AOL Time Warner Holds First Meeting With Investors and Analysts in New York City Today.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 31, 2001

COMPANY ANNOUNCES WIDE-RANGING ADVERTISING, COMMERCE AND MARKETING

AGREEMENTS ACROSS COMPANY BRANDS

-- Nortel and AOL Time Warner Establish Promotional and Technology Alliance

-- Cendant to Expand Advertising for Its Brands, Which Include Avis, Century
21, Jackson-Hewitt and Ramada, Across AOL Time Warner Brands

-- Compaq Computer Corporation Will Establish Multi-Year, Multi-Faceted
Technology and Marketing Alliance with AOL Time Warner

-- PurchasePro To Promote Services on AOL, CNN and Fortune Group

CNNfn TO BECOME CNN MONEY

TIME WARNER CABLE, AOL AND TIME INC. TO SUPPORT CABLE NETWORK

HBO SIGNS LONG-TERM LICENSING AGREEMENT WITH UNIVERSAL STUDIOS

COMPANY CAPTURES TECHNOLOGY SYNERGIES AT MORE THAN 35 WEB SITES

BUILDS ON MORE THAN 400 INTRA-COMPANY PROMOTIONAL ARRANGEMENTS

ALREADY IN PLACE

At its first meeting with investors and financial analysts in New York City today, AOL Time Warner senior executives will discuss the Company's year-end financial results, which were released earlier this morning, and outline financial and operational plans for the coming year. The Company's executives will also detail a series of advertising and commerce agreements, divisional business initiatives and cross-company operational initiatives to capture internal synergies. [Editor's Note: These agreements and initiatives will be announced in separate press releases immediately following this release.]

Today's announcements build on a series of financial, organizational and management initiatives undertaken since the January 11 merger to sharpen the focus of the Company's businesses and capture internal synergies and fall into three categories:

1. Advertising, commerce and marketing agreements. These wide-ranging agreements with Nortel, Cendant, Compaq and PurchasePro draw upon AOL Time Warner's ability to combine the world's strongest media brands, the deepest and broadest marketing relationships, and the unique power of the online medium itself to create an advertising and marketing force that stands apart from the rest of the industry.

2. Key divisional announcements.

-- CNNfn will become CNN Money and will have the support of AOL Time Warner's other divisions, including Time Warner Cable, AOL and Time Inc.

-- HBO has secured the rights to show films from Universal Pictures.

-- HBO has expanded distribution of its HBO Express service to EchoStar's nationwide DISH Network.

-- Time Warner Cable is expanding its Internet telephony trial to Rochester, NY.

-- AOL and Warner Music will undertake a wide-ranging initiative to promote Warner Music artists online.

3. Technology synergies and promotional arrangements. AOL Time Warner is implementing operational synergies throughout the Company, including the migration of more than 35 media Web sites to the AOL infrastructure. The Company is also benefiting from more than 400 cross-company promotional arrangements among the AOL Time Warner divisions.

AOL Time Warner Chief Executive Officer Jerry Levin said: "The agreements we are announcing today, combined with the actions we've taken since the merger three weeks ago, demonstrate that we have come out of the box with clear momentum, a concrete plan for action, and a new nimble, entrepreneurial, flexible culture. These agreements are only the very beginning of what we will accomplish this year and we will be unrelenting in our drive to create new growth opportunities across all our business units."

Co-Chief Operating Officer Robert Pittman said: "AOL Time Warner is unmatched in the value of its brands, the depth of its 130 million subscription relationships and its ability to capture marketing dollars through traditional advertising vehicles and our unique cross-company commerce and promotional arrangements. Over the past year we've demonstrated how complementary our businesses really are and today's announcements exemplify our commitment to work as a unified company with a single-minded focus on growth."

Co-Chief Operating Officer Richard Parsons said: "AOL Time Warner's valuable content franchises will be transformed through the interactive experience. The tremendous potential of our new company has already been demonstrated by the success we have had in using our online services to showcase Warner Music CDs, promote Warner Bros. movies and generate new magazine subscriptions. The steps we've taken since the creation of our new company lay the foundation for the transformation of new businesses, such as digital music and interactive TV."

1. Marketing Agreements Expand Advertising and Commerce Boundaries

AOL Time Warner's cross-company promotional and strategic marketing alliances will take full advantage of the Company's synergies and unequalled consumer reach. These agreements include:

-- Nortel Networks Corporation - establishing a wide-ranging strategic advertising and promotional alliance to promote Nortel across AOL Time Warner's online, television and print channels, including AOL's interactive brands, Time Inc. magazines and CNN programming. In addition, Nortel Networks will be extensively promoted in technology and related areas across AOL, CNNfn.com and other CNN online properties, while collaborating with AOL Time Warner to develop and market its voice services platform utilizing AOLbyPhone software and technology.

-- Cendant Corporation - expanding advertising for a number of its major consumer brands, which include Avis, Century 21, Jackson-Hewitt and Ramada, across AOL Time Warner's network of on-air, online and offline media. This agreement builds on the longtime successful online marketing and advertising relationship that Cendant has had with AOL by adding a series of campaigns across AOL Time Warner's print and television properties, which include Time Inc. magazines and CNN. In addition, Cendant's online businesses, including Netmarket and Travelers Advantage, will continue to be extensively promoted on AOL properties.

-- Compaq Computer Corporation - establishing a multi-year, multi-faceted technology and marketing alliance with AOL Time Warner that will significantly expand Compaq's advertising investment in Time Warner Cable, Turner International properties and Time Inc.'s magazines. Compaq's brand, products and services will also be featured across a variety of AOL Time Warner online properties, including the America Online brands and CNN online properties. Additionally, AOL Time Warner will purchase a broad range of Compaq's industry-leading infrastructure hardware and related professional services.

-- PurchasePro - expanding its existing relationship with America Online to encompass the promotion of PurchasePro business-to-business e-commerce solutions across a broad array of AOL Time Warner television and print brands. The agreement marks PurchasePro's first multi-million dollar offline advertising campaign, which will feature PurchasePro ads in Time Inc. and the Fortune Group titles as well as on CNN.

2. Key Divisional Announcements

CNNfn to become CNN Money

Drawing on the full resources of the AOL Time Warner brands, CNN announced that CNNfn will become CNN Money later this year. The cable channel will be dedicated to helping everyday people assess their personal financial needs and make the most of their financial opportunities.

With the evolution of CNNfn to CNN Money, the channel's programming following the close of the Market will be revitalized to focus on personal finance and small business. It will include both a television channel and Internet site that are designed to work together to enable consumers to easily understand and address all aspects of their financial lives.

CNN Money will receive additional carriage on Time Warner Cable and content and promotional support from the Time Inc. brands, including Fortune and Money. It will also receive traffic and promotional support from the AOL Personal Finance Channel.

Additional Divisional Initiatives

-- HBO signs long-term licensing agreement with Universal Studios - HBO and Universal Television & Networks Group (UT&NG) announced a long-term licensing agreement for theatrical releases from Universal, from 2003 to 2010.

-- HBO Express to be available nationwide on EchoStar's DISH Network - HBO announced that HBO Express, the network's online sign-up service, will be available nationwide through EchoStar's DISH Network. This announcement represents a significant expansion of this service, which enables new customers to use the Internet to sign up for HBO or Cinemax. HBO Express is currently available on the cable systems of AT&T in Boston and Time Warner Cable in Memphis.

-- Time Warner Cable expands Internet telephony trial - The trial of Time Warner Cable's local Internet telephone service has been expanded to Rochester, New York, based on the success of the initial test site in Portland, Maine. The service, which is called Line Runner, is being marketed to Road Runner customers, and has had an excellent acceptance rate among customers in Portland.

-- Warner Music unveils promotional pact for artists on AOL - Under the broadest cross-divisional music promotion to date, AOL will feature new releases from Warner Music artists such as Brandy, The Corrs, Jewel, matchbox twenty, Rod Stewart, Sugar Ray, and Vitamin C. The agreement builds on the enormously successful AOL promotions that launched the latest albums from Madonna and matchbox twenty, the latter of which helped drive mad season by matchbox twenty to No. 1 on Billboard's Internet sales chart and a No. 3 debut on the SoundScan Top 200.

3. Operational Initiatives: Capturing Synergies Through Shared Infrastructure and Cross-Company Promotions

To capture the potential synergies of shared infrastructure, the Web sites of more than 35 AOL Time Warner media brands are currently being moved to AOL Data Facilities, leveraging the facilities, network and professional teams that operate the world's largest, most-frequented Web properties, including AOL.com, Netscape.com, DigitalCity.com, and Mapquest.com.

The Web sites that will be hosted by the AOL infrastructure include the Time Inc. magazine sites (Time.com, People.com, EntertainmentWeekly.com, etc.) and the Warner Bros. sites. In addition, the Company is using its AOL and Netscape technologies to integrate AOL convenience applications, such as communications, calendaring and community, onto these sites.

The Company will benefit from significant cost-savings through these infrastructure synergies, while the sites will gain added functionalities and new tools such as chat and e-commerce that will greatly enhance the consumer experience. The shared infrastructure will also make it easier for AOL Time Warner's sites to cross-promote or to move audience traffic among its various properties. Since the sites will be sharing the same architecture, they will be able to scale quickly as volume increases.

The Company also announced that it is working on more than 400 commercial arrangements that are integrating AOL into the very fabric of the Company's movie, publishing, TV, cable, and music businesses. These arrangements involve carriage of the Company's content on AOL, the co-promotion and cross promotion of all AOL Time Warner business units, and shared infrastructure agreements.

Some of these arrangements have already been made public, such as the promotion of Time Inc. magazines on AOL; the distribution of AOL 6.0 disks in Time Inc. magazines; and the exclusive unveiling of last year's Sports Illustrated swimsuit edition cover on AOL, which generated a record 2.5 million hits.

Other cross-company arrangements that have not previously been disclosed include AOL's promotion in June of the Oscar De La Hoya vs. "Sugar" Shane Mosley pay-per-view boxing event, which helped make the fight HBO's second-largest revenue-generating non-heavyweight fight ever; People's "Most Beautiful People" feature package on the AOL service, which generated more than 3.5 million page views for results of a readers' poll; and the online support from AOL, Spinner and Winamp for the release of Madonna's latest CD, Music.

About AOL Time Warner

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, cable networks and filmed entertainment.

Caution Concerning Forward-Looking Statements

This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are naturally subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein due to changes in economic, business, competitive, technological and/or regulatory factors and factors affecting the integration of the businesses of Time Warner Inc. and America Online, Inc. More detailed information about those factors is set forth in filings by AOL Time Warner, Time Warner and America Online with the Securities and Exchange Commission, including AOL Time Warner's registration statement on Form S-4, Time Warner's most recent quarterly report on Form 10-Q and America Online's most recent annual report on Form 10-K. AOL Time Warner is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.