ICH Intercable Ich Inc.

Intercable ICH inc. (Intercable) (TSX VENTURE: ICH) announced today its financial results for the third quarter ended September 30, 2008 and provided an update regarding the status on financing. The financial statements are available at www.sedar.com.

Highlights for the third quarter and subsequently:

a) Operations:

- Activation of the television, Internet and telephony offerings, including double and triple play bundles;

- Start-up of the commercial operations in the Saint-Paul commune; 400 subscribers were activated as of November 27, 2008 and an average of 1.8 service units per subscriber;

- Moderated expansion of the FTTC network: construction of 110 Km of aerial and underground networks (as of November 24, 2008), representing a potential of approximately 10,000 homes of which 2,400 can be connected;

- Redeployment of the network in the aerial sectors to pursue the expansion during the dispute with France Telecom;

b) Financial Situation:

- Completion of a bridge loan of 3 million Euros ($4,500,300) with Mauritius Commercial Bank (MCB); undrawn balance of 400,000 Euros ($600,040) as of November 27, 2008;

- Filing of a preliminary prospectus in Canada for a new issue of units comprising of debentures and warrants; solicitations of interest to date has not met the fund raising objectives of the Company;

- Continuation of discussions with potential institutional investors;

- Uncertainty regarding the continuation of operations; the pursuit of the Company's operations is based on its capacity to obtain additional funds in December 2008 and to secure a financing offer over the next few weeks.

During this trying period related to tightening of credit worldwide, we have slowed down our deployment plan and our commercial activities in certain aerial sectors of Reunion Island. Our service offerings were thus far well received by our customers who appreciate the quality and the competitive pricing of our television, Internet and telephony services, indicated Guy Laflamme, President and Chief Executive Officer of Intercable. We are increasing our efforts to secure financing in the very short term and we continue to explore different possibilities in order to ensure the continuity and growth of the Company.

MANAGEMENT REPORT

SCOPE OF THE FINANCIAL SITUATION ANALYSIS

This MD&A must be read in conjunction with the Company's financial statements and the accompanying notes for the quarter ended September 30, 2008 and the fiscal year ended December 31, 2007, as well as the 2007 annual report. The financial statements have been prepared in compliance with the Canadian Generally Accepted Accounting Principles (GAAP).

OUR COMPANY

ICH is a Canadian telecommunication company that builds and operate a very high-speed network in the Reunion Island, a French Overseas Department. This international broadband telecommunication business opportunity is perfectly aligned with ICH's strategy, which consists in focusing on underserved telecommunication and cable markets. To achieve its objective, ICH is implementing its own broadband network using cutting-edge technology, which it operates in order to offer television services (basic, premium and on-demand), high-speed internet services and quality telephony services. ICH targets markets where (i) cable communication service is limited or non-existent, (ii) cables can be installed in aerial or within existing underground ducts and (iii) the political environment is stable.

GOING CONCERN UNCERTAINTY

The assumption of the Company's ability to continue its operations is based on its capacity to obtain financing in the very short term in order to discharge its liabilities and to pursue its operations. Without new funding, the Company anticipates that it will be running out of cash before the end of 2008. Due to the deterioration of the financial market caused by the credit crisis, it is uncertain that the Company will be able to secure such financing and to continue as a going concern.

The consolidated financial statements for the third quarter of 2008 have been prepared on a going concern basis, which assumes the Company will be able to realize its assets and discharge its liabilities and commitments in the ordinary course of business. The financial statements of this quarter do not include any adjustments that would be necessary should the Company not be able to secure the necessary financing to continue its operations.

STATUS ON FINANCING

On October 16, 2008, the Company filed a preliminary prospectus with the regulatory authorities of British Columbia, Alberta, Ontario and Quebec for an offering of units. The offering consists of units of the Company at a price of $5,000 per unit, each unit consisting of five 15% secured subordinated debentures in the principal amount of $1,000 due three years from the date of closing of the offering, and 1,250 common share purchase warrants. Each warrant will entitle its holder to purchase one common share at a price of $1.50 at any time during the period of four years following the closing. The agent is Jones Gable & Company Limited. The issue price of the units has been negotiated with the agent. The Company also applied with the TSX Venture Exchange for a listing of its common shares issuable under the warrants. The Company wishes with this offering to conclude a minimum financing of 15 million dollars.

At the same time, the Company continues to explore other financing options, including by way of a private placement. While the Company's management continues to discuss with potential institutional investors, there is no guarantee that these discussions will result in a financing offer.

FINANCIAL SITUATION

Selected balance sheet data

------------------------------------------------------------------------
In Canadian $                             Sept. 30, 2008   Dec. 31, 2007
------------------------------------------------------------------------

Cash and cash equivalents                      1,104,395      12,750,389
Current assets                                 2,224,941      13,591,769
Capital assets                                18,348,514       6,746,278
Deferred charges                               3,820,502       1,113,992
Total assets                                  24,393,957      21,452,039

Bank indebtedness                              2,100,140               -
Other current liabilities                      4,896,879       2,082,659
Long-term debt                                   902,440         956,427
Capital stock                                 20,273,524      20,273,524
Accumulated other comprehensive income          (107,553)       (446,279)
Deficit                                       (4,445,850)     (2,188,668)
Shareholders' equity                          16,494,498      18,412,953
------------------------------------------------------------------------

As of September 30, 2008, the Company had $1,104,395 in cash and bank deposit certificates renewable every 30 days. On August 28, 2008, the Company signed a bridge loan of 3 million Euros ($4,500,300) maturing on October 31, 2008 with Mauritius Commercial Bank Ltd (MCB), a bank affiliated to MCB Equity Fund, a shareholder and insider of the Company, that will enable it to pursue its operations and to meet its short term obligations. The bridge loan shall be disbursed in tranches, carries interest at 3-month LIBOR plus a margin varying between 5% and 7%, is guaranteed first rank by the overall assets of the Company, and shall be repaid in priority with the funds raised with the next financing. On October 21, 2008, the Company received a first notice extending the maturity date to November 30, 2008 and, on November 19, 2008, it received a second notice extending the maturity date to January 31, 2009. As of September 30, 2008, the Company had drawn 1,400,000 Euros ($2,100,140) from the bridge loan. Subsequently to the end of the quarter, an additional amount of 1,200,000 Euros ($1,800,120) has been drawn, resulting in an unused portion on the loan of 400,000 Euros ($600,040) as of November 27, 2008.

The Company's long-term debt, consisting of the obligation under a capital lease maturing in 2012, amounted to $902,440 as of September 30, 2008. The Company did not enter into any new long-term indebtedness during the third quarter of 2008.

The working capital deficiency increased to $4,772,078 as of September 30, 2008, resulting mainly from a significant reduction in the Company's liquidity, an increase in the bank indebtedness and an increase in accounts payable. The Company has negotiated longer payment terms with certain suppliers, including a 14-month credit agreement with a major supplier of network components and home terminal devices, carrying interest at the 6-month LIBOR rate plus a 4% margin, payable by equal monthly instalments over a 12-month period.

During the third quarter and subsequently, the Company continued a moderate deployment of its network, maximizing the utilization of the existing inventory of network parts and equipments and delaying new orders with network equipment suppliers. The Company also suspended the use of external subcontractors and optimized its internal resources.

Although the Company will continue to closely manage its liquidities over the next few weeks, the current amount of cash and cash equivalents combined with the unused balance of the MCB bridge loan will not be sufficient to enable it to meet its current financial obligations by the end of December 2008. Consequently, the Company's ability to continue its operations is based on its capacity to obtain additional interim financing in the very short-term and to conclude mid or long-term financing over the next few weeks. There is no guarantee that the Company will be able to obtain such financing in the required timeframe.

CASH REQUIREMENTS

Based on its revised business plan, the Company estimates that its cash requirements will range between $20 million and $30 million for the next 12 months, which will allow it to connect between 30,000 and 50,000 homes during that period. The Company estimates that it will need between $40 million and $50 million to achieve positive earnings before interest, taxes, depreciation and amortization (EBITDA). These amounts include capital expenditures relating to the network construction, installation at the customers premises and home terminal devices, operating expenditures net of revenues generated during that period, working capital requirements and financial charges related to debt financing. The revised business plan is subject to a series of assumptions and uncertainties that may materially differ from reality. Please see the section on Forward-looking statements and risks factors.

COMMERCIAL ACTIVITIES

The Company began its commercial activities in June 2008 with the official launch of its ZEOP brand on the market. It proposes to the population of Reunion single and multiservice offerings that compare advantageously to those offered by competition. The first homes were connected in August 2008 in the Saint-Paul commune. As of November 27, 2008, the Company had 2,400 homes that could be connected, 1,900 of which were visited by sales representatives. As of that date, the Company provided television, internet and telephony services to over 400 customers, each subscribing to an average of 1.8 service units.

The delay experienced in the commercial launch compared to the initial forecast of April 2007 is due to several factors including delays caused by conducting a comprehensive cost/benefit analysis of the Company's technological choices, manufacturing and transportation delays for certain network components, local administrative delays related to obtaining work permits, the real estate situation in the Reunion that required a delay of almost nine months to find a location for the Company's installations, the conflict with France Telecom related to the usage of their civil engineering infrastructures, and the delays for searching mid or long-term financing.

NETWORK DEPLOYMENT STRATEGY

In order to reduce costs of deploying its network, the Company must use existing infrastructures that are owned by third parties, including the infrastructures of France Telecom. Consequently, the Company has signed several agreements, namely with social syndics, local communities and owners of electrical distribution networks (SIDELEC / Electricite de France).

On July 7, 2008, despite both civil engineering leasing conventions signed with France Telecom, the Company received a formal notice from France Telecom requiring it to terminate all new deployments and to proceed with the removal of its cables installed prior to the signature of the said conventions. France Telecom blames the Company for using its infrastructures without authorization and in a manner that could affect its network. France Telecom is also claiming for a provision payment in the amount of 500,000 Euros for future damages as well as the payment of 20,000 Euros per day commencing on the sixteenth day after the delivery of a possible order to remove the cables.

On September 10, 2008, the request by France Telecom was heard before the Tribunal mixte de commerce of Saint-Denis, in Reunion Island. The Tribunal rendered its decision on October 8, 2008 and, as expected by the Company and upon its request, declared that it did not have the required competence to hear this case since the civil engineering leasing conventions concluded with France Telecom provided for a conciliation process under the jurisdiction of the Tribunal de Commerce of Paris. Furthermore, the Tribunal mixte de commerce of Saint-Denis has condemned France Telecom to pay 15,000 Euros to the Company as discretionary expenditures for legal fees incurred. France Telecom appealed that decision before the Court of appeal of Saint-Denis. The hearing date has been set to February 16, 2009.

The Company's management believes that the claims made by France Telecom are unjustified and that they are only intended to delay the deployment of its network and to avoid the entrance of a competitor on the Reunion territory. Consequently, it has taken steps to vigorously contest them.

Following a request made by the Company, and in accordance with the conciliation procedure provided for by the civil engineering leasing conventions mentioned above, a conciliator was appointed by order of the Tribunal de Commerce of Paris on August 14, 2008 in order to attempt to resolve informally the differences related to the execution and the interpretation of the signed convention by both parties. In light of the refusal by France Telecom to conciliate, the President of the Tribunal de Commerce of Paris, by order rendered on November 13, 2008, has limited the mandate of the conciliator to a technical expertise mission in order to determine if the underground deployment of some 39 km of cables by the Company in Le Port and Possession communes were performed according to accepted engineering practices. The report of the conciliator will be released by March 15, 2009 at the latest.

At the same time, on August 28, 2008, upon a request made by the Company, the Autorite de Regulation des Communications Electroniques et des Postes (ARCEP) that regulates competition in the telecommunication industry in France, took hold of the dispute resolution process with France Telecom. It is important to note that ARCEP, which is in favour of free competition by encouraging alternative network operators to enter the market, published on July 24, 2008 a decision regarding technical and financial conditions attached to the access to the civil engineering infrastructures belonging to an operator exerting significant influence on the market. This decision ordered France Telecom to open its infrastructures to competition and to propose contractual terms which are more accessible, fair and non discriminatory to alternative network operators. A hearing is planned for December 2, 2008. The Company expects that ARCEP will render its decision by December 28, 2008 at the latest.

As a result of the dispute between the Company and France Telecom, the Company has suspended the network deployment in underground areas. The Company had in fact completed approximately 80% of the cable network build-out on some 6,000 homes in Port and Possession communes when France Telecom requested that deployment be suspended. If the dispute with France Telecom is resolved in a satisfactory manner, the Company estimates that it will be able to connect those 6,000 homes over a two month period.

Consequently, the Company has redirected its network deployment towards high density aerial sectors where it has executed agreements to use existing third party infrastructures. It has started its aerial deployments in the West sector of the Reunion Island (Saint-Paul) where, as of November 27, 2008, it had deployed its network to approximately 4,000 homes, of which approximately 60% have been connected.

Over the next twelve months, subject to resolving the conflict with France Telecom and obtaining mid or long-term financing of approximately $20 million to $30 million, the Company estimates that it will be able to connect between 30,000 and 50,000 homes.

OPERATING RESULTS AS OF SEPTEMBER 30, 2008

Having not yet started in any significant way its commercial activities, the Company was still considered as being in a start-up phase. As of September 30, 2008, the Company had connected 178 customers, who generated subscription and installation revenues totalling $14,487. Consequently, the pre-operating revenues as well as all disbursements related to planning and implementing commercial activities and network deployment have been capitalized as pre-operating costs and presented as deferred charges in the balance sheet. Certain pre-operating costs incurred during the previous quarters were reclassified in order to comply with the presentation adopted during the third quarter. The following table facilitates the identification of the disbursements that have been capitalized during the current quarter and the nine months ended September 30, 2008.

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In Canadian $                           Quarter ended September 30 2008
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                                              Capitalised
                                              as Deferred  Statement of
                                    Amount        Charges      Earnings
-----------------------------------------------------------------------
Pre-operating revenues              33,210         33,210             -
Direct costs                       521,605        521,605             -
Network expenses                  (271,462)      (271,462)            -
Salaries and fringe benefits       474,346        289,910       184,436
Directors' fees and expenses        42,316              -        42,316
Advertising and promotions            (739)          (739)            -
Rental and other services          143,576         63,893        79,682
Electricity and heating             33,365              -        33,365
Taxes and permits                   32,604              -        32,604
Maintenance and repairs             27,168              -        27,168
Office expenses                     33,145              -        33,145
Insurance                           65,690              -        65,690
Travel and representations           7,487              -         7,487
Communications                      31,097              -        31,097
Professional fees                  476,548        (21,519)      498,067
Other expenses                       1,725              -         1,725

Interest and bank charges          141,199              -       141,199
Foreign exchange loss (gain)        35,168          6,446        28,721
Loss on disposal of fixed assets    17,239              -        17,239
Depreciation of fixed assets         1,111              -         1,111
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Total                           $1,846,399       $621,345    $1,225,054
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                                   Nine months ended September 30, 2008
-----------------------------------------------------------------------
                                              Capitalised
                                              as Deferred  Statement of
                                    Amount        Charges      Earnings
-----------------------------------------------------------------------
Pre-operating revenues             (45,585)       (45,585)            -
Direct costs                       918,111        918,111             -
Network expenses                   195,718        195,718             -
Salaries and fringe benefits     1,206,476        748,002       458,475
Directors' fees and expenses       106,825              -       106,825
Advertising and promotions         216,009        216,009             -
Rental and other services          579,154        411,541       167,613
Electricity and heating             42,048              -        42,048
Taxes and permits                   68,724              -        68,724
Maintenance and repairs            107,759              -       107,759
Office expenses                    144,816              -       144,816
Insurance                          135,836              -       135,836
Travel and representations          56,375              -        56,375
Communications                      79,341              -        79,341
Professional fees                1,366,890        252,519     1,114,370
Other expenses                       2,548              -         2,548
Interest and bank charges          217,034              -       217,034
Foreign exchange loss (gain)      (338,694)        (3,657)     (335,037)
Loss on disposal of fixed assets    17,239              -        17,239
Depreciation of fixed assets         2,816              -         2,816
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Total                           $5,079,439     $2,692,658    $2,386,781
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Net Loss

For the third quarter of 2008, the Company reported a consolidated net loss of $1,203,448, or $0.05 per share, compared to $74,912 or $0 per share for the same period in 2007. For the first nine months of 2008, the Company recorded a consolidated net loss of $2,257,181 or $0.09 per share, compared to a consolidated net loss of $173,345 or $0.01 per share for the same period in 2007.

Consolidated operating results

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                             3 months ended           Nine months ended
In Canadian $                  September 30                September 30
                      2008             2007          2008          2007
-----------------------------------------------------------------------
                (unaudited)      (unaudited)   (unaudited)   (unaudited)

Operating loss   1,225,054          264,039     2,386,781       485,283
Interest income    (21,606)        (189,127)     (129,600)     (311,938)
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Net loss         1,203,448           74,912     2,257,181       173,345
Deficit,
 beginning of
 period          3,242,402        1,454,258     2,188,668     1,355,825
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Deficit, end of
 period         $4,445,850       $1,529,170    $4,445,850    $1,529,170
Net loss per
 basic and
 diluted share       $0.05            $0.00         $0.09         $0.01
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The increase in the net loss is due to the following factors:

a) An increase in the operating costs, before financial expenses and foreign exchange loss or gain, amounting to $1,055,134 and $2,504,784 respectively during the third quarter and the first nine months of 2008, compared to $263,652 and $481,886 for the same periods in 2007. These increases are attributable to an increase of the Company's activities in view of the commercial launch. The Company had approximately 100 employees and contract workers as of September 30, 2008 while it had approximately 25 employees as of September 30, 2007. During the first nine months ended September 30, 2008, Intercable ICH also recorded, as a reduction of the operating expenses, a foreign exchange gain of $335,037 related to the cash and cash equivalents held in Euros. This foreign exchange gain reflects a major appreciation of the value of the Euro against the Canadian dollar between December 31, 2007 and until such time when the cash was transferred to the subsidiary.

b) An increase in the financial expenses amounting to $141,199 and $217,034 respectively during the third quarter and the first nine months of 2008, compared to $387 and $3,397 for the same periods in 2007. The financial expenses are mainly related to the execution, during the quarter, of a bridge loan to be drawn in tranches up to 3 million Euros ($4,500,300), to the interest on the obligation under a capital lease related to the land, and to the interest paid in accordance with arrangements to defer payments with suppliers.

c) A reduction in interest income during the third quarter and the first nine months of 2008 which amounted to $21,606 and $129,600 respectively, compared to $189,127 and $311,938 for the same periods in 2007.

CASH FLOWS AND LIQUIDITY

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                               3 months ended         Nine months ended
In Canadian $                    September 30              September 30
                         2008            2007         2008         2007
-----------------------------------------------------------------------
                   (unaudited)     (unaudited)  (unaudited)  (unaudited)

Operating
 activities
Cash-flows from
 operations        (1,201,347)        (74,912)  (2,254,927)    (172,381)
Changes in
 non-cash working
 capital items        845,257          20,647    2,527,459     (175,265)
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                     (356,090)        (54,265)     272,532     (347,646)
Investing
 activities        (4,051,899)       (691,376) (14,489,279)  (1,369,899)
Financing
 activities         2,069,303               -    2,009,893   18,966,318
Effect of
 exchange rate
 changes on cash
 and cash
 equivalents          229,613        (547,383)     560,862     (592,753)
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Net change in
 cash an cash
 equivalents       (2,109,073)     (1,293,024) (11,645,993)  16,656,020
Cash and cash
 equivalents,
 beginning of
 period             3,213,468      18,482,859   12,750,389      533,815
-----------------------------------------------------------------------
Cash and cash
 equivalents, end
 of period         $1,104,395     $17,189,835   $1,104,395  $17,189,835
-----------------------------------------------------------------------

During the third quarter and the first nine months of 2008, the Company has generated cash outflows from its operations of $1,201,347 and $2,254,927 respectively, compared to $74,912 and $172,381 during the same periods in 2007. In return, the variations in the non-cash working capital items generated cash inflows of $845,257 and $2,527,459 respectively during the third quarter and the nine months of 2008, compared to cash inflows of $20,647 and cash outflows of $175,265 for the same periods in 2007. Such increase was mainly due to the significant increase in trade accounts payable, particularly after entering into a 14 month credit agreement with a major network equipment supplier.

The Company reported investing activities totalling $4,051,899 and $14,489,279 respectively during the third quarter and the first nine months of 2008, compared to $691,376 and $1,369,899 for the same periods in 2007. The investing activities include acquisitions of capital assets and increases of deferred charges, which are mainly comprised of capitalized pre-operating expenses. The increase in investing activities during the quarter is attributable to the commencement, in April 2008, of the network construction activities, comprised mainly of (i) direct labour costs and a portion of the overhead expenditures incurred during the construction; (ii) acquisitions of network materials and components; (iii) purchase of subscriber terminals such as decoders and cable modems; and (iv) acquisitions of construction vehicles and equipments required to deploy cables and optical fibre. As of September 30, 2008, the Company had deployed approximately 110 km of network reaching a potential of some 10,000 homes in Port, Possession and Saint-Paul communes.

The operating and investing activities were partially financed by a net cash inflow of $2,069,303 during the third quarter as a result of a $2,100,140 drawdown on the bridge loan, counterbalanced by the monthly repayments of the obligation under capital lease. Comparatively, cash receipts of $18,966,318 in 2007 were generated by the Company's initial public offering.

The net utilisations of cash and cash equivalents, taking into account the impact of differences in exchange rates from the conversion of the self-sustaining subsidiary s accounts, amounted to $2,109,073 and $11,645,993 respectively during the third quarter and the first nine months of 2008.

EFFECT OF THE EXCHANGE RATE

The Euro is the primary functional currency of the Company's business operations, defined as the main economic environment in which the Company generates and expends cash. Consequently, the Company is exposed to the risk related to the exchange rate fluctuations, mainly the fluctuation of the value of the Euro compared to the Canadian dollar. This risk is actually reduced by the fact that the Company pays an important part of its capital expenditures in Canadian dollars and maintains cash in Euros in order to pay Euro-denominated expenses.

All assets and liabilities of the self-sustained subsidiary, Intercable Reunion S.A.S, have been converted into Canadian dollars using the exchange rate in effect as of September 30, 2008, i.e. $1.5001 Canadian dollars for 1.00 Euro. The average exchange rate used during the first nine months of 2008 to convert into Canadian dollars the subsidiary s revenues and expenses was $1.5502 for 1.00 Euro.

Unrealized gains and losses arising from the currency translation of the self-sustaining subsidiary s accounts are not tax affected and are included in the accumulated other comprehensive income presented as a separate item of shareholders equity. During the third quarter of 2008, the Company recorded an unrealized foreign exchange loss of $1,058,363 from the translation of the net investment in the subsidiary, attributable to the depreciation of approximately 6% of the Euro against the Canadian dollar during that period. As of September 30, 2008, the cumulative balance of the unrealized foreign exchange loss stemming from the translation of the net investment in the subsidiary was $107,553, compared to an unrealized foreign exchange loss of $446,279 as of December 31, 2007. The variation is explained mainly by an appreciation of the Euro against the Canadian dollar during that period.

Adjustment and reclassification of certain items in the financial statements

In order to comply with the Company's accounting policies, certain items of the balance sheet for the fiscal year ended December 31, 2007 have been adjusted to capitalize as capital assets certain expenditures related to the network design and construction. These expenditures had been previously capitalized as deferred charges in the balance sheet. The impact of these adjustments mainly resulted in an increase of the capital assets and a reduction of the deferred charges on the balance sheet, and had no impact on the Company's cash and cash equivalents or its operating results. Furthermore, certain expenses incurred during the first and second quarters of 2008 were reclassified in order to comply with the presentation of the third quarter of 2008.

Shareholders equity

The net proceeds from the Company's initial public offering on April 4, 2007 amounted to $18,898,442 after deducting the direct expenses incurred for this financing.

At the initial public offering, the Company issued 24,850,002 warrants with an exercise price of $1.50 per share until the expiry date of April 4, 2010. The Company also granted 1,925,000 broker warrants as compensation to Desjardins Securities Inc. and Dundee Securities Corporation, acting as agents in that public offering. Each warrant enables its holder to purchase one share at the price of $1.50 until the expiry date of April 4, 2010. During the quarter ended September 30, 2008, no warrants were exercised.

As of September 30, 2008, 26,775,002 warrants were outstanding. If all warrants were exercised before their maturity on April 4, 2010, the Company could increase its equity and liquidity by $40,162,503.

The Company offers a stock option plan to its officers, directors, key employees and consultants. A total of 2,485,000 common shares were reserved under this plan. During the fiscal year ended December 31, 2007, 1,140,000 options were granted at an exercise price of $2.50. Of this number, 855,000 were granted to officers and directors and 285,000 to employees. No option was granted, exercised or cancelled during the quarter ended September 30, 2008.

The Company's shareholders have also agreed to adopt a share-based compensation plan for its officers, directors, key employees and consultants. The total number of common shares reserved under this plan cannot exceed the lesser of 1,000,000 shares or a total of 2,485,000 shares including any other outstanding security in connection with any share-based compensation plan offered by the Company.

The Company is authorized to issue an unlimited number of common shares of no par value and an unlimited number of participating, non-voting preferred shares of no par value that could be issued in series. As of September 30, 2008, 24,850,002 common shares were outstanding.

DE-TAXATION PROGRAM

On November 8, 2007, the Company filed a de-taxation request with the Direction Generale des Impots (DGI), under which the Company could expect to realize, under certain conditions, important savings with regards to the construction costs of the project. These conditions include, among others, securing long-term financing on terms acceptable by the DGI as well as the favourable outcome of the dispute opposing the Company to France Telecom. Consequently, the Company cannot currently determine with certainty that it will be able to benefit from the savings with regard to the de-taxation program. If the DGI approves the eligibility of the project, the Company estimates that the value of the potential savings could reach between $25 million and $30 million over the planned duration of the project construction.

FORWARD-LOOKING STATEMENTS AND RISK FACTORS

Occasionally, we may make certain forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario). We may make forward-looking statements in the present document, in other documents filed with Canadian regulatory authorities, in reports to shareholders as well as in a number of other communications.

These forward-looking statements include, among others, statements with respect to our objectives, goals and strategies to achieve those objectives, as well as statements with respect to our beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective" and "continue" (or the negative thereof), and words and expressions of similar terminology, are intended to identify forward-looking statements.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, which give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved.

We caution readers not to place undue reliance on these statements as a number of important factors, many of which are beyond our control, could cause our actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements.

These factors include, but are not limited to:

- Risks relating to credit, market, liquidity, financing and operations, notably our ability to conclude a mid to long-term financing;

- Our uncertain ability to access additional funds until the closing of a mid or long-term financing;

- Our uncertain ability to repay the bridge loan maturing on January 31, 2009;

- Resolution of the conflict with France Telecom regarding the utilization of their infrastructures;

- Uncertainty related to the eligibility to the de-taxation program;

- Relative strength of the Canadian, European and Reunion economies, where the Company operates;

- Fluctuations of the Canadian dollar against other currencies, and more specifically the Euro (euros);

- Effect of changes in interest rates;

- Competition in the markets serviced by the Company;

- Our ability to successfully realign our Company, our resources and our processes;

- Availability, delivery delays and cost of raw materials;

- Operational risks and risks related to access to infrastructures, as well as other factors that may influence future results including, but not limited to, bundling and launching new products and services at the appropriate time, changes to fiscal legislation, technological evolution and regulatory changes;

- Possible impact on our activities of public health emergencies, uncontrollable events such as tsunamis, volcanic eruptions, tropical storms, international conflicts and other unpredictable events;

- The extent to which we are able to predict and manage the risks inherent to the above-mentioned factors.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When reviewing our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. We do not commit ourselves into any update of any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, unless otherwise prescribed by the regulatory authorities. Any forward-looking statements made in this document are based on current expectations and information available as of November 27, 2008.

About Intercable ICH

ICH is a Canadian telecommunications company that builds and operates a very high-speed network in the Reunion Island, a French overseas department. This international broadband telecommunication business opportunity is perfectly aligned with ICH's strategy, which consists in focusing on underserved telecommunication and cable markets. To achieve its objective, ICH is implementing its own broadband network using cutting-edge technology, which it operates in order to offer television services (basic, premium and on-demand), high-speed Internet services and quality telephone services. ICH targets markets where (i) cable communication service is limited or non-existent, (ii) cables can be installed in aerial or within existing underground ducts and (iii) the political environment is stable.

This press release contains forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Intercable's prospectus dated March 23, 2007 or in the filings made by Intercable from time to time with securities regulators. Intercable undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.

The TSX Venture Exchange has not reviewed this release and therefore does not accept responsibility for its adequacy or accuracy.

Contacts: Intercable ICH Inc. Guy Laflamme President and Chief Executive Officer 450-582-7953 guylaflamme@intercable.ca Intercable ICH Inc. Serge Dupuis Chief Financial Officer 514 904-0163 sergedupuis@intercable.ca www.intercable.ca