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TIME WARNER, VIACOM ANNOUNCE SETTLEMENT

 TIME WARNER, VIACOM ANNOUNCE SETTLEMENT
 NEW YORK, Aug. 20 /PRNewswire/ -- Viacom International Inc. and Time


Warner Inc. (NYSE: TWX) today announced they have reached a settlement of all disputes arising from the antitrust lawsuit filed in May 1989 by Viacom and its Showtime Networks Inc. unit against Time Inc. (now Time Warner Inc.), Home Box Office, Inc. (HBO), American Television and Communications Corporation (ATC) and Manhattan Cable Television (MCTV).
 "Viacom is very pleased that this litigation has been concluded. This settlement will lead to better working relationships with Time Warner and will enhance the prospects for Viacom's future growth," said Frank J. Biondi Jr., president and chief executive officer, Viacom International Inc.
 "We're glad to conclude this and move on with some more constructive activities between the two companies," said Gerald M. Levin, president and co-chief executive officer of Time Warner Inc.
 The settlement will provide material financial, as well as strategic, benefits to Viacom. The settlement will not have a material effect on Time Warner. There is no admission of liability on the part of Time Warner and its subsidiaries to the claims made by Viacom, nor is there any admission of liability by Viacom to Time Warner's counterclaims.
 At the time of the settlement, Viacom and Time Warner entered into a series of agreements, which include the following:
 -- an amended affiliation agreement for wider distribution of Showtime and The Movie Channel on Time Warner's cable systems;
 -- an agreement for joint "multipremium" marketing campaigns by Showtime and HBO;
 -- an increase in advertising purchases by Time Warner companies on Viacom's MTV Networks over the next five years. MTV Networks comprises the basic cable channels MTV: Music Television, VH1/Video Hits One and Nickelodeon/Nick at Nite;
 -- the purchase of Viacom's Milwaukee cable system by Time Warner. The purchase is expected to be completed in early 1993;
 -- a license between MTV Networks and the Warner Music Group for the exhibition of music videos on MTV and VH1;
 -- an extension of the affiliation agreement between MTV Networks and Time Warner Cable systems;
 -- an amended affiliation agreement between HBO and Viacom cable systems providing enhanced sales incentives for Viacom;
 -- a cash payment to Viacom from Time Warner.
 Viacom International Inc., a diversified communications and entertainment company with headquarters in New York, is a wholly owned subsidiary of Viacom Inc. (AMEX: VIA, VIAB). National Amusements, Inc., a closely held corporation, owns approximately 75.6 percent of Viacom Inc.'s Class A and Class B Common Stock, on a combined basis. National Amusements, Inc., owns and operates approximately 725 movie screens in the United States and the United Kingdom.
 Time Warner Inc. is the world's leading media and entertainment company, with interests in magazine and book publishing, recorded music and music publishing, filmed entertainment, cable television and cable television programming.
 -0- 8/20/92
 /CONTACT: Raymond A. Boyce, 212-258-6530, or Hilary E. Condit, 212-258-6346, both of Viacom; Jim Noonan of HBO, 212-512-1158; or Edward Adler of Time Warner, 212-484-6630/
 (TWX VIA) CO: Time Warner Inc.; Viacom International Inc. ST: New York IN: ENT SU:


DC -- NY071 -- 1863 08/20/92 16:12 EDT
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Aug 20, 1992
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