SEC Announces $316 Million Fair Fund Distribution to Investors Harmed by Fraud at Time Warner

Distribution Marks the Commission's Distribution of More Than $2 Billion of Fair Fund Monies to Injured Investors

FOR IMMEDIATE RELEASE
2007-131

Washington, D.C., July 9, 2007 - The Securities and Exchange Commission today announced that it commenced the distribution of the Fair Fund created as part of a settlement with Time Warner Inc. on charges of improper financial reporting and disclosure. The distribution is expected to be completed in approximately ten days.

"With this distribution, the Commission will have distributed over $2 billion in Fair Fund monies since the 2002 passage of the Sarbanes-Oxley Act, demonstrating our continued resolve to return money to injured investors where appropriate," said Linda Chatman Thomsen, Director of the SEC's Division of Enforcement.

The Commission brought a settled action against Time Warner in March 2005 alleging that Time Warner engaged in fraud and other accounting improprieties by artificially inflating its advertising revenue and Internet subscriber numbers, and by failing to properly consolidate the financial results of one of its subsidiaries, AOL Europe, S.A. Time Warner paid a $300 million civil penalty as part of the resolution of these claims. Including interest, the Fair Fund available for distribution is approximately $316 million.

On July 11, 2006, the United States District Court for the District of Columbia approved the Commission's proposed distribution plan. The distribution of the Fair Fund, which is being made on the same timetable as the class action distribution in a pending case against Time Warner and other defendants, is in addition to the class action settlement. None of the Fair Fund is being used to pay class action counsel. Final court approval for distribution was given on June 20, 2007. More information is available at www.aoltimewarnersettlement.com.

Questions regarding the distribution should be directed to the distribution agent:

• Call toll-free: 1-877-800-7852
• Visit the settlement website: www.aoltimewarnersettlement.com
• Write to: Gilardi & Co. LLC
  P.O. Box 808003
  Petaluma, CA 94975-8003