Time Warner to Restate Earnings

NEW YORK, August 18: Time Warner has announced that it will
restate its earnings for the years ended 2000 through 2005, and the six months
ended June 30, 2006, based on the findings of an independent examiner assigned
to look through AOL transactions following the settlement last year with the Securities and Exchange
Commission (SEC).

Under the terms of its SEC settlement, the company is
required to restate any transactions that the independent examiner determined
were accounted for improperly.

The net effect of restating these transactions is that the
company’s net income will be reduced by approximately $1 million in 2000 and
approximately $161 million in 2001 and will be increased by approximately $62
million in 2002, $18 million in 2003, $30 million in 2004, $16 million in 2005,
and $15 million for the first six months of 2006.