HBO Direct and Turner Home Satellite to Consolidate Operations

In an effort to increase efficiencies and strengthen their C-band retail businesses, HBO Direct and Turner Home Satellite (THS), both Time Warner-owned C-Band program packagers, will consolidate their businesses effective immediately, it was announced today by Vinton Bauer, senior vice president, HBO, and Eleanor Helms, executive vice president, Turner Home Satellite.

"It makes good business sense. Since the Time Warner/Turner merger last year, HBO Direct and Turner Home Satellite have been looking at ways to make our retail businesses more efficient," said Bauer. "We're very committed to the C-band business, and, now, instead of duplicating our efforts under the Time Warner umbrella, we'll be working together to ensure that our retail business thrives going into the future."

Mary Oldak, a vice president of direct-to-home at HBO, will continue to be responsible for the combined businesses, including HBO Direct's call center in Chicago as well as Turner Home Satellite's center in Atlanta.Helms will continue to oversee Turner's C-band and DBS wholesale business, as well as their commercial business with the NFL Sunday Ticket, TNT, CNN/SI and TBS Superstation.

"By combining resources, the business will be more cost-effective," said Helms. "This move will allow HBO Direct to look at the collective retail subscriber base and to maximize overall retail business strategies and decisions."

HBO Direct, Inc., the retail arm of HBO's direct-to-home business, offers MultiChannel HBO and Cinemax services, as well as a broad array of other programming services to C-band home satellite system owners.

Home Box Office is the premium television programming division of Time Warner Entertainment Company, L.P., providing two 24-hour premium television services, HBO and Cinemax. Together, both networks reach more than 32 million subscribers in the United States via a variety of distribution modes including cable, C-band satellite, direct broadcast satellite (DBS), microwave (MMDS) and in the lodging industry. Home Box Office's international ventures bring HBO branded services to more than 35 countries around the globe.

Other major lines of business include Time Warner Sports; HBO Home Video; HBO International; and two television production companies, HBO Downtown Productions and HBO Independent Productions. HBO also has interests in multimedia entertainment companies.

Turner Home Satellite, a division of Turner Broadcasting System, Inc., is one of the leading suppliers of programming services in the domestic direct-to-home marketplace. THS distributes eight of the Turner-owned networks -- TBS Superstation, CNN, Headline News, Turner Network Television, Cartoon Network, Turner Classic Movies (TCM), CNNfn/CNN International and CNN/SI -- as well as Turner's World Championship Wrestling (WCW) and pay-per-view events to both DBS and C-band providers. In addition, THS markets the Turner networks to commercial establishments.

Turner Broadcasting System, Inc., a subsidiary of Time Warner Inc. is a major producer of news and entertainment product around the world and the leading provider of programming for the basic cable industry.

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