ABC, Inc. and Time Warner Cable Sign Long-term, Wide-Ranging Agreement to Carry ABC TV Stations, and Disney and ESPN Cable Networks.

Business/Entertainment Editors

BURBANK, Calif. and NEW YORK--(BUSINESS WIRE)--May 25, 2000

Time Warner Subscribers Guaranteed Programming from ABC and

Disney Cable Networks Through 2006 and Beyond

Agreement Puts End to Companies' Programming Dispute

ABC, Inc. and Time Warner Cable today entered into a long-term, wide-ranging agreement that will ensure that Time Warner Cable's customers will continue to receive the programming of ABC-owned television stations through May 2006.

With this latest agreement, Time Warner Cable has now secured long-term retransmission agreements with ABC, NBC, CBS and FOX, as well as dozens of other broadcasters throughout the country.

In addition, this agreement between ABC and Time Warner Cable provides for:

--  Seven-year carriage arrangement and conversion by January 2003 of
    The Disney Channel from a premium service to one that all of Time
    Warner Cable's expanded basic customers will receive;

--  The multi-year extension of carriage arrangements for ESPN, ESPN2,
    ESPN Classic, and ESPNEWS -- with a commitment to increase ESPN2's
    distribution to the same level as ESPN, grow ESPN Classic's reach
    to more than 9 million Time Warner subscribers, and carry ESPNEWS
    on all Time Warner Cable digital systems;

--  Launch of the new SoapNet channel on Time Warner systems with an
    eight-year carriage deal and commitment of 6 million subscribers;

--  Launch of the all-animation Toon Disney channel with a long-term
    carriage agreement; and

--  An exclusive development period for two additional cable channels.

Joseph J. Collins, Chairman and CEO of Time Warner Cable, said: "We are very pleased to have reached this long-term, wide-ranging agreement with Disney that puts an end to the companies' programming dispute. At the same time, we want to reiterate our regret that Time Warner subscribers were put into the middle of these negotiations.

"This agreement guarantees that our customers will continue to enjoy their favorite ABC shows, and Disney and ESPN cable channels for many years to come."

Robert A. Iger, President of The Walt Disney Company said: "We're very pleased to have reached an agreement that both companies find highly satisfactory and which provides outstanding long-term benefit to Time Warner's subscriber base of more than 12 million homes.

"Not only will viewers have guaranteed access to their favorite broadcast and cable networks for the next several years, they also will have the opportunity to view an array of exciting new television networks from Disney. We are very excited that millions of Time Warner subscribers will now have access to SoapNet, which offers television's most popular soap operas around the clock, and that children all over the country will be able to discover Toon Disney."

Iger added: "We are also pleased that the agreement provides a commitment of significant growth for ESPN Classic, and ensures that ESPN2 will enjoy the same broad distribution as ESPN."

About ABC, Inc:

ABC, Inc. is the division of The Walt Disney Company (NYSE:DIS) which encompasses all broadcasting and cable-related operations. These include the ABC Television Network; ABC Entertainment, News and Sports programming; the Broadcasting division, which comprises 10 television stations, 44 radio stations and ABC Radio Networks; the Disney and ABC cable properties and joint ventures; and Disney's Buena Vista Television domestic syndication and pay television operations.

About Time Warner Cable:

Time Warner Cable owns and manages the world's most advanced, best-clustered cable television operations, with 90 percent of its 12.7 million customers in systems of 100,000 subscribers or more. It is a division of Time Warner Entertainment.