Litigation Release No. 19763 / July 17, 2006

Securities and Exchange Commission v. Time Warner Inc., Civil Action No. 1-05CV00578 (GK) (D.D.C. March 21, 2005)

The Commission's Plan to Distribute $300 Million to Injured AOL and AOL Time Warner Investors is Approved by the Court

Injured Investors Should Review Instructions in the Attached Notice to Possible SEC Fair Fund Claimants to Determine Eligibility to Participate; Questions Should be Directed to Gilardi & Co. LLC, the Claims Administrator

The Securities and Exchange Commission today announced that the Honorable Gladys Kessler, United States District Court Judge for the District of Columbia, has approved the Commission's plan to distribute to injured investors $300 million paid by Time Warner Inc. (formerly known as AOL Time Warner) in connection with its settlement of the Commission's accounting fraud suit against it (the "SEC Fair Fund"). In that suit, the Commission charged Time Warner with materially overstating online advertising revenue and the number of its Internet subscribers, with aiding and abetting three other securities frauds and with violating a Commission cease-and-desist order. See Litigation Release No. 19147 dated March 21, 2005.

The Commission's distribution plan substantially adopts and uses the court-approved plan of allocation in the class action settlement of a similar case in In re AOL Time Warner, Inc. Securities and "ERISA" Litigation, Case No. 02 Civ. 5575 (SKW) (S.D.N.Y.). The claims administrator is Gilardi & Co. LLC. More information about Gilardi and the SEC Fair Fund distribution is in the attached Notice to Possible SEC Fair Fund Claimants and on the class action settlement website at www.aoltimewarnersettlement.com. Gilardi can be reached at: Gilardi & Co. LLC, P.O. Box 808061, Petaluma, CA 94975-8061, 1-877-800-7852.

Under the Commission's plan, injured investors who purchased, exchanged or otherwise acquired publicly traded common stock of America Online, Inc. ("AOL") and/or purchased or sold options on AOL common stock from September 22, 2000 through and including January 11, 2001, and/or purchased, exchanged or otherwise acquired publicly traded common stock or bonds of Time Warner and/or purchased or sold options on Time Warner common stock from January 11, 2001 through and including August 27, 2002, may be eligible to share in the SEC Fair Fund. Moreover, injured investors who traded within the relevant time period and who chose not to participate in the class action may still be entitled to recover from the SEC Fair Fund.

No part of the SEC Fair Fund will go to pay fees and expenses of class action counsel.

The SEC Fair Fund will be distributed on the same timetable as the class action settlement. Instructions on eligibility to participate in the distribution of the SEC Fair Fund are contained in the attached Notice to Possible SEC Fair Fund Claimants.

Notice in this matter