Jupiter Telecommunications Co., Ltd.

1
(Translation from Japanese disclosure to JASDAQ)
July 30, 2009
[U.S. GAAP]
Consolidated Quarterly Financial Results Release
For the Six Months Ended June 30, 2009
Jupiter Telecommunications Co., Ltd. (Consolidated)
Company code number: 4817 (URL http://www.jcom.co.jp/) Shares traded: JASDAQ Executive position of legal representative: Tomoyuki Moriizumi, Chief Executive Officer Please address all communications to:
Yuichi Sekiguchi, IR Department Phone: +81-3-6765-8157 E-Mail: sekiguchiyui@jupiter.jcom.co.jp

Expected date of filing of Quarterly report: August 13, 2009 Expected date of dividend payment: September 8, 2009
(Fractional amounts rounded)
1. Consolidated operating results (From January 1, 2009 to June 30, 2009)
(1) Consolidated financial results

Revenue Operating
income
Income before
noncontrolling interests

and income taxes
(Millions of yen)
%
(Millions of yen)
%
(Millions of yen)
%
Six months ended June 30, 2009
162,478
13.0
30,398
19.5
28,353
19.6
Six months ended June 30, 2008
143,815
12.3
25,440
25.4
23,708
27.0
Net income attributable to
J:COM shareholders
Net income attributable to
J:COM shareholders
per share(basic)
Net income attributable to
J:COM shareholders
per share(diluted)

(Millions
of
yen)

%
(Yen)

(Yen)
Six months ended June 30, 2009
14,309
9.5
2,086.06

2,085.72
Six months ended June 30, 2008
13,063
13.2
1,906.79

1,903.49
(Note) The percentages shown next to revenue, operating income, income before noncontrolling interests and income taxes and net income attributable
to J:COM shareholders represent year-on-year changes.

(2) Consolidated financial position

Total assets
J:COM
shareholders’ equity
Equity capital ratio
to total assets
J:COM shareholders'
equity per share
(Millions of yen)
(Millions of yen)
%

(Yen)

June 30, 2009
763,139
362,153
47.5

52,795.78
December 31, 2008
755,670
349,352
46.2

50,940.10
2. Dividend information

Cash dividend per share (Yen)

End of the first
quarter
End of the second
quarter
End of the third
quarter
Year- end
Annual cash dividend
Year ended December 31, 2008
―
500.00
―

250.00
750.00
Year ending December 31, 2009
―

490.00
Year ending December 31, 2009
(forecasts)
―
490.00 980.00
(Note) Change in forecast of dividends during the six months ended June 30,2009: None


3. Consolidated forecasts for December 2009 term (from January 1, 2009 to December 31, 2009)


Revenue Operating
income
Income before
noncontrolling interests
and income taxes
Net income

attributable
to J:COM
shareholders
Net income attributable
to J:COM shareholders
per share

(Millions of yen)
(%) (Millions of yen)
(%) (Millions of yen)
(%)
(Millions of yen)
(%)
(Yen)
Annual 330,000
12.1
60,000

11.8
54,500
9.6
29,000
3.7
4,227.83
(Note)
The percentages shown next to revenue, operating income, income before noncontrolling interests and income taxes and net income attributable to J:COM shareholders represent year-on-year changes. Change in forecast for the fiscal year ending December 31, 2009 during the six months ended June 30,2009: None

Jupiter Telecommunications Co., Ltd.

2
4. Other
(1) Changes of significant consolidated subsidiaries : None
(2) Adoption of simplified method or specific method to quarterly consolidated financial statements: None
(3) Change in significant accounting policies, procedures and presentation in quarterly consolidated financial statements:
(i) Changes due to revision of accounting standards and other regulations : Yes (ii) Others : None
(Note) Please refer to page 6.
(4) Outstanding shares
(i) Number of issued shares at end of term (consolidated):
As of June 30, 2009: 6,939,508 shares
As of December 31, 2008: 6,938,107 shares
(ii) Number of treasury stock:
As of June 30, 2009: 80,000 shares
As of December 31, 2008: 80,000 shares
(iii) Number of weighed average stock:
Six months ended June 30, 2009: 6,859,120 shares
Six months ended June 30, 2008: 6,851,517 shares
(Cautionary note regarding future-related information)
The forecasts contained in this report have been prepared on the basis of information that is currently available. Because such estimates are inherently very uncertain, actual results may differ from the forecasts. The Company does not guarantee that it will achieve these estimated results and advises readers to refrain from depending solely on these forecasts. Readers should also note that the Company is under no obligation to revise this information on a regular basis.

Jupiter Telecommunications Co., Ltd.

3

1.

Qualitative information regarding consolidated business results
Throughout the first half of the fiscal year ending December 31, 2009, those markets in which Jupiter Telecommunications Co., Ltd. (“J:COM” or “the Company”) and its consolidated group (“the J:COM Group”) operate were characterized by an extremely challenging operating environment. This was particularly evident in the broadcasting and telecommunication service markets where competition with major telecommunications companies further intensified. Despite these circumstances, the J:COM Group made steady progress with its Volume plus Value strategies which targets expansion of the number of subscribing households and improvement of monthly revenue per unit (ARPU), while enhancing management efficiency across the J:COM Group and further strengthening its competitive position. In the area of new subscriber acquisition, and as a part of J:COM’s efforts to diversify its sales channels, additional steps were taken to further develop the J:COM Shops network. As a result of these endeavors, the number of J:COM Shops as of June 30, 2009 increased to 72, up from 50 as of December 31, 2008. Further, the Company made efforts to increase the number of subscribers utilizing the J:COM Group’s inbound call centers as well as to place partner with large appliance franchises. Recognizing the complete changeover to terrestrial digital broadcasting by July 2011 as a significant business opportunity, the J:COM Group continued to implement measures throughout the first half of the fiscal year ending December 31, 2009. In particular, the J:COM Group stepped up efforts to increase the number of fee-based retransmission only households across its service area which comprises 800,000 to 1,000,000 communal reception households. As a result, the Company closed contracts with several large communal reception facilities. (J:COM does not count such retransmission only households as RGUs.) In addition to the above efforts to increase the number of subscribing households, the J:COM Group also established rmeasures aimed at preventing churn, by appointing responsible officers to oversee the implementation of cancellation prevention programs to retain both existing and newly acquired customers. As a part of its efforts to improve ARPU, the J:COM Group continues to promote and enhance value-added TV services. The J:COM Group strengthened and expanded its high-definition (HD) channels provided through the J:COM TV Digital service while reinforcing and augmenting its Video-on-Demand (VOD) and other service capabilities. Complementing its existing lineup of HD channels, the J:COM Group added one premium channel in April 2009 and an additional four channels in movies and dramas from 1
st
of July. The J:COM Group also plans to add an additional five channels,
for an aggregate total of 10, by the end of 2009, bringing the ratio of HD channels to total J:COM TV Digital service channels including terrestrial and BS broadcasting to approximately 40%. Turning to the J:COM Group’s VOD services, J:COM worked diligently to increase usage by enhancing the attractiveness and usability to subscribers so as to increase utilization. As one example, the Company included in its lineup of VOD services the latest dramas broadcasted by FOX channel from July 2009. In this manner, J:COM is providing a platform for viewers to catch up on programs that they were unable to watch when initially broadcast. Looking ahead, the J:COM Group will promote a host of initiatives aimed at bolstering customer viewing of its VOD services. In addition to the previously identified initiatives, J:COM placed considerable emphasis on efforts to streamline the integration of newly acquired cable television companies and businesses into the Company’s network. This entailed vigorous steps to ensure consistency with regard to customer management systems, its product and service content as well as marketing skills. Buoyed by the merger with Mediatti Communications, Inc. on April 1, 2009, the Company worked diligently to reduce costs as a part of its comprehensive efforts to promote increased efficiency in management and business operations. In general terms, the service subscription penetration rate, bundle ratios (the number of services offered per subscribing household) and ARPU of newly acquired subsidiaries are low when compared with those of the existing J:COM Group. This is attributable to differences in the number of services provided and marketing techniques among relevant parties. J:COM services will be gradually incorporated into the former Mediatti group from July 2009. By introducing those services in which J:COM has a competitive advantage, a

Jupiter Telecommunications Co., Ltd.

4
benefit to the aforementioned operating indicators is anticipated. During the first half of the fiscal year ending December 31, 2009, J:COM actively strengthened collaboration with outside parties by marketing its competitive services beyond the confines of the J:COM Group. In May 2009, the Company decided to provide VOD services to its communications, Inc. (iTSCOM), the cable television company of the Tokyu Group. Utilizing the J:COM Group’s platform, VOD services is expected to commence across iTSCOM’s service area within the year. Looking ahead, the J:COM Group will attempt to improve its VOD content procurement capabilities and anticipates further benefits to be realized through increased collaboration.

As a result of the above, the total number of subscribing households (the number of households that subscribe to one or more services) of consolidated managed system operators as of June 30, 2009 rose to 3,219,200 households, an increase of 459,600 households (17%) from June 30, 2008. By type of service, cable television subscribers grew by 329,100 households (15%) from June 30, 2008 to 2,574,600 households as of June 30, 2009. Of this total, the number of J:COM TV Digital subscribers rose by 538,100 households (33%) to 2,178,400 households as of June 30, 2009, accounting for 85% of all cable television subscribers. The number of high-speed Internet access and telephony services subscribers increased by 255,800 households (20%) and 261,300 households (19%), respectively as compared to June 30, 2008, rising to 1,536,400 households and 1,666,200 households, respectively as of June 30, 2009. The number of services offered per subscribing household (bundle ratio) was unchanged at 1.79 as of June 30, 2009 from June 30, 2008. However, excluding the impact of Jyohoku New Media Co., Ltd. and former Mediatti group companies, the bundle ratio increased to 1.83. The average monthly revenue per subscribing household (ARPU) decreased from ¥7,754 for the six months ended June 30, 2008 to ¥7,717 for the six months ended June 30, 2009. However, excluding the impact of Jyohoku New Media Co., Ltd. and former Mediatti group companies, ARPU increased to ¥7,801.

In the following discussion, J:COM quantifies the impact of acquisitions on its results of operations. The acquisition impact represents the Company’s estimate of the difference between the operating results of the period under comparison that is attributable to the timing of an acquisition. In general, we base our estimate of the acquisition impact on an acquired entity’s operating results during the first three months following the acquisition date such that changes from those operating results in subsequent periods are considered to be organic changes. Included as acquisitions are (i) the January 2008 acquisition of Kyoto Cable Communications Co., Ltd., (ii) the February 2008 business transfer from the Kobe City Development & Management Foundation (arrangement for Cablenet Kobe-Ashiya Co., Ltd., to take over a portion of the service area of Kobe Cable Vision), (iii) the August 2008 consolidation of Fukuoka Cable Network Co., Ltd., and (iv) the December 2008 acquisition of Jyohoku New Media Co., Ltd. (Taito Cable Television), and (v) the December 2008 acquisition of Mediatti Communications, Inc. and its subsidiaries
.

Revenue

Total revenue increased by ¥18,663 million, or 13% from ¥143,815 million for the six months ended June 30, 2008 to ¥162,478 million for the six months ended June 30, 2009. This increase includes ¥11,566 million that is attributable to the aggregate impact of acquisitions. Excluding the effects of these acquisitions, total revenue increased by ¥7,097 million, or 5%.

Subscription fees increased by ¥20,255 million, or 17%, from ¥122,103 million for the six months ended June 30, 2008 to ¥142,358 million for the six months ended June 30, 2009.

This increase includes ¥12,497 million that is attributable to the
aggregate impact of acquisitions. Excluding the impact of acquisitions, subscription fees increased by ¥7,758 million, or 6%.
Cable television subscription fees increased by ¥11,942 million, or 18%, from ¥65,380 million for the six months ended June 30, 2008 to ¥77,322 million for the six months ended June 30, 2009. The increase in cable television subscription revenue includes an organic increase in subscription fees that is attributable to an increase in the average number of digital cable subscribers, for which we charge a higher fee compared to our analog cable service, and the associated increase in ARPU. As of June 30, 2009, 85% of cable television subscribers were receiving our digital service, compared to 73% as of June 30, 2008.
High-speed Internet subscription fees increased by ¥5,903 million, or 17% from ¥35,523 million for the six months ended June 30, 2008 to ¥41,426 million for the six months ended June 30, 2009. The increase in high-speed Internet subscription revenue

Jupiter Telecommunications Co., Ltd.

5
includes a ¥3,436 million, or 10% organic increase in subscription fees that is attributable to the net effect of (i) an increase in the average number of high-speed Internet subscribers, and (ii) lower ARPU due to product bundling discounts.

Telephony subscription fees increased by ¥2,410 million, or 11%, from ¥21,200 million for the six months ended June 30, 2008 to ¥23,610 million for the six months ended June 30, 2009. The increase in telephony subscription revenue includes a ¥1,402 million, or 7% organic increase in subscription fees that is attributable to (i) an increase in the average number of telephony subscribers and (ii) lower ARPU due to a decrease in call volumes.
Other revenue decreased by ¥1,592 million, or 7%, from ¥21,712 million for the six months ended June 30, 2008 to ¥20,120 million for the six months ended June 30, 2009. This decrease is primarily attributable to lower construction revenue.

Operating Costs and Expenses
Operating and programming costs increased by ¥3,839 million, or 7%, from ¥55,803 million for the six months ended June 30, 2008 to ¥59,642 million for the six months ended June 30, 2009. This increase includes ¥3,036 million that is attributable to the aggregate impact of acquisitions. The remaining increase is due primarily to an increase in subscriber related cost and personnel cost.

Selling, general and administrative expenses increased by ¥3,684 million, or 13%, from ¥29,333 million for the six months ended June 30, 2008 to ¥33,017 million for the six months ended June 30, 2009. This increase includes ¥3,559

million

that is
attributable to the aggregate impact of acquisitions. The remaining increase is primarily attributable to increases in personnel costs partially offset by lower advertising and sales promotion costs. .

Depreciation and amortization expenses increased by ¥6,182 million, or 19%, from ¥33,239 million for the six months ended June 30, 2008 to ¥39,421 million for the six months ended June 30, 2009. This increase is attributable to the aggregate impact of acquisitions and additions to fixed assets related to the installation of services to new customers.
Operating income, as a result of the above items, increased by ¥4,958 million, or 19% from ¥25,440 million for the six months ended June 30, 2008 to ¥30,398 million for the six months ended June 30, 2009.

Interest expense, net increased by ¥195 million, or 8%, from ¥2,329 million for the six months ended June 30, 2008 to ¥2,524 million for the six months ended June 30, 2009.

Income before non controlling interests and income taxes increased by ¥4,645 million, or 20% from ¥23,708 million for the six months ended June 30, 2008 to ¥28,353 million for the six months ended June 30, 2009. Net income attributable to J:COM shareholders increased by ¥1,246 million, or 10%, from ¥13,063 million for the six months ended June 30, 2008 to ¥14,309 million for the six months ended June 30, 2009 for the reasons set forth above.

2.

Financial position
Asset, Liability and Shareholders’ equity
Total assets increased by ¥7,469 million, from ¥
755,670
million as of December 31, 2008 to ¥763,139 million as of June 30,
2009. The increase is primarily due to cash provided from operations for the six months ended June 30, 2009.
Total liabilities decreased by ¥6,395 million, from ¥
397,383
million as of December 31, 2008 to ¥390,988 million as of June 30,
2009. The decrease is primarily due to a decrease in long-term debt, and capital lease obligations.
Total J:COM shareholders’ equity increased by ¥12,801 million, from ¥
349,352
million as of December 31, 2008 to ¥362,153
million as of June 30, 2009. The increase is primarily due to net income attributable to J:COM shareholders for the six months ended June 30, 2009.
Cash flows
For the six months ended June 30, 2009, the net cash provided by our operating activities of ¥57,502 million, and existing cash and cash equivalent was used to fund net cash used in our investing and financing activities of ¥23,253 million and ¥16,057