Time Warner Inc. will contribute approximately 640,000 subscribers of its wholly owned cable systems in New York state, Florida and North Carolina, to its Time Warner Entertainment joint venture with Advance Newhouse (TWE/AN) in exchange for equity and the assumption of debt, it was announced today by Time Warner Cable Chairman and CEO Joseph Collins.

In making the announcement, Collins said, "Our agreement today will bolster TWE/AN's existing clusters, particularly those in upstate New York, Florida and North Carolina, and allow us to better serve our customers."

Time Warner Senior Vice President and Chief Financial Officer Richard Bressler added, "Today's agreement not only strengthens the cable clusters of TWE/AN but will also reduce Time Warner Inc.'s consolidated debt. This transaction, along with our announced intention to sell some of our non-clustered cable properties, will also serve to improve Time Warner's financial position."

The TWE/AN transaction is expected to close in the first quarter of 1998.

Time Warner Inc., the world's leading media and entertainment company, consists of four fundamental businesses: entertainment, cable networks, publishing and cable, with interests in filmed entertainment, television production, broadcasting, recorded music, music publishing, cable-television programming, sports franchises, magazines, book publishing and cable-television systems.