Time Warner Reduces Debt by $540 Million Through Completion of Transactions

April 2, 1998

Time Warner Inc. announced today that it has reduced its debt at Time Warner Entertainment by approximately $540 million through the completion of two previously announced transactions: the reorganization of PRIMESTAR from a partnership into a new corporation and the sale of its interest in Six Flags to Premier Parks.

In making the announcement, Time Warner's Executive Vice President and Chief Financial Officer Richard J. Bressler said: "The completion of these two transactions will enable Time Warner to reduce its debt by over a half billion dollars and advances our stated commitment to continue to improve our financial ratios and strengthen our balance sheet."

PRIMESTAR Partners, the nation's second largest provider of direct broadcast satellite (DBS) video services, completed the reorganization of its ownership structure from a partnership into a new corporation called PRIMESTAR, Inc. As part of the reorganization, PRIMESTAR, Inc. assumed $240 million of debt formerly held by Time Warner Entertainment. Time Warner Entertainment and its partner, Advance/Newhouse, retain a combined 30 percent equity interest in PRIMESTAR, Inc.

For its 49 percent stake in Six Flags, the largest regional theme park operator in the U.S., Time Warner Entertainment received approximately $440 million in cash. After taxes, Time Warner will have approximately $300 million with which to reduce debt.

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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