Time Warner Announces That AOL Will Offer Its Software, E-mail and Many Other Products for Free to Broadband Users; Will Enhance Growth of AOL's Advertising Business.

NEW YORK -- Time Warner Inc. (NYSE:TWX) today announced that AOL's software and e-mail as well as various other products will be made available for free to broadband users in a move to enhance the growth of its online advertising business.

Time Warner President and Chief Operating Officer Jeff Bewkes said: "For the first time in AOL's history, we're offering many of AOL's most compelling products, such as its integrated software and e-mail as well as applications for safety and security including parental controls, to broadband users free of charge. We've listened to our customers, and many of them want to keep using these AOL products when they migrate to broadband - but not pay extra for them. So now we can tell them: 'You've Got Mail - for Free.' This is the next logical step for AOL to capitalize further on the explosive rise in broadband usage and online advertising. With its robust and rapidly expanding advertising operation, we expect to put AOL back on a growth path."

AOL Chairman and Chief Executive Officer Jonathan Miller said: "We'll now be able to maintain and deepen our relationship with many more members who are likely to migrate to broadband. Providing them with their familiar AOL software and e-mail for free, over any broadband connection, will be critical to our future success. For members who've left us over the past two years, we've kept your e-mail address. When this effort is fully operational in early September, you'll be able to come home again - for free. For those who have never tried the AOL software, e-mail or our other products, we invite you to do so at no charge. The AOL Network has over 100 million unique visitors per month, and we'll work hard to engage Internet users with new products that will be available for free on the Web."

Among the AOL products that will be available for free to anyone with an Internet connection are: AOL's integrated software; communications features, including AOL e-mail, instant messaging, a local phone number with unlimited incoming calls, and social networking applications; and safety and security features, such as parental controls. To encourage former members to return to using the AOL software, e-mail, instant messaging and other AOL products, they will be able to reactivate their screen names, if given up within the last two years.

In the weeks ahead, AOL will announce a number of free new products in such areas as safety and security, storage, personalized e-mail domains, video and search, as well as an update of its AOL software. Combined with AOL's video search, video assets, compelling content, blogging and other existing free applications, these new products will allow AOL to compete across the board for new Internet users, both domestically and abroad.

Through growing AOL's already substantial audience - as well as its advertising inventory - AOL will continue to build its extensive advertising capabilities. The AOL Network has the second-largest domestic online audience and is now the third-largest online advertising network in the U.S. In the second quarter, AOL's advertising revenue grew 40% year over year.

AOL will continue to offer its dial-up access subscription service, but will no longer aggressively market it. Members may continue to subscribe to AOL's unlimited premium dial-up plan with a monthly price of $25.90 (including such additional features as 50 gigabytes of storage and unlimited premium customer care) or choose from two lower-cost access plans.

About Time Warner Inc.

Time Warner Inc. is a leading media and entertainment company, whose businesses include interactive services, cable systems, filmed entertainment, television networks and publishing.

About AOL

AOL and its subsidiaries operate a leading network of Web brands and the largest Internet access subscription service in the United States. Web brands include the AOL.com(R) website, AIM(R), MapQuest(R) and Netscape(R). AOL offers a range of digital services in the areas of education, safety and security, communications and music. The company also has operations in Europe and Canada. AOL LLC is a majority-owned subsidiary of Time Warner Inc. (NYSE:TWX) and is based in Dulles, Virginia.

Information on AOL Business Strategy Conference Call

Time Warner's conference call regarding AOL's business strategy can be heard live at 11 am ET on Wednesday, August 2, 2006. To listen to the call, visit www.timewarner.com/investors or AOL Keyword: IR.

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 or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, and other factors affecting the operation of the businesses of Time Warner Inc. More detailed information about these factors may be found in filings by Time Warner with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. 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.