Interim Report iesy Hessen GmbH & Co. KG / ish NRW GmbH for the ...

Interim Report
iesy Hessen GmbH & Co. KG / ish NRW GmbH
for the six months ended June 30, 2006
Widdersdorfer Str. 399-403
50933 Köln
Germany
Tel. +49 (0) 221 37792 0
Fax: +49 (0) 221 37792 871
Web: www.unitymedia.de
E-Mail: Investor.Relations@unitymedia.de
1

CONTENTS
Disclosure Regarding Forward-Looking Statements 3
Definitions 4
Our Business 7
Selected Financial and Operating Information 8
Unaudited Pro Forma Condensed Consolidated Financial Statements of iesy 11
Risk Factors 13
Material Recent Developments 14
Results of Operations 18
Capital Resources 26
Index to Financial Statements 28
2
Page

Disclosure Regarding Forward-Looking Statements
This interim report includes forward-looking statements. These forward-looking statements
can be identified by the use of forward-looking terminology, including the terms “believes,”
“estimates,” “anticipates,” “expects,” “intends,” “may,” “will” or “should” or, in each case, their
negative, or other variations or comparable terminology. These forward-looking statements include
all matters that are not historical facts. They appear in a number of places throughout this interim
report and include statements regarding our intentions, beliefs or current expectations concerning,
among other things, our results of operations, financial condition, liquidity, prospects, growth,
strategies, the industry in which we operate and potential acquisitions.
By their nature, forward-looking statements involve risks and uncertainties because they
relate to events and depend on circumstances that may or may not occur in the future. We caution
you that forward-looking statements are not guarantees of future performance and that our actual
results of operations, financial condition and liquidity, the development of the industry in which we
operate, and the effect of acquisitions on us may differ materially from those made in or suggested
by the forward-looking statements contained in this interim report. In addition, even if our results of
operations, financial condition and liquidity, and the development of the industry in which we
operate are consistent with the forward-looking statements contained in this interim report, those
results or developments may not be indicative of results or developments in subsequent periods.
We undertake no obligation, and do not expect, to publicly update or publicly revise any
forward-looking statement, whether as a result of new information, future events or otherwise. All
subsequent written and oral forward-looking statements attributable to us or to persons acting on
our behalf are expressly qualified in their entirety by the cautionary statements referred to above
and contained elsewhere in this interim report.
3

Definitions
Unless otherwise defined in this interim report, the terms listed below have the following meanings:
“2003 ish Acquisition” refers to the acquisition of ish by a consortium of banks in a public auction
process in 2003;
"2005 Financings" refers to (i) the issuance of the €215.0 million in principal amount of the
February 2005 Notes, (ii) the repayment of €93.8 million of iesy's previous senior credit facilities,
(iii) the drawdown of €200.0 million under the Senior Credit Facilities, (iv) the purchase of all the
outstanding shares of Kabelnetz for a total consideration of €1,540.3 million, including the
repayment of the existing indebtedness of Kabelnetz and its subsidiaries, (v) the drawdown of
€360.0 million under the Subordinated Bridge Facility, (vi) the drawdown of €850.0 million under the
Senior Credit Facilities, (vii) the issuance of the equivalent of €360.1 million in principal amount of
the July 2005 Notes and the repayment of the Subordinated Bridge Facility, and (viii) the payment
of fees and expenses related to the foregoing;
“2006 Refinancing” refers to the issuance by iesy and ish of the iesy/ish Notes that mature on
April 15, 2013, and replaced the undrawn €100.0 million revolving credit facility with the iesy/ish
Revolving Credit Facility, available to iesy, ish and arena. The proceeds from the offering of the
iesy/ish Notes were used to refinance our €1,050.0 million Senior Credit Facilities, to finance the
payment by Unity Media to Unity Media S.C.A. of the deferred purchase price for the Tele
Columbus shares and to cash collateralize a portion of the DFL bank guarantee;
“arena” refers to arena Sport Rechte und Marketing GmbH, a wholly-owned subsidiary of ish;
“ARPU” refers to the average revenue per unit on a monthly basis;
“BRN agreements” refers to the BRN-iesy agreement and the BRN-ish agreement between DTAG
and iesy and ish NRW GmbH, respectively, pursuant to which DTAG is to install, make available
and operate certain fixed-line broadband and broadcasting networks;
“combined entity”, and “we”, “us”, “our” and other similar terms refer to the combined business of
iesy and ish following the ish Acquisition, other than in the context of the issuer of the Notes or New
Notes, where references to “we”, “us”, “our” and other similar terms refer to Unity Media;
“DFL” refers to DFL Deutsche Fussball Liga GmbH;
"DFL Bank Guarantee" refers to the bank guarantee provided by Citigroup Global Markets Limited
in connection with arena's obligations under its agreement with DFL regarding the Bundesliga
programming rights;
“DTAG” refers to Deutsche Telekom AG;
“EWT” refers to the cable network business of the group of companies controlled by ewt multimedia
GmbH & Co. KG;
“Financing” refers to a financing of our group, consisting of a €360.0 million subordinated bridge
facility entered into on June 21, 2005, as well as the Senior Credit Facilities consisting of a €225.0
million term loan A facility, a €250.0 million (incremental) term loan B facility, a €375.0 million term
loan C facility, and a €70.0 million (incremental) revolving credit facility.
“German GAAP” refers to generally accepted accounting principles in Germany;
“housing associations” encompass public property investors, public property owners, property
management firms and financial investors;
4

“iesy,” “ish”, “we,” “us,” “our,” the “Company” and other similar terms refer to iesy Hessen GmbH &
Co. KG and ish NRW GmbH and its consolidated subsidiaries, except where the context otherwise
requires;
“iesy GP” refers to iesy Hessen Finanz-Management GmbH;
“iesy Hessen” refers to iesy Hessen GmbH & Co. KG (formerly iesy Hessen Finanz GmbH & Co.
KG);
“iesy Repository” refers to iesy Repository GmbH, which was renamed Unity Media GmbH as
announced on October 6, 2005;
“IFRS” refers to International Financial Reporting Standards;
“iesy/ish Notes” refers to the € 1,350,000,000 senior secured floating rate notes due 2013 issued by
iesy and ish during the 2006 Refinancing;
“iesy/ish Revolving Credit Facility” refers to the €130.0 million revolving credit facility issued during
the 2006 Refinancing;
“Indentures” refers to the indentures relating to the Notes and the New Notes;
“ish” refers to the cable network business of ish NRW GmbH (formerly the group of companies
controlled by KABELNETZ NRW HoldCo GmbH which was renamed ish NRW GmbH on
September 2, 2005);
“ish Acquisition” refers to the acquisition of ish by iesy Hessen completed on June 24, 2005;
“KBW” refers to the cable network business of the group companies controlled by Kabel Baden-
Württemberg GmbH & Co. KG;
“KDG” refers to the cable network business of the group of companies controlled by Kabel
Deutschland GmbH;
“MSG” refers to Kabel Deutschland Breitband Services GmbH (formerly MSG MediaServices
GmbH), a subsidiary of KDG;
“New iesy” refers to New iesy GmbH which was renamed Unity Media Management GmbH on
October 14, 2005;
“New Notes” refers to the €235 million 10 1/8% senior notes of the Company due 2015 and $151
million 10 3/8% senior notes of the Company due 2015;
“Notes” refers to the €215 million 8 3/4% senior notes of the Company due 2015 that were offered
by iesy Repository as part of the Refinancing in February 2005;
“Premiere” refers to Premiere Fernsehen GmbH & Co. KG;
“previous senior credit facilities” refers to the senior credit facilities that were paid down in February
2005 using proceeds of the Refinancing;
“Refinancing” refers to the offering by iesy Repository of the Notes and the entering into of the
€230.0 million senior credit facilities consisting of a €200.0 million term loan facility and a €30.0
million revolving credit facility;
5

“Senior Credit Facilities” refers to the senior credit facilities entered into in connection with the
Refinancing and Financing and described in “Description of Other Indebtedness” in the offering
memorandum for the New Notes;
“Senior Credit Facility Refinancing” refers to the issuance on April 5, 2006 of €1,350 million senior
secured floating rate notes due 2013 issued by iesy and ish;
“SLAs” refers to various long-term agreements with DTAG under which DTAG provides network
operations to us;
“Subordinated Bridge Facility” refers to the subordinated bridge facility entered into in connection
with the ish Acquisition and described in “Description of Other Indebtedness” in the offering
memorandum for the New Notes;
“Tele Columbus” refers to the cable network business of the group of companies controlled by Tele
Columbus Kabel Holding GmbH;
“Tele Columbus Notes” refers to the €245.0 million floating rate senior notes due 2010 and the
€230.0 million 9 3/8% senior notes due 2012;
“Term Sheets” refers to term sheets that are part of the SLAs;
“Trustee” refers to The Law Debenture Trust Company of New York, as trustee for the Notes and
the New Notes;
“United States” and the “U.S.” refer to the United States of America;
“Unity Media” refers to Unity Media GmbH, formerly iesy Repository GmbH;
“Unity Media Management GmbH” refers to Unity Media Management GmbH, formerly New iesy
GmbH; and
“U.S. GAAP” refers to generally accepted accounting principles in the United States.
6

Our Company
Our Business
We are the largest cable television operator in the German states of Hesse and North Rhine-
Westphalia. arena Sport Rechte und Marketing GmbH, which became an indirect subsidiary of iesy
Hessen GmbH & Co. KG and a direct subsidiary of ish NRW GmbH in April 2006, has acquired
certain Bundesliga programming rights for three seasons starting with the 2006/2007 season. We
provide basic and premium cable television services, as well as high speed Internet access and
telephony services to our customers. Our network passes approximately 8.5 million homes out of a
total of approximately 11.3 million homes in Hesse and North Rhine-Westphalia, representing a
75% coverage rate. Approximately 5.1 million homes are connected to our network and subscribe
to our services, a 60% penetration rate. The largest part of our business is the provision of basic
cable television services, which is characterized by stable revenues and cash flows. For the six
months ended June 30, 2006, we generated total revenues of €280.5 million and EBITDA of €136.7
million.
7

Selected Financial and Operating Information
Basis for Presentation of Financial and Operating Information
The information in this interim report presents our unaudited consolidated income statement,
balance sheet, cash flow statement and other financial and operational data as of and for the six
months ended June 30, 2005 and 2006, respectively, each on the basis of generally accepted
accounting principles in Germany (“German GAAP”). We have also included certain subscriber and
other operating data in the tables below. You should not place undue reliance on this operating
data, which may not be indicative of our future results of operations.
German GAAP differs in certain significant respects from generally accepted accounting
principles in the United States (“U.S. GAAP”) and International Financial Reporting Standards
(“IFRS”). See “Annex A: Summary of Certain Significant Differences Between German GAAP and
U.S. GAAP” and “Annex B: Summary of Certain Significant Differences Between German GAAP
and IFRS” of the offering memorandum for the New Notes for a discussion of certain significant
differences between German GAAP and U.S. GAAP and IFRS. The information below should be
read together with the financial statements included in this interim report and “Results of
Operations”.
The selected consolidated financial and operating information of iesy Hessen GmbH & Co.
KG presented below as at and for the six months ended June 30, 2005 onlyincludes the
consolidated financial and operating information of ish for the period from June 24, 2005 to June
30, 2005. The ish Acquisition occurred in on June 24, 2005. A pro forma income statement for iesy
Hessen GmbH & Co. KG for the year ended December 31, 2005 is shown in the offering
memorandum for the iesy/ish Notes. Any financials for Tele Columbus are not included. Please
refer to page 109 of Unity Media’s Annual Report to Bondholders for the corporate structure of the
Unity Media Group.
Please refer to the financial statements starting on page 28 for the unaudited historical
consolidated financial statements of iesy Hessen GmbH & Co. KG as at and for the six months
ended June 30, 2005 and 2006 respectively. The unaudited historical consolidated financial
statements for Unity Media as at and for the quarters ended June 30, 2005 only include financial
condition and results of operations of ish for the period from June 24, 2005 to June 30, 2005, and
are not directly comparable to the unaudited historical consolidated financial statements for iesy
Hessen GmbH & Co. KG as at and for the six months ended June 30, 2006.
8

Income statement data - iesy Hessen GmbH & Co. KG consolidated (unaudited)
Six Months ended June 30,
2006
(€'000s)
2005
Sales 269,027 71,657
Own work capitalized as fixed assets 4,781 1,128
Other operating income 6,656 1,251
Total revenues
Cost of materials
280,464 74,036
Raw materials and consumables (2,240) (485)
Purchased services
Personnel expenses
(52,195) (13,164)
Salaries and wages (26,885) (6,480)
Social security, pension and other benefits (5,686) (1,826)
Depreciation (103,225) (29,162)
Other operating expenses (56,776) (15,086)
Other interest and similar income 1,452 1,806
Interest and similar expenses (61,127) (10,124)
Profit/loss from ordinary activities (26,218) (483)
Extraordinary result (22,740) (80,595)
Taxes on income (2,299) (1)
Net profit/loss (51,257) (81,080)
Profit/Loss attributable to minority interests - -
Consolidated profit/loss (51,257) (81,080)
Balance sheet data - iesy Hessen GmbH & Co. KG consolidated (unaudited)
June 30, Mar 31,
2006
(€'000s)
2006
Cash and cash at banks 244,354 44,380
Intangible assets 1,062,108 1,084,523
Tangible assets 789,219 801,004
Total assets 2,342,335 2,031,325
Liabilities to banks/bondholders 1,350,000 1,050,000
Total liabilities 1,999,393 1,659,255
Equity 138,083 171,071
Cash flow statement data - iesy Hessen GmbH & Co. KG consolidated (unaudited)
Six Months ended June 30,
2006
(€'000s)
2005
Cash flow from operating activities 6,464 71,093
Cash flow from investing activities (54,217) (857,546)
Cash flow from financing activities 277,357 768,256
Other Financial Data - iesy Hessen GmbH & Co. KG consolidated (unaudited)
2006 2005
EBITDA 136,682 36,996
EBITDA Margin (a)
48.7% 50.0%
Capital Expenditures (b)
Six Months ended June 30,
(€'000s)
35,718 9,244
(a) We define EBITDA Margin to mean EBITDA as a percentage of total revenues.
(b) Capital expenditures consists of expenditures for property and equipment and intangibles (except for customer lists), and
does not include financial assets or certain start-up expenditures for arena (€24.2 million) which were capitalized as
expenses for the expansion of business prior to the launch of operations beginning with the Bundesliga season.
9

Operational data - iesy Hessen GmbH & Co. KG consolidated (unaudited)
10
Six Months ended June 30,
2006 2005
Revenues (€m, except percentages)
Basic cable
Basic cable subscriber sales 224.9 64.5
Basic cable installation fees 3.4 0.8
Total basic cable sales 228.2 65.2
% revenues 81.4% 88.1%
Premium cable 5,540.4
Total premium cable sales 7.2 0.6
% revenues 2.6% 0.8%
Carriage Fees 30,753.1
Total carriage fees 26.1 5.4
% revenues 9.3% 7.2%
High speed Internet 4,036.9
Total high speed Internet sales 4.4 0.4
% revenues 1.6% 0.5%
Telephony 1749.7
Total telephony sales 3.1 0.0
% revenues 1.1% 0.1%
Own work capitalised as fixed assets 4.8 1.1
Other 6.7 1.2
Total revenues 280.5 74.0
RGU information (as of period end in '000s, except percentages)
Homes passed (1)
8,523.8 8,472.9
Total basic cable subscribers 5,081.6 5,192.8
% penetration (2)
59.6% 61.3%
Premium Cable (3)
207.8 88.5
High speed Internet 60.2 27.5
Telephony 29.1 8.9
Total RGUs (4)
5,378.6 5,317.6
Basic cable ARPU € (5)
Digital Television ARPU € (6)
High speed Internet ARPU € (7)
Telephony ARPU (8)
Total blended ARPU € (9)
7.47 NA
7.96 NA
16.11 NA
25.31 NA
7.95 NA
(1) We calculate homes passed based on our estimate of the number of potential subscribers who are passed by our network and to whom we
can offer our cable television services.
(2) Number of subscribers at the end of the relevant period as a percentage of the number of homes passed by our network at the end of the
relevant period.
(3) The table below breaks out Unity Media’ premium cable subscribers having already been activated for arena:
June 30,
June 30, 2006
(€'000s)
Premium Cable 207.8
Thereof activated packages including arena 56.9
(4) Revenue generating units, or “RGUs”, relate to sources of revenue, which may not always be the same as subscriber numbers. For
example, one person may subscribe to two different services, thereby accounting for only one subscriber but for two RGUs.
(5) Calculated by dividing basic cable subscription revenues (including basic cable installation fees but excluding basic cable carriage fees) for a
period by the average number of total basic cable subscribers for that period and the number of months for that period.
(6) Calculated by dividing Digital Television revenues (including Digital Television installation fees but excluding Digital Television carriage fees)
for a period by the average number of total Digital Television subscriptions for that period and the number of months for that period.
(7) Calculated by dividing Internet subscription revenues (including Internet installation fees) for a period by the average number of total Internet
subscriptions for that period and the number of months for that period.
(8) Calculated by dividing telephony subscription revenues for a period by the average number of total telephony subscriptions for that period
and the number of months for that period.
(9) Calculated by dividing total subscription revenues (including installation fees but excluding carriage fees) for a period by the average number
of total basic cable subscribers for that period and the number of months for that period.

Unaudited Pro Forma Condensed Consolidated
Financial Statements Of iesy
The following unaudited pro forma condensed consolidated financial statements have been derived
by applying pro forma adjustments to the historical consolidated financial statements of iesy.
The unaudited pro forma condensed consolidated financial statements for the six months ended
June 30, 2006 give effect to the following transaction as if it occurred on January 1 of the respective
year for the pro forma condensed profit and loss statement:
• The 2006 Refinancing, which includes (i) the issuance of the €1,350.0 million by iesy and ish of
the iesy/ish Notes that mature on April 15, 2013, (ii) the entering into of the new €130.0m
revolving credit facility replacing the previous undrawn €100.0 million revolving credit facility, (iii)
repayment of our €1,050.0 million Senior Credit Facility, (iv) to finance the payment by Unity
Media to Unity Media S.C.A. of the deferred purchase price for the Tele Columbus shares, and
(v) to cash collateralize a portion of the DFL bank guarantee. The 2006 Refinancing occurred in
April 2006.
The unaudited pro forma condensed consolidated financial statements are provided for
informational purposes only and have not been prepared to comply with German GAAP, U.S.
GAAP, U.S. Securities and Exchange Commission requirements or any other accounting
standards.
In addition, the unaudited pro forma condensed consolidated financial statements do not purport to
represent what our financial position or results of operations actually would have been if the
transactions had occurred on the dates indicated, nor do they purport to represent our results of
operations for any future period or our financial condition at any future date.
The historical consolidated financial statements have been prepared on the basis of German
GAAP. German GAAP differs in certain significant respects from U.S. GAAP and IFRS. See the
following sections in the offering memorandum for the New Notes: “Annex A: Summary of Certain
Significant Differences Between German GAAP and U.S. GAAP” and “Annex B: Summary of
Certain Significant Differences Between German GAAP and IFRS” for a discussion of certain
significant differences between German GAAP and U.S. GAAP and IFRS.
The information below should be read together with the financial statements and the notes to those
statements included in this interim report and “Results of Operations”.
An unaudited pro forma condensed consolidated balance sheet as of June 30, 2006 has not been
provided here because the unaudited consolidated balance sheet as of June 30, 2006 included in
the financial statements in this interim report already takes into account and shows the effects of
the 2006 Refinancing.
11

Unaudited Pro Forma Condensed Consolidated Profit and Loss Statement
Six Months Ended June 30, 2006
iesy (1)
2006
Refinancing
Adjustments Pro Forma
Sales 269,027
269,027
Ow n w ork capitalized as fixed assets 4,781
4,781
Other operating income 6,656
6,656
Total revenues 280,464
-
280,464
Cost of materials (54,435)
Personnel expenses (32,571)
Depreciation and amortization (103,225)
Other operating expenses (56,776)
Operating result 33,457
Other interest and similar income 1,452
Interest and similar expenses (61,127)
Financial result (59,675)
Profit/(loss) from ordinary activities (26,218)
Income taxes (2,299)
Net profit/(loss) before extraordinary expenses (28,517)
12
-
(54,435)
(32,571)
(103,225)
(56,776)
33,457
1,452
33,309 (2)
(41,934) (2) (69,752)
(1) This column reflects iesy’s consolidated profit and loss statements for the six months ended June 30, 2006, prepared and presented in
accordance with German GAAP.
(2) To record the assumed reduction of interest expense due to the repayment of the Senior Credit Facilities of € 1,050.0 million and the pro
forma interest expense under the Notes offered, assuming that the Notes were issued on January 1, 2006 and that the Revolving Credit
Facility remained undrawn throughout the period:
Pro forma
financial
debt
Assumed
interest
rate
(8,626)
(8,626)
(8,626)
(68,300)
(34,843)
(2,299)
(37,142)
Pro forma interest
expense (a) for the six
months ended June 30,
2006
€m €m
Pro forma adjustment for Notes Offering
iesy/ish Notes 1,350.0 6.21% 41.9
Actual historical interest expense
Repayment of Senior Credit Facilities 1,050.0 5.34% (14.8)
iesy/ish Notes from 5 April 1,350.0 5.74% (18.5)
Pro forma interest expense adjustment 8.6
(a) Pro forma interest expense for the Notes offered hereby excludes debt issuance costs. The debt issuance costs of €34.9 million were
expensed as incurred and recorded as extraordinary expenses offset by a €12.2 million gain from the termination of the interest rate
hedges in connection with the issuance of the iesy/ish Notes 2006 Refinancing. We issued the Notes with a margin of 287.5 basis points
above the three-month EURIBOR rate. In calculating pro forma interest expense on the Notes, we applied the EURIBOR rate of 2.868%
(which was the actual rate in effect for the period from April 5 until July 31, 2006). Rates could vary. We have swapped €800.0 million
gross proceeds of the notes from a floating rate of EURIBOR plus 287.5 basis points to a fixed rate of 6.535% for three years calculated
on a quarterly, annual/360 basis. As adjusted to give effect to the hedging agreement, the weighted average interest rate for the Notes is
6.21%. The hedge only comes into effect for the interest period beginning July 31, 2006. A 0.125% per annum change in the interest rate
on the borrowings would change pro forma interest expense by €0.7 million.

Risk Factors
You should carefully consider the risks described in the offering memorandum for the iesy/ish
Notes and the Material Recent Developments section of this and prior reports. Any of the those
risks could materially adversely affect our business, financial condition or results of operations. In
such case, you may lose all or part of your original investment.
The risks described therein are not the only risks we face. Additional risks and uncertainties
not currently known to us or that we currently deem to be immaterial may also materially adversely
affect our business, financial condition or results of operations.
13

arena Technical Distribution
Material Recent Developments
On June 26, 2006, arena and Eutelsat visAvision GmbH, the German subsidiary of Eutelsat
Communications, announced a three-year agreement to offer arena to disconnected Level 4 cable
network operators in Germany serving approximately 2 million households. Eutelsat offers the
arena channel and will offer a tividi-branded digital television package to disconnected Level 4
cable network operators via Eutelsat’s Kabelkiosk digital programme and service platform. The
cable operators then offer arena on a stand-alone basis, in addition to their existing offers.
On July 11, 2006, arena and Kabel BW, the largest cable operator in Baden-Württemberg,
announced a three-year agreement on wholesale distribution of arena to 2.3 million homes in the
cable network of Kabel BW. Kabel BW is currently marketing the product on a stand-alone basis for
€14.90 in its regions.
On July 13, 2006, Unity Media, arena and Premiere announced a three-year agreement on
the wholesale distribution of arena by Premiere in the Kabel Deutschland regions over cable, with a
technical reach of approximately 9.6 million cable television households. Premiere is currently
marketing the product to new and existing Premiere cable customers in Kabel Deutschland regions
o bundled with its other offers for €9.90, or on a stand-alone basis for €14.90.
Including our national satellite platform, iesy, ish and the completion of the above mentioned
cable distribution agreements, arena was available to nearly all customers in Germany before
launch. The arena channel was launched in August 2006, beginning with the broadcast of archived
Bundesliga content on August 1, the local friendly between Bayern München and 1860 München on
August 8, and the Bundesliga season launch on August 11, 2006.
arena Marketing
In May, arena launched its nationwide advertising campaign, and began taking orders on
satellite as well as on the iesy and ish cable networks.
In July, iesy and ish began offering a promotional triple play product including telephony and
Internet with the tividi Komplett offering including arena for a promotional price of €49.90 per month.
On July 21, 2006, arena announced a retail sales partnership for satellite subscription sales
with Media Markt and Saturn, who have launched an extensive national advertising campaign until
the end of September 2006. Customers can subscribe to the arena satellite subscription package
including the digital set-top-box, as well as season-ticket offerings in all 215 Media Markt and 116
Saturn electronic retail stores in Germany.
As of June 30, 2006, we had 179,400 retail orders for the arena package on satellite and
cable, of which 56,900 had already been activated on the iesy and ish cable networks. As of August
27, 2006, we had 424,000 retail orders on satellite and cable, excluding arena subscribers on the
networks of KDG (via Premiere), KBW and disconnected level 4 providers (via Eutelsat). We
currently expect to have over 800k estimated retail and wholesale arena subscribers by the end of
August 2006, and will begin reporting a split of retail satellite, retail cable and wholesale cable
subscribers with our third quarter reporting.
14

arena Content Rights
On May 19, 2006 DTAG and Premiere announced an agreement whereby Premiere would
produce Bundesliga under its broadcast license for distribution over the DTAG DSL/VDSL network.
Subsequently, media authorities have announced that DTAG does not require a broadcasting
license whilst Premiere is responsible for the content. On June 07, 2006, the DFL and Deutsche
Telekom confirmed arena’s exclusive rights of Bundesliga and 2 Bundesliga matches over cable
and satellite. arena also agreed to limit the simultaneous IPTV distribution or retransmission of its
Bundesliga program to cable. DTAG was awarded naming rights to the Bundesliga for two seasons
from season 2007/2008 onwards.
On June 07, 2006, arena was awarded the public viewing rights by the DFL. The arena
channel will be available to subscribing sports bars, hotels, fitness studios and clubhouses. The
product proposal and pricing was announced on June 28, 2006, and direct marketing began shortly
thereafter.
On August 08, 2006 arena announced the acquisition of the exclusive cable, satellite and IP-
TV rights to the Spanish Primera Division and the Copa del Rey, the Spanish Royal Cup, beginning
on August 27, 2006 for the next 3 years.
tividi and Premiere distribution
In July 2006, we agreed a wholesale distribution and revenue share agreement with Premiere
for the distribution of its content over our cable networks. ish, iesy and in-region Tele Columbus will
begin offering Premiere packages directly to end customers. At the same time it was agreed that
any outstanding legal and regulatory disputes between Premiere and Unity Media and its group
companies would no longer be pursued. We now have all rights to access existing Premiere cable
set-top boxes.
On August 16, 2006, we announced a long-term marketing and distribution cooperation
agreement with ewt, whereby ewt and Unity Media cooperate in North Rhine-Westphalia and
Hesse for our arena, tividi, Internet and telephony products. Depending on the local availability of
telephony and Internet services from ish and iesy, ewt will upgrade its in-home distribution networks
as required.
As a result of the various arena developments, our digital content platform “tividi” has gained
significant distribution across Germany. tividi is now available on iesy, ish, the arena satellite
platform, disconnected level 4 operators via Eutelsat, and subject to implementation, KBW.
Furthermore, subject to implementation feasibility, we have the right to package Premiere’s
offerings on a stand-alone basis at their retail pricing, or in combination with a bundled offering,
across these same distribution platforms.
Impact on Operations
Following the launch of marketing for arena and our triple play product offering, we continue
to experience strong demand for our products, although we cannot assure you the increased
interest will be sustainable. Even with flexible outsource capacity, the amount of prospect and firsttime
installation calls have substantially decreased our internal and external call center answer rate
and service levels. While we expect the volume of calls to decrease after the season launch and
initial subscriber take-up, lower call answer rates could adversely impact subscriptions, customer
satisfaction and churn impacting revenues. We expect to increase resources for our customer care
function, which will increase our operating costs in line with increased demand and new
subscriptions to our new services. To the extent we experience high volume or variability in
customer acquisition, however, we expect our customer service levels will continue to fluctuate.
15

Senior Credit Facility Refinancing
The Senior Credit Facilities were refinanced on April 5, 2006 through the issuance of €1,350
million senior secured floating rate notes due 2013. The additional proceeds of the issuance of the
iesy/ish Notes were used to finance the payment by Unity Media to Unity Media S.C.A of
approximately €87 million, representing the deferred cash portion of the purchase price, including
accrued interest, for the shares of Tele Columbus (Unity Media S.C.A. will use the payment to
repay amounts due to the vendors of Tele Columbus Kabel Holding GmbH under an €84 million
12% PIK Note, which it used to partially pay the purchase price for the acquisition of the shares of
Tele Columbus Kabel Holdings GmbH); and to cash collateralize a portion of the DFL Bank
Guarantee.
The Group Structure
On April 3, 2006, Unity Media GmbH assigned all shares in arena to Unity Media
Management GmbH. On the same day, Unity Media Management GmbH assigned all shares in
arena to iesy, and iesy then assigned all shares in arena to iesy Hessen Verwaltungs-GmbH. All
assignments were carried out as contributions into the capital reserves of the relevant company. On
the same day, Unity Media assigned the nominal share it held in iesy Hessen Verwaltungs-GmbH
to iesy. In addition, on or about April 25, 2006, iesy contributed its direct ownership of iesy Hessen
Verwaltungs-GmbH and indirect ownership of arena to ish and received additional share capital
from ish in return. As a consequence of these contributions, iesy Hessen Verwaltungs-GmbH and
arena (indirectly) became a wholly-owned subsidiary of ish and arena became a guarantor of the
iesy/ish notes and the iesy/ish Revolving Credit Facility on April 5, 2006.
Tele Columbus
On August 2, we announced the sale by Tele Columbus Süd-West GmbH of certain assets
and subscriber agreements to iesy Hessen GmbH & Co. KG for an undisclosed price. The asset
sale includes over 60,000 subscribers located in Hesse.
On August 3, 2006, we announced that an affiliate of Kabel Baden-Württemberg GmbH & Co.
KG will acquire from Tele Columbus GmbH & Co. KG all shares in Kabel Plus Gesellschaft für
Kabel-und Satellitenfernsehen mbH, KFS Kabelfernsehen Stuttgart GmbH, and Tele Columbus
Süd-West GmbH. It will also acquire Tele Columbus’ equity interests in RKS Telecom Südwest
Regionale Kabel-Service-Beteiligungsgesellschaft mbH and in RKS Telecom Südwest Regionale
Kabel-Servicegesellschaft mbH & Co. KG and will thereby become the sole owner of these
companies. The sold companies have over 400,000 subscribers. The sale is subject to regulatory
approval. It is now anticipated that closing will occur in October 2006 although we can give no
assurance this will be the case. Until the closing date, the sold companies shall continue to operate
independently as part of the Tele Columbus group.
The purchase price will be paid in cash, and Tele Columbus will use a portion of the purchase
price to completely repay its revolving credit facility. The amount committed and available to be
drawn under the Tele Columbus revolving credit facility will be reduced to €85 million.
We are currently evaluating a number of alternatives to integrate Tele Columbus with the
businesses of iesy and ish, which are also subsidiaries of Unity Media GmbH. No decision has
been taken as to the likelihood, structure or timing of any further integration. Although we can give
no assurance that this will be the case, it is possible that in the future, Tele Columbus, or certain
Tele Columbus assets and liabilities, will be contributed to, merged with, or acquired by iesy or one
of its subsidiaries.
Senior Management Changes
Since April 1, 2006 the following senior management changes occurred at Unity Media:
16

David McGowan has been appointed Managing Director of Unity Media’s subsidiary, arena
Sport Rechte und Marketing GmbH in June. Mr. McGowan is responsible for Marketing and
Business Development. Mr. McGowan previously served as Chief Content Officer and Senior Vice
President, Corporate Strategy and Product Development for Cablecom in Switzerland for two
years. Prior to that he was Deputy Chief Operating Officer at iesy. In 1999-2002 he served in
various senior management roles for NTL UK and NTL Europe with responsibilities for strategy and
development, in particular the development of digital television, broadband internet services and
content. Prior to that he served in different roles at WETA and TIME magazine in the US. Mr.
McGowan holds a B.A. cum laude in History from Yale University.
17

Results of Operations
Six months ended June 30, 2006 compared to six months ended June 30, 2005
We derive revenues from four main business activities: our basic cable television business
(including subscription, installation and carriage fees), our premium cable television business
(including subscription, installation and carriage fees), our high speed Internet business, and our
telephony business (including subscription and installation fees). We refer to the revenues
generated by these activities as “sales.” In addition, we recognize other revenues, including own
work capitalized and other operating income. Other operating income includes prior period income,
such as the release of accruals and allowances.
The selected consolidated financial and operating information of iesy Hessen GmbH & Co.
KG presented below as at and for the six months ended June 30, 2005 only includes the
consolidated financial and operating information of ish for the period from June 24, 2005 to June
30, 2005. The ish Acquisition occurred on June 24, 2005. A pro forma income statement for iesy
Hessen GmbH & Co. KG for the year ended December 31, 2005 is shown in the offering
memorandum for the iesy/ish Notes.
Please refer to the financial statements starting on page 28 for the unaudited historical
consolidated financial statements of iesy Hessen GmbH & Co. KG as at and for the six months
ended June 30, 2005 and 2006 respectively. The unaudited historical consolidated financial
statements for Unity Media as at and for the six months ended June 30, 2005 only include financial
condition and results of operations of ish for the period from June 24, 2005 to June 30, 2005 and
are not directly comparable to the unaudited historical consolidated financial statements for iesy
Hessen GmbH & Co. KG as at and for the six months ended June 30, 2006.
Sales
Sales in the six months ended June 30, 2006 were €269.0 million. Sales increased, from
€71.7 million in the six months ended June 30, 2005 to €269.0 million in the six months ended June
30, 2006. Sales represent 95.9% of total revenues in the six months ended June 30, 2006 and
96.8% of total revenues in the six months ended June 30, 2005. The increase in sales was
primarily due to the ish Acquisition which occurred in June 2005.
Basic cable subscription fees increased from €64.5 million for the six months ended June 30,
2005 to €224.9 million for the six months ended June 30, 2006. This increase was primarily due to
the ish Acquisition which occurred in June 2005. Installation fees increased from €0.8 million in the
six months ended June 30, 2005 to €3.4 million for the six months ended June 30, 2006. This
increase was primarily due to the ish Acquisition which occurred in June 2005. In total, the
contribution of the basic cable television business increased from €65.2 million, or 88.1%, of total
revenues in the six months ended June 30, 2005 to €228.2 million, or 81.4%, of total revenues in
the six months ended June 30, 2006.
Subscription fees from our premium cable television business includes subscription fees
(including both the monthly subscription fees for rented set-top boxes and the selling price where
set-top boxes are sold to the end customer) and installation fees. Subscription fees from our
premium cable television business grew from €0.6 million, or 0.8%, of total revenues in the six
months ended June 30, 2005 to €7.2 million, or 2.6%, of total revenues in the six months ended
June 30, 2006 due to the strong increase in RGU’s of our premium cable television offerings
following the introduction of the integrated tividi brand and product offering across Hesse and North
Rhine-Westphalia and the ish Acquisition which occurred in June 2005. Subscription fees in the six
months ended June 30, 2006 include both installation and subscription fees relating to the
subscription of arena packages. Subscription revenues from arena packages will only accrue from
August, when the Bundesliga season begins.
18

Carriage fees increased from €5.4 million in the six months ended June 30, 2005 to €26.1
million in the six months ended June 30, 2006 due to the ish Acquisition which occurred in June
2005.
Subscription fees from our high speed Internet business include subscription fees (including
the monthly subscription fees for rented cable modems) and installation fees. Subscription fees
from our high speed Internet business increased from €0.4 million or less than 1% of total revenues
in the six months ended June 30, 2005 to €4.4 million, or 1.6% of total revenues in the six months
ended June 30, 2006. This increase represents an accelerated take-up of our high speed Internet
products following the introduction of our new single, dual and triple play product portfolio in our
upgraded regions in Hesse and North Rhine-Westphalia in January 2006 partially offset by lower
ARPU both from more competitive offerings and our Multimedia Anschluss product, and the ish
Acquisition which occurred in June 2005.
Own work capitalized
Own work capitalized as fixed assets increased from €1.1 million in the six months ended
June 30, 2005 to €4.8 million in the six months ended June 30, 2006. This reflects an increase in
the level of network projects staffed by in-house employees resulting from increased upgrade
activity in our regions and the ish Acquisition which occurred in June 2005. A corresponding
amount of expenditure is reflected in personnel expenses.
Other operating income
Other operating income increased from €1.2 million in the six months ended June 30, 2005 to
€6.7 million in the six months ended June 30, 2006 due to the ish Acquisition which occurred in
June 2005.
Cost of materials
Cost of materials consists of raw materials and consumables, and purchased services. The
former is comprised primarily of repairs and maintenance and the cost of cable modems and settop
boxes we sell, and the latter primarily consists of network infrastructure services, which include
costs under long term agreements with DTAG and other agreements. Beginning in 2006, we
increasingly focused our efforts on a set-top box rental model, whereby the boxes are capitalized
and depreciated over their useful asset life. Our most significant costs include payments under long
term agreements with DTAG for the use of assets which are shared between our network and that
of DTAG and for services provided by DTAG. Total cost of materials for the six months ended June
30, 2006 was €54.4 million.
Raw materials and consumables. Cost of raw materials and consumables increased from €0.5
million in the six months ended June 30, 2005 to €2.2 million in the six months ended June 30,
2006 reflecting the impact of the ish Acquisition which occurred in June 2005. Our cost of raw
materials and consumables as a percentage of total revenues increased to 0.8% in the six months
ended June 30, 2006 compared to 0.7% in the six months ended June 30, 2005.
Purchased services. Cost of purchased services increased from €13.2 million in the six months
ended June 30, 2005 to €52.2 million in the six months ended June 30, 2006. Our cost of
purchased services as a percentage of revenues increased from 17.8% in the six months ended
June 30, 2005 to 18.6% in the six months ended June 30, 2006.
Personnel expenses
Personnel expenses include salaries and wages, and social security, pension, and other
benefits of our permanent staff. They also include other forms of compensation such as overtime
19

and stand-by pay, but do not include temporary staff expenses, which are included in other
operating expenses.
Total personnel expenses increased from €8.3 million in the six months ended June 30, 2005
to €32.6 million in the six months ended June 30, 2006 due to the ish Acquisition which occurred in
June 2005. However, overall we had lower levels of personnel following the integration of iesy and
ish. Our personnel expenses as a percentage of revenues increased to 11.6% in the six months
ended June 30, 2006 compared to 11.2% in the six months ended June 30, 2005.
Depreciation and amortization
Depreciation and amortization expenses relate to property, plant and equipment and
intangible assets. The cost of set-top boxes and cable modems rented to the customer is
capitalized and depreciated over the useful asset life. A substantial portion of our depreciation and
amortization expenses relates to the amortization of goodwill resulting from the ish Acquisition.
Depreciation increased from €29.2 million in the six months ended June 30, 2005 to €103.2
million in the six months ended June 30, 2006. Our depreciation expenses as a percentage of
revenues decreased to 36.8% in the six months ended June 30, 2006 compared to 39.4% in the six
months ended June 30, 2005. This effect is due to the ish Acquisition which occurred in June 2005.
Depreciation of fixed assets decreased by €34.7 million due to the change in the useful life of the
cable network and amortization of goodwill increased by €36.6 million following the ish Acquisition.
Other operating expenses
Other operating expenses include copyright license fees, rental and leasing fees, sales and
marketing expenses, legal, consulting, management fees, sales commissions related to
acquisitions of new subscribers, bad debt allowance and miscellaneous other operating expenses
including costs for our customer care, billing and network systems. We pay license fees for our
premium cable television programming. We expect these fees to increase as we expand the
programming we offer to our customers. In addition, payments for the Bundesliga rights will
significantly increase our licensing fees.
Other operating expenses increased from €15.1 million in the six months ended June 30,
2005 to €56.8 million in the six months ended June 30, 2006. This increase is primarily due to the
ish Acquisition which occurred in June 2005.
Other interest and similar income
Other interest and similar income decreased from €186 million in the six months ended June
30, 2005 to €1.5 million in the six months ended June 30, 2006 due to a lower average cash
balance in 2006.
Interest and similar expenses
Interest and similar expenses for the six months ended June 30, 2005 include interest and
fees paid with respect to our previous senior credit facilities which were repaid in February 2005
following the issuance of the Notes in February 2005.
Interest and similar expenses increased from €10.1 million in the six months ended June 30,
2005 to €61.1 million in the six months ended June 30, 2006. This increase was primarily due to
interest following the 2005 Financings as well as the 2006 Refinancing.
20

Extraordinary income
We had no extraordinary income in the six months ended June 30, 2005. In the six months
ended June 30, 2006, we had €12.2 million in extraordinary income resulting from the termination
of our previous interest rate hedge agreements.
Extraordinary expenses
In the six months ended June 30, 2006, we incurred €34.9 million in extraordinary expenses
related to the 2006 Refinancing. In the six months ended June 30, 2005, extraordinary expenses of
€80.6 million relate to advisory and financing fees of the 2005 Financings and ish Acquisition.
Taxes on income
Our effective tax rate is positively affected by our prior tax losses.
We incurred €2.3 million of taxes in the six months ended June 30, 2006 due to rules for
minimum taxation. In the six months ended June 30, 2005, we recognized a taxable loss due to the
expenses in relation to the 2005 Financings.
Net profit and loss
Net loss in the six months ended June 30, 2005 was €81.1 million compared to a net loss of
€513 million in the six months ended June 30, 2006.
Capital expenditures
Our capital expenditure relate primarily to extending or upgrading our network. Capital
expenditures also include the cost of set-top boxes and cable modems rented to our customers,
increases in intangible assets (except our customer list) and do not include financial assets. Capital
expenditures increased from €9.2 million for the six months ended June 30, 2005 to €35.7 million
for the six months ended June 30, 2006. These amounts correspond to 12.5% and 12.7% of total
revenues for each of these respective periods. In connection with the operations of our subsidiary,
arena, we incurred certain start-up expenditures which were capitalized as expenses for the
expansion of business prior to the launch of the Bundesliga season. In the six months ended June
30, 2006 these amounted to € 24.2 million and are not included in capital expenditure.
In the six months ended June 30, 2005, most of our capital expenditure related to developing
our Level 3 network in new construction areas, customer connections and own work capitalized (a
portion of personnel costs that we capitalize) as well as approximately €2.3 million for the
upgrading of our network for approximately 187,000 homes in Frankfurt and Marburg. Capital
expenditures for the six months ended June 30, 2006 included approximately €12.3 million for
additional upgrades of our network for approximately 870,000 additional homes in Kassel,
Offenbach and Giessen (Hesse) and Mühlheim, parts of Essen and the remainder of Cologne
(North Rhine-Westphalia), as well as the preparation for future upgrades. As of June 30, 2006,
approximately 2.7 million homes in Hesse and North Rhine-Westphalia were upgraded to a
862MHz bi-directional capability. We are continuing with the upgrade of our network and have to
date upgraded Lünen in North Rhine-Westphalia and we expect to complete the upgrades in Fulda
and Darmstadt (Hesse) and Bottrop and Olpe (North Rhine-Westphalia) during the third quarter of
2006.
In the future, we anticipate an increase in our capital expenditures in connection with
additional upgrades of our network, and increased demand for our premium cable television, high
speed Internet and telephony services. As a result, we estimate that our capital expenditures for the
year ended December 31, 2006 will increase substantially compared to last year’s pro forma capital
21

expenditures. During 2006, we plan to upgrade other cities and areas, such as Leverkusen and
Oberhausen (North Rhine-Westphalia) and Hanau and Bad Vilbel (Hesse). However, the prelaunch
development of arena and the manner in which we market our set-top boxes for arena, iesy
and ish could significantly increase our capital expenditures.
We have a high quality, well-engineered network in which the vast majority of the cable plant
is below the ground (and as such is subject to fewer breakdowns caused by external elements). In
addition, we believe our network ownership structure contributes to lower capital maintenance and
operating expenses for infrastructure. DTAG generally has a responsibility to maintain and invest in
network infrastructure leased to us, and professional Level 4 operators and housing associations
generally maintain their own networks. For that reason, a significant part of the network
infrastructure is maintained by other parties. Incremental capital expenditures such as the upgrade
of the Level 4 or in-house network or the introduction of a new product are designed to ensure that
our return on investment thresholds are met. We may decide to accelerate the upgrade of our
network depending upon our competitive position, which could increase our level of capital
expenditures significantly.
RGU’s
We classify our customers based on our four main business activities. The following table
sets forth our RGU numbers for our main business activities as of June 30, 2005 and June 30,
2006.
June 30, June 30,
2006 2005
RGU information ('000s, except percentages)
Homes passed (1)
8,524 8,473
Total basic cable subscribers 5,082 5,193
% penetration (2)
59.6% 61.3%
Premium cable (3)
207.8 88.5
High speed Internet 60.2 27.5
Telephony 29.1 8.9
Total RGUs (4)
5,378.6 5,317.6
(1) We calculate homes passed based on our estimate of the number of potential subscribers who are passed by our network and to whom we
can offer our cable television services.
(2) Percent penetration represents the number of subscribers at the end of the relevant period as a percentage of the number of homes passed
by our network at the end of the relevant period.
(3) The table below breaks out Unity Media’ premium cable subscribers having already been activated for arena :
June 30,
22
June 30, 2006
(€'000s)
Premium Cable 207.8
Thereof activated packages including arena 56.9
(4) Revenue generating units, or “RGUs,” relate to sources of revenues, which may not always be the same as subscriber numbers. For
example, one person may subscribe to two different services, thereby accounting for only one subscriber but for two RGUs.
In the period from December 31, 2005 to June 30, 2006, our basic cable subscriber RGU’s
decreased by 13,000 from 5.095 million to 5.082 million. This decrease is due to the cancellation of
services to non-paying customers following a customer database review as well as other churn not
offset by new additions.

In the longer term, we believe that the introduction of premium cable television and high
speed internet products and services will continue to help maintain basic cable subscriber levels,
particularly among the residential and housing association customers. In January 2006, we
introduced our new single, dual, and triple play product portfolio, offering high speed Internet
services, either on a stand-alone basis, or bundled with telephony and premium cable television
services. We are now also actively marketing our Bundesliga content under the arena brand for
both cable and satellite transmission.
ARPU
ARPU (average revenue per unit) is a measure we use to evaluate how effectively we are
realizing potential revenues from customers. ARPU is generally calculated on a yearly, quarterly or
monthly basis by dividing total sales generated from the provision of services by the average
number of subscribers served in that period and by the number of months in the period.
The monthly basic cable ARPU for the six months ended June 30, 2006 was €7.47. Blended
monthly ARPU across all products was €7.95 for the six months ended June 30, 2006.
Cash flow
Our primary sources of liquidity are cash flows from operating activities and bank borrowings.
The table below summarizes our cash flow for the six months ended June 30, 2005 and 2006.
Six Months ended June 30,
2006
(€'000s)
2005
Cash flow from operating activities 6,464 71,093
Cash flow from investing activities (54,217) (857,546)
Cash flow from financing activities 277,357 768,256
Cash flow from operating activities
Our cash flow provided from operating activities decreased by €64.6 million from a cash
inflow of €71.1 million in the six months ended June 30, 2005 to a cash inflow of €6.5 million in the
six months ended June 30, 2006. This decrease is driven by the ish Acquisition which occurred in
June 2005 as well as by the loan provided to Unity Media for the repayment by Unity Media to Unity
Media S.C.A. of the deferred purchase price for the Tele Columbus shares following the 2006
Refinancing.
Cash flow from investing activities
Our cash flow from investing activities was a cash outflow of €54.2 million in the six months
ended June 30, 2006, which primarily represents capital expenditures as well as expenses for the
expansion of business prior to launch for arena. In the six months ended June 30, 2005, cash
outflow from investing activities was €857.5million, which includes the ish Acquisition which
occurred on June 24, 2005.
Cash flow from financing activities
Our cash flow from financing activities was €277.4 million in the six months ended June 30,
2006. In the six months ended June 30, 2005, the cash inflow of €768.3 million was primarily due to
the 2005 Financings, and the repayment of our previous senior credit facilities in the six months
ended June 30, 2005.
Our cash balance as at June 30, 2006 was €244.4 million.
23

Aggregate financial obligations
The following table summarizes the financial payments that we will be obligated to make
including under our debt instruments as of June 30, 2006.
The information presented in the table below reflects management’s estimates of the
contractual maturities of our obligations. These maturities may differ significantly from the actual
maturity of these obligations.
24
Payments due by period (1)
(€’000s)
Less than
1 Year
1-3 years
4-5 years
Office rental 4,169 4,625 2,705
Other rental 1,189 486 0
Network infrastructure 91,303 191,115 198,800
DFL, MSG and copyright fees 233,171 438,043 0
Other contractual obligations 28,397 34,669 12,200
Subtotal 358,229 668,938 213,705
Long-term debt obligations 0 0 0
Total 358,229 668,938 213,705
(1) We have not included our obligations beyond five years, including with respect to network infrastructure, the Notes,
the New Notes and the iesy/ish Notes.
Leasing and rental obligations. We have entered into several long term SLAs with DTAG and its
affiliates. These include usage and access agreements for underground cable ducts space, the use
of fiber optic transmission systems, tower and facility space. In general, these agreements primarily
impose fixed prices for a limited period of time, which may then be raised to reflect increased costs,
subject to index-linked limitations. Some agreements impose prices based on the cost to DTAG of
services that are passed through to us. Furthermore, we have entered into the long term BRNagreements
under which we lease additional fiber optic lines. We have the ability to terminate these
agreements with notice periods of between 12 and 24 months. We have also entered into various
other license, rental and operating lease agreements, all of which are expensed as services are
provided. We treat these leases as operating rather than capital leases.
Copyright agreements. Included are the amounts owed to DFL for the Bundesliga programming
rights for three seasons starting in August 2006.
We are required under German law to pay royalties to the holders of copyrights and related
rights for the re-transmission of radio and television programs that include, among other things,
literary, scientific or artistic works protected by copyright law. We pay these fees pursuant to a
collective agreement (Kabelglobalvertrag) between members of the cable television industry and
GEMA, representing collecting societies, public broadcasters, and a few private broadcasters in
television and radio. The agreement with GEMA covers analog and digital transmission and will
remain in force until December 31, 2006, after which two new agreements will need to be entered
into.
Furthermore, on March 22, 2005, as part of settling arbitration proceedings, we acceded and
became a party to the VG Media agreement, which had been entered into by the other Level 3
operators, VG Media and DTAG regarding the re-transmission of a number of the remaining
German private radio and television programs through the telecommunications cable networks of
the regional cable companies. This agreement came into force on January 1, 2003 and was
terminated by VG Media on December 31, 2005. For the period until December 31, 2006, all Level

3 operators have entered into an interim agreement pursuant to which the existing contract has
been extended. Under this agreement, the Level 3 operators pay a preliminary reduced fee. For
further details please refer to the offering memorandum for the iesy/ish Notes: “Business –
Intellectual Property”.
Pension obligations. As of June 30, 2006, 15% of our employees were covered by a pension
program, which was transferred to us from DTAG. The covered employees receive a percentage of
the previous year’s gross income, multiplied by a variable age factor. As of June 30, 2006, we have
€4.5 million reserved on our balance sheet relating to pension obligations (excluding Tele
Columbus).
As of June 30, 2006, 21% of our workforce participated in a pension plan with DTAG. We are
required to make monthly payments to DTAG to a special fund (“Unterstützungskasse”) for each
employee concerned. These payments equal 30% of the covered individual’s gross civil servant
salary (“versorgungsfähige Beamtenbezüge”) and amount to approximately €700 to €1,500 per
month per eligible person.
Capital Resources
We maintain cash and cash equivalents to fund the day-to-day requirements of our business.
We hold cash primarily in euros. Historically, we have relied primarily upon the proceeds of
offerings of debt securities, bank borrowings and cash flow from operations to provide funds
required for acquisitions and operations.
Our principal source of liquidity on an on-going basis will be our operating cash flows,
drawings under the iesy/ish Revolving Credit Facility, and a portion of the proceeds of the offering
of the iesy/ish Notes. Our ability to generate cash from our operations will depend on our future
operating performance, which is in turn dependent, to some extent, on general economic, financial,
competitive, market, regulatory and other factors, many of which are beyond our control. Our high
number of subscribers at iesy and ish who pre-pay their annual bill in the months between
November and February leads to higher cash inflows in these months as compared to the rest of
the year. We believe that the proceeds from the iesy/ish Notes offering and cash flow from
operations will be sufficient to fund our currently anticipated working capital needs, capital
expenditures, and debt service requirements, although we cannot assure you that this will be the
case. To the extent that we are not able to fund any principal payment at maturity with respect to
any of our indebtedness, we will be required to refinance this indebtedness with additional credit
facilities or the issue of new debt or equity securities in the capital markets. Any failure to raise
additional necessary funds would result in a default under iesy/ish Revolving Credit Facility and our
other indebtedness, including the Notes and the iesy/ish Notes. We anticipate that we will have to
refinance in part the payment of certain notes at maturity. None of our shareholders has
guaranteed any of our debt obligations.
Under the iesy/ish Revolving Credit Facility, we will have access to funds to service our
working capital and general corporate needs. The availability of these facilities is dependent upon
certain conditions. Please refer to the offering memorandum for the iesy/ish Notes: “Description of
Other Indebtedness.” In addition, the Tele Columbus Revolving Credit Facility may not be used to
fund our working capital and general corporate needs at Unity Media, including iesy, ish and arena,
and the iesy/ish Revolving Credit Facility may not be used to fund our working capital and general
corporate needs for Tele Columbus.
The terms of the iesy/ish Revolving Credit Facility and the indentures governing our other
indebtedness, including the Notes, contain a number of significant covenants that restrict our ability,
and the ability of our subsidiaries, to, among other things, pay dividends or make other
distributions, make capital expenditures, and incur additional debt and grant guarantees.
Furthermore, the ability of our subsidiaries to pay dividends and make other payments to us may be
25

estricted by, among other things, other agreements and legal prohibitions on such payments or
otherwise distributing funds, including for the purpose of servicing debt. In addition, the our net
equity and that of certain of our subsidiaries is low, which may restrict our ability to pay dividends or
otherwise distribute funds, including for the purpose of servicing debt. Losses or other events could
further reduce our net equity.
We anticipate that we will be highly leveraged in the foreseeable future. Our high level of debt
may have important negative consequences for you. See “Risk Factors—Risks Relating to Our
Indebtedness and Our Structure—Our high leverage and debt service obligations could materially
adversely affect our business, financial condition or results of operations” in the offering
memorandum for the iesy/ish Notes. In addition, additional indebtedness incurred could reduce the
amount of our cash flow available to make payments on our indebtedness, including the Notes, and
increase our leverage.
Overview of Financing Instruments
As of June 30, 2006, we had €1,925 million of indebtedness, which consisted of the following:
• €1,350 million under the notes issued by iesy/ish in April 2006. We used a portion of
the proceeds from the offering of the iesy/ish Notes to repay the outstanding balance
on the iesy/ish Senior Credit Facilities;
• €130 million available under the iesy/ish Revolving Credit Facility which was not
drawn as of June 30, 2006;
• €575 million under the Notes issued by Unity Media GmbH in 2005;
2006 Refinancing
On April 5, 2006 we completed the issuance by iesy and ish of €1,350 million of seniorsecured
floating rate notes (the “iesy/ish Notes”) that mature on April 15, 2013, and replaced the
undrawn €100.0 million revolving credit facility with a €130.0 million revolving credit facility (the
“iesy/ish Revolving Credit Facility”), available to iesy, ish and arena, which remained undrawn. The
proceeds from the offering of the iesy/ish Notes were used to refinance our €1,050.0 million Senior
Credit Facilities, to finance the payment by Unity Media to Unity Media S.C.A. of the deferred
purchase price for the Tele Columbus shares and to cash collateralize a portion of the DFL bank
guarantee.
DFL Bank Guarantee
In accordance with the terms of arena's agreement with DFL in respect of the Bundesliga
programming rights, arena has procured and delivered to DFL a bank guarantee issued by Citigroup
Global Markets AG & Co. KGaA covering the amounts owed by arena to DFL for the first season as
security for such amounts owed. The DFL Bank Guarantee is fully cash collateralized using a
combination of the proceeds of the Refinancing and cash on hand. The amount of the DFL Bank
Guarantee will reduce ratably to reflect quarterly payments we make under arena’s agreement with
DFL. The amount of the bank guarantee for the remaining two seasons will be determined by DFL
prior to each season and could be as low as 25% of the amounts owed to DFL for that season. The
first quarterly payment to the DFL was made in mid–July 2006 with the corresponding collateralized
cash reduced ratably at the same time.
Off-Balance Sheet Arrangements
We are not a party to any off-balance sheet arrangements that have, or are reasonably likely
to have, a current or future material effect on our financial condition, changes in financial condition,
revenues or expenses, results of operations, liquidity, capital expenditures or capital resources,
except with respect to the DFL Bank Guarantee and our currency and interest rate hedging. See
“—Liquidity and Capital Resources—DFL Bank Guarantee” and “—Qualitative and Quantitative
Disclosure of Market Risk.”
26

Qualitative and Quantitative Disclosure of Market Risk
Currency Risk
Our reporting currency is the euro. We have no revenues, and few expenses or liabilities, that
are denominated in currencies other than the euro, except for the dollar portion of the Notes. As the
proceeds from the Notes were provided to iesy through the Proceeds Loan, iesy has hedged the
entire amount of the dollar-denominated Proceeds Loans into euros for the lifetime of the Notes so
that interest payments can effectively be made in euros, and Unity Media is not subject to foreign
currency exchange risk. With respect to the New Notes, on July 13, 2005, we entered into a hedge
agreement swapping $151 million in principal and the associated interest payments into eurodenominated
principal and interest payments at a fixed rate over the lifetime of the Notes, the fair
value of which as of June 30, 2006 was negative €18.7 million. Following the iesy/ish Notes
offering, the currency hedge remained outstanding. In the future, if we incur debt denominated in
other currencies, such as dollar denominated bank or bond debt, we could incur additional currency
risk and related hedging costs.
Interest Rate Risk
Our exposure to market risk for changes in interest rates relates primarily to our floating rate
debt obligations. We have interest rate risk on the iesy/ish Notes and the iesy/ish Revolving Credit
Facilities to the extent these obligations are not interest rate hedged. In the future, we may hedge
against the exposure to interest rate risk that we may incur from time to time on these and other
borrowings.
The terms of the Senior Credit Facilities required us to hedge at least 50% of our floating rate
debt. We terminated the interest rate hedges which had a positive fair value of €12.2 million at the
termination date of April 5, 2006 in connection with the issuance of the iesy/ish Notes 2006
Refinancing. At the same time we entered into, and as of June 30, 2006, we had €800.0 million of
interest rate swaps outstanding for the iesy/ish Notes until April 30, 2009 at a swap rate of 3.66%
for the three-month EURIBOR which will become effective on July 31, 2006, the fair value of which
as of June 30, 2006 was €2.5 million. We did not enter into any interest rate hedging for the iesy/ish
Revolving Credit Facilities in connection with the 2006 Refinancing.
For our remaining fixed rate debt, changes in interest rates generally affect the fair value of
the debt instrument but not our earnings or cash flows. We do not currently have any obligation to
prepay fixed rate debt prior to maturity and accordingly, interest rate risk and changes in fair market
value should not have a significant effect on the fixed rate debt until we would be required to
refinance such debt.
Impact of Inflation
A portion of our costs are affected by inflation. We attempt to restrict increases in our costs
below the rate of inflation through productivity improvements and capital expenditures. However,
general inflation affects costs for our competitors and us.
Critical Accounting Policies
For Critical Accounting Policies, please read the respective section in the offering
memorandum for the iesy/ish Notes.
27

INDEX TO FINANCIAL STATEMENTS
iesy Hessen GmbH & Co. KG H1/2006
Unaudited consolidated Balance Sheet as of June 30, 2006 29
Unaudited consolidated Profit and Loss Statement for the period from January 1 to June 30, 2006 30
Notes to the unaudited consolidated financial statements for the six months ended June 30, 2006 31
Unaudited consolidated cash flow statement for the period from January 1 to June 30, 2006 42
28
Page

Assets
iesy Hessen GmbH & Co. KG, Cologne
UNAUDITED CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2006
29
30/06/2006
31/12/2005
K€ K€
A. Expenses for the expansion of business 38,243 206
B. Fixed assets
I. Intangible assets
1. Concessions, industrial property rights and similar rights 814,525 853,744
2. Goodwill 245,430 255,028
3. Advanced payments 2,153 856
1,062,108 1,109,628
II. Tangible assets
1. Tenant improvements and cable conduit assets 170,527 175,144
2. Broadband cable network 586,077 610,408
3. Other plant, furniture and office equipment 10,206 10,339
4. Advanced payments and constructions in progress 22,409 16,492
789,219 812,383
III. Financial assets
1. Shares in affiliated companies 3 3
3 3
1,851,330 1,922,014
C. Current assets
I. Inventories 11,995 2,371
II. Receivables and other assets
1. Trade receivables 31,494 24,335
2. Receivables due from affiliated companies 100,923 6,206
3. Other assets 31,014 9,058
163,431 39,599
III. Cash and cash at banks 244,354 14,750
419,780 56,720
D. Prepaid expenses 32,982 27,161
Liabilities
2,342,335 2,006,101
A. Equity
I. Limited liability capital 1,000 1,000
II. Capital reserves 137,083 188,274
138,083 189,274
B. Provisions and accruals
1. Pension provisions 4,510 4,257
2. Tax provisions 4,009 1,821
3. Other provisions and accruals 101,179 67,698
109,698 73,776
C. Liabilities
1. Liabilities to banks/bondholders 1,350,000 1,050,000
2. Trade payables 36,963 19,200
3. Liabilities to affiliated companies
(thereof to shareholder K€ 4,276; prior year K€ 3,325)
579,422 578,470
4. Other liabilities
(thereof taxes K€ 6,764; prior year K€ 6,174)
(thereof social security K€ 177; prior year K€ 1,171)
33,008 16,409
1,999,393 1,664,079
D. Deferred income 95,161 78,972
2,342,335 2,006,101

iesy Hessen GmbH & Co. KG, Cologne
UNAUDITED CONSOLIDATED PROFIT AND LOSS STATEMENT FOR THE PERIOD
FROM JANUARY 1 TO JUNE 30, 2006
30
6 Months 2006
6 Months 2005
K€ K€
1. Sales 269,027 71,657
2. Own work capitalized as fixed assets 4,781 1,128
3. Other operating income 6,656 1,251
4. Cost of materials
a) Raw materials and consumables -2,240 -485
b) Purchased services -52,195 -13,164
5. Personnel expenses
a) Salaries and wages -26,885 -6,480
b) Social security, pension and other benefits
(thereof old-age benefits K€ 1,346; prior year K€ 552)
-5,686 -1,826
6. Depreciation and amortization -103,225 -29,162
7. Other operating expenses -56,776 -15,086
8. Other interest and similar income 1,452 1,806
9. Interest and similar expenses -61,127 -10,124
Profit/loss from ordinary activities -26,218 -483
10. Extraordinary income 12,170 0
11. Extraordinary expenses -34,910 0
12. Taxes on income -2,299 -80,595
13. Consolidated profit/loss -51,257 -81,080

iesy Hessen GmbH & Co. KG, Cologne
Notes to the unaudited consolidated financial statements for the period from January 1
to June 30, 2006
1. Basis of Presentation
The consolidated financial statements of iesy Hessen GmbH & Co. KG for the first half year from January 1
to June 30, 2006, have been prepared in compliance with the German Commercial Code.
The consolidated profit and loss account is presented in the cost of sales format pursuant to § 298 (1) HGB
and § 275 (2) HGB.
The consolidated financial statements for the six months ended June 30, 2006, have been prepared assuming
the Group will continue as a going concern.
2. Scope of Consolidation
The consolidated financial statements include the direct investments in ish NRW GmbH, iesy Hessen
Beteiligungs- GmbH and the indirect shares in iesy Hessen Verwaltungs-GmbH, arena Sport Rechte und
Marketing GmbH, and KSG Kabel-Service-Gesellschaft des Handwerks mbH. arena Sport Rechte und
Marketing GmbH was acquired by Unity Media GmbH on November 29, 2005 and participated successfully
in the bit for the pay-TV rights of the 1 st and 2 nd Bundesliga.
On April 3, 2006, Unity Media GmbH assigned all shares in arena Sport Rechte und Marketing GmbH to
Unity Media Management GmbH. On the same day, Unity Media Management GmbH assigned all shares in
arena Sport Rechte und Marketing GmbH to iesy Hessen GmbH & Co. KG, and iesy Hessen GmbH & Co.
KG then assigned all shares in arena Sport Rechte und Marketing GmbH to iesy Hessen Verwaltungs-GmbH.
All assignments were carried out as contributions into the capital reserves of the relevant company. On the
same day, Unity Media GmbH assigned the nominal share it held in iesy Hessen Verwaltungs-GmbH to iesy
Hessen GmbH & Co. KG. In addition, on or about April 25, 2006, iesy Hessen GmbH & Co. KG contributed
its direct ownership of iesy Hessen Verwaltungs-GmbH and indirect ownership of arena Sport Rechte und
Marketing GmbH to ish NRW GmbH and received additional share capital from ish NRW GmbH in return.
As a consequence of these contributions, iesy Hessen Verwaltungs-GmbH and arena Sport Rechte und
Marketing GmbH (indirectly) became a wholly-owned subsidiary of ish NRW GmbH.
31

3. Additional Information pursuant § 294 (2) S.1 HGB
As a result of the acquisition of ish and arena Sport Rechte und Marketing GmbH, a comparison of the
consolidated income statement with the prior year figures is restricted. The consolidated income statement as
of June 30, 2006 are therefore presented without reflecting the consolidation of ish and arena Sport Rechte
und Marketing GmbH.
Profit and Loss Statement
01/01/-
30/06/2006
K€
1. Sales 66,737
2. Own work capitalized as fixed assets 1,123
3. Other operating income 324
4. Cost of materials
a) Raw materials and consumables -371
b) Purchased services -11,733
5. Personnel expenses
a) Salaries and wages -6,127
b) Social security, pension and other benefits -1,422
6. Depreciation and amortization -17,262
7. Other operating expenses -9,323
8. Other interest and similar income 203
9. Interest and similar income -42,835
10. Interest and similar expenses
11. Profit from ordinary activities -20,686
12. Extraordinary income 5,069
13. Extraordinary expenses -16,199
14. Taxes on income 0
15. Profit assumed under profit and loss transfer agreement with ish NRW GmbH 19,774
16. Consolidated profit/loss -12,042
4. Consolidation Principles
The book value method is used for the capital consolidation by setting off the acquisition costs for shares in
the subsidiaries at the time of acquisition against the equity portion related to these companies. To the extent
their current value differs from their book value, the emerging difference increases assets and liabilities. The
capitalized difference resulting from the first-time consolidation of KABELNETZ NRW HoldCo GmbH was
initially recognised as customer base (intangible asset). The valuation of the customer base was based on the
business plan until 2012. Customer base values were calculated applying different scenarios concerning churn
rate and EBITDA-development (worst case, best case and average value). The average of these values was
used to determine customer value.
Scheduled amortization is used for amortising the goodwill of ish over a period of 12.5 years and for the
Goodwill of arena Sport Rechte und Marketing GmbH over a period of 9 years, unless non-scheduled
amortization is necessary because of an impairment of economic value. The amortization period of the
goodwill of ish took into consideration the average expected contract duration of the customer relationships at
32

the date of the first consolidation; for arena Sport Rechte und Marketing GmbH, an expected cooperation
duration with DFL was taken into account. The goodwill of arena Sport Rechte und Marketing GmbH results
from the first time consolidation at the level of iesy Hessen GmbH & Co. KG due to the transfer of ownership
as of April 5, 2006 to iesy Hessen Verwaltungs-GmbH.
Intercompany payables and receivables are eliminated within the framework of debt consolidation.
Income and expenses from intercompany transactions are eliminated within the framework of income and
expense consolidation.
Intercompany profits are eliminated.
Deferred taxes were accounted for pursuant to the rules of § 298 (1) HGB, in conjunction with § 274 and
§ 306 HGB and the rules of DRS 10 relating to capital consolidation. Deferred taxation results from
recognized hidden reserves as well as timing differences between statutory and tax balance sheet at the level
of the subsidiaries. Pursuant to DRS 10 no deferred taxes relating to the goodwill have been considered.
Contrary to DRS 10, active and passive deferred taxes are netted off.
When evaluating deferred tax liabilities, existing tax losses carried forward have been taken into account.
Deferred tax liabilities at the date of the first consolidation totalling € 114.1 million were recorded without
affecting income. The applied tax rates were 18.4%.
5. Accounting and Valuation Principles
The financial statements of consolidated companies are prepared in compliance with uniform accounting and
valuation principles.
Capitalized expenses for the start-up and expansion of the business concern implementation and
upgrading of existing cable networks and the launch of new products. These capitalized expenses are
amortized over a period of four years.
Intangible assets have been valued at acquisition cost, reduced by scheduled and non-scheduled
amortization. The company applies straight-line depreciation based on the anticipated useful life of intangible
assets. In the year of acquisition, depreciation is recorded pro rata temporis. Amortization is based on a useful
life of 2 to 4 years for software, up to 20 years for the customer base and up to 15 years for goodwill.
Tangible assets are stated at acquisition cost less scheduled depreciation using the straight line method based
on the maximum useful life permitted under tax rules.
Construction costs include direct costs and an appropriate allocation of material and production overhead
costs. Additionally, costs for general administration during the period of construction are included.
The estimated useful economic life of coaxial-cable lines in the network level 3 was extended from 15 years
to 20 years having both current and future impact. The basis for the recalculation was a comparison of the
original estimated useful economic life with the current asset condition and the present assessment of the
estimated useful life. In the first half year 2006, the resulting effect was a reduction of the depreciation in an
amount of € 34.7 mill. compared to the depreciation that would have been accounted for without the
prolongation of the useful economic life of this coaxial cable.
33

Depreciation is carried out using the straight-line method over the following estimated useful lives:
Fixed assets
34
Useful economic life
Leasehold improvements and cable conduit assets
Broadband network
10 - 35 years
• Technical equipment 8 - 15 years
• Broadband cable 15 - 20 years
Other property plant, furniture and office equipment 3 - 23 years
Low-value assets with acquisition costs of up to € 410.00 are expensed in the year of acquisition.
If there are indications of ongoing impairment, and if the recoverable amount is below the book value of
tangible fixed assets, non scheduled depreciation is applied.
Financial assets are stated at acquisition cost unless non-scheduled depreciation due to an impairment is
necessary.
Inventories are valued at acquisition cost in compliance with the lower of cost or fair market value principle.
Beginning as of April 1, 2006 inventory is disclosed under current assets. Until March 31, 2005 inventory of
ish NRW GmbH was split and partly disclosed under fixed assets (construction in progress) and partly under
current assets (inventory). As of April 1, 2006 the resulting effect was a reduction of the fixed assets in an
amount of € 4.2 mill. and an increase of the current assets (inventories) in the same amount.
Receivables, other assets, cash and cash at banks are valued at face value or at the lower attributable value
on balance sheet date. The identifiable risks of trade receivables have been adequately considered by a special
allowance for bad debt. General default risk is adequately considered by a lump sum allowance. Receivables
which are overdue for more than 120 days are fully provisioned.
Prepaid expenses include payments made before the balance sheet date which relate to future period
expenses.
The pension provisions are calculated pursuant to § 6a EStG with the actuarial going concern value and an
interest rate of 6% p.a. The basis of the actuarial going concern value is the “Generationstafeln 2005 G” from
Prof. Dr. Klaus Heubeck.
Tax provisions and accruals have been accrued at the amounts necessary to cover all identifiable risks on an
individual basis. For the evaluation of a provision for anticipated losses of a lease contract, expected income
from rent of vacant office space was taken into account.
Liabilities are shown at the repayment amount.
Receivables, other assets and liabilities denominated in foreign currencies are valued at the rate prevailing at
the date of the transaction by observing the lower of cost or market principle. The Dollar loan from the
issuance of bonds has been effectively converted to Euro value on or about the issuance date of the bond
through a currency swap. This treatment is a deviation from the closing date principle. To cover the exchange

ate risk for the loan and the pertinent interest payments, hedging has been used to cover the primary liability
and the corresponding interest payments.
Deferred income includes revenue already invoiced, which relates to income for a certain period of time
after the balance sheet date.
6. Explanations to Material Items of the Balance Sheet and Income Statement
Balance Sheet
The development of the tangible and intangible assets positions is presented in the following fixed assets
movement schedule:
35

Expenses for the
expansion of
iesy Hessen GmbH & Co. KG, Cologne
Development of Fixed Assets as of June 30, 2006
Acquisition costs Depreciation and Amortization
Net book value
Additions
Additions
(change of
(change of
consolidaconsolida-
01/01/2006 tion basis) Additions Disposals Transfers 30/06/2006 01/01/2006 tion basis) Additions Disposals 30/06/2006 30/06/2006 31/12/2005
KE KE K€ K€ K€ K€ K€ KE K€ K€ K€ K€ K€
business
Fixed assets
267 21,849 18,203 0 0 40,319 61 990 1,025 0 2,076 38,243 206
I. Intangible assets
1. Concessions,
industrial property
rights and similar
rights 1,080,833 0 1,294 0 0 1,082,127 227,089 0 40,513 0 267,602 814,525 853,744
2. Goodwill 825,514 1,073 0 0 0 826,587 570,486 0 10,671 0 581,157 245,430 255,028
3. Advanced payments 856 0 1,297 0 0 2,153 0 0 0 0 0 2,153 856
1,907,203 1,073 2,591 0 0 1,910,867 797,575 0 51,184 0 848,759 1,062,108 1,109,628
II. Tangible assets
1. Tenant improvements
and cable
conduit assets 211,660 0 349 0 0 212,009 36,516 0 4,966 41,482 170,527 175,144
2. Broadband cable
network 1,429,751 0 17,976 0 1,879 1,449,606 819,343 0 44,186 0 863,529 586,077 610,408
3. Other plant,
furniture and office
equipment 45,436 0 1,736 13 3 47,162 35,097 0 1,865 6 36,956 10,206 10,339
4. Advanced payments
and construction
in progress 20,640 0 13,362 0 -7,445 26,557 4,148 0 0 0 4,148 22,409 16,492
III. Financial Assets
Shares in
1,707,487 0 33,423 13 -5,563 1,735,334 895,104 0 51,017 6 946,115 789,219 812,383
affiliated companies 3 0 0 0 0 3 0 3 0 0 0 3 3
3 0 0 0 0 3 0 3 0 0 0 3 3
3,614,693 1,073 36,014 13 -5,563 3,646,204 1,692,679 3 102,201 6 1,794,874 1,851,330 1,922,014
36

The capitalized expenses for the start-up and expansion of business relate nearly all with the start of
business activities and the launch of new products of arena Sport Rechte und Marketing GmbH. In the first
half year 2006, personnel expenses, cost of sales and other operating expenses have been capitalized without
being shown in the profit and loss statement.
Intangible assets include the capitalized goodwill and customer base resulting from the first-time
consolidation as well as software. The book values of the goodwill and customer base as of June 30, 2006 are
disclosed in the following schedule:
Goodwill
Residual book values
Customer base
30.06.2006 31.12.2005 30.06.2006 31.12.2005
K€ K€ K€ K€
Indirect customer base iesy Hessen GmbH & Co. KG 0 0 32,560 36,630
Direct customer base iesy Hessen GmbH & Co. KG 0 0 166,180 172,115
Direct customer base (formerly DeTeKabel
Service Hessen GmbH & Co. KG) 0 0 4,945 5,325
ish NRW GmbH 244,387 255,028 597,133 623,133
arena Sport Rechte und Marketing GmbH 1,043 0 0 0
245,430 255,028 800,818 837,203
Scheduled amortization is used for amortising the goodwill of ish over a period of 12.5 years (remaining
useful life 11.5 years) and for the Goodwill of arena Sport Rechte und Marketing GmbH over a period of 9
years, unless non-scheduled amortization is necessary because of an impairment of economic value. The
amortization period of the goodwill of ish took into consideration the average expected contract duration of
the customer relationships at the date of the first consolidation; for arena Sport Rechte und Marketing GmbH,
an expected cooperation duration with DFL was taken into account. The goodwill of arena Sport Rechte und
Marketing GmbH results from the first time consolidation at the level of iesy Hessen GmbH & Co. KG due to
the transfer of ownership as of April 5, 2006 to iesy Hessen Verwaltungs-GmbH.
The direct and indirect customer bases of iesy Hessen GmbH & Co. KG result from the contribution of the
cable business in 2000. The direct customer base (useful life 20 years, remaining useful life 14.0 years)
represents a direct contractual relationship between the group companies and the end customer. The indirect
customer base (useful life 10 years, remaining useful life 4.0 years) is a contractual relationship with another
network operator. The useful life of the direct customer base of DeTeKabel Service Hessen GmbH & Co. KG
(in 2003 merged into iesy Hessen GmbH & Co. KG) was 10 years, the remaining useful life is 6.5 years. The
useful life for the customer base of ish NRW GmbH is 12.5 years, the remaining useful life is 11.5 years.
The nature of the contractual relationship and the possibility of changes to the customer relationship was taken
into consideration when determining the useful lives for the customer bases.
Receivables and other assets are due within one year, except for receivables from security deposits,
amounting to K€ 1,602 which are included in other assets and a discounted receivable (K€ 1,007).
Receivables due from affiliated companies include an intercompany loan in the amount of € 100.7 mill. to
Unity Media GmbH, and the claim on the excess acquisition price (ish acquisition) of iesy Hessen GmbH &
Co. KG against the shareholder Unity Media S.C.A. in the amount of K€ 209.
37

Provisions and accruals have been primarily accrued for remaining days of holiday, variable and
performance related compensation payments, outstanding vendor invoices, and provision for anticipated
losses.
The maturity of liabilities is as follows:
Due within one Due within five Due in more
year years than five years
K € K € K €
Bonds 0 0 1,350,000
Trade payables 35,355 780 828
Payables to affiliated companies 4,277 0 575,145
Other liabilities 33,008 0 0
72,640 780 1,925,973
During the course of financing the purchase price of the ish-acquisition, the bank loans and overdrafts of
iesy Hessen GmbH & Co. KG were increased from € 200 mill. to € 1,050 mill. Additionally, a revolving
credit line amounting to € 100 mill. was made available. Draw downs under this revolving credit line were
required to be repaid within the next six months. A portion of € 612.6 mill. of the bank loans was passed on to
ish NRW GmbH
On March 29, 2006 the Term facilities were called by the company as of April 5, 2006, and refinanced on the
same day through the issuance of € 1,350 million senior secured floating rate notes due 2013. The additional
proceeds of the issuance of the iesy/ish Notes were used to finance the payment by Unity Media to Unity
Media S.C.A of approximately € 87 million, representing the deferred cash portion of the purchase price,
including accrued interest, for the shares of Tele Columbus (Unity Media S.C.A. used the payment to repay
amounts due to the vendors of Tele Columbus Kabel Holding GmbH under an € 84 million 12% PIK Note,
which it used to partially pay the purchase price for the acquisition of the shares of Tele Columbus Kabel
Holding GmbH); and to cash collateralise a portion of the DFL Bank Guarantee.
The terms of the Senior Credit Facilities required us to hedge at least 50% of our floating rate debt. As of
March 31, 2006, we had € 525.0 mill. of interest rate swaps outstanding for the Senior Credit Facilities. In
connection with the issuance of the iesy/ish Notes 2006 Refinancing, we terminated the interest rate hedges
which had a positive fair value of € 12.2 mill. at the termination date of April 5, 2006. In addition, we entered
into a new 3-year € 800.0 mill. interest rate swap at iesy relating to the iesy/ish Notes, which will become
effective on July 31, 2006. The fair value of this hedge agreement as of June 30, 2006 was € 2.5 mill.
We did not enter into any additional interest rate hedging for iesy/ish Revolving Credit Facilities in connection
with the 2006 Refinancing.
Payables to affiliated companies include loans of Unity Media GmbH to iesy Hessen GmbH & Co. KG and
liabilities of iesy Hessen GmbH & Co. KG to Unity Media Management GmbH.
Unity Media GmbH issued three bonds in the course of 2005. The bond issued in February 2005 of € 215 mill.
is due 2015 and bears interest of 10.375%. In July 2005, further bonds in the amount of € 235 mill. and $ 151
mill. were issued. The Euro bond bears an interest rate of 10.125%; the dollar bond of 10.375%. Both bonds
are also due in February 2015. To secure the currency risk of the dollar bond and the interest payments, iesy
Hessen GmbH & Co. KG has directly entered into hedge agreements as counterparty for the notional value
38

and the corresponding interest payments. The proceeds from the bond issuance in the amount of € 575.1 mill.
were given as loans to iesy Hessen GmbH & Co. KG.
With respect to the $ 151 mill. senior notes, on July 13, 2005, we entered into a hedge agreement swapping
$ 151 mill. in principal and the associated interest payments into Euro-denominated principal and interest
payments at a fixed rate over the lifetime of the notes. The fair value of the hedge agreement as of June 30,
2006 was € - 18.7 mill.
The liabilities of iesy Hessen GmbH & Co. KG to the shareholder Unity Media Management GmbH include
with € 3.6 mill. an intercompany loan.
Income Statement
Sales were solely made in Germany.
Other operating income amounting to € 6.7 mill. includes prior period income of € 2.4 mill., partly from the
release of accruals.
Depreciation was influenced by the prolongation of the useful economic life of coaxial cable lines in network
level 3. In the first half year 2006, the resulting effect was a reduction of the depreciation in an amount of
€ 34.7 mill. compared to the depreciation that would have been accounted for without the prolongation of the
useful economic life of this coaxial cable.
Other operating expenses include prior year expenses of K€ 353.
Extraordinary income is related to the discharge of interest rate swaps outstanding for the Senior Credit
Facilities, which were replaced by the iesy/ish Notes. The terms of the Senior Credit Facilities required us to
hedge at least 50% of our floating rate debt. As of March 31, 2006, we had secured € 525.0 mill. In connection
with the issuance of the iesy/ish Notes 2006 Refinancing, we terminated the interest rate hedges which had a
positive fair value of € 12.2 mill. at the termination date of April 5, 2006.
Extraordinary expenses of € 34.9 mill. result in an amount of € 27.0 mill. from underwriting fees for the
iesy/ish Notes, and with € 7.9 mill from arrangement and consulting expenses in connection with the 2006
refinancing.
Income taxes include accrued tax expenses of K€ 1,521; the calculation is based on the result in the first half
year 2006.
7. Other Information
Other financial obligations
iesy Hessen GmbH & Co. KG and ish NRW GmbH are liable subordinately with all their assets for the
interest and repayment obligation arising from the bonds issued by Unity Media GmbH (€ 450 mill., $ 151
mill.).
Notes according to § 285 (17) HGB – Other Notes
39

The following fees have been charged by auditors in the current year: For other information and valuation
services (Comfort Letters and quarterly reviews) K€ 575, for audits of the annual financial statements for the
business year 2005 K€ 173, and for tax consultancy K€ 9.
Other information
In connection with the iesy/ish Notes, we entered into a new 3-year € 800.0 million interest rate swap at iesy,
which will become effective on July 31, 2006. We did not enter into any interest rate hedging for iesy/ish
Revolving Credit Facilities or the Tele Columbus Revolving Facility in connection with the 2006 Refinancing.
Other financial information
The other financial commitments result essentially from purchase obligations for network infrastructure
services of Deutsche Telekom AG, Bonn and from the DFL license fee obligations of arena Sport Rechte und
Marketing GmbH. The obligations towards Deutsche Telekom AG, Bonn are calculated with 2.0% inflation
and are based on the operating duration of the service contracts, which are longer than the legal terms.
Facts Period until
30/06/2011
40
2011 and
later
(annually)
K€ K€
Infrastructure/Network 481,218 101,371
Digital platform 4,180 0
Rent and leasing 13,174 584
Copyright fees (including DFL licence fees for arena) 667,035 0
Others 75,265 0
1,240,872 101,955

Shareholdings of iesy Hessen GmbH & Co. KG, Cologne
Shareholdings of iesy Hessen GmbH & Co. KG as of June 30, 2006, are as follows:
Name of the company Headquarter Country Share
of
equity
41
Equity Result
2005
% K€ K€
ish NRW GmbH (former iesy Services GmbH)
iesy Hessen Beteiligungs-GmbH (former
Cologne Germany 100.0 156,636 32,199
DeTe Kabelservice Hessen Beteiligungs GmbH) Frankfurt Germany 100.0 25 -1
iesy Hessen Verwaltungs-GmbH Frankfurt Germany 100.0 16 -1
arena Sport Rechte und Marketing GmbH Munich Germany 100.0 56 31
KSG Kabel-Service-Gesellschaft des Handwerks mbH Paderborn Germany 100.0 962 137
Employees
The average number of employees in the first half year of 2006 amounted to 1,074 employees.
Cologne, August 25, 2006
iesy Hessen GmbH & Co. KG, Cologne
Parm Sandhu Dr. Herbert Leifker Christopher Winfrey

iesy Hessen GmbH & Co. KG, Cologne
UNAUDITED CASH FLOW STATEMENT FOR THE PERIOD
FROM JANUARY 1 TO JUNE 30, 2006
42
6 Months 2006
6 Months 2005
K€ K€
Net result before extraordinary items -28,517 -2,033
Write-downs (+) on non-current assets 103,225 29,162
Increase (+)/decrease (-) of accruals and provisions 35,922 19,684
Other non-cash income (+)/expenses (-) 0 0
Profit (-)/loss (+) in disposals of property, plant and equipment 7 -34
Increase (-)/decrease (+) of inventories, trade receivables and other assets
not related to investing or financing activities -135,811 11,876
Increase (+)/decrease (-) of trade payables and other liabilities not related to
investing or financing activities 31,638 12,438
Cash flow from operating activities 6,464 71,093
Proceeds (+) from disposal of property, plant and equipment 0 0
Capitalized expenses (-) for the start-up and expansion of business -18,203 0
Purchase (-) of property, plant and equipment -33,423 -8,750
Purchase (-) of intangible assets -2,591 0
Investments in the acquisition of consolidated entities 0 -942,590
Cash acquired 0 93,794
Cash flow from investing activities -54,217 -857,546
Payment into capital reserves (+) 66 0
Dividend paid (-) to the shareholder 0 -1,000
Cash proceeds (+) from shareholder’s loan 0 575,000
Cash proceeds (+) from loans or short or long term borrowings
(issuance of bonds) 1,350,000 1,057,000
Cash repayments (-) of loans or short or long term borrowings -1,050,000 -783,698
Receipts (+) and payments (-) for extraordinary items -22,740 -79,046
Change in the companies to be consolidated (+) 31 0
0
Cash flow from financing activities 277,357 768,256
Change of cash funds from cash relevant transactions 229,604 -18,197
Cash funds at the beginning of the period 14,750 40,682
Cash at the end of period 244,354 22,485

iesy Hessen GmbH & Co. KG, Cologne
UNAUDITED EQUITY MOVEMENT SCHEDULE FOR THE PERIOD
FROM JANUARY 1 TO JUNE 30, 2006
Limited
liability
iesy Hessen GmbH & Co. KG, Cologne
Capital
reserves
Profit/loss for the
period
capital
K € K € K € K €
1,000 188,274 0 189,274
43
Consolidated
equity
66 66
-51,257 -51,257
0 -51,257 51,257 0
1,000 137,083 0 138,083
Due to the capitalization of expenses for the start-up and expansion of the business a distribution ban of
K€ 38,243 exists.

Financial Calendar
August 29, 2006 Interim Report: Quarter ended June 30, 2006
November 23, 2006 Interim Report: Quarter ended September 30, 2006
April 2007 Results of Financial Year ended December 31, 2006
Contact
Michael Frank
Tel: +49-221-37792 150
Fax: +49-221-37792 871
E-Mail: Investor.Relations@unitymedia.de
Unity Media GmbH
Widdersdorfer Str. 399-403
50933 Köln, Germany