| Time Warner Inc. One Time Warner Center New York,
NY 10019 Dear Colleague: For several years, as part of our company’s
regular processes to protect our computerized data, Time Warner has used a leading
data storage firm to ship and store our computer back-up tapes offsite. I am writing
to let you know that this outside firm recently lost a container of these back-up
tapes during transport to one of its storage facilities. The missing tapes
contained company data including names and U.S. Social Security numbers of: current
and former U.S.-based employees of Time Warner and its current and former affiliates
(and U.S. citizens working for the company abroad); some of their dependents and
beneficiaries; and certain other individuals who have provided services to the
company. With respect to non-U.S. citizens who work for Time Warner outside
the U.S., there was no information comparable to a Social Security number on the
missing tapes. Accordingly, we are providing this letter to non-U.S. employees
as a courtesy, but do not believe that there is a need for them to consider options
like those presented below. The U.S. Secret Service is involved in an active
investigation of this matter, working closely with Time Warner and the outside
data storage firm. We have now determined that public disclosure of this matter
will not interfere with the investigation. To date, the investigation has not
found any evidence that the tapes or their contents have been accessed or misused.
In addition, the information on the tapes is in a form that is not easily accessed.
Time Warner takes the security of our employees’ personal information
very seriously and we deeply regret that this incident occurred. We are aggressively
investigating this situation and are committed to staying in touch with you as
the investigation unfolds. In addition, we have taken the following steps:
 | First,
we have posted a copy of this letter, a press release, Q&A and other information
on our company’s internal and external (www.timewarner.com/employeedatatapes)
websites, and we will post updates, as appropriate, on those sites. |
 | Second,
in the U.S. we have set up a special toll-free number (800-435-2285) to assist
you with questions or concerns you may have relating to this incident. Outside
the U.S., the number is 402-516-5014. |  | Third,
we have contacted the major credit agencies – Equifax, Experian and Trans
Union – to let them know about this incident. While we have no evidence
that information on the tapes has been compromised, given that the investigation
is ongoing, you may want to take the precaution of placing a fraud alert on your
credit file. The law allows you to place an initial fraud alert on your credit
file free of charge for 90 days. This notification alerts creditors to use additional
steps to verify your identity prior to granting credit in your name. To
place a fraud alert on your Equifax credit file, please call the toll-free number
at Equifax at 877-559-6020. Once the fraud alert has been placed with Equifax,
a notification will be sent on your behalf to Experian and Trans Union, who will
add the alert to their files or contact you to obtain additional information.
Alternatively, you may choose to contact Experian and Trans Union directly
to place a fraud alert on your credit file at those companies. They can be reached
at: Experian 888-397-3742 Trans Union 800-680-7289 |
 | Fourth,
in addition to the above services, Time Warner has made arrangements with Equifax
to offer to U.S. employees – at no cost to you – the Equifax Credit
Watch™ Gold with 3-in-1 Monitoring service that will help protect your identity
and credit information for 12 months. This service includes:
 | Daily
alert notifications of key changes in your credit reports at Equifax, Experian
and Trans Union. If no changes occur during the month, you’ll receive a
“No News is Good News" notification. |  | Unlimited
access to your Equifax Credit Report™ and one 3-in-1 Credit Report. |
 | $20,000
in identity theft insurance with no deductible (subject to limitations and exclusions).
|  | 24-hour
customer service to answer questions and initiate disputes of your credit information.
| You can enroll in this Equifax credit protection program free
of charge for the next 90 days. If you would like to enroll, Equifax has a simple
Internet-based verification and enrollment process at www.myservices.equifax.com/timewarner_tri.
You will be receiving by mail a hard copy version of this letter containing (for
U.S. employees only) a Promotional Code, located in the upper right hand corner
of the page, that you will need to provide to Equifax during the enrollment process.
If you do not have access to the Internet and would prefer to enroll by mail,
please call 800-435-2285. You will need the Promotional Code to enroll by mail.
| If we become aware of any instance in which the information
on the tapes may have been accessed or misused, we will alert you immediately
of additional steps that can and should be taken. Again, please know that
we regret any inconvenience or concern this incident may cause you. Be assured
that we are committed to continuing to take whatever steps are appropriate to
protect confidential employee information. Please do not hesitate to contact us
if you have any questions. Sincerely, Larry Cockell Senior Vice
President and Chief Security Officer Time Warner Inc. |