``The Matrix'' DVD Ships 1.5 Million, the Most Successful Title in Format's History; First Week Consumer Sales of ``The Matrix'' DVD Also Sets New Record.

BURBANK, Calif.--(ENTERTAINMENT WIRE)--Sept. 30, 1999--

DVD Format Blows Away CD and VHS Shipment Milestones; Reaches One

Million Mark Twice as Fast as CD And Five Times Faster Than VHS

Warner Home Video (WHV), a unit of Warner Bros., a Time Warner Entertainment Company (NYSE:TWX), today announced North American shipments of 1.5 million DVDs of "The Matrix," generating $23.4 million in revenues and establishing yet another benchmark in DVD's breakthrough market acceptance.

Setting another industry record, "The Matrix," released on DVD Sept. 21, generated sales to consumers of approximately 780,000 or 52 percent of shipments, making it the most successful DVD in first week sales. According to VideoScan, first week consumer sales of "The Matrix" DVD were three times greater than the next highest-selling title to date.

"DVD has not only revolutionized home entertainment, it's changed the threshold for success in the market," said Warren Lieberfarb, president, Warner Home Video. "`The Matrix' is the perfect example of DVD's market potential."

It took just two years from DVD's national launch in August of 1997 for the format to ship one million units of a single title. That compares to four years for compact discs and 11 years for VHS. -0-

             First Title in Format to Ship 1 Million Units

FORMAT   HARDWARE   FIRST MILLION-    ELAPSED   INSTALLED     % OF
         LAUNCH     SHIPPING TITLE     TIME      PLAYER     INSTALLED
                                                  BASE        BASE

DVD      1997 (Aug.)   Titanic        2 years   2.6 MM(d)     39%
AUDIO-   1983(a)      "Faith"/George  4 years   4.2 MM(a)     24%
CD                     Michael(b)
VHS      1976(a)       Top Gun(c)    11 years    41 MM(a)    2.4%

(a) Source: Kagan
(b) Source: Sony
(c) Source: Video Business
(d) Source: DVD Video Group

Since its launch in 1997, DVD players have outsold the VCR by 13 to one and the CD player by four to one. More than 60 million discs have been shipped and nearly 2.6 million DVD players are currently in U.S. homes. More than 4,000 DVD titles are now available from every major studio for sale or rent at traditional retail outlets and through online services.