NEW YORK, Apr 30, 2008 (BUSINESS WIRE) -- Time Warner Inc. (NYSE:TWX) today updated its 2008 full-year
business outlook.

Time Warner reaffirmed that it expects its 2008 full-year growth
rate in Adjusted Operating Income before Depreciation and Amortization
to be in the range of 7% to 9%, off a base of $12.9 billion in 2007.

Time Warner revised its 2008 full-year outlook for Free Cash Flow.
The Company now expects that its 2008 full-year Free Cash Flow will be
at or above $4.5 billion, reflecting an expected tax benefit due to
the Economic Stimulus Act of 2008 and lower interest rates.

Time Warner continues to anticipate its 2008 full-year Earnings
per Diluted Share from Continuing Operations will be in the range of
$1.07 to $1.11.

The outlook above does not include the impact of any future merger
or unidentified restructuring charges, sales and acquisitions of
operating assets and investments, or the related impact of taxes that
may occur from time to time due to management decisions and changing
business circumstances. The outlook above also does not include the
impact of any future noncash impairments of goodwill, intangible and
fixed assets; amounts related to securities litigation and government
investigations; or the related impact of taxes. The Company is
currently unable to forecast precisely the timing and/or magnitude of
any such amounts or events.

Use of Operating Income before Depreciation and Amortization,
Adjusted Operating Income before Depreciation and Amortization and
Free Cash Flow

The Company utilizes Operating Income before Depreciation and
Amortization, among other measures, to evaluate the performance of its
businesses. The Company also evaluates the performance of its
businesses using Operating Income before Depreciation and Amortization
excluding the impact of noncash impairments of goodwill, intangible
and fixed assets, as well as gains and losses on asset sales, and
amounts related to securities litigation and government investigations
(referred to herein as Adjusted Operating Income before Depreciation
and Amortization). Both Operating Income before Depreciation and
Amortization and Adjusted Operating Income before Depreciation and
Amortization are considered important indicators of the operational
strength of the Company's businesses. Operating Income before
Depreciation and Amortization eliminates the uneven effect across all
business segments of considerable amounts of noncash depreciation of
tangible assets and amortization of certain intangible assets that
were primarily recognized in business combinations. A limitation of
this measure, however, is that it does not reflect the periodic costs
of certain capitalized tangible and intangible assets used in
generating revenues in the Company's businesses. Moreover, Adjusted
Operating Income before Depreciation and Amortization does not reflect
gains and losses on asset sales or amounts related to securities
litigation and government investigations or any impairment charge
related to goodwill, intangible assets and fixed assets. Management
evaluates the investments in such tangible and intangible assets
through other financial measures, such as capital expenditure budgets,
investment spending levels and return on capital.

Free Cash Flow is Cash Provided by Operations (as defined by U.S.
generally accepted accounting principles) plus payments related to
securities litigation and government investigations (net of any
insurance recoveries) and excess tax benefits from the exercise of
stock options, less cash flow attributable to discontinued operations,
capital expenditures and product development costs, principal payments
on capital leases and partnership distributions, if any. The Company
uses Free Cash Flow to evaluate its businesses and this measure is
considered an important indicator of the Company's liquidity,
including its ability to reduce net debt, make strategic investments,
pay dividends to common shareholders and repurchase stock. A
limitation of this measure, however, is that it does not reflect
payments made in connection with the securities litigation and
government investigations, which reduce liquidity.

Operating Income before Depreciation and Amortization, Adjusted
Operating Income before Depreciation and Amortization and Free Cash
Flow should be considered in addition to, not as a substitute for, the
Company's Operating Income, Net Income and various cash flow measures
(e.g., Cash Provided by Operations), as well as other measures of
financial performance and liquidity reported in accordance with U.S.
generally accepted accounting principles.

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.

Information on Earnings Release and Conference Call

In a separate release issued today, Time Warner Inc. reported the
financial results for its first quarter ended March 31, 2008.

The Company's conference call can be heard live at 10:30 am ET on
Wednesday, April 30, 2008. To listen to the call, visit
www.timewarner.com/investors or AOL Keyword: IR.

Information on Time Warner Cable's Press Releases and Conference
Call

Time Warner Cable Inc. issued separate releases today regarding
its financial results for the first quarter ended March 31, 2008 as
well as its updated 2008 full-year business outlook.

Time Warner Cable's conference call can be heard live at 8:30 am
ET on Wednesday, April 30, 2008. To listen to the call, visit
www.timewarnercable.com/investors or AOL Keyword: TWC IR.

Caution Concerning Forward-Looking Statements

This document includes certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are based on management's current expectations or
beliefs, and are subject to uncertainty and changes in circumstances.
Actual results may vary materially from those expressed or implied by
the statements herein due to changes in economic, business,
competitive, technological, strategic and/or regulatory factors, sales
of business assets, and the potential impact of future decisions by
management that may result in merger and restructuring charges, as
well as the potential impact of any future impairment charges to
goodwill or other intangible assets. More detailed information about
these factors may be found in filings by Time Warner Inc. with the
Securities and Exchange Commission, including its most recent Annual
Report on Form 10-K and Quarterly Report on Form 10-Q. Time Warner is
under no obligation to, and expressly disclaims any such obligation
to, update or alter its forward-looking statements, whether as a
result of new information, future events, or otherwise.

                           TIME WARNER INC.
                      RECONCILIATION OF GUIDANCE
                       (In millions; Unaudited)


                        Year Ended
                     December 31, 2007 Reconciliation of 2008 Guidance
                     ----------------- -------------------------------

Reconciliation of
 Adjusted Operating
 Income before
 Depreciation and
 Amortization to
 Operating Income:


Adjusted Operating
 Income before
 Depreciation and
 Amortization (1)    $         12,879  7% to 9% growth

Depreciation and                       Mid to high-single digits
 Amortization                  (4,412)  growth or greater

Impairment of
 goodwill,
 intangible and
 fixed assets                     (36) No material impairment expected

Gains and losses
 from asset sales                 689  Unable to estimate

Amounts related to
 securities
 litigation and
 government                            Decrease in absolute dollar
 investigations                  (171)  amount
                     -----------------

                                       Increase in absolute dollar
Operating Income     $          8,949   amount
                     =================

Free Cash Flow (2)   $          4,953  At or above $4.5 billion
Capital expenditures
 and product
 development costs
 plus principal
 payments on capital
 leases (all from
 continuing                            Increase in absolute dollar
 operations)                    4,487   amount

Excess tax benefits
 from the exercise
 of stock options                 (76) Unable to estimate

Payments related to
 securities
 litigation and
 government                            Decrease in absolute dollar
 investigations                  (912)  amount
                     -----------------

Cash provided by                       Cash provided by continuing
 continuing                             operations exceeding 75% of
 operations                     8,452   Operating Income

Cash provided by
 discontinued
 operations                        23  Unable to estimate
                     -----------------

Cash Provided by                       Cash Provided by Operations
 Operations                             exceeding 75% of Operating
                     $          8,475   Income
                     =================

Notes:
--------------------
(1) Adjusted Operating Income before Depreciation and Amortization
 excludes the impact of noncash impairments of goodwill, intangible
 and fixed assets, as well as gains and losses on asset sales and
 amounts related to securities litigation and government
 investigations.
(2) Free Cash Flow is defined as Cash Provided by Operations (as
 defined by U.S. generally accepted accounting principles) plus
 payments related to securities litigation and government
 investigations (net of any insurance recoveries) and excess tax
 benefits from the exercise of stock options, less cash flow
 attributable to discontinued operations, capital expenditures and
 product development costs, principal payments on capital leases and
 partnership distributions, if any.

SOURCE: Time Warner Inc.

Time Warner Inc.
Corporate Communications
Edward Adler, 212-484-6630
Keith Cocozza, 212-484-7482
or
Investor Relations
Doug Shapiro, 212-484-8926
Chris Clipper, 212-484-6297
Monica Gould, 212-484-8206

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