Time Warner to Refinance 10-1/4% Series M Exchangeable Preferred Stock with Lower Cost Debt

Time Warner Inc. announced today that it will redeem its outstanding shares of 10-1/4% Series M Exchangeable Preferred Stock on December 30, 1998, at a price equal to 110% of the liquidation preference, plus accumulated and accrued and unpaid dividends, and replace it with lower cost debt.

Time Warner said the redemption was brought about by the restructuring of Time Warner Telecom, its local business telephone operation, as part of a plan to make Time Warner Telecom a stand-alone, self-funding entity. The Time Warner Telecom restructuring constitutes a "reorganization of TWE" (Time Warner Entertainment) under the terms of the Series M Preferred stock and, as such, requires Time Warner either to exchange the Series M for shares of a new preferred stock or redeem the Series M.

As required by the terms of the Series M Preferred, Moody's Investors Service and Standard & Poor's have confirmed that there will be no impact on the company's current credit ratings or ratings outlook as a result of the refinancing.

The Chase Manhattan Bank, the transfer agent and registrar for the Series M, will act as paying agent.

Time Warner Inc. (NYSE: TWX), the world's leading media company, consists of four businesses: cable networks, publishing, entertainment and cable.

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