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

Time Warner President and Chief Operating Officer Jeff Bewkessaid: "For the first time in AOL's history, we're offering many ofAOL's most compelling products, such as its integrated software ande-mail as well as applications for safety and security includingparental controls, to broadband users free of charge. We've listenedto our customers, and many of them want to keep using these AOLproducts 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 thenext logical step for AOL to capitalize further on the explosive risein broadband usage and online advertising. With its robust and rapidlyexpanding advertising operation, we expect to put AOL back on a growthpath."

AOL Chairman and Chief Executive Officer Jonathan Miller said:"We'll now be able to maintain and deepen our relationship with manymore members who are likely to migrate to broadband. Providing themwith their familiar AOL software and e-mail for free, over anybroadband connection, will be critical to our future success. Formembers who've left us over the past two years, we've kept your e-mailaddress. When this effort is fully operational in early September,you'll be able to come home again - for free. For those who have nevertried the AOL software, e-mail or our other products, we invite you todo so at no charge. The AOL Network has over 100 million uniquevisitors per month, and we'll work hard to engage Internet users withnew products that will be available for free on the Web."

Among the AOL products that will be available for free to anyonewith an Internet connection are: AOL's integrated software;communications features, including AOL e-mail, instant messaging, alocal phone number with unlimited incoming calls, and socialnetworking applications; and safety and security features, such asparental controls. To encourage former members to return to using theAOL software, e-mail, instant messaging and other AOL products, theywill be able to reactivate their screen names, if given up within thelast two years.

In the weeks ahead, AOL will announce a number of free newproducts in such areas as safety and security, storage, personalizede-mail domains, video and search, as well as an update of its AOLsoftware. Combined with AOL's video search, video assets, compellingcontent, blogging and other existing free applications, these newproducts will allow AOL to compete across the board for new Internetusers, both domestically and abroad.

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

AOL will continue to offer its dial-up access subscriptionservice, but will no longer aggressively market it. Members maycontinue to subscribe to AOL's unlimited premium dial-up plan with amonthly price of $25.90 (including such additional features as 50gigabytes of storage and unlimited premium customer care) or choosefrom 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, filmedentertainment, television networks and publishing.

About AOL

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

Information on AOL Business Strategy Conference Call

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

Caution Concerning Forward-Looking Statements

This document includes certain forward-looking statements withinthe meaning of the Private Securities Litigation Reform Act of 1995.These statements are based on management's current expectations orbeliefs, and are subject to uncertainty and changes in circumstances.Actual results may vary materially from those expressed or implied bythe statements herein due to changes in economic, business,competitive, technological and/or regulatory factors, and otherfactors affecting the operation of the businesses of Time Warner Inc.More detailed information about these factors may be found in filingsby Time Warner with the Securities and Exchange Commission, includingits most recent Annual Report on Form 10-K and Quarterly Report onForm 10-Q. Time Warner is under no obligation to, and expresslydisclaims any such obligation to, update or alter its forward-lookingstatements, whether as a result of new information, future events, orotherwise.