Time Warner Completes Sale of Stake in Six Flags for $440 Million in Cash

April 1, 1998

Time Warner Entertainment announced today that it has completed the previously announced sale of its interest in Six Flags, the largest regional theme park operator in the U.S., to Premier Parks Inc. For its 49 percent stake in Six Flags, Time Warner will receive approximately $440 million in cash. After taxes, Time Warner will have approximately $300 million with which to reduce debt.

In making the announcement, Time Warner's Executive Vice President and Chief Financial Officer Richard J. Bressler said: "The completion of today's transaction will enable Time Warner to reduce its debt by $300 million after taxes, and advances our stated commitment to continue to improve our financial ratios and strengthen our balance sheet. We have created significant value for our shareholders through our investment in Six Flags, the country's finest regional theme parks. Now, Time Warner and its shareholders will continue to benefit through our long-term licensing agreement with Premier, under which Warner Bros.' unique and diverse stable of characters and products will reach an audience approaching 40 million people and more each year through both Six Flags' and Premier's theme parks."

Premier acquired 100 percent of the equity of Six Flags in a transaction valued at $1.9 billion. An investor group led by Boston Ventures owned 51 percent of the equity of Six Flags, with the remaining 49 percent owned by Time Warner Entertainment.

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.

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