MONTREAL, Aug. 3 /CNW Telbec/ - Cogeco Cable Inc. (TSX: CCA), the second largest cable operator in both Ontario and QuDebec based on the number of basic cable service customers served, announced today that it has completed its previously announced acquisition of Cabovisao - Televisao por Cabo, S.A (Cabovisao), the second largest cable operator in Portugal. "The completion of this acquisition represents a significant step for Cogeco Cable in our strategy to secure growth opportunities for our shareholders, " said Louis Audet, president and chief executive officer of Cogeco Cable. "Today, we significantly increase our knowledge by welcoming more than 500 experienced employees from Cabovisao - individuals who know the Portuguese marketplace and Cabovisao products. As a result of the acquisition, we also now have a top of the class two-way network serving our Portuguese clients on which we can layer new services to fulfil their current and future telecommunications needs." Mr. Audet continued: "This acquisition is in accordance with the external growth strategy announced by Cogeco Cable last October. We are now squarely focused on quickly seizing the attractive opportunities this transaction has created for us to increase top-line growth, to increase customer satisfaction and to solidify our competitive position while soundly controlling cost. With the Cabovisao acquisition now complete, Cogeco Cable is a stronger, more broadly based company than ever before. We are looking forward to delivering on the promise of this acquisition and to building value for our shareholders." Through acquisition subsidiaries, Cogeco Cable had purchased on an agreed enterprise value of approximately 465 million euros, all the shares and all senior secured debt of Cabovisao, and provided for the reimbursement of certain other specified liabilities of Cabovisao. The final purchase price will be determined following completion of a post-closing working capital adjustment. As anticipated, Cogeco Cable Inc. concluded as of July 28, 2006 an amended and restated credit agreement providing for a CDN $900 million 5-year bank credit facility with a group of financial institutions. This facility is composed of three tranches: a revolving tranche of CDN $ 725 million maturing on July 28, 2011; a non-revolving tranche of CDN $ 25 million equivalent in euros maturing on July 28, 2011; and a non-revolving tranche of CDN $150 million maturing on July 28, 2011 and principal reductions required are: CDN $15 million on July 28, 2008, CDN $22.5 million on July 28, 2009, CDN $37.5 million on July 28, 2010 and CDN $75 million on July 28, 2011. This facility is secured pursuant to a bond trust deed between the corporation and Computershare Trust Company of Canada, as bond trustee, and various other security documentation in favour of the bond trustee, including a pledge of the shares of Cabovisao - Televisao por Cabo and of other subsidiaries of the corporation. ABOUT COGECO CABLE Cogeco Cable (www.cogeco.ca), a telecommunications company offering a diverse range of services to its customers in Canada and in Portugal, is the second largest cable operator in Ontario, QuDebec and Portugal in terms of the number of basic service customers served. The Corporation invests in state-of-the-art broadband network facilities, delivers a wide range of services over these facilities with great speed and reliability at attractive prices, and strives to provide both superior customer care and growing profitability to satisfy its customers' varied electronic communication needs. Through its two-way broadband cable infrastructures, Cogeco Cable provides its residential and commercial customers with analog and digital video and audio services, high-speed Internet access as well as telephony services. The Corporation provides about 1,511,693 revenue-generating units (RGU)(1) to approximately 1,469,009 homes passed(1) in its Canadian service territory and 611,204 RGUs(2) to approximately 820,309 homes passed(2) in its Portuguese service territory. Cogeco Cable's subordinate voting shares are listed on the Toronto Stock Exchange (CCA). ____________________________ (1) As at May 31, 2006 (2) As at March 31, 2006