Time Warner Statement on Lost Employee Data Tapes

NEW YORK, May 2, 2005 – Time Warner Inc. (NYSE: TWX) today said that a container of its computer back-up tapes was lost by an outside data storage firm during shipment to one of that firm’s storage facilities. For several years, as part of its regular processes to protect its computerized data, Time Warner has used this firm, a leader in data storage, to ship and store its computer back-up tapes offsite.

The missing tapes contained data from Time Warner, including personal information on current and former employees. The tapes did not include personal data on Time Warner customers.

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. To date, the investigation has not found any evidence that the tapes or their contents have been accessed or misused.

Time Warner is today notifying individuals whose information may have been on the missing tapes of this incident and of resources at their disposal to monitor their credit reports in the event of unusual activity.

“We take the security of our employees’ personal information extremely seriously and we deeply regret that this incident occurred,” said Larry Cockell, Time Warner’s Senior Vice President and Chief Security Officer. “While we have no evidence to suggest the information on the tapes has been accessed or misused, we are providing current and former employees with resources to monitor their credit reports while our investigation continues. We are working closely and aggressively with law enforcement and the outside data storage firm to get to the bottom of this matter.”

About Time Warner Inc.

Time Warner Inc. is a leading media and entertainment company, whose businesses include interactive services, cable systems, filmed entertainment, television networks and publishing.

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Kathy McKiernan

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