AOL Time Warner Forms Opportunity Investment Fund; Fund to Invest in Companies Owned or Managed By Minorities and Women.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 28, 2001

Rachel S. Lam Named Fund's Managing Director

AOL Time Warner Inc. (NYSE: AOL) announced today the formation of the AOL Time Warner Opportunity Investment Fund, a new initiative that will invest approximately $100 million over a three-year period in companies owned or managed by minorities and women. The Fund will invest in businesses that have significant diversity in their senior management, that target under-served markets, and whose operations have a strategic fit with AOL Time Warner's businesses.

AOL Time Warner also announced the appointment of Rachel S. Lam as vice president of the Company's AOL Time Warner Investments unit and managing director of the AOL Time Warner Opportunity Investment Fund.

In making the announcement, AOL Time Warner's Chief Executive Officer Gerald M. Levin said: "The Opportunity Fund is part of our Company's ongoing effort to grow our businesses by engaging every facet of the markets we serve. The Fund creates an exciting business opportunity for us to invest in companies in diverse and emerging sectors that also have a strong connection to our Company's businesses. By selectively and strategically investing in promising businesses owned or managed by minorities and women, we are helping make our Company as well as our communities stronger, fairer and more competitive. It's a fundamental part of both our business strategy and our commitment to opening the opportunities of our digital society to everyone."

Dolf DiBiasio, AOL Time Warner's executive vice president, strategy and investments, said: "A goal of the Opportunity Fund is to enhance the growth opportunities of companies with diverse management teams through a combination of investment capital and strategic partnerships with AOL Time Warner's businesses. The businesses we invest in must meet our return-on-investment criteria, have solid long-range operating plans and demonstrate their capacity to become profitable in today's highly competitive markets. With these guidelines, we'll be able to capitalize on exciting new business opportunities and at the same time empower minority and women entrepreneurs."

Mr. DiBiasio added: "We're delighted that Rachel Lam will be returning to our Company to manage the Opportunity Fund. She is a highly talented executive with an extensive background in private equity investment as well as the media and communications industries. She also knows our Company and our businesses quite well, having worked at Time Warner on strategic initiatives and corporate transactions. She is the perfect choice to help us achieve the Fund's objectives."

Reporting to Mr. DiBiasio, Ms. Lam, 33, will spearhead the Fund's formation and investing activities. She will work closely with each of AOL Time Warner's businesses in sourcing and evaluating investment opportunities.

The Fund's formation is expected to be completed by July 2001 and will be managed by a team of experienced investment professionals, headed by Ms. Lam. The Fund's investments are expected to range from $2 million to $10 million, but both larger and smaller investments will be considered.

Before joining AOL Time Warner, Ms. Lam was a principal at Quetzal/Chase Capital Partners, where she was part of a team responsible for managing a private equity fund focused on investing in communications companies with significant diversity within their management. Previously, Ms. Lam was vice president, U.S. private equity at Credit Suisse First Boston Equity Partners, where she was a member of the management team of a private equity fund. Prior to that, she was director, office of the president at Time Warner Inc.

Ms. Lam received a B.S. degree in industrial engineering and operations research from the University of California at Berkeley and an M.B.A. degree from the Harvard Graduate School of Business Administration.

AOL Time Warner (NYSE:AOL) is the world's first Internet-powered media and communications company, whose industry-leading businesses include interactive services, cable systems, publishing, music, networks and filmed entertainment.