America Online and Time Warner Cable Join Forces to Provide Customized Broadband Offering

STAMFORD, Conn. & DULLES, Va.--(BUSINESS WIRE)--Jan. 31, 2005--Time Warner Inc. (NYSE:TWX):

-- New Offering Combines Special Edition of AOL(R) Service with Road Runner High-Speed Connectivity

-- Companies to Market New Offering to Existing AOL Dial-Up and Road Runner Subscribers and Prospects across Time Warner Cable's Footprint

-- America Online to Expand Audience for Online Advertising, Search, Commerce and Premium Services

Time Warner Cable and America Online, both subsidiaries of Time Warner Inc. (NYSE:TWX), today announced a new strategic agreement to develop and market a customized broadband offering with attractive pricing for their current AOL and Road Runner subscribers as well as prospects across the Time Warner Cable footprint. As part of this relationship, America Online will manage the advertising and search opportunities for both the new offering and the Road Runner portal.

Don Logan, Chairman of Time Warner's Media & Communications Group, said: "This new agreement aligns the strategies of America Online and Time Warner Cable in the fast-expanding broadband sector, and it will enable each business to focus on its key areas of growth. Time Warner Cable should accelerate its acquisition of high-speed data subscribers, while AOL should enhance the lifetime value of its member base and maximize its revenues from online advertising, search, commerce and premium services."

Jonathan F. Miller, America Online's Chairman and Chief Executive Officer, said: "By working closely with Time Warner Cable, we're making it easier for our customers to enjoy the best of the AOL service's premium content and features designed for broadband with a top-quality, high-speed connectivity service at an affordable price. This agreement provides another way for America Online to extend the subscriber lifetime of AOL dial-up members who want to move to broadband. This partnership will also make it easier to reach a new pool of broadband consumers and monetize an even bigger broadband audience through advertising, search, commerce and select premium services."

Glenn Britt, Chairman and Chief Executive Officer of Time Warner Cable, said: "Growing our high-speed data business is a top strategic priority for Time Warner Cable. We are very pleased to have reached an agreement that gives both Time Warner Cable and America Online opportunities to capitalize on the migration of AOL dial-up members to broadband. This partnership will also improve the Road Runner experience by offering access to AOL's compelling broadband content, features and functionality."

Under the agreement, the new broadband offering will consist of a special edition of the AOL client with its popular content and features optimized for broadband that is combined with Road Runner's high-speed connectivity and its content. This new offering will provide unlimited broadband access as well as 10 hours of dial-up connectivity monthly. Once installed by Time Warner Cable, the new offering's client will be available on the computer desktop and the AOL.com portal will be set as the default home page.

America Online will also manage and sell advertising and search inventory for both the new offering and Road Runner.com. In addition, AOL will be able to provide commerce opportunities and premium services to the subscribers of the new offering and Road Runner.

America Online and Time Warner Cable will work together to migrate existing AOL and Road Runner subscribers and prospects to the new offering as their lead broadband offer. America Online will market to its current narrowband members, while Time Warner Cable will target Road Runner subscribers. The two will coordinate their marketing efforts to sign up prospects. The new offering is expected to roll out across Time Warner Cable's footprint over the next several months.

Pricing will vary according to connectivity speed, and a number of price points will be tested in the initial rollout market; however, pricing will be set with the goal of driving share while maximizing profitability.

Time Warner Cable will manage the subscription billing and customer care for its services and provide a share of the subscriber revenues to America Online. For its part, America Online will provide a share of its advertising, search, commerce and select premium services revenues to Time Warner Cable.

The Road Runner service will continue to be available on a stand-alone basis to subscribers who elect not to take the new offering. To enhance the Road Runner subscriber experience, America Online will provide programming and functionality (on both a branded and white-label basis) - such as broadband content and enhanced communications features. Time Warner Cable customers who currently receive broadband service from an ISP provider other than Road Runner or AOL will not have their service affected.

About America Online, Inc.

America Online, Inc. is a wholly owned subsidiary of Time Warner Inc. Based in Dulles, Virginia, America Online is the world's leader in interactive services, Web brands, Internet technologies and e-commerce services.

About Time Warner Cable

Time Warner Cable owns and manages cable systems serving 10.9 million subscribers in 27 states, which include some of the most technologically advanced, best-clustered cable systems in the country with more than 75% of the Company's customers in systems of 300,000 subscribers or more. Utilizing a fully upgraded advanced cable network and a steadfast commitment to providing consumers with choice, value, and world-class customer service, Time Warner Cable is an industry leader in delivering advanced products and services such as video on demand, high-definition television, high-speed data, wireless home networking, digital video recorders and residential telephone service. Time Warner Cable is a subsidiary of Time Warner Inc.

About Road Runner

Road Runner, owned and operated by Time Warner Cable, is one of the nation's premier broadband service providers. Road Runner, offered since 1996, has received numerous customer service awards. It offers broadband Internet connection at up to twice as fast as the standard DSL package and 100 times faster than dial-up service.

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.

Time Warner Cable and America Online will host a conference call at 10:15 am ET on Monday, January 31, 2005. Conference call dial-in numbers are below:

In the United States: 888-414-8935
Outside the U.S.: [phone]
Passcode: AOLTWC

Replay Conference Call (available one hour after conclusion of live 
 call)
In the United States: 800-947-6515
Outside the U.S.: [phone]
No password code is required for either of the replay numbers