Time Warner Inc. Updates 2007 Full-Year Business Outlook.

NEW YORK -- Time Warner Inc. (NYSE:TWX) today updated its 2007 full-year business outlook.

Time Warner continues to expect its 2007 full-year growth rate in Adjusted Operating Income before Depreciation and Amortization to be in the mid-to-high teens, off a base of $11.0 billion in 2006, which reflects the recasting of the financial results for discontinued operations1.

In addition, the Company reaffirmed its expectation that it will convert between 30% to 40% of its 2007 Adjusted Operating Income before Depreciation and Amortization into Free Cash Flow.

Time Warner now expects 2007 full-year earnings per diluted share before discontinued operations and cumulative effect of accounting change of approximately $1.05. This includes approximately $0.10 per diluted share related to after-tax gains on sales of assets and investments (primarily the sale of AOL's Internet access business in Germany, the distribution of assets to the partners of Texas and Kansas City Cable Partners, L.P. and the April sale of the Company's investment in Bookspan), offset in part by first quarter expenses related to securities litigation and government investigations. In addition, this expectation assumes the Company will complete its $20 billion stock repurchase program by the end of this year's second quarter.

The outlook above does not include the impact of any future merger or unidentified restructuring charges; sales and acquisitions of operating assets and investments; or the related tax impacts, other than the sales of assets and investments described above that may occur from time to time due to management decisions and changing business circumstances. The outlook above also does not include the impact of any noncash impairments of goodwill, intangible and fixed assets; amounts related to securities litigation and government investigations other than as described above; or the related tax impacts. The Company is currently unable to forecast precisely the timing and/or magnitude of any such amounts or events.

1 The Parenting Group, most of the Time4 Media magazine titles, The Progressive Farmer magazine, Leisure Arts, Inc., the Atlanta Braves franchise and certain non-core AOL wireless businesses are reflected as discontinued operations in both 2006 and 2007; thus, the actual and expected results from these businesses are excluded from the business outlook.

Use of Operating Income before Depreciation and Amortization, Adjusted Operating Income before Depreciation and Amortization and Free Cash Flow

The Company utilizes Operating Income before Depreciation and Amortization, among other measures, to evaluate the performance of its businesses. The Company also evaluates the performance of its businesses using Operating Income before Depreciation and Amortization excluding the impact of noncash impairments of goodwill, intangible and fixed assets, as well as gains and losses on asset sales, and amounts related to securities litigation and government investigations (referred to herein as Adjusted Operating Income before Depreciation and Amortization). Both Operating Income before Depreciation and Amortization and Adjusted Operating Income before Depreciation and Amortization are considered important indicators of the operational strength of the Company's businesses. Operating Income before Depreciation and Amortization eliminates the uneven effect across all business segments of considerable amounts of noncash depreciation of tangible assets and amortization of certain intangible assets that were recognized in business combinations. A limitation of this measure, however, is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company's businesses. Moreover, Adjusted Operating Income before Depreciation and Amortization does not reflect gains and losses on asset sales or amounts related to securities litigation and government investigations or any impairment charge related to goodwill, intangible assets and fixed assets. Management evaluates the investments in such tangible and intangible assets through other financial measures, such as capital expenditure budgets, investment spending levels and return on capital.

Free Cash Flow is Cash Provided by Operations (as defined by U.S. generally accepted accounting principles) plus payments related to securities litigation and government investigations (net of any insurance recoveries) and excess tax benefits from the exercise of stock options, less cash flow attributable to discontinued operations, capital expenditures and product development costs, principal payments on capital leases and partnership distributions, if any. The Company uses Free Cash Flow to evaluate its businesses and this measure is considered an important indicator of the Company's liquidity, including its ability to reduce net debt, make strategic investments, pay dividends to common shareholders and repurchase stock. A limitation of this measure, however, is that it does not reflect payments made in connection with the securities litigation and government investigations, which reduce liquidity.

Operating Income before Depreciation and Amortization, Adjusted Operating Income before Depreciation and Amortization and Free Cash Flow should be considered in addition to, not as a substitute for, the Company's Operating Income, Net Income and various cash flow measures (e.g., Cash Provided by Operations), as well as other measures of financial performance and liquidity reported in accordance with U.S. generally accepted accounting principles.

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.

Information on Earnings Release and Conference Call

In a separate release issued today, Time Warner Inc. reported the financial results for its first quarter ended March 31, 2007.

The Company's conference call can be heard live at 10:30 am ET on Wednesday, May 2, 2007. To listen to the call, visit www.timewarner.com/investors or AOL Keyword: IR.

Information on Time Warner Cable's Press Releases and Conference Call

Time Warner Cable Inc. issued separate releases today regarding its financial results for the first quarter ended March 31, 2007 as well as its 2007 full-year business outlook.

Time Warner Cable's conference call can be heard live at 8:30 am ET on Wednesday, May 2, 2007. To listen to the call, visit www.timewarnercable.com/investors or AOL Keyword: TWC 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, strategic and/or regulatory factors, sales of business assets, and the potential impact of future decisions by management that may result in merger and restructuring charges, as well as the potential impact of any future impairment charges to goodwill or other intangible assets. More detailed information about these factors may be found in filings by Time Warner Inc. with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and its 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.

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