Time Warner Cable Becomes a Public Company

Time Warner Inc. (NYSE:TWX) and Time Warner Cable Inc. today announced that Time Warner Cable has become a public company as a result of Adelphia Communications Corporation’s Chapter 11 plan having become effective today. Time Warner Cable also announced that it expects its Class A common stock to be listed on the New York Stock Exchange, under the "TWC” symbol, and start trading as early as March 1, 2007. Adelphia received shares of Time Warner Cable Class A common stock on July 31, 2006 as part of the payment for systems bought from Adelphia. These shares will be distributed by Adelphia to its stakeholders in accordance with its Chapter 11 plan, starting within the next few days. Time Warner Cable became public without the traditional underwritten offering that was one alternative under the agreements with Adelphia. As a result, Time Warner Cable has withdrawn the registration statement on Form S-1 it had filed with the Securities and Exchange Commission. Today, Time Warner Cable filed a Current Report on a Form 8-K with the SEC containing certain information regarding its operations and results. Dick Parsons, Chairman and CEO of Time Warner, said: "We are very pleased that Time Warner Cable has become a public company and are excited about its stock soon being listed on the New York Stock Exchange. We believe Time Warner Cable is positioned to compete successfully in the fast-growing cable sector and to increase value for the shareholders of Time Warner and Time Warner Cable.” Glenn Britt, President and CEO of Time Warner Cable, said: "Becoming a public company is the latest step in creating a Time Warner Cable with greater scale, improved subscriber clusters, stronger growth opportunities and enhanced strategic flexibility. Our aggressive integration efforts of the newly acquired systems are ongoing, and we're making progress toward preparing these systems to offer Time Warner Cable's advanced services." How Time Warner Cable Became a Public Company On July 31, 2006, Time Warner Cable completed the acquisition of assets from Adelphia. Approximately 156 million shares of Time Warner Cable Class A common stock – approximately 16 percent of Time Warner Cable’s total outstanding common shares – were included in the consideration paid for the assets. Under Adelphia’s Chapter 11 plan, which was confirmed by the bankruptcy court on January 5, 2007, and became effective today (see Adelphia’s February 12, 2007 news release), most of the Time Warner Cable stock Adelphia received will be distributed to Adelphia stakeholders. This will end Adelphia’s obligation to sell a portion of the shares in an underwritten public offering. Although the distribution may take some time to be completed, Adelphia and Time Warner Cable expect approximately 75% of the shares to be distributed within the next week. The remaining shares are expected to be distributed over the coming months as remaining disputes are resolved by the bankruptcy court, including the 4% of the shares being held in escrow in connection with Time Warner Cable’s acquisition of assets from Adelphia. Under applicable securities regulations and provisions of the U.S. bankruptcy code, Time Warner Cable is now a public company subject to the requirements of the Securities Exchange Act of 1934. Pursuant to applicable provisions of the Bankruptcy Code, the distribution by Adelphia of Time Warner Cable Class A common stock to Adelphia stakeholders is exempt from the registration requirements of the Securities Act of 1933, and upon receipt these shares are freely tradable without restriction or further registration. Time Warner Cable expects its Class A common stock to be listed on the New York Stock Exchange, under the "TWC” symbol, and start trading as early as March 1, 2007. Time Warner Inc. Time Warner is a leading media and entertainment company whose businesses include interactive services, cable systems, filmed entertainment, television networks and publishing. Time Warner Cable Inc. Time Warner Cable owns and manages cable systems passing approximately 26 million homes in 33 states. The Company has 14.6 million customers for its various products, including video, high-speed data and residential telephone. This includes approximately 13.4 million basic video subscribers and more than 6 million customers who purchase more than one product. Time Warner Cable includes some of the most technologically advanced and best-clustered cable systems in the country, with nearly 85 percent of the Company's customers located in five geographic regions: New York, Texas, Ohio, the Carolinas and southern California. It is the largest cable provider in the nation's two largest cities, Los Angeles and New York. Leveraging its leadership in innovation and quality customer care, Time Warner Cable delivers advanced products and services such as video-on-demand, high-definition television, digital video recorders, high-speed data and Digital Phone.