AOL And AOL Time Warner's Leading Media Companies Combine to Deliver Unique Content Offerings To AOL Members.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 3, 2002

AOL Time Warner Inc. (NYSE:AOL)

AOL Service to Offer Select Time Inc. Content at No Extra Charge;

CNN's Pay Video News Services to Become AOL Member Benefit

AOL Members to be First to See and Hear Special Content from

Warner Music Group, New Line, Warner Bros. Pictures & Television,

and HBO 

AOL Time Warner Inc. (NYSE:AOL) today announced that AOL and AOL Time Warner's leading media companies are collaborating to deliver unique content offerings to AOL members -- enhancing the value of the AOL service and enriching the content with AOL's hallmark communications, community and commerce features.

Time Inc. editors will work with AOL to integrate content from its People, Entertainment Weekly, InStyle, Parenting, Teen People, Time for Kids, Real Simple, Sunset, Coastal Living, Cooking Light, Health, Southern Accents, Southern Living and other magazines through AOL's areas for entertainment, families, women, teens and kids at no additional cost to AOL members. AOL also will extensively promote the Time Inc. content across the service. Access to this select content will be restricted on the Internet, and the magazines individually may decide to offer their content online for a fee.

AOL members will receive access to CNN's pay video news services on AOL Broadband whenever they want it as a member benefit. CNN video news is now available for a $4.95 monthly fee on the Internet. In addition, CNN and AOL will work together to offer exclusive online/on-air tie-ins and programs, and to integrate CNN content into AOL's alert service.

Don Logan, Chairman of the Media & Communications Group, said: "This is a great example of how our individual businesses can benefit from being part of AOL Time Warner. Making this compelling content available on the AOL service is yet another new benefit for our members - delivering the best content to them first at no extra cost. Our media companies now will have more and better opportunities to create value with their online offerings, promote their products and leverage AOL's communications, community and commerce features. Today's announcement is just the first step to putting even more AOL Time Warner content on the AOL service and to working with outside providers to showcase their content to AOL members."

Through Warner Music Group and AOL Music -- the premier destination for music online -- AOL members will continue to see certain videos before they air on any other media outlets through First View, hear select songs before they air on radio through First Listen, experience exclusive interviews and live performances at Sessions@AOL, and download ring tones from popular songs for their wireless phones. Also, Warner Music Group and AOL are collaborating on selling digital downloads and offering MusicNet, the most widely distributed digital music service for streaming, downloading and burning music online.

Warner Bros. Pictures and New Line Cinema will work even more closely with AOL to make the service the premier video entertainment destination online. Together, they already have been showcasing Only on AOL stills, clips, trailers, celebrity interviews and other programming about both new films and home video/DVD releases through First Look and Inside the DVD. In addition, they are offering opportunities to purchase related merchandise.

Next year, AOL and Warner Bros. Pictures already have targeted new film releases, including Matrix Reloaded, Matrix Revolutions, T-3, Looney Tunes - Back in Action and The Last Samurai for tie-ins and special access initiatives. From New Line, AOL will feature content from such 2003 films as The Lord of the Rings: The Return of the King, Dumb and Dumberer: When Harry Met Lloyd, Elf, Secondhand Lions and How to Deal.

On the television front, AOL and HBO will jointly develop original online experiences for AOL members. This programming will include original content for AOL, as well as sharing new and existing HBO content, threaded through the service. The first initiative is expected to involve HBO Comedy. AOL also will work with Warner Bros. Television and Telepictures Productions to build new programming models and companion programming experiences for AOL members - including such shows as Smallville and The Bachelor franchise.

The Company said that AOL will continue to seek and actively promote online content from outside partners on its service.

About AOL Time Warner Inc.

AOL Time Warner Inc. is the world's leading media and entertainment company, whose businesses include interactive services, cable systems, filmed entertainment, television networks, music and publishing.