        -        -      (65)       -      (65)
      Total postpaid
       retail
       subscribers                                   5,914    5,398      516
      Average monthly
       revenue per user
       ("ARPU")(2)      $ 73.33  $ 69.04  $  4.29  $ 72.21  $ 67.27  $  4.94
      Average monthly
       usage (minutes)      596      556       40      573      545       28
      Monthly churn       1.17%    1.24%   (0.07%)   1.15%    1.32%   (0.17%)
    Prepaid
      Gross additions       156      181      (25)     635      615       20
      Net additions          25       55      (30)      70       30       40
      Adjustment to
       prepaid
       subscriber
       base(1)                -        -        -      (26)       -      (26)
      Total prepaid
       retail
       subscribers                                   1,424    1,380       44
      ARPU(2)           $ 16.59  $ 15.15  $  1.44  $ 16.46  $ 13.49  $  2.97
      Monthly churn       3.12%    3.14%   (0.02%)   3.42%    3.70%   (0.28%)
    -------------------------------------------------------------------------

    (1) During the second quarter of 2007, Wireless decommissioned its TDMA
        and analog networks and simultaneously revised certain aspects of its
        subscriber reporting for data-only subscribers. The deactivation of
        the remaining TDMA subscribers and the change in subscriber reporting
        resulted in the removal of approximately 65,000 subscribers from
        Wireless' postpaid subscriber base and the removal of approximately
        26,000 subscribers from Wireless' prepaid subscriber base. These
        adjustments are not included in the determination of postpaid or
        prepaid monthly churn.
    (2) As defined. See the "Key Performance Indicators and Non-GAAP
        Measures" section. As calculated in the "Supplementary Information"
        section.

    Wireless Network Revenue

    The increase in network revenue for the three months ended December 31,
2007 compared to the corresponding period of the prior year was driven by the
continued growth of Wireless' postpaid subscriber base and improvements in
postpaid average monthly revenue per user ("ARPU"). The year-over-year
increase in postpaid ARPU reflects the impact of higher data revenue, as well
as increased long-distance, add-on features and roaming revenue. Wireless has
experienced growth in roaming revenues from subscribers using services outside
of Canada as well as strong growth in inbound roaming revenues from visitors
to Canada who utilize Wireless' network.
    Prepaid revenue increased as a result of improved ARPU and a larger
subscriber base. The year-over-year improvement in ARPU is a result of
increased data usage and more attractive prepaid offerings, including
unlimited evening and weekend plans.
    Wireless' success in the continued reduction in postpaid churn reflects
proactive and targeted customer retention activities, the commitment to
customer care and improvements in network coverage and quality. Prepaid churn
has improved compared to the corresponding period in 2006 due to changes in
offerings and investments in retention programs.
    During the three months ended December 31, 2007, wireless data revenue
increased by 48% over the corresponding period in 2006 and totalled
$192 million. This increase in data revenue reflects the continued growth of
text and multimedia messaging services, wireless Internet access, BlackBerry
devices, downloadable ring tones, music and games, and other wireless data
services and applications. For the three months ended December 31, 2007, data
revenue represented approximately 14.1% of total network revenue, compared to
11.2% in the corresponding period last year.

    Wireless Equipment Sales

    The year-over-year increase in revenue from equipment sales, including
activation fees and net of equipment subsidies, reflects an increased volume
of handset upgrades associated with the growing subscriber base.

    Wireless Operating Expenses


    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------
    (In millions of
     dollars, except
     per subscriber
     statistics)           2007     2006    % Chg     2007     2006    % Chg
    -------------------------------------------------------------------------

    Operating expenses
      Cost of equipment
       sales            $   208  $   189       10  $   703  $   628       12
      Sales and
       marketing
       expenses             186      186        -      653      604        8
      Operating,
       general and
       administrative
       expenses             414      361       15    1,558    1,361       14
                        -----------------------------------------------------
    Operating expenses
     before the
     undernoted             808      736       10    2,914    2,593       12
    Stock option plan
     amendment(1)             -        -      n/m       46        -      n/m
    Stock-based
     compensation
     expense(1)               2        4      (50)      11       15      (27)
    Integration
     expenses(2)              -        -      n/m        -        3      n/m
                        -----------------------------------------------------
    Total operating
     expenses           $   810  $   740        9  $ 2,971  $ 2,611       14
                        -----------------------------------------------------
                        -----------------------------------------------------
    Average monthly
     operating
     expense per
     subscriber
     before sales
     and marketing
     expenses(3)        $ 21.25  $ 19.51        9  $ 20.61  $ 19.48        6

    Sales and
     marketing costs
     per gross
     subscriber
     addition(3)        $   440  $   427        3  $   401  $   399        1

    -------------------------------------------------------------------------

    (1) See the section entitled "Stock-based Compensation Expense".
    (2) Costs incurred related to the integration of Fido.
    (3) As defined. See the "Key Performance Indicator and Non-GAAP Measures"
        section. As calculated in the "Supplementary Information" section.
        Average monthly operating expense per subscriber before sales and
        marketing expenses excludes the one-time non-cash expense related to
        the introduction of a cash settlement feature for stock options,
        stock-based compensation expense and integration expenses.

    Cost of equipment sales increased for the three months ended December 31,
2007 compared to the corresponding period of the prior year primarily as a
result of retention activity, hardware upgrades, and the increased average
cost of handsets.
    Sales and marketing expenses for the three months ended December 31, 2007
remained flat compared to the corresponding period of the prior year.
Marketing efforts were largely focused on acquiring high value postpaid voice
and data customers, as well as the continuation of Wireless' "Most Reliable
Network" campaign and the introduction of new services and devices. Because of
the seasonally heavy mass market advertising component associated with the
fourth quarter, sales and marketing costs per gross addition are less variable
than in other quarters.
    Growth in the Wireless subscriber base drove increases in operating,
general and administrative expenses in the three months ended December 31,
2007, compared to the corresponding period of the prior year. These increases
were reflected in higher customer retention spending, costs to support
increased usage of data and roaming services, and increases in network
operating expenses to accommodate the larger subscriber base. Customer care
costs also increased as a result of the launch of Wireless Number Portability
("WNP") in March 2007, the decommissioning of the TDMA network in May 2007,
and the complexity of supporting more sophisticated services and devices.
These costs were partially offset by savings related to operating and scale
efficiencies across various functions.
    Total retention spending, including subsidies on handset upgrades, has
increased to $110 million in the three months ended December 31, 2007,
compared to $85 million in the corresponding period of the prior year due to a
larger subscriber base which drove higher volumes of handset upgrades.

    Wireless Adjusted Operating Profit

    The strong year-over-year growth in adjusted operating profit was due to
the significant growth in network revenue. As a result, Wireless' adjusted
operating profit margins increased to 48.5% for the three months ended
December 31, 2007, compared to 44.9% in the corresponding period in 2006.

    Wireless Additions to PP&E

    Wireless additions to PP&E are classified into the following categories:

    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------
    (In millions
     of dollars)           2007     2006    % Chg     2007     2006    % Chg
    -------------------------------------------------------------------------

    Additions to PP&E
      Network
       - capacity       $    38  $    14      171  $   169  $   159        6
      Network
       - other              100       42      138      175       89       97
      HSPA                   57       82      (30)     316      264       20
      Information and
       technology
       and other             54       50        8      147      112       31
      Inukshuk                3       13      (77)      15       60      (75)
                        -----------------------------------------------------
    Total additions
     to PP&E            $   252  $   201       25  $   822  $   684       20
    -------------------------------------------------------------------------

    Additions to Wireless PP&E for the three months ended December 31, 2007
reflects network capacity spending on the GSM network, continued rollout of
the HSPA network to the top 25 markets across Canada and the introduction of
faster network throughput speeds. Other network-related additions included
national site build activities and additional spending on test and monitoring
equipment. Other additions to PP&E reflect information technology initiatives
such as billing and back office system upgrades, facilities upgrades and other
facilities and equipment spending.

    CABLE
    -----

    Summarized Cable Financial Results


    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------
    (In millions
     of dollars,
     except margin)      2007(1)  2006(2)   % Chg   2007(1)  2006(2)   % Chg
    -------------------------------------------------------------------------

    Operating revenue
      Cable
       Operations(3)    $   680  $   604       13  $ 2,603  $ 2,299       13
      RBS                   140      155      (10)     571      596       (4)
      Rogers Retail         105       84       25      393      310       27
      Intercompany
       eliminations          (2)      (1)     100       (9)      (4)     125
                        -----------------------------------------------------
    Total operating
     revenue                923      842       10    3,558    3,201       11
                        -----------------------------------------------------

    Operating profit
     (loss) before
     the undernoted
      Cable
       Operations(3)        260      224       16    1,008      854       18
      RBS                     8       12      (33)      12       49      (76)
      Rogers Retail          (3)       2      n/m       (4)      13      n/m
                        -----------------------------------------------------
    Adjusted operating
     profit(4)              265      238       11    1,016      916       11
    Stock option plan
     amendment(5)             -        -      n/m     (113)       -      n/m
    Stock-based
     compensation
     recovery
     (expense)(5)             2       (3)     n/m      (11)     (11)       -
    Integration and
     restructuring
     expenses(6)            (17)      (4)     n/m      (38)     (15)     153
    Contract
     renegotiation
     fee(7)                 (52)       -      n/m      (52)       -      n/m
                        -----------------------------------------------------
    Operating
     profit(4)          $   198  $   231      (14) $   802  $   890      (10)
                        -----------------------------------------------------
                        -----------------------------------------------------

    Adjusted
     operating profit
     (loss) margin(4)
      Cable
       Operations(3)      38.2%    37.1%             38.7%    37.1%
      RBS                  5.7%     7.7%              2.1%     8.2%
      Rogers Retail       (2.9%)    2.4%             (1.0%)    4.2%

    Additions
     to PP&E(4)
      Cable
       Operations(3)    $   246  $   259      (5) $   710  $    685        4
      RBS                    25       48     (48)      83        98      (15)
      Rogers Retail           9        6      50       21        11       91
                        -----------------------------------------------------
    Total additions
     to PP&E            $   280  $   313     (11) $   814  $    794        3
    -------------------------------------------------------------------------

    (1) The operating results of Futureway Communications Inc. ("Futureway")
        are included in Cable's results of operations from the date of
        acquisition on June 22, 2007.
    (2) Certain prior year amounts have been reclassified to conform to the
        current year presentation.
    (3) Cable Operations segment includes Core Cable services, Internet
        services and Rogers Home Phone services.
    (4) As defined. See the "Key Performance Indicators and Non-GAAP
        Measures" and "Supplementary Information" sections.
    (5) See the section entitled "Stock-based Compensation Expense".
    (6) Costs incurred related to the integration of the operations of
        Call-Net, the restructuring of RBS and the closure of 21 Retail
        stores in the first quarter of 2006.
    (7) One-time charge resulting from the renegotiation of an
        Internet-related services agreement. See the section entitled
        "Cable Operations Operating Expenses".

    The following segment discussions provide a detailed discussion of the
Cable operating results.

    CABLE OPERATIONS

    Summarized Financial Results


    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------
    (In millions
     of dollars,
     except margin)        2007   2006(1)   % Chg     2007   2006(1)   % Chg
    -------------------------------------------------------------------------

    Operating revenue
      Core Cable        $   397  $   367        8  $ 1,540  $ 1,421        8
      Internet              160      138       16      608      523       16
      Rogers Home Phone     123       99       24      455      355       28
                        -----------------------------------------------------
    Total Cable
     Operations
     operating revenue      680      604       13    2,603    2,299       13
                        -----------------------------------------------------

    Operating expenses
     before the
     undernoted
      Sales and
       marketing
       expenses              69       57       21      257      219       17
      Operating, general
       and administrative
       expenses             351      323        9    1,338    1,226        9
                        -----------------------------------------------------
                            420      380       11    1,595    1,445       10
                        -----------------------------------------------------
    Adjusted operating
     profit(2)              260      224       16    1,008      854       18
    Stock option plan
     amendment(3)             -        -      n/m     (106)       -      n/m
    Stock-based
     compensation
     recovery
     (expense)(3)             1       (3)     n/m      (10)     (11)      (9)
    Integration
     expenses(4)              -       (2)     n/m       (9)      (8)      13
    Contract
     renegotation
      fee(5)                (52)       -      n/m      (52)       -      n/m
                        -----------------------------------------------------
    Operating
     profit(2)          $   209  $   219       (5) $   831  $   835       (0)
                        -----------------------------------------------------
                        -----------------------------------------------------

    Adjusted operating
     profit margin(2)     38.2%    37.1%             38.7%    37.1%

    -------------------------------------------------------------------------

    (1) Certain prior year amounts have been reclassified to conform with the
        current year presentation.
    (2) As defined. See the "Key Performance Indicators and Non-GAAP
        Measures" and "Supplementary Information" sections.
    (3) See the section entitled "Stock-based Compensation Expense".
    (4) Costs incurred related to the integration of the operations of
        Call-Net.
    (5) One-time charge resulting from the renegotiation of an
        Internet-related services agreement. See the section entitled
        "Cable Operations Operating Expenses".


    Summarized Subscriber Results


    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------
    (Subscriber
     statistics in
     thousands,
     except ARPU)          2007     2006      Chg     2007     2006      Chg
    -------------------------------------------------------------------------

    Cable homes passed                               3,575    3,481       94

    Basic Cable
      Net additions          20       11        9       18       13        5
      Total Basic Cable
       subscribers                                   2,295    2,277       18
      Core Cable
       ARPU(1)          $ 57.97  $ 53.83  $  4.14  $ 56.39  $ 52.37  $  4.02

    High-speed
     Internet(2)
      Net additions          46       47       (1)     165      160        5
      Total Internet
       subscribers
       (residential)(3)                              1,465    1,297      168
      Internet ARPU(1)  $ 36.67  $ 35.50  $  1.17  $ 36.51  $ 35.32  $  1.19

    Digital Cable
      Terminals, net
       additions            110      115       (5)     374      358       16
      Terminals
       in service                                    1,871    1,497      374
      Households, net
       additions             61       70       (9)     219      221       (2)
      Households                                     1,353    1,134      219

    Cable telephony
     subscriber lines
      Net additions
       and migrations(4)     65       95      (30)     290      318      (28)
      Total Cable
       telephony
       subscriber lines                                656      366      290

    Circuit-switched
     subscriber lines
      Net losses and
       migrations(4)         (3)      (8)       5      (37)     (41)       4
      Total circuit-
       switched
       subscriber
       lines(3)                                        334      350      (16)

    Total Rogers
     Home Phone
     subscriber lines
      Net additions          62       87      (25)     253      277      (24)
      Total Rogers
       Home subscriber
       lines(3)                                        990      716      274

    RGUs(2)(5)
      Net additions         189      215      (26)     655      671      (16)
      Total revenue
       generating
       units(3)                                      6,103    5,424      679

    -------------------------------------------------------------------------

    (1) As defined. See the "Key Performance Indicators and Non-GAAP
        Measures" and "Supplementary Information" sections.
    (2) Prior year high-speed Internet subscribers and RGUs have been
        reclassified to conform to the current year presentation.
    (3) Included in total subscribers at December 31, 2007, are approximately
        3,000 high-speed Internet subscribers and 21,000 circuit-switched
        telephony subscriber lines, representing 24,000 RGUs, acquired from
        Futureway in June, 2007. These subscribers are not included in net
        additions for the twelve months ended December 31, 2007.
    (4) Includes approximately 2,000 and 42,000 migrations from circuit-
        switched to cable telephony for the three and twelve months ended
        December 31, 2007, respectively, and 13,000 and 37,000 migrations
        from circuit-switched to cable telephony for the three and twelve
        months ended December 31, 2006, respectively.
    (5) RGUs are comprised of basic cable subscribers, digital cable
        households, residential high-speed Internet subscribers and
        residential cable and circuit-switched telephony subscribers.

    Core Cable Revenue

    The increase in Core Cable revenue for the three months ended December 31,
2007 reflects the impact of price increases, growth in basic subscribers and
the growing penetration of our digital cable products. The price increases on
service offerings, that became effective in March 2007, contributed
approximately $14 million to Core Cable revenue growth for the three months
ended December 31, 2007. The remaining increase in revenue of approximately
$16 million for the three months ended December 31, 2007 is primarily related
to the growth in digital subscribers.
    The digital cable subscriber base grew by 19% from December 31, 2006 to
December 31, 2007. Digital penetration now represents 59% of basic cable
households. Strong demand for High Definition ("HD") and Personal Video
Recorder ("PVR") digital set top box equipment combined with the success of
Cable's "Personal TV" and awareness of the "triple play" marketing campaign,
which offers cable television, high-speed Internet and Rogers Home Phone
services in discrete packages, contributed to the growth in the digital
subscriber base of 61,000 households in the three months ended December 31,
2007. In addition, basic cable subscribers increased by 20,000 in the fourth
quarter.

    Internet (Residential) Revenue

    The increase in Internet revenues for the three months ended December 31,
2007 from the corresponding period in 2006 reflects the 13% year-over-year
increase in the number of Internet subscribers in addition to price increases
to our Internet offerings. These price increases, effective in March 2007,
contributed to the Internet revenue growth by approximately $4 million for the
three months ended December 31, 2007. The remaining increase in revenue of
approximately $18 million for the three months ended December 31, 2007 was
largely the result of the impact of the growth in subscribers. The average
monthly revenue per Internet subscriber increased in the quarter compared to
the corresponding period in 2006. This was the result of price increases
partially offset by a shift in subscriber mix to a higher number of
subscribers on lower priced service tiers.
    With the high-speed Internet subscriber base now at approximately
1.5 million, Internet penetration is 64% of basic cable households, and 41% of
homes passed by our network.

    Rogers Home Phone Revenue

    The growth in Rogers Home Phone revenue for the three months ended
December 31, 2007 compared to the corresponding period in 2006 is the result
of the addition of 65,000 Rogers Home Phone voice-over-cable telephony service
lines in the three months ended December 31, 2007. Partially offsetting the
increase in voice-over-cable telephony lines is a decline in the number of
circuit-switched local lines of 3,000 for the three months ended December 31,
2007. Of this amount, 2,000 represented migrations from the circuit-switched
to cable telephony platform.
    Long-distance revenues for the three months ended December 31, 2007 were
relatively flat versus the corresponding period in 2006.

    Cable Operations Operating Expenses

    Cable Operations sales and marketing expenses increased by $12 million for
the three months ended December 31, 2007, compared to the corresponding period
of 2006, reflecting the significant growth in cable telephony service in
addition to certain targeted promotional activities.
    The increases in operating, general and administrative costs for the three
months ended December 31, 2007 compared to the corresponding period of 2006
were primarily driven by increases in digital cable, Internet and Rogers Home
Phone subscriber bases, resulting in higher costs associated with programming
content, customer care, technical service and network operations. This
increase was partially offset by the elimination of Canadian Radio- television
and Telecommunication Commission ("CRTC") Part II fees.
    In January 2004, Cable entered into a multi-year agreement with Yahoo!
Inc. ("Yahoo!") to offer Cable's high-speed Internet access subscribers a co-
branded broadband experience, which included: Yahoo!'s email functionality;
hosting and storage; security, pop-up blocking and parental control tools;
digital photo tools; online music and game services; and an array of content
in a personalized user environment. Under this agreement, Cable paid portal
fees to Yahoo! for these services on a per subscriber basis. On October 31,
2007, Cable and Yahoo! entered into a renegotiated agreement effective
January 1, 2008, under which Cable and Yahoo! will share advertising revenue
opportunities leveraging the high-speed Internet access subscribers, and Cable
will no longer pay portal fees to Yahoo!. This renegotiated agreement will now
expire on December 31, 2011. In connection with the renegotiation of this
agreement, Cable made a one-time payment to Yahoo! in the fourth quarter of
2007 of $52 million and Cable's cost of providing its high-speed Internet
service will be reduced by approximately $25 million per year over the term of
the renegotiated agreement. Rogers' branding of its Internet service is being
transitioned to "Rogers Hi-Speed Internet", while the online portal will
continue to be branded as "Rogers Yahoo!".

    Cable Operations Adjusted Operating Profit

    The year-over-year growth in adjusted operating profit was primarily the
result of growth in revenue and subscribers in addition to the impact of the
elimination of CRTC Part II fees. As a result, Cable Operations adjusted
operating profit margins increased to 38.2% for the three months ended
December 31, 2007 compared to 37.1% in the corresponding period in 2006.
    Cable Operations' base of circuit-switched local telephony customers,
which was acquired in July 2005 through the acquisition of Call-Net, is
generally less capital intensive than its on-net cable telephony business but
also generates lower margins. As a result, the inclusion of the circuit-
switched local telephony business with Cable Operations' on-net in-region
telephony business has a dilutive impact on operating profit margins.

    Rogers Business Solutions

    Summarized Financial Results


    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------
    (In millions of
     dollars,
     except margin)        2007     2006    % Chg     2007     2006    % Chg
    -------------------------------------------------------------------------

    RBS operating
     revenue            $   140  $   155      (10) $   571  $   596       (4)
                        -----------------------------------------------------

    Operating expenses
     before the
     undernoted
      Sales and
       marketing
       expenses              18       19       (5)      75       70        7
      Operating, general
       and administrative
       expenses             114      124       (8)     484      477        1
                        -----------------------------------------------------
                            132      143       (8)     559      547        2
                        -----------------------------------------------------
    Adjusted operating
     profit(1)                8       12      (33)      12       49      (76)
    Stock option
     plan amendment(2)        -        -      n/m       (2)       -      n/m
    Stock-based
     compensation
     recovery(2)              1        -      n/m        -        -      n/m
    Integration and
     restructuring
     expenses(3)            (17)      (1)     n/m      (29)      (1)     n/m
                        -----------------------------------------------------
    Operating profit
     (loss)(1)          $    (8) $    11      n/m  $   (19) $    48      n/m
                        -----------------------------------------------------
                        -----------------------------------------------------

    Adjusted operating
     profit margin(1)      5.7%     7.7%               2.1%    8.2%

    -------------------------------------------------------------------------

    (1) As defined. See the "Key Performance Indicators and Non-GAAP
        Measures" and "Supplementary Information" sections.
    (2) See the section entitled "Stock-based Compensation Expense".
    (3) Costs incurred relate to the integration of the operations of Call-
        Net and the restructuring of RBS.

    Summarized Subscriber Results


    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------
    (Subscriber
     statistics in
     thousands)           2007      2006     Chg      2007     2006      Chg
    -------------------------------------------------------------------------

    Local line
     equivalents (1)
      Net additions           6       11       (5)      18       33      (15)
      Total local line
       equivalents(2)                                  237      205       32

    Broadband data
     circuits(3)
      Net additions           1        2       (1)       3       10       (7)
      Total broadband
       data circuits(2)                                 35       31        4

    -------------------------------------------------------------------------

    (1) Local line equivalents include individual voice lines plus Primary
        Rate Interfaces ("PRIs") at a factor of 23 voice lines each.
    (2) Included in total subscribers at December 31, 2007, are approximately
        14,000 local line equivalents and 1,000 broadband data circuits
        acquired from Futureway in June, 2007. These subscribers are not
        included in net additions for the twelve months ended December 31,
        2007.
    (3) Broadband data circuits are those customer locations accessed by data
        networking technologies including DOCSIS, DSL, E10/100/1000, OC 3/12
        and DS 1/3.

    RBS Revenue

    The decrease in RBS revenues is a result of a decline in long-distance
revenues partially offset by an increase in local service and data revenues.
During the three months ended December 31, 2007, long-distance revenues
declined by $20 million compared to the corresponding period of 2006 due to a
decrease in both usage and average revenue per minute. Local service revenue
grew by $4 million compared to the corresponding period in 2006. In addition,
data revenues (including hardware sales) increased by $1 million compared to
the corresponding period of 2006.

    RBS Operating Expenses

    Carrier charges are included in operating, general and administrative
expenses and decreased by $20 million for the three months ended December 31,
2007, due to the decrease in revenue and product mix changes. Carrier charges
represented approximately 52% of revenue in the three months ended
December 31, 2007, compared to 60% of revenue in the corresponding period of
2006.
    The increases in other operating, general and administrative expenses of
$10 million for the three months ended December 31, 2007 compared to the
corresponding period of the prior year are primarily the result of an increase
in overall information technology and network maintenance costs.
    Sales and marketing expenses remained consistent with the corresponding
period of the prior year, as marketing efforts have primarily targeted the
small and medium business markets since early 2007.

    RBS Adjusted Operating Profit

    The changes described above resulted in RBS adjusted operating profit of
$8 million for the three months ended December 31, 2007, compared to adjusted
operating profit of $12 million in the corresponding period of 2006.

    Integration and Restructuring Expenses

    During the fourth quarter of 2007, most RBS new customer acquisition
efforts in the enterprise and larger business segments and outside of Cable's
footprint were suspended, resulting in certain staff reductions and the
incurrence of approximately $11 million in severance costs. In addition,
consulting and contract termination costs of $3 million related to the
restructuring and $3 million of integration expenses related to the
acquisition of Call-Net were incurred. Capital spending requirements on
information technology and network builds were also reduced. RBS will continue
to maximize operating profit through its existing customer base while at the
same time Cable will increase its sales efforts on the smaller business
portion of the market within its traditional cable television footprint where
it is able to serve customers with voice and data telephony services
provisioned over its own infrastructure.

    ROGERS RETAIL

    Summarized Financial Results

    In January 2007, Rogers Retail acquired approximately 170 retail locations
from Wireless. The results of the activities of these stores have been
included in the Rogers Retail results of operations since January 1, 2007.

    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------
    (In millions
     of dollars)           2007     2006    % Chg     2007     2006    % Chg
    -------------------------------------------------------------------------

    Rogers Retail
     operating revenue  $   105  $    84       25  $   393  $   310       27
                        -----------------------------------------------------

    Operating expenses      108       82       32      397      297       34
                        -----------------------------------------------------
    Adjusted operating
     profit (loss)(1)        (3)       2      n/m       (4)      13      n/m
    Stock option plan
     amendment(2)             -        -      n/m       (5)       -      n/m
    Stock-based
     compensation
     expense(2)               -        -      n/m       (1)       -      n/m
    Restructuring
     expenses(3)              -       (1)     n/m        -       (6)     n/m
                        -----------------------------------------------------
    Operating profit
     (loss)(1)          $    (3) $     1      n/m  $   (10) $     7      n/m
                        -----------------------------------------------------
                        -----------------------------------------------------

    Adjusted operating
     profit (loss)
     margin(1)            (2.9%)     2.4%            (1.0%)    4.2%

    -------------------------------------------------------------------------

    (1) As defined. See the "Key Performance Indicators and Non-GAAP
        Measures" and "Supplementary Information" sections.
    (2) See the section entitled "Stock-based Compensation Expense".
    (3) Costs related to the closure of 21 Retail stores in the first quarter
        of 2006.


    Rogers Retail Revenue

    The increase in Rogers Retail revenue of $21 million for the three months
ended December 31, 2007, compared to the corresponding period of 2006 was the
result of the acquisition of 170 retail stores from Wireless in January 2007,
partially offset by a decline in video rental and sales revenues of
$2 million, resulting from fewer transactions and customer visits, and a
reduction in late fee revenue.

    Rogers Retail Adjusted Operating Profit (Loss)

    Rogers Retail recorded an adjusted operating loss of $3 million for the
three months ended December 31, 2007, compared to an adjusted operating profit
of $2 million in the corresponding period of the prior year, which is the
result of fewer customer visits and increased sales and marketing expenses.

    CABLE ADDITIONS TO PP&E

    The Cable Operations segment categorizes its PP&E expenditures according
to a standardized set of reporting categories that were developed and agreed
to by the U.S. cable television industry and which facilitate comparisons of
additions to PP&E between different cable companies. Under these industry
definitions, Cable Operations additions to PP&E are classified into the
following five categories:

    -   Customer premise equipment ("CPE"), which includes the equipment for
        digital set-top terminals, Internet modems and the associated
        installation costs;
    -   Scalable infrastructure, which includes non-CPE costs to meet
        business growth and to provide service enhancements, including many
        of the costs to-date of the cable telephony initiative;
    -   Line extensions, which includes network costs to enter new service
        areas;
    -   Upgrades and rebuild, which includes the costs to modify or replace
        existing coaxial cable, fibre-optic equipment and network
        electronics; and
    -   Support capital, which includes the costs associated with the
        purchase, replacement or enhancement of non-network assets.

    Summarized Cable PP&E Additions


    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------
    (In millions
     of dollars)           2007   2006(1)   % Chg     2007   2006(1)   % Chg
    -------------------------------------------------------------------------

    Additions to PP&E
      Customer premise
       equipment        $    91  $   106      (14) $   304  $   307       (1)
      Scalable
       infrastructure        72       80      (10)     167      184       (9)
      Line extensions        15       22      (32)      57       64      (11)
      Upgrades
       and rebuild           14        5      180       43       10      n/m
      Support capital        54       46       17      139      120       16
                        -----------------------------------------------------
    Total Cable
     Operations(2)          246      259       (5)     710      685        4
    Rogers Business
     Solutions(3)            25       48      (48)      83       98      (15)
    Rogers Retail             9        6       50       21       11       91
                        -----------------------------------------------------
                        $   280  $   313      (11) $   814  $   794        3
    -------------------------------------------------------------------------

    (1) Certain prior year amounts have been reclassified to conform with the
        current year presentation.
    (2) Included in Cable Operations PP&E additions are costs related to the
        integration of Call-Net of $1 million and $5 million for the three
        months ended December 31, 2007 and 2006, respectively.
    (3) Included in RBS PP&E additions are costs related to the integration
        of Call-Net of $1 million and $4 million for the three months ended
        December 31, 2007 and 2006, respectively.

    Cable Operations PP&E additions are primarily attributable to higher
spending on support capital relating to a larger subscriber base. Spending on
upgrades and rebuilds was driven by upgrades and improvements to its cable
systems in the Atlantic provinces and rural areas in Ontario.
    RBS PP&E additions for the three months ended December 31, 2007 decreased
compared to the corresponding period of the prior year primarily due to the
purchase of Group Telecom/360Networks assets from Bell Canada in the fourth
quarter of 2006.
    The increase in Rogers Retail PP&E additions is attributable to
improvements made to certain retail stores acquired from Wireless in January
2007 and to improvements related to new retail stores.

    MEDIA
    -----

    Summarized Media Financial Results


    -------------------------------------------------------------------------
                               Three months ended        Twelve months ended
                                      December 31,               December 31,
                        -----------------------------------------------------
    (In millions
     of dollars,
     except margin)      2007(1)    2006    % Chg   2007(1)    2006    % Chg
    -------------------------------------------------------------------------

    Operating revenue   $   364  $   317       15  $ 1,317  $ 1,210        9
                        -----------------------------------------------------

    Operating expenses
     before the
     undernoted             301      269       12    1,141    1,054        8
                        -----------------------------------------------------
    Adjusted operating
     profit(2)               63       48       31      176      156       13
    Stock option plan
     amendment(3)             -        -      n/m      (84)       -      n/m
    Stock-based
     compensation
     expense(3)              (1)      (1)       -      (10)      (5)     100
                        -----------------------------------------------------
    Operating
     profit(2)          $    62  $    47       32  $    82  $   151      (46)
                        -----------------------------------------------------
                        -----------------------------------------------------

    Adjusted operating
     profit margin(2)     17.3%    15.1%             13.4%    12.9%

    Additions to
     property, plant
     and equipment(2)   $    32  $    16      100  $    77  $    48      60

    -------------------------------------------------------------------------

    (1) The operating results of Citytv are included in Media's results of
        operations from the date of acquisition on October 31, 2007.
    (2) As defined. See the "Key Performance Indicators and Non-GAAP
        Measures" section.
    (3) See the section entitled "Stock-based Compensation Expense".

    
    Media Revenue

    The increase in Media revenue for the three months ended December 31,
2007 over the corresponding period in 2006 reflects growth across most of
Media's divisions. Rogers Publishing revenue in 2007 was positively impacted
by increased advertising revenue and sales of certain magazines, which was
partially offset by a decrease in revenue related to the closure of certain
publications. Rogers Radio revenue increased due to a combination of organic
growth and the acquisition of five radio stations in Alberta in January 2007.
Rogers Sportsnet revenue increased over the corresponding periods of the prior
year due to higher advertising revenue and subscriber fees. Rogers television
operations generated strong increases in national advertising for the quarter,
and the acquisition of Citytv, which closed on October 31, 2007, contributed
$28 million to revenue in the quarter. The Shopping Channel revenue remained
consistent with the prior year as increased sales of fashion and electronic
goods were offset by lower sales of home furnishing products. A decrease in
Rogers Sports Entertainment revenue compared to the corresponding period of
the prior year was due to lower admissions revenue from Blue Jays games
resulting from fewer games in the fourth quarter of 2007 compared to the
corresponding period of the prior year. This decrease was partially offset by
an increase in Rogers Centre revenue resulting from higher event rentals.

    Media Operating Expenses

    The increase in Media operating expenses for the three months ended
December 31, 2007 compared to the corresponding period in 2006, is primarily
due to operating costs of Citytv, the five Alberta radio stations, higher Blue
Jays payroll costs at Rogers Sports Entertainment, and higher production costs
at Rogers Sportsnet resulting from additional NFL and NHL broadcasts. These
increases were partially offset by lower general and administrative costs and
by the elimination of CRTC Part II fees.

    Media Adjusted Operating Profit

    The growth in Media's adjusted operating profit for the three months
ended December 31, 2007 from the corresponding period in 2006 reflects growth
across most of Media's divisions, in addition to the impact of the elimination
of CRTC Part II fees, offset by an adjusted operating loss at Rogers Sports
Entertainment. Excluding Rogers Sports Entertainment, Media's adjusted
operating profit margins would have been 18.7% and 16.1% for the three months
ended December 31, 2007 and 2006, respectively.

    Media Additions to PP&E

    The majority of Media's PP&E additions in the three months ended
December 31, 2007 reflect building improvements related to the relocation of
Rogers Sportsnet and building improvements to the Rogers Centre.


    OVERVIEW OF RECENT FINANCING AND SHARE CAPITAL ACTIVITIES

    Consolidated Liquidity and Capital Resources

    Operations

    For the three months ended December 31, 2007, cash generated from
operations before changes in non-cash operating working capital items, which
is calculated by eliminating the effect of all non-cash items from net income,
increased to $791 million from $629 million in the corresponding period of
2006. The $162 million increase is primarily the result of a $189 million
increase in adjusted operating profit.
    Taking into account the changes in non-cash operating working capital
items for the three months ended December 31, 2007, cash generated from
operations was $839 million, compared to $702 million in the corresponding
period of 2006.
    The cash flow generated from operations of $839 million, together with
$205 million aggregate net advances borrowed under our bank credit facility
and $1 million received from the issuance of Class B Non-Voting shares under
the exercise of employee stock options, resulted in total net funds of
approximately $1,045 million raised in the three months ended December 31,
2007.
    Net funds used during the three months ended December 31, 2007 totalled
approximately $1,028 million, the details of which include funding:

    
    -   additions to PP&E of $505 million, net of $119 million of related
        changes in non-cash working capital;
    -   the payment of quarterly dividends of $80 million on our Class A
        Voting and Class B Non-Voting shares;
    -   acquisitions and other net investments aggregating $417 million,
        including the acquisition of the five Citytv television stations in
        October 2007 for $405 million including acquisition costs; and
    -   additions to program rights of $26 million.

    

    Taking into account the cash deficiency of $78 million at the beginning
of the period and the cash sources and uses described above, the cash
deficiency at December 31, 2007 was $61 million.

    Financing

    Our long-term debt instruments are described in Note 15 to the 2006
Annual Audited Consolidated Financial Statements.
    As mentioned above, during the three months ended December 31, 2007,
$205 million aggregate net advances were borrowed under our bank credit
facility.

    Shelf Prospectuses

    In order to maintain financial flexibility, in November 2007 RCI filed
shelf prospectuses with securities regulators to qualify debt securities of
RCI for sale in Canada and/or in the U.S. A previously filed shelf prospectus
expired during 2006. The notice set forth in this paragraph does not
constitute an offer of any securities for sale.

    Normal Course Issuer Bid

    In January 2008 RCI applied to the Toronto Stock Exchange ("TSX") to make
a NCIB, which was accepted by the TSX on January 10, 2008, for purchases of
its Class B Non-Voting shares through the facilities of the TSX. The maximum
number of Class B Non-Voting shares which may be purchased pursuant to the
NCIB is the lesser of 15 million, representing approximately 3% of the number
of Class B Non-Voting shares outstanding at December 31, 2007, and that number
of Class B Non-Voting shares that can be purchased under the NCIB for an
aggregate purchase price of $300 million. The actual number of Class B Non-
Voting shares purchased, if any, and the timing of such purchases, will be
determined by RCI considering market conditions, stock prices, its cash
position, and other factors.

    Interest Rate and Foreign Exchange Management

    Economic Hedge Analysis

    For the purposes of our discussion on the hedged portion of long-term
debt, we have used non-GAAP measures in that we include all cross-currency
interest rate exchange agreements (whether or not they qualify as hedges for
accounting purposes) since all such agreements are used for risk management
purposes only and are designated as a hedge of specific debt instruments for
economic purposes. As a result, the Canadian dollar equivalent of U.S. dollar-
denominated long-term debt reflects the contracted foreign exchange rate for
all of our cross-currency interest rate exchange agreements regardless of
qualifications for accounting purposes as a hedge. At December 31, 2007, all
of our U.S. dollar-denominated debt was hedged with respect to foreign
exchange fluctuations using cross-currency interest rate exchange agreements
that qualify as hedges for accounting purposes.
    During the three months ended December 31, 2007, there was no change in
our U.S. dollar-denominated debt or in our cross-currency interest rate
exchange agreements. As a result, on December 31, 2007 100% of our U.S.
dollar- denominated debt was hedged on an economic basis and on an accounting
basis.

    

    Consolidated Hedged Position

    -------------------------------------------------------------------------
    (In millions of
     dollars, except                           December 31,      December 31,
     percentages)                                     2007              2006
    -------------------------------------------------------------------------

    U.S. dollar-denominated long-term debt    US   $ 4,190      US   $ 4,895

    Hedged with cross-currency interest
    rate exchange agreements                  US   $ 4,190      US   $ 4,475

    Hedged exchange rate                            1.3313            1.3229

    Percent hedged                                100.0%(1)            91.4%

    -------------------------------------------------------------------------

    Amount of long-term debt(2) at fixed rates:

    Total long-term debt                     Cdn   $ 7,454     Cdn   $ 7,658
    Total long-term debt at fixed rates      Cdn   $ 6,214     Cdn   $ 6,851
    Percent of long-term debt fixed                  83.4%             89.5%

    -------------------------------------------------------------------------

    Weighted average interest
     rate on long-term debt                          7.53%             7.98%

    -------------------------------------------------------------------------

    (1) Pursuant to the requirements for hedge accounting under Canadian
        Institute of Chartered Accountants ("CICA") Handbook Section 3865,
        Hedges, on December 31, 2007, RCI accounted for 100% of its cross-
        currency interest rate exchange agreements as hedges against
        designated U.S. dollar-denominated debt.
    (2) Long-term debt includes the effect of the cross-currency interest
        rate exchange agreements.

    Composition of Fair Market Value Liability for Derivative Instruments


    -------------------------------------------------------------------------
                                                December 31,       January 1,
    (In millions of dollars)                           2007           2007(1)
    -------------------------------------------------------------------------
    Foreign exchange related                        $ 1,719          $   858
    Interest rate related                                85              436
                                                -----------------------------
    Total carrying value                            $ 1,804          $ 1,294
    -------------------------------------------------------------------------

    (1) After adoption of new financial instrument accounting standards.


    Outstanding Common Share Data

    Set out below is our outstanding common share data as at December 31,
    2007.

    -------------------------------------------------------------------------
    Common Shares(1)                                       December 31, 2007
    -------------------------------------------------------------------------

    Class A Voting                                               112,462,014
    Class B Non-Voting                                           527,004,533

    -------------------------------------------------------------------------

    Options to Purchase Class B Non-Voting Shares          December 31, 2007

    Outstanding Options                                           15,586,066
    Outstanding Options Exercisable                               11,409,666
    -------------------------------------------------------------------------

    (1) Holders of our Class B Non-Voting shares are entitled to receive
        notice of and to attend meetings of our shareholders, but, except as
        required by law or as stipulated by stock exchanges, are not entitled
        to vote at such meetings. If an offer is made to purchase outstanding
        Class A Voting shares, there is no requirement under applicable law
        or RCI's constating documents that an offer be made for the
        outstanding Class B Non-Voting shares and there is no other
        protection available to shareholders under RCI's constating
        documents. If an offer is made to purchase both Class A Voting shares
        and Class B Non-Voting shares, the offer for the Class A Voting
        shares may be made on different terms than the offer to the holders
        of Class B Non-Voting shares.


    Dividends and Other Payments on Equity Securities

    On November 1, 2007, we declared a quarterly dividend of $0.125 per share
on each of the outstanding Class A Voting and Class B Non-Voting shares. This
quarterly dividend totalling $80 million was paid on January 2, 2008 to
shareholders of record on December 12, 2007.
    On January 7, 2008, our Board of Directors approved an increase in the
annual dividend from $0.50 to $1.00 per Class A Voting and Class B Non-Voting
share effective with the next quarterly dividend. The new annual dividend of
$1.00 per share will be paid in quarterly amounts of $0.25 per each
outstanding Class A Voting and Class B Non-Voting share. Such quarterly
dividends are only payable as and when declared by our Board of Directors and
there is no entitlement to any dividend prior thereto.


    2008 GUIDANCE

    We currently have no changes to our full year 2008 financial and operating
metric guidance ranges which we provided on January 7, 2008. (See the section
entitled "Caution Regarding Forward-Looking Statements, Risks and Assumptions"
below.)


    KEY PERFORMANCE INDICATORS AND NON-GAAP MEASURES

    Calculations of Wireless Non-GAAP Measures
                                              Three months     Twelve months
                                                     ended             ended
                                               December 31,      December 31,
                                          ----------------- -----------------
    (In millions of dollars,
     subscribers in thousands,
     except ARPU figures and
     operating profit margin)                2007     2006     2007     2006
    ------------------------------------------------------- -----------------

    Postpaid ARPU (monthly)
      Postpaid (voice and data) revenue   $ 1,283  $ 1,095  $ 4,868  $ 4,084
      Divided by: average postpaid
       wireless voice and data subscribers  5,832    5,287    5,618    5,059
      Divided by: 3 months for the quarter
       and 12 months for year-to-date           3        3       12       12
                                          ----------------- -----------------
                                          $ 73.33  $ 69.04  $ 72.21  $ 67.27

    ------------------------------------------------------- -----------------

    Prepaid ARPU (monthly)
      Prepaid (voice and data) revenue    $    70  $    61  $   273  $   214
      Divided by: average prepaid
       subscribers                          1,406    1,342    1,382    1,322
      Divided by: 3 months for the
       quarter and 12 months for
       year-to-date                             3        3       12       12
                                          ----------------- -----------------
                                          $ 16.59  $ 15.15  $ 16.46  $ 13.49

    ------------------------------------------------------- -----------------

    Cost of acquisition per gross
     addition
      Total sales and marketing expenses  $   186  $   186  $   653  $   604
      Equipment margin loss (acquisition
       related)                                43       57      149      196
                                          ----------------- -----------------
                                          $   229  $   243  $   802  $   800
                                          ----------------- -----------------
                                          ----------------- -----------------
      Divided by: total gross wireless
       additions (postpaid, prepaid and
       one-way messaging)                     520      569    1,998    2,007
                                          ----------------- -----------------
                                          $   440  $   427  $   401  $   399

    ------------------------------------------------------- -----------------

    Operating expense per average
     subscriber (monthly)
      Operating, general and
      administrative expenses             $   414  $   361  $ 1,558  $ 1,361
      Equipment margin loss (retention
       related)                                55       35      205      165
                                          ----------------- -----------------
                                          $   469  $   396  $ 1,763  $ 1,526
                                          ----------------- -----------------
                                          ----------------- -----------------
      Divided by: average total wireless
       subscribers                          7,357    6,767    7,128    6,528
      Divided by: 3 months for the quarter
       and 12 months for year-to-date           3        3       12       12
                                          ----------------- -----------------
                                          $ 21.25  $ 19.51  $ 20.61  $ 19.48

    ------------------------------------------------------- -----------------

    Equipment margin loss
      Equipment sales                     $   110  $    97  $   349  $   267
      Cost of equipment sales                (208)    (189)    (703)    (628)
                                          ----------------- -----------------
                                          $   (98) $   (92) $  (354) $  (361)
                                          ----------------- -----------------
                                          ----------------- -----------------

       Acquisition related                $   (43) $   (57) $  (149) $  (196)
       Retention related                      (55)     (35)    (205)    (165)
                                          ----------------- -----------------
                                          $   (98) $   (92) $  (354) $  (361)
                                          ----------------- -----------------
                                          ----------------- -----------------

    ------------------------------------------------------- -----------------

    Adjusted operating profit margin
      Adjusted operating profit           $   658  $   521  $ 2,589  $ 1,987
      Divided by network revenue            1,356    1,160    5,154    4,313
                                          ----------------- -----------------
      Adjusted operating profit margin      48.5%    44.9%    50.2%    46.1%

    ------------------------------------------------------- -----------------



    Calculations of Cable Non-GAAP Measures

    ------------------------------------------------------- -----------------
                                              Three months     Twelve months
                                                     ended             ended
                                               December 31,      December 31,
                                          ----------------- -----------------
    (In millions of dollars,
     subscribers in thousands,
     except ARPU figures and
     operating profit margin)                2007   2006(1)    2007   2006(1)
    ------------------------------------------------------- -----------------

    Core Cable ARPU
      Core Cable revenue                  $   397  $   367  $ 1,540  $ 1,421
      Divided by: average basic cable
       subscribers                          2,283    2,273    2,276    2,261
      Divided by: 3 months for the
       quarter and 12 months for
       year-to-date                             3        3       12       12
                                          ----------------- -----------------
                                          $ 57.97  $ 53.83  $ 56.39  $ 52.37

    ------------------------------------------------------- -----------------

    Internet ARPU
      Internet revenue                    $   160  $   138  $   608  $   523
      Divided by: average Internet
       (residential) subscribers            1,454    1,296    1,388    1,234
      Divided by: 3 months for the
       quarter and 12 months for
       year-to-date                             3        3       12       12
                                          ----------------- -----------------
                                          $ 36.67  $ 35.50  $ 36.51  $ 35.32

    ------------------------------------------------------- -----------------

    Cable Operations adjusted operating
     profit margin:
      Adjusted operating profit           $   260  $   224  $ 1,008  $   854
      Divided by revenue                      680      604    2,603    2,299
                                          ----------------- -----------------
    Cable Operations adjusted operating
     profit margin                          38.2%    37.1%    38.7%    37.1%
    ------------------------------------------------------- -----------------

    RBS adjusted operating profit margin:
      Adjusted operating profit           $     8  $    12  $    12  $    49
      Divided by revenue                      140      155      571      596
                                          ----------------- -----------------
    RBS adjusted operating profit margin     5.7%     7.7%     2.1%     8.2%
    ------------------------------------------------------- -----------------

    (1) Certain prior year amounts have been reclassified to conform to the
        current year presentation.



    Rogers Communications Inc.
    Unaudited Consolidated Statements of Income

                                              Three months     Twelve months
                                                     ended             ended
    (In millions of dollars,                   December 31,      December 31,
     except per share amounts)               2007     2006     2007     2006
    ---------------------------------------------- -------- -------- --------

    Operating revenue                     $ 2,687  $ 2,370  $10,123  $ 8,838
    Operating expenses:
      Cost of sales                           245      281      961      956
      Sales and marketing                     336      353    1,322    1,226
      Operating, general and
       administrative                       1,205      980    4,251    3,763
      Stock option plan amendment               -        -      452        -
      Integration and restructuring            17        4       38       18
      Depreciation and amortization           408      395    1,603    1,584
    ---------------------------------------------- -------- -------- --------
    Operating income                          476      357    1,496    1,291

    Interest on long-term debt               (138)    (151)    (579)    (620)
    ---------------------------------------------- -------- -------- --------
                                              338      206      917      671

    Loss on repayment of long-term debt         -       (1)     (47)      (1)
    Foreign exchange gain (loss)                1      (39)      54        2
    Change in the fair value of derivative
     instruments                               (3)      24      (34)      (4)
    Other income                                2       (1)      (4)      10
    ---------------------------------------------- -------- -------- --------
    Income before income taxes                338      189      886      678

    Income tax expense (reduction):
      Current                                  (2)      (7)      (1)      (5)
      Future                                   86       20      250       61

    ---------------------------------------------- -------- -------- --------
    Net income for the period             $   254  $   176  $   637  $   622
    ---------------------------------------------- -------- -------- --------
    ---------------------------------------------- -------- -------- --------

    Net income per share:
      Basic                               $  0.40  $  0.28  $  1.00  $  0.99
      Diluted                                0.40     0.27     0.99     0.97
    ---------------------------------------------- -------- -------- --------



    Rogers Communications Inc.
    Unaudited Consolidated Statements of Cash Flows

                                              Three months     Twelve months
                                                     ended             ended
                                               December 31,      December 31,
    (In millions of dollars)                 2007     2006     2007     2006
    ---------------------------------------------- -------- -------- --------
    Cash provided by (used in):
    Operating activities:
      Net income for the period           $  254   $   176  $   637  $   622
      Adjustments to reconcile net
       income to net cash flows from
       operating activities:
        Depreciation and amortization        408       395    1,603    1,584
        Program rights and Rogers Retail
         rental depreciation                  35        20       92       75
        Future income taxes                   86        20      250       61
        Unrealized foreign exchange loss
         (gain)                                -        38      (46)       2
        Change in the fair value of
         derivative instruments                3       (24)      34        4
        Loss on repayment of long-term debt    -         1       47        1
        Stock option plan amendment            -         -      452        -
        Stock-based compensation expense       4        12       62       49
        Amortization of fair value increment
         of long-term debt and derivatives    (1)       (3)      (6)     (11)
        Sale of income tax losses to related
         party                                 -         -        -       13
        Other                                  2        (6)      10      (14)
    ---------------------------------------------- -------- -------- --------
                                             791       629    3,135    2,386

      Change in non-cash operating working
       capital items                          48        73     (310)      63
    ---------------------------------------------- -------- -------- --------
                                             839       702    2,825    2,449
    ---------------------------------------------- -------- -------- --------
    Investing activities:
      Additions to property, plant and
       equipment                            (624)     (554)  (1,796)  (1,712)
      Change in non-cash working capital
       items related to property, plant
       and equipment                         119       151      (20)     134
      Acquisitions, net of cash and cash
       equivalents acquired                 (408)       (4)    (537)      (4)
      Additions to program rights            (26)       (4)     (67)     (32)
      Other                                   (9)       (2)     (18)     (19)
    ---------------------------------------------- -------- -------- --------
                                            (948)     (413)  (2,438)  (1,633)
    ---------------------------------------------- -------- -------- --------
    Financing activities:
      Issuance of long-term debt             690       274    5,476    1,098
      Repayment of long-term debt           (485)     (554)  (5,623)  (1,836)
      Premium on repayment of long-term
       debt                                    -         -      (59)       -
      Financing costs incurred                 -         -       (4)       -
      Issuance of capital stock on exercise
       of stock options                        1        11       27       74
      Dividends paid on Class A Voting and
       Class B Non-Voting shares             (80)        -     (211)     (47)
      Proceeds on settlement of cross-
       currency interest rate exchange
       agreements and forward contracts        -         -      838        -
      Payment on settlement of cross-
       currency interest rate exchange
       agreements and forward contracts        -       (10)    (873)     (20)
    ---------------------------------------------- -------- -------- --------
                                             126      (279)    (429)    (731)
    ---------------------------------------------- -------- -------- --------
    Increase (decrease) in cash and cash
     equivalents                              17        10      (42)      85

    Cash deficiency, beginning of period     (78)      (29)     (19)    (104)
    ---------------------------------------------- -------- -------- --------
    ---------------------------------------------- -------- -------- --------
    Cash deficiency, end of period        $  (61)  $   (19) $   (61) $   (19)
    ---------------------------------------------- -------- -------- --------
    ---------------------------------------------- -------- -------- --------

    Supplemental cash flow information:
      Income taxes paid                   $    -   $     -  $     1  $     5
      Interest paid                          177       187      605      650

    ---------------------------------------------- -------- -------- --------
    ---------------------------------------------- -------- -------- --------

    Cash and cash equivalents (deficiency) are defined as cash and short-term
    deposits which have an original maturity of less than 90 days, less bank
    advances.


    Change in Non-Cash Working Capital Items

                                              Three months     Twelve months
                                                     ended             ended
                                               December 31,      December 31,
    (In millions of dollars)                 2007     2006     2007     2006
    ---------------------------------------------- -------- -------- --------
    Cash provided by (used in):
    Increase in accounts receivable       $   (51) $   (73) $  (122) $  (198)
    Increase (decrease) in accounts
     payable and accrued liabilities           68       93     (115)     231
    Increase (decrease) in unearned
     revenue                                   14       12       (2)      51
    Decrease (increase) in other assets        17       41      (71)     (21)
    ---------------------------------------------- -------- -------- --------
                                          $    48  $    73  $  (310) $    63
    ---------------------------------------------- -------- -------- --------



    Rogers Communications Inc.
    Unaudited Consolidated Balance Sheets

                                                        December    December
                                                              31,         31,
    (In millions of dollars)                                2007        2006
    ------------------------------------------------------------- -----------

    Assets

    Current assets
      Accounts receivable                             $    1,245  $    1,077
      Other current assets                                   304         270
      Future income tax assets                               594         387
    ------------------------------------------------------------- -----------
                                                           2,143       1,734
    Property, plant and equipment                          7,289       6,732
    Goodwill                                               3,027       2,779
    Intangible assets                                      2,086       2,152
    Investments                                              485         139
    Deferred charges                                         111         118
    Other long-term assets                                   184         152
    Future income tax assets                                   -         299
    ------------------------------------------------------------- -----------
                                                      $   15,325  $   14,105
    ------------------------------------------------------------- -----------
    ------------------------------------------------------------- -----------

    Liabilities and Shareholders' Equity

    Liabilities
    Current liabilities
      Bank advances, arising from outstanding
       cheques                                       $       61   $       19
      Accounts payable and accrued liabilities            2,260        1,766
      Current portion of long-term debt                       1          451
      Current portion of derivative instruments             195            7
      Unearned revenue                                      225          227
    ------------------------------------------------------------ ------------
                                                          2,742        2,470

    Long-term debt                                        6,032        6,537
    Derivative instruments                                1,609          769
    Future income tax liabilities                           104            -
    Other long-term liabilities                             214          129
    ------------------------------------------------------------ ------------
                                                         10,701        9,905

    Shareholders' equity                                  4,624        4,200
    ------------------------------------------------------------ ------------

                                                     $   15,325   $   14,105
    ------------------------------------------------------------ ------------



    SUPPLEMENTARY INFORMATION

    Calculations of Adjusted Operating Profit, Net Income and Earnings
     Per Share

                                              Three months     Twelve months
    (In millions of dollars,                         ended             ended
     number of shares outstanding              December 31,      December 31,
     in millions)                            2007     2006     2007     2006
    -------------------------------------------------------------------------
    Operating profit                      $   884  $   752  $ 3,099  $ 2,875
    Add:
      Stock option plan amendment               -        -      452        -
      Stock-based compensation expense          4       12       62       49
      Integration and restructuring
       expenses
        Cable                                  17        4       38       15
        Wireless                                -        -        -        3
      Contract renegotiation fee               52        -       52        -
                                          -----------------------------------
    Adjusted operating profit             $   957  $   768  $ 3,703  $ 2,942
                                          -----------------------------------
                                          -----------------------------------

    Net income                            $   254  $   176  $   637  $   622
    Add:
      Stock option plan amendment               -        -      452        -
      Stock-based compensation expense          4       12       62       49
      Integration and restructuring
       expenses
        Cable                                  17        4       38       15
        Wireless                                -        -        -        3
      Contract renegotiation fee               52        -       52        -
      Loss on repayment of long-term debt       -        1       47        1
    Income tax impact                         (25)      (1)    (222)      (6)
                                          -----------------------------------
    Adjusted net income                   $   302  $   192  $ 1,066  $   684
                                          -----------------------------------
                                          -----------------------------------

    Basic earnings per share:
      Adjusted net income                 $   302  $   192  $ 1,066  $   684
      Divided by: weighted average
       number of shares outstanding           639      635      638      632
                                          -----------------------------------
    Adjusted basic earnings per share     $  0.47  $  0.30  $  1.67  $  1.08
                                          -----------------------------------
                                          -----------------------------------
    Diluted earnings per share:
      Adjusted net income                 $   302  $   192  $ 1,066  $   684
      Divided by: diluted weighted
       average number of shares
       outstanding                            639      647      642      642
                                          -----------------------------------
    Adjusted diluted earnings per
     share                                $  0.47  $  0.30  $  1.66  $  1.07
    -------------------------------------------------------------------------



    Investments

                                            December                December
                                                  31,                     31,
    (In millions of dollars)                    2007                    2006
    ------------------------------------------------- -----------------------
                                                          Quoted
                                            Carrying      Market    Carrying
                                               Value       Value       Value
    ------------------------------------------------- -----------------------

    Investments accounted for by the
     equity method                        $       12              $        7
    ------------------------------------------------- -----------------------

    Publicly traded companies, at quoted
     market value in 2007:

    Cogeco Cable Inc. 6,595,675 Subordinate
                                 Voting          315  $      214          69
                                 Common
                                 shares

    Cogeco Inc.       3,399,800 Subordindate
                                 Voting
                                 Common
                                 shares          134         100          44

    Other publicly traded companies               16          15           4
    ------------------------------------------------- -----------------------
                                                 465         329         117


    Private companies                              8                      15

    ------------------------------------------------- -----------------------
                                          $      485              $      139
    ------------------------------------------------- -----------------------



    Long-term Debt

                                                        December    December
    (In millions         Due   Principal    Interest          31,         31,
     of dollars)        date      amount        Rate        2007        2006
    ------------------------------------------------------------- -----------

    Corporate:
      Bank credit
       facility(1)                          Floating  $    1,240  $        -
    Formerly Rogers
     Wireless Inc.:
      Floating Rate
       Senior Notes     2010  $ U.S. 550    Floating           -         641
      Senior Notes      2011    U.S. 490      9.625%         484         571
      Senior Notes      2011         460      7.625%         460         460
      Senior Notes      2012    U.S. 470       7.25%         464         548
      Senior Notes      2014    U.S. 750      6.375%         741         874
      Senior Notes      2015    U.S. 550       7.50%         543         641
      Senior
       Debentures       2016    U.S. 155       9.75%           -         181
      Senior
       Subordinated
       Notes            2012    U.S. 400       8.00%         395         466
      Fair value
       increment arising
       from purchase
       accounting                                             17          36

    Formerly Rogers Cable Inc.:
      Senior Notes      2007         450       7.60%           -         450
      Senior Notes      2011         175       7.25%         175         175
      Senior Notes      2012    U.S. 350      7.875%         346         408
      Senior Notes      2013    U.S. 350       6.25%         346         408
      Senior Notes      2014    U.S. 350       5.50%         346         408
      Senior Notes      2015    U.S. 280       6.75%         277         326
      Senior
       Debentures       2032    U.S. 200       8.75%         198         233
        Media:
      Bank credit
       facility(1)                          Floating           -         160

    Capital leases
     and other                               Various           1           2
    ------------------------------------------------------------- -----------
                                                           6,033       6,988

    Less current portion                                       1         451
    ------------------------------------------------------------- -----------
                                                      $    6,032  $    6,537
    ------------------------------------------------------------- -----------

    (1) On June 29, 2007, the $1 billion Cable and credit facility, the
        $700 million Wireless bank credit facility and the $600 million
        Media bank credit facility were cancelled and we entered into a new
        unsecured $2.4 billion bank credit facility, the initial proceeds of
        which were used to repay and cancel each of the Cable, Wireless and
        Media bank credit facilities.



    Shareholder's Equity
    Year Ended December 31, 2007

                                       Class A                 Class B
                                    Voting Shares         Non-Voting Shares
                              -----------------------  ----------------------
                                           Number of               Number of
                                  Amount      shares      Amount      shares
                              -----------------------------------------------
                                               (000s)                  (000s)
    -------------------------------------------------------------------------
    Balances, beginning
     of period:
      As previously reported  $       72     112,468  $      425     523,232
      Change in accounting
       policy related to
       financial instruments           -           -           -           -
    -------------------------------------------------------------------------
    As restated                       72     112,468         425     523,232
    Net income for the year            -           -           -           -
    Class A Voting shares              -          (6)          -           6
     converted to Class B
      Non-Voting shares
    Stock option plan amendment        -           -           -           -
    Shares issued on exercise
     of stock options                  -           -          46       3,767
    Stock-based compensation           -           -           -           -
    Dividends declared                 -           -           -           -
    Other comprehensive income         -           -           -           -
    -------------------------------------------------------------------------
    Balances, end of period   $       72     112,462  $      471     527,005
    -------------------------------------------------------------------------

                                                     Accumulated
                                                           other
                                                         compre-       Total
                                            Retained     hensive      Share-
                             Contributed    earnings      Income     holders'
                                 Surplus    (deficit)      (loss)     Equity
                              -----------------------------------------------
                              -----------------------------------------------

    -------------------------------------------------------------------------
    Balances, beginning
     of period:
      As previously reported  $    3,736  $      (33) $        -  $    4,200
      Change in accounting
       policy related to
       financial instruments           -           3        (214)       (211)
    -------------------------------------------------------------------------
    As restated                    3,736         (30)       (214)      3,989
    Net income for the year            -         637           -         637
    Class A Voting shares              -           -           -           -
     converted to Class B
      Non-Voting shares
    Stock option plan amendmen       (50)                      -         (50)
    Shares issued on exercise
     of stock options                 (9)          -           -          37
    Stock-based compensation          12           -           -          12
    Dividends declared                 -        (265)          -        (265)
    Other comprehensive income         -           -         264         264
    -------------------------------------------------------------------------
    Balances, end of period   $    3,689  $      342  $       50  $    4,624
    -------------------------------------------------------------------------



    Calculation of Net Income Per Share


                                              Three months     Twelve months
                                                     ended             ended
    (In millions, except                       December 31,      December 31,
     per share amounts)                      2007     2006     2007     2006
    ---------------------------------------------- -------- -------- --------

    Numerator:
      Net income for the period,
       basic and diluted                  $   254  $   176  $   637  $   622
    ---------------------------------------------- -------- -------- --------

    Denominator (in millions):
      Weighted average number of
       shares outstanding - basic             639      635      638      632
      Effect of dilutive securities:
        Employee stock options                  -       12        4       10
    ---------------------------------------------- -------- -------- --------
    Weighted average number of shares
     outstanding - diluted                    639      647      642      642
    ---------------------------------------------- -------- -------- --------

    Net income per share:
      Basic                               $  0.40  $  0.28  $  1.00  $  0.99
      Diluted                                0.40     0.27     0.99     0.97
    ---------------------------------------------- -------- -------- --------




    Segmented Information
    For the Three Months Ended December 31, 2007
                                                       Corporate
                                                       items and     Consol-
    (In millions                                          elimi-      idated
     of dollars)    Wireless       Cable       Media     nations      Totals
    -------------------------------------------------------------------------

    Operating
     revenue      $    1,466  $      923  $      364  $      (66) $    2,687
    Operating
     expenses
      Cost of
       sales             208          51          46         (60)        245
      Sales and
       marketing         186         137          66         (53)        336
      Operating,
       general and
       admini-
       strative          416         520         190          79       1,205
      Integration
       and re-
       structuring         -          17           -           -          17
    -------------------------------------------------------------------------
                         656         198          62         (32)        884
    Depreciation and
     amortization        133         194          15          66         408
    -------------------------------------------------------------------------
    Operating
     income
     (loss)       $      523  $        4  $       47  $      (98)        476
    Interest on   -----------------------------------------------
     long-term    -----------------------------------------------
     debt                                                               (138)
    Loss on re-
     payment of
     long-term
     debt                                                                  -
    Foreign
     exchange
     gain                                                                  1
    Change in
     fair value
     of deri-
     vative
     instruments                                                          (3)
    Other income                                                           2
    -------------------------------------------------------------------------
    Income before
     income taxes                                                 $      338
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Additions to
     PP&E         $      252  $      280  $       32  $       60  $      624
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    For the Three Months Ended December 31, 2006
                                                       Corporate
                                                       items and     Consol-
    (In millions                                          elimi-      idated
     of dollars)    Wireless       Cable       Media     nations      Totals
    -------------------------------------------------------------------------

    Operating
     revenue      $    1,257  $      842  $      317  $      (46) $    2,370
    Operating
     expenses
      Cost of
       sales             189          44          48           -         281
      Sales and
       marketing         186         108          58           1         353
      Operating,
       general and
       admini-
       strative          365         455         164          (4)        980
      Integration
       and re-
       structuring         -           4           -           -           4
    -------------------------------------------------------------------------
                         517         231          47         (43)        752
    Management fees
     (recovery)            3          17           6         (26)          -
    Depreciation and
     amortization        165         174          13          43         395
    -------------------------------------------------------------------------
    Operating
     income
     (loss)       $      349  $       40  $       28  $      (60)        357
    Interest on   -----------------------------------------------
     long-term    -----------------------------------------------
     debt                                                               (151)
    Loss on re-
     payment of
     long-term
     debt                                                                 (1)
    Foreign
     exchange
     loss                                                                (39)
    Change in
     fair value
     of deri-
     vative
     instruments                                                          24
    Other expense                                                         (1)
    -------------------------------------------------------------------------
    Income before
     income
     taxes                                                        $      189
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Additions to
     PP&E         $      201  $      313  $       16  $       24  $      554
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    For the Twelve Months Ended December 31, 2007
                                                       Corporate
                                                       items and     Consol-
    (In millions                                          elimi-      idated
     of dollars)    Wireless       Cable       Media     nations      Totals
    -------------------------------------------------------------------------

    Operating
     revenue      $    5,503  $    3,558  $    1,317  $     (255) $   10,123
    Operating
     expenses
      Cost of
       sales             703         186         173        (101)        961
      Sales and
       marketing         653         519         226         (76)      1,322
      Operating,
       general and
       admini-
       strative        1,569       1,900         752          30       4,251
      Stock option
       plan amend-
       ment               46         113          84         209         452
      Integration
       and re-
       structuring         -          38           -           -          38
    -------------------------------------------------------------------------
                       2,532         802          82        (317)      3,099
    Depreciation and
     amortization        560         737          52         254       1,603
    -------------------------------------------------------------------------
    Operating
     income
     (loss)       $    1,972  $       65  $       30  $     (571)      1,496
    Interest on   -----------------------------------------------
     long-term    -----------------------------------------------
     debt                                                               (579)
    Loss on
     repayment of
     long-term
     debt                                                                (47)
    Foreign
     exchange
     gain                                                                 54
    Change in
     fair value
     of deri-
     vative
     instruments                                                         (34)
    Other expense                                                         (4)
    -------------------------------------------------------------------------
    Income before
     income taxes                                                 $      886
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Additions to
     PP&E         $      822  $      814  $       77  $       83  $    1,796
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    For the Twelve Months Ended December 31, 2006
                                                       Corporate
                                                       items and     Consol-
    (In millions                                          elimi-      idated
     of dollars)    Wireless       Cable       Media     nations      Totals
    -------------------------------------------------------------------------

    Operating
     revenue      $    4,580  $    3,201  $    1,210  $     (153) $    8,838
    Operating
     expenses
      Cost of
       sales             628         153         175           -         956
      Sales and
       marketing         604         412         206           4       1,226
      Operating,
       general and
       admini-
       strative        1,376       1,731         678         (22)      3,763
      Integration
       and re-
       structuring         3          15           -           -          18
    -------------------------------------------------------------------------
                       1,969         890         151        (135)      2,875
    Management fees
     (recovery)           12          64          17         (93)          -
    Depreciation and
     amortization        630         662          52         240       1,584
    -------------------------------------------------------------------------
    Operating
     income
     (loss)       $    1,327  $      164  $       82  $     (282)      1,291
    Interest on   -----------------------------------------------
     long-term    -----------------------------------------------
     debt                                                               (620)
    Loss on re-
     payment of
     long-term
     debt                                                                 (1)
    Foreign
     exchange
     gain                                                                  2
    Change in
     fair value
     of deri-
     vative
     instruments                                                          (4)
    Other income                                                          10
    -------------------------------------------------------------------------
    Income before
     income
     taxes                                                        $      678
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Additions to
     PP&E         $      684  $      794  $       48  $      186  $    1,712
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    For the Three Months Ended December 31, 2007

                                               Cable
                    ---------------------------------------------------------
                                                       Corporate
                                                       items and
    (In millions      Cable                   Rogers      elimi-       Total
     of dollars)    Operations       RBS      Retail     nations       Cable
    -------------------------------------------------------------------------

    Operating
     revenue      $      680  $      140  $      105  $       (2) $      923
    Operating
     expenses
      Cost of
       sales               -           -          51           -          51
      Sales and
       marketing          69          18          50           -         137
      Operating,
       general and
       admini-
       strative          402         113           7          (2)        520
      Integration
       and re-
       structuring         -          17           -           -          17
    -------------------------------------------------------------------------
                  $      209  $       (8) $       (3) $        -  $      198
                  -----------------------------------------------
                  -----------------------------------------------
    Depreciation and
     amortization                                                        194
    -------------------------------------------------------------------------
    Operating
     income                                                       $        4
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Additions to
     PP&E         $      246  $       25  $        9  $        -  $      280
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    For the Three Months Ended December 31, 2006

                                               Cable
                    ---------------------------------------------------------
                                                       Corporate
                                                       items and
    (In millions      Cable                   Rogers      elimi-       Total
     of dollars)    Operations       RBS      Retail     nations       Cable
    -------------------------------------------------------------------------

    Operating
     revenue      $      604  $      155  $       84  $       (1) $      842
    Operating
     expenses
      Cost of
       sales               -           -          44           -          44
      Sales and
       marketing          57          19          32           -         108
      Operating,
       general and
       admini-
       strative          326         124           6          (1)        455
      Integration
       and re-
       structuring         2           1           1           -           4
    -------------------------------------------------------------------------
                  $      219  $       11  $        1  $        -  $      231
                  -----------------------------------------------
                  -----------------------------------------------
    Management fees                                                       17
    Depreciation and
     amortization                                                        174
    -------------------------------------------------------------------------
    Operating
     income                                                       $       40
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Additions to
     PP&E         $      259  $       48  $        6  $        -  $      313
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    For the Twelve Months Ended December 31, 2007

                                               Cable
                    ---------------------------------------------------------
                                                       Corporate
                                                       items and
    (In millions      Cable                   Rogers      elimi-       Total
     of dollars)    Operations       RBS      Retail     nations       Cable
    -------------------------------------------------------------------------
    Operating
     revenue      $    2,603  $      571  $      393  $       (9) $    3,558
    Operating
     expenses
      Cost of
       sales               -           -         186           -         186
      Sales and
       marketing         257          75         187           -         519
      Operating,
       general and
       admini-
       strative        1,400         484          25          (9)      1,900
      Stock option
       plan amend-
       ment              106           2           5           -         113
      Integration
       and re-
       structuring         9          29           -           -          38
    -------------------------------------------------------------------------
                  $      831  $      (19) $      (10) $        -  $      802
                  -----------------------------------------------
                  -----------------------------------------------
    Depreciation and
     amortization                                                        737
    -------------------------------------------------------------------------
    Operating
     income                                                       $       65
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Additions to
     PP&E         $      710  $       83  $       21  $        -  $      814
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    For the Twelve Months Ended December 31, 2006

                                               Cable
                    ---------------------------------------------------------
                                                       Corporate
                                                       items and
    (In millions      Cable                   Rogers      elimi-       Total
     of dollars)    Operations       RBS      Retail     nations       Cable
    -------------------------------------------------------------------------
    Operating
     revenue      $    2,299  $      596  $      310  $       (4) $    3,201
    Operating
     expenses
      Cost of
       sales               -           -         153           -         153
      Sales and
       marketing         219          70         123           -         412
      Operating,
       general and
       admini-
       strative        1,237         477          21          (4)      1,731
      Integration
       and re-
       structuring         8           1           6           -          15
    -------------------------------------------------------------------------
                  $      835  $       48  $        7  $        -  $      890
                  -----------------------------------------------
                  -----------------------------------------------
    Management fees                                                       64
    Depreciation and
     amortization                                                        662
    -------------------------------------------------------------------------
    Operating
     income
     (loss)                                                       $      164
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Additions to
     PP&E         $      685  $       98  $       11  $        -  $      794
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    


    Audited Full Year 2007 Financial Statements

    In early March 2008, we intend to file with securities regulators in
Canada and the U.S. our Audited Annual Consolidated Financial Statements and
Notes thereto for the year ended December 31, 2007 and MD&A in respect of such
annual financial statements. Notification of such filings will be made by a
press release and such statements will be made available on the rogers.com,
sedar.com, and sec.gov websites or upon request.

    Caution Regarding Forward-Looking Statements, Risks and Assumptions

    This release includes forward-looking statements and assumptions
concerning the future performance of our business, its operations and its
financial performance and condition approved by management on the date of this
release and is provided for the purpose of providing to shareholders
management's current views. Such views may not be appropriate for other
purposes and, in any event, are only current as of the date hereof. These
forward-looking statements include, but are not limited to, statements with
respect to our objectives and strategies to achieve those objectives, as well
as statements with respect to our beliefs, plans, expectations, anticipations,
estimates or intentions. These forward-looking statements include, but are not
limited to, guidance relating to revenue, operating profit and PP&E
expenditures and free cash flow, expected growth in subscribers, the
deployment of new services and all other statements that are not historical
facts. Such forward-looking statements are based on current expectations and
various factors and assumptions applied that we believe to be reasonable at
the time, including but not limited to, general economic and industry growth
rates, currency exchange rates, product pricing levels and competitive
intensity, subscriber growth and usage rates, changes in government
regulation, technology deployment, content and equipment costs, the
integration of acquisitions, and industry structure and stability.
    Except as otherwise indicated, this release does not reflect the
potential impact of any non-recurring or other special items or of any
dispositions, monetizations, mergers, acquisitions, other business
combinations or other transactions that may be announced or may occur after
the date of the financial information contained herein.
    We caution that all forward-looking information is inherently uncertain
and that actual results may differ materially from the assumptions, estimates
or expectations reflected in the forward-looking information. A number of
factors could cause actual results to differ materially from those in the
forward-looking statements, including but not limited to economic conditions,
technological change, the integration of acquisitions, unanticipated changes
in content or equipment costs, changing conditions in the entertainment,
information and communications industries, regulatory changes, litigation and
tax matters, and the level of competitive intensity, many of which are beyond
our control. Therefore, should one or more of these risks materialize, or
should assumptions underlying the forward-looking statements prove incorrect,
actual results may vary significantly from what we currently foresee.
Accordingly, we warn investors to exercise caution when considering any such
forward-looking information herein and to not place undue reliance on such
statements and assumptions. We are under no obligation (and we expressly
disclaim any such obligation) to update or alter any forward-looking
statements or assumptions whether as a result of new information, future
events or otherwise, except as required by law.
    Before making any investment decisions and for a detailed discussion of
the risks, uncertainties and environment associated with our business, see the
MD&A sections of our 2006 Annual Report entitled "Risks and Uncertainties
Affecting Our Businesses" (found on pages 53 to 59), as well as the "Updates
to Risks and Uncertainties" and "Government Regulation and Regulatory
Developments" sections of our Third Quarter 2007 MD&A. Our annual and
quarterly reports can be found at www.rogers.com, www.sedar.com, and
www.sec.gov or are available directly from Rogers.

    Additional Information

    Additional information relating to us, including our Annual Information
Form, and discussions of our most recent quarterly results, may be found on
SEDAR at www.sedar.com or on EDGAR at www.sec.gov.

    About the Company

    We are a diversified Canadian communications and media company. We are
engaged in wireless voice and data communications services through Rogers
Wireless, Canada's largest wireless provider and the operator of the country's
only national GSM based network. Through Rogers Cable we are Canada's leading
provider of cable television services as well as high-speed Internet access
and competitive telephony services. Through Media, we are engaged in radio and
television broadcasting, televised shopping, magazines and trade publications,
and sports entertainment. We are publicly traded on the Toronto Stock Exchange
(TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE:   RCI).

    For further information about the Rogers group of companies, please visit
www.rogers.com.

    Quarterly Investment Community Conference Call

    As previously announced by press release, a live Webcast of our quarterly
results conference call with the investment community will be broadcast via
the Internet at www.rogers.com/webcast beginning at 11:00 a.m. ET today,
February 22, 2008. A rebroadcast of this call will be available on the Webcast
Archive page of the Investor Relations section of www.rogers.com for a period
of at least two weeks following the conference call.

    %SEDAR: 00003765E          %CIK: 0000733099




For further information:

For further information: Investment Community Contacts: Bruce M. Mann,
(416) 935-3532, bruce.mann@rci.rogers.com; Dan Coombes, (416) 935-3550,
dan.coombes@rci.rogers.com; Media Contacts: Corporate and Media - Jan Innes,
(416) 935-3525, jan.innes@rci.rogers.com; Wireless and Cable - Taanta Gupta,
(416) 935-4727, taanta.gupta@rci.rogers.com


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