Time Warner reporTs FirsT-QuarTer 2010 resulTs

On May 5, 2010, Time Warner Inc. reported financial results for its first quarter ended

March 31, 2010. Commenting on the results, Time Warner’s Chairman and Chief Executive Officer Jeff Bewkes said: “Time Warner is off to a great start in 2010, deliver-

ing record financial results for our first quarter. We posted our biggest revenue gain in nearly two years, and Adjusted Operating Income grew at all of our businesses. The advertising recovery benefited both Turner and Time Inc., while the continuing popularity of The Blind Side and Sherlock Holmes helped lift Warner Bros.’ home video sales. We’ve

also made meaningful progress in the last few months toward our long-term strategic objectives. In April, Turner joined with CBS in a 14-year pact for the exclusive U.S. television, Internet and wire-less rights to the NCAA’s Division I men’s basket-ball tournament, starting in 2011. Also last month, Turner signed Conan O’Brien to host a late-night talk show on TBS. In the quarter, HBO expanded its international footprint by acquiring full ownership of HBO Central Europe and increasing its majority stake in the HBO Latin America Group. In addition, Warner Bros. reached a series of agreements to establish a 28-day window for new home video releases before they become available through kiosk and subscription distributors.”

More information about Time Warner, including its financial results and business outlook, can be found on the company’s website, www.timewarner.com.

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JEff BEWkES,CHAIRMAN AND CEO,

TIME WARNER INC.

In April, Turner Broadcasting announced two exciting additions to its sports and entertainment programming: Turner and CBS acquired the exclusive television, Internet and wireless rights to the NCAA Division I Men’s Basketball Championship tournament in the United States from 2011 through 2024 (left),

and Conan O’Brien (right) is joining TBS to host a late-night talk show that is expected to debut in November 2010. See page 2 for further details.

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T u r n e r B r o a D C a s T i n G

Turner ToGeTHer WiTH CBs enTer inTo a 14-Year riGHTs aGreemenT For THe nCaa DiVision i men’s BaskeTBall CHampionsHip TournamenT

Turner Broadcasting System, Inc. announced in April that it has acquired, with CBS, the exclusive television, Internet and wireless rights to present the NCAA Division I Men’s

Basketball Championship tournament in the United States and its territories and possessions from 2011 through 2024 for approximately $10.8 billion. The agreement marks the first time that the final four and national championship games will be televised live on a cable network. As part of the agreement, beginning with the 2011 tournament, the opening-, first- and second-round games will be shown nationally on TBS, TNT, truTV and CBS. CBS and Turner will split coverage of the regional semifinal games. CBS will provide coverage of the regional finals, as well as the final four (including the national championship game), through 2015. Beginning in 2016, CBS and Turner will split coverage of the regional finals, with the final four and the national championship game alternating every year between CBS and TBS. Under the agreement, NCAA March Madness on Demand − the Emmy Award-winning video player that provides live streaming video of the NCAA Division I Men’s Basketball Championship − will continue to be launched from NCAA.com and CBSSports.com. Turner has secured the rights to the player for any Time Warner digital property. The player will be operated and developed by Turner and have enhanced digital rights, allowing the NCAA to deliver content for multiple Turner and Time Warner platforms. CBS Sports and Turner Broadcasting also have been licensed and will collaborate on the NCAA’s corporate marketing program.

Conan o’Brien To HosT laTe-niGHT Talk sHoW on TBs

Turner Broadcasting announced in April that Conan O’Brien is joining TBS to host a late-night talk show that is expected to debut in November 2010 at 11 p.m. (ET/PT).

The Emmy-winning comedian’s new program will be followed by Lopez Tonight, which will shift to a midnight time slot, giving TBS a dynamic lineup in late-night television. TBS – which has built a programming slate that appeals to a younger and more diverse audience – expects O’Brien to be a long-term addition to the network’s late-night landscape. O’Brien will host his hour-long, yet-to-be-titled show Mondays through Thursdays.

TruTV reCorDs BesT QuarTer in raTinGs

In the first quarter of 2010, truTV delivered its best quarter ever in ratings among adults 18-34, adults 18-49, men 18-34 and men 18-49. truTV also ended the quarter as one of

ad-supported cable’s top 10 networks in primetime delivery of adults 18-49 and men 18-49. The network’s performance was driven by its original series, including operation repo (below), The Smoking gun Presents: World’s Dumbest…, It only Hurts When I Laugh and Conspiracy Theory with Jesse Ventura.Source: all ratings data from nielsen media research

oriGinal series DriVe TnT’s suCCess

TNT’s original series men of a Certain age and Leverage delivered strong ratings for the network in the first quarter of 2010. men of a Certain age ranked among

ad-supported cable’s top 10 new original series at the end of the quarter, while Leverage ranked among the top 5 returning series. In its first season, men of a Certain age averaged 4.2 million viewers, 1.8 million adults 18-49 and 2.2 million adults 25-54. Leverage averaged 4.5 million viewers for its second season, up 13% over the first season. It also delivered 1.8 million adults 18-49 (up 2% ) and 2.2 million adults 25-54 (up 2%) in its second season. Source: all ratings data from nielsen media research

spring 2010

Cnn HonoreD For JournalisTiC exCellenCe

CNN’s journalistic excellence was recognized during the first quarter with several prestigious industry awards. CNN’s Bangkok-based correspondent Dan Rivers re-

ceived the George Polk Award for international reporting for his documentary World’s Untold Stories: a forgotten People, which highlighted the ongoing persecution of the Rohingya people in Myanmar. CNN anchor Anderson Cooper, producer Charlie Moore and photojournalist Neil Hallsworth won the Hillman foundation’s January Sidney Award for coverage of the Haiti earthquake devastation. CNN won four Gracie Awards from the American Women in Radio and Television for Outstanding Documentary (Cnn Presents: Black in america 2), Outstanding Hard News (CNN’s national political correspondent Jessica Yellin for Political Women), Anchor – News or News Magazine (HLN’s Robin Meade) and Outstanding Talk Show – News (Larry King Live). At the 21st GLAAD Media Awards, HLN’s Joy Behar received the Excellence in Media Award and Why Will Won’t Pledge allegiance, a segment on CNN’s american morning, received the award for Outstanding TV Journalism Segment.

earTHQuake CoVeraGe seTs Cnn aparT as sourCe For BreakinG neWs

CNN continued to distinguish itself as a leading source for breaking news and information with its multi-platform coverage of the earthquakes in Haiti and Chile. Over its

first week of the Haiti earthquake coverage (January 12-19, 2010), CNN more than doubled (+119%) the total day adults 25-54 average it achieved in the fourth quarter of 2009. On the day of the Chile earthquake (february 27, 2010), CNN was

the #1 cable news network in total day among adults 25-54, topping fox News Channel by 30% and MSNBC by 125%. On CNN.com, in January 2010, almost half of the month’s nearly 25,000 iReport submissions were related to Haiti. Total submis-sions grew 77% versus the prior month. On february 27, 2010, the day of the Chile earthquake and Hawaii tsunami warnings, video usage on CNN.com spiked to nearly 10 million video streams, a 445% increase over the average Saturday usage (based on Saturdays from January 30 through february 20, 2010) and CNN’s iPhone app reached the highest number of downloads since the first week of its launch on September 29, 2009, according to Apple iTunes Connect.Source: Television ratings data from nielsen media research. ireport submissions from internal data. Cnn.com data from omniture SiteCatalyst.

T u r n e r B r o a D C a s T i n G

aDulT sWim remains #1 WiTH keY Demos

Buoyed by original series episode premieres throughout the first quarter of 2010, Adult Swim maintained its #1 ranking among ad-supported basic cable networks for

total day delivery of adults 18-34, adults 18-24, men 18-34 and men 18-24, earning strong gains among all demograph-ics during the quarter. Compared to the first quarter of 2009, average delivery of adults 18-34 increased by 13%, adults 18-24 increased by 9%, men 18-34 increased by 10% and men 18-24 increased by 3%. In addition, average delivery of adults 18-49 increased by 15% and men 18-49 increased by 12%. Adult Swim’s ratings performance in the first quarter was led by premieres of aqua Teen Hunger force (below) and family guy.Source: all ratings data from nielsen media research

oriGinal series reTurn To CarToon neTWork WiTH sTronG raTinGs

Since its return to Cartoon Network on february 24 through March 17, 2010, Destroy Build Destroy (below), the live-action competition series, has been the #1 show in its

timeslot (Wednesday, 8:30 p.m.) on all of television – broadcast and cable – among boys 6-11. During the same period, average year-over-year delivery for kids 6-11 and boys 6-11 improved by 3% and 7%, respectively. Cartoon Network’s live-action series Dude What Would Happen was the #1 show in its timeslot (Wednesday, 8 p.m.) on all of television – broadcast and cable – among boys 6-11 since its return to the network on february 24 through March 17, 2010. During the same period, the series’ average year-over-year delivery for kids 2-11, kids 6-11 and boys 6-11 grew by 15%, 17% and 18%, respectively.Source: all ratings data from nielsen media research

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CNN’s Dr. Sanjay Gupta in Haiti.

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Warner Bros. posTs sTronG FirsT QuarTer aT DomesTiC Box oFFiCe

Driven by the carryover box-office success of Sherlock Holmes (released December 25, 2009), which has crossed the $500 million mark at the global box

office (including $209 million domestically through May 2), as well as the first-quarter 2010 hits The Book of eli ($95 million at the domestic box office through May 2) and New Line Cinema’s Valentine’s Day ($110 million at the domestic box office through May 2), Warner Bros. Pictures’ films deliv-

ered one of the studio’s strongest first quarters in its history at the domestic box office. Warner Bros. Pictures’ Clash of the Titans (above) had a record-setting Easter weekend (April 2-4) opening, with $61.2 million in domestic box-office receipts to kick off a second quarter that also includes the releases of The Losers and New Line Cinema’s a nightmare on elm Street, as well as the scheduled releases of Jonah Hex and New Line Cinema’s Sex and the City 2 (below).Source: Box-office results from Box office mojo and internal data

Warner Bros. Home enTerTainmenT Group sTrikes keY DisTriBuTion Deals

Warner Bros. Home Entertainment Group (WBHEG) announced agreements for a number of key home entertainment distribution deals in the

first quarter of 2010. In January, WBHEG and Netflix announced an agreement to make the studio’s new release DVD and Blu-ray Disc titles available to Netflix members after a 28-day window. WBHEG also agreed with Netflix to add to the selection of direct-to-video titles and catalog movies available to be streamed instantly via Netflix to TVs and computers. In february, WBHEG and redbox announced a multi-year distribution agreement that will make the studio’s new release DVD and Blu-ray Disc titles available to redbox customers after a 28-day window. In March, WBHEG and Blockbuster announced a new agreement that continues to provide immediate availability of Warner Bros. titles to the video retailer. In addition, in March, WBHEG’s Digital Distribution group also entered into an agreement with Sony Computer Entertainment America to offer high-definition movies for purchase and rental on the PlayStation Network video delivery service in the United States.

Warner Bros. inTernaTional BranDeD serViCes launCHeD in THree neW TerriTories

In the first quarter of 2010, Warner Bros. International Branded Services (Branded Services) launched WarnerTV programming services in three new

territories around the globe. In february, Branded Services and Onet.pl Group announced the launch of Branded Services’ first WarnerTV branded service in Central and Eastern Europe, within the new Group Onet.pl VOD platform in Poland. Branded Services debuted its Pan-Asian general entertainment linear television channel with the April launch of WarnerTV in Singapore on telecommunication company StarHub’s cable service and in Indonesia on Indovision. HBO Asia is exclusively handling distribution of the channel throughout the region. In korea, WarnerTV launched in April as an on-demand branded service via an agreement with kT’s IPTV provider QOOk TV. WarnerTV delivers hit television series and motion pictures from Warner Bros.’ library, customized for each market’s unique culture and taste. Building upon the success of the linear Warner Channel in Latin America, distributed in over 25 million homes in Central and South America as of May 2010, WarnerTV has debuted as a linear channel, as well as an advertiser-supported video-on-demand or subscription video-on-demand branded service in more than a dozen countries and is expected to expand to over 50 services in over 30 countries by the end of the year.

spring 2010

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Warner Bros. Home enTerTainmenT Group aCQuires maJoriTY sTake in Game DeVeloper roCksTeaDY

Warner Bros. Home Entertainment Group (WBHEG)announced in february that it acquired a majority stake in Rocksteady Studios, a privately held developer of

interactive entertainment targeted at teens and adults. Rock-steady specializes in developing action-adventure video games, including Batman: arkham asylum (above), one of the most critically acclaimed games of 2009. Warner Bros. continues to grow its games business through key acquisitions, building internal development capabilities, leveraging its global video distribution infrastructure, and focusing on developing major games franchises such as Batman, mortal Kombat, The Lord of the rings and Lego.

Warner Bros. DomesTiC TeleVision DisTriBuTion reneWs TelepiCTures’ The ellen Degeneres show on nBC sTaTions

Warner Bros. Domestic Television Dis-

tribution (WBDTD) and the NBC Local Media Division announced in february that WBDTD has renewed Telepic-tures Productions’ Emmy Award–winning The ellen Degeneres Show through the end of the 2013-2014 televi-sion season on the owned-and-operated television stations of the NBC Local Media Division – including WNBC-TV in New York, kNBC-TV in Los Angeles and WMAQ-TV in Chicago. The agreement furthers a long-standing relationship between WBDTD and NBC on behalf of The ellen Degeneres Show, which launched on the NBC-owned stations in September 2003 and had been previously renewed through 2010–2011.

GranD openinG seT For The wizarDing worlD of harry PoTTer

In March, Warner Bros. Consumer Products and Universal Orlando Resort announced June 18 as the public grand opening date of The Wizarding World of Harry Potter at

Universal’s theme park in Orlando, florida. The themed attractions within The Wizarding World of Harry Potter include Harry Potter and the forbidden Journey, flight of the Hippogriff and Dragon Challenge.

Warner Bros. inTeraCTiVe enTerTainmenT parTners WiTH sesame WorksHop

Warner Bros. Interactive Entertainment (WBIE) and Sesame Workshop, the nonprofit educational organization behind Sesame Street, announced in

January that they have entered into a multi-year exclusive agreement. Under the terms of the agreement, WBIE has the right to create and publish interactive videogame titles worldwide based on Sesame Street, one of the longest- running children’s television programs. The worldwide videogame partnership is in addition to a Sesame Workshop and Warner Home Video multi-year, exclusive home entertainment distribution deal for the Sesame Street library, new content, electronic sell-through and transac-tional video on demand for distribution in the United States and Canada.

spring 2010

H B o

HBo GreenliGHTs game of Thrones

HBO confirmed in March that it has ordered a pilot and nine episodes of game of Thrones, a new series based on the popular books by George R.R. Martin. game of

Thrones is an epic struggle for power set in a vast and violent fantasy kingdom. Production on the series is scheduled to begin in Belfast, Northern Ireland in July 2010.

THe paCiFiC DeliVers sTronG raTinGs

HBO’s epic World War II miniseries The Pacific delivered strong ratings for the network. With an average gross audience (network plays, HBO on Demand and DVR)

of 8.4 million viewers through April 28, 2010, The Pacific is outperforming by 52% the average gross audience dur-ing the full run of the recent HBO miniseries John adams. Executive produced by Tom Hanks, Steven Spielberg and Gary Goetzman, the team behind the Emmy-winning 2001 HBO miniseries Band of Brothers, The Pacific tracks the intertwined real-life journeys of three U.S. Marines across the vast canvas of the Pacific Theater during World War II.

HBo Wins nine sporTs emmY aWarDs

HBO received nine Sports Emmy Awards, the most of any single network, from The National Academy of Television Arts and Sciences at a ceremony on April

26, 2010 in New York City. It is the highest Emmy Award total earned by HBO Sports in a single season. HBO’s Sports Emmy winners included Outstanding Sports Documentary for assault in the ring and four awards for the network’s 24/7 boxing series.

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HBo To kiCk oFF summer slaTe oF DoCumenTarY Films

HBO Documentary films announced in March that it will kick off in June a new 10-week slate of documentary films. The films will air every Monday

at 9 p.m. (ET/PT) beginning June 7. The documentaries explore diverse subjects, from a look into the life and career of Ron Galella, the original American paparazzo, to a bitter clash over abortion rights on a florida street corner, to lonely hearts who come together to learn the art of salsa in New York’s Spanish Harlem. This year’s summer series features the work of a wide range of directors, from award winners such as Jon Alpert, Jeffrey Blitz, Leon Gast, Matthew O’Neill and Alexandra Pelosi, to first-time filmmaker Josh fox.

HBo To DeBuT neW season oF harD KnocKs series

HBO Sports, NfL films and the New York Jets an-nounced in March that they will team up for an all-access look

at what it takes to make it in the National football League when Hard Knocks: Training Camp with the new York Jets debuts in August 2010. Hard Knocks, the first sports-based reality series is scheduled to kick off its five-episode sixth season on August 11 from 10 to 11 p.m. (ET/PT) exclusively on HBO, with regular encore plays on Thursdays.

spring 2010

a Small act and el espiritu De La Salsa, part of HBO’s summer documentary film series.

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HBo reneWs oriGinal series

HBO confirmed during the first quarter the renewals of several of its original series. HBO renewed three new shows for second seasons: the animated comedy series

The ricky gervais Show (below), based on Gervais’ popular podcast; Treme, from David Simon (creator of HBO’s The Wire), featuring an ensemble cast in the story of the rebuilding of New

Orleans after Hurricane katrina; and How to make It in america, which follows enterprising Brooklyn twenty-somethings de-termined to achieve the American dream. HBO also renewed two long-running shows: the hit comedy series Curb Your enthusiasm, starring Larry David, for an eighth season, and the provocative weekly talk show real Time With Bill maher, which offers Maher’s unique perspective on contemporary issues.

BriTisH Film insTiTuTe FeTes HBo

The British film Institute (BfI) paid tribute to HBO at a weekend of events (April 24-25, 2010) in London that celebrated HBO’s consistency in quality programming. The

weekend included panel discussions and screenings of HBO’s newest programs, including the miniseries The Pacific from Tom Hanks, Steven Spielberg and Gary Goetzman, HBO films’ You Don’t Know Jack starring Al Pacino and David Simon’s new drama series Treme. In addition, HBO co-President Richard Plepler and President of Programming Michael Lombardo will be joined by HBO talent for a Q&A session later this year at the BfI in London. This is the first time the BfI has showcased an American television network.

aCaDemY oF TeleVision arTs & sCienCes To Honor HBo proGrams

Two HBO programs will be honored at the third annual Television academy Honors on May 5, 2010, it was announced in March by the Academy of Television Arts

& Sciences (ATAS). The Television academy Honors will celebrate eight programs that exemplify “television with a conscience.” HBO will be honored for grandpa, Do You Know Who I am? With maria Shriver, which tells five stories of children, ages 6-15, who are coping with grandparents suffering from Alzheimer’s disease. HBO will also be recog-nized for Taking Chance, a film starring kevin Bacon, which tells a first-person account of a young lieutenant colonel and his journey accompanying a fallen soldier’s remains to his family in Dubois, Wyoming.

T i m e i n C .

Time launCHes ipaD app

TIme announced in April the launch of its iPad app, one of the first apps available at the time of the launch of the iPad. Available as individual issues for $4.99 in the App Store – the

same price as the magazine on the newsstand, with discounted subscription offers coming soon – the TIme iPad app features all the content from the weekly magazine, with additional photo slide-shows and videos that can be enlarged for maximum visual impact. Each page is designed to display optimally for the iPad screen,

and users have several ways in which to navigate each issue. The app also includes content from TIme’s international editions and a live newsfeed from TIME.com. Several advertisers supported the launch of the app, including fidelity, korean Air, Lexus, Liberty Mutual, Toyota, Unilever and Verizon.

PeoPle anD enTerTainmenT weeKly DeliVer sTronG osCars issues

Advertising pages in the 2010 Academy Awards issues of People (March 22) and entertainment Weekly (March 19) were up 68% and 84%, respectively, from the 2009

issues, according to Publishers Information Bureau. Among the new advertisers in People’s Oscars issue were frédéric fekkai (Procter & Gamble) and Piperlime (Gap). People.com drew record traffic the day after the Oscars were announced with 63 million page views versus 58.2 million last year, up 8%, according to Omniture.

spring 2010

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T i m e i n C .

si.Com launCHes DailY ViDeo proGramminG

In March, the Sports Illustrated Group launched a new video production initiative for SI.com that delivers SI’s award-winning journalism, breaking news and analysis, and sports

highlights to the website’s visitors. As part of the launch, SI.com debuted its signature video program, the SI Inside

report, anchored by veteran sports journalist Maggie Gray. This new video program has already generated revenue through sponsorship deals with Mercedes, Samsung, Dodge and several other companies. SI ranked third in the sports category for overall video views (38.5 million) in March 2010, according to Nielsen Census Data. Overall, through April 2010 SI Digital had eight consecutive months of year-over-year traffic growth, averaging 23 million monthly unique visitors during this period, according to Omniture.

forTUne reDesiGneD

The newly-redesigned forTUne hit newsstands in March, featuring higher-quality paper stock, new fonts and display type, new sections such as

“Careers” and “Venture” and new columnists like CNBC’s Becky Quick. Other additions include “Washington Watch,” a front-of-the-book feature on government spending, and “Techmate,” a debate series between forTUne tech gurus Jon fortt and Michael V. Copeland.

Time inC. liVe & unFilTereD: inTerVieW WiTH auTHors oF BesT-sellinG Book game change

As part of Time Inc.’s Live & Unfiltered series, TIme hosted an event on January 20, 2010 with MSNBC’s Joe Scarborough interviewing TIme’s Mark Halperin

and new York magazine’s John Heilemann, authors of the best-selling book game Change. Industry VIPs, Time Inc. clients and press attended the event.

Time inC. aCQuires sTYleFeeDer

Time Inc. announced in January that it had acquired Stylefeeder, a personal shopping engine that uses pattern recognition technology and its members’ style

preferences to make recommendations for clothing, shoes and accessories from thousands of online retailers. Style-feeder will become part of the InStyle family of brands, and its e-commerce technology will power shopping on InStyle.com.

insTyle anD PeoPle sTylewaTch sHoW sTronG GroWTH in aD paGes

InStyle was up 34% in advertising pages year over year for its March spring fashion issue, which included 82 advertisers new to the March issue of the magazine. Ad pages from luxury

accounts grew 28% year over year, including brands new to the March issue such as Neiman Marcus, Bulgari and H. Stern. People StyleWatch nearly tripled its March ad pages with a 138% increase year over year. Almay, Sally Hansen and Lancôme were among People StyleWatch first-time advertisers.Source: all data from Pub-lishers Information Bureau

spring 2010

spring 2010

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Q1:10 ToTal proGramminG DaY DeliVerY Network key Demo Delivery (‘000)

TNT A25-54 672TBS A18-49 578truTV A18-49 390CNN A25-54 149HLN A25-54 132Cartoon Network k2-11 580Adult Swim A18-34 495 Source: nielsen media research

T u r n e r B r o a D C a s T i n G

Q1:10 DiGiTal properTies Average Monthly Domestic Unique Properties Visitors (in M)1

CNN Digital Network 2 39.6Turner Sports & Entertainment Digital 3 17.0Turner Network 4 48.9

1 Average for the quarter ended March 31, 2010

2 Cnn digital network includes Cnn.com, CnnMoney.com, sI.com, time.com, the IB-Cnn websites Channel and People.com

3 turner sports & entertainment digital includes all turner entertainment and sports online properties, such as Cartoonnetwork.com, nAsCAr.com, nBA.com, thesmokingGun.com and tnt.com

4 turner network includes all turner sports & entertainment digital properties plus Cnn digital network properties

Source: nielsen online

seleCT oriGinal series – 2010 (ConTinueD) Premiere Title Network Season Date

Squidbillies Adult Swim 5 5/16/10 2

Check It Out Adult Swim 1 5/16/10 2

Operation Repo truTV 7 6/7/10 2

All Worked Up truTV 2 6/7/10 2

Bait Car truTV 3 6/8/10 2

The Smoking Gun Presents: World’s Dumbest… truTV 8 6/10/10 2

Unnatural History Cartoon Network 1 6/13/10 2

Mary Shelley’s frankenhole Adult Swim 1 6/27/10 2

Are We There Yet? TBS 1 Spring 2010 2

The Closer TNT 6 Summer 2010 2

Marvelous Misadventures of flapjack Cartoon Network 4 Summer 2010 2

My Boys TBS 4 Summer 2010 2

The Venture Brothers Adult Swim 4 Summer 2010 2

Batman: The Brave and the Bold Cartoon Network 3 Summer 2010 2

Black Gold truTV 3 Summer 2010 2

Leverage TNT 3 Summer 2010 2

Metalocalypse Adult Swim 3 Summer 2010 2

Dark Blue TNT 2 Summer 2010 2

Delocated Adult Swim 2 Summer 2010 2

HawthoRNe TNT 2 Summer 2010 2

Las Vegas Jailhouse truTV 2 Summer 2010 2

Children’s Hospital Adult Swim 1 Summer 2010 2

Eagleheart Adult Swim 1 Summer 2010 2

Memphis Beat TNT 1 Summer 2010 2

Neighbors from Hell TBS 1 Summer 2010 2

Rizzoli & Isles TNT 1 Summer 2010 2

Scooby Doo Mystery Inc. Cartoon Network 1 Summer 2010 2

Symbionic Titan Cartoon Network 1 Summer 2010 2

Robot Chicken Adult Swim 5 fall 2010 2

Rehab: Party at the Hard Rock Hotel truTV 3 fall 2010 2

Star Wars: The Clone Wars Cartoon Network 3 fall 2010 2

Conspiracy Theory truTV 2 fall 2010 2

full Throttle Saloon truTV 2 fall 2010 2

Lopez Tonight TBS 2 fall 2010 2

Men of a Certain Age TNT 2 fall 2010 2

Conan O’Brien Late Night Talk Show 3 TBS 1 fall 2010 2

Looney Tunes Cartoon Network 1 fall 2010 2

Mad Magazine Cartoon Network 1 fall 2010 2

Mongo Wrestling Alliance Adult Swim 1 fall 2010 2

Regular Show Cartoon Network 1 fall 2010 2

Tower Prep Cartoon Network 1 fall 2010 2

Young Justice Cartoon Network 1 fall 2010 2

1 Classified by episodic blocks2 expected3 name pending

seleCT oriGinal series – 2010 Premiere Title Network Season Date

Aqua Teen Hunger force Adult Swim 9 2/7/10 NfL full Contact truTV 1 2/8/10 Tim and Eric: Awesome Show, Great Job! Adult Swim 5 2/13/10 Most Daring truTV 7 2/17/10 Hot Pursuit truTV 7 2/18/10 Destroy Build Destroy Cartoon Network 3 2/24/10 Dude What Would Happen Cartoon Network 2 2/24/10 Southland TNT 2 3/2/10 Tyler Perry’s House of Payne TBS 5 3/3/10 1

Tyler Perry’s Meet the Browns TBS 3 3/4/10 1

Over the Limit truTV 1 3/21/10 Saving Grace TNT 3 3/29/10 Adventure Time with finn and Jake Cartoon Network 1 4/5/10 Southern fried Stings truTV 1 4/12/10 It Only Hurts When I Laugh truTV 1 4/15/10 Ben 10: Ultimate Aliens Cartoon Network 1 4/23/10Generator Rex Cartoon Network 1 4/23/10 The Boondocks Adult Swim 3 5/2/10

stAtIstICs

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Q1:10 THeaTriCal moVie releases Domestic Initial Days in Box Office Release Title Label Release1 ($ in M)1 Date

Valentine’s Day New Line Cinema 48 109.9 2/12/10

The Book of Eli Warner Bros. 76 94.1 1/15/10

Cop Out Warner Bros. 34 43.7 2/26/10

Edge of Darkness Warner Bros. 62 43.2 1/29/10

Hubble Space Telescope 3D Warner Bros. 13 1.4 3/19/101 data through March 31, 2010; source: Box Office Mojo

Q1:09 THeaTriCal moVie releases Domestic Initial Days in Box Office Release Title Label Release1 ($ in M)1 Date

Gran Torino Warner Bros. 110 145.9 12/12/08 2

Watchmen Warner Bros. 26 103.8 3/6/09

He’s Just Not That Into You New Line Cinema 54 92.6 2/6/09

friday the 13th New Line Cinema 47 64.8 2/13/09

Inkheart New Line Cinema 68 17.2 1/23/09

Under the Sea 3D Warner Bros. 47 4.4 2/13/09

Chandni Chowk To China Warner Bros. 28 0.9 1/16/09

1 data through March 31, 2009; source: Box Office Mojo2 In limited release, opened wide January 9, 2009

W a r n e r B r o s . e n T e r T a i n m e n T

stAtIstICs

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Q2:10 THeaTriCal moVie releases Title Label Release Date

Clash of the Titans Warner Bros. 4/2/10

The Losers Warner Bros. 4/23/10

A Nightmare on Elm Street New Line Cinema 4/30/10

Sex and the City 2 New Line Cinema 5/27/10 1

Splice Warner Bros. 6/4/10 1

Jonah Hex Warner Bros. 6/18/10 1

1 expected release date

Q2:09 THeaTriCal moVie releases Domestic Initial Days in Box Office Release Title Label Release1 ($ in M)1 Date

The Hangover Warner Bros. 26 188.4 6/5/09

Terminator Salvation Warner Bros. 41 122.3 5/21/09

17 Again New Line Cinema 75 63.2 4/17/09

Ghosts of Girlfriends Past New Line Cinema 61 53.7 5/1/09

Observe and Report Warner Bros. 70 24.0 4/10/09

My Sister’s keeper New Line Cinema 5 16.7 6/26/09

1 data through June 30, 2009; source: Box Office Mojo

CompanY sHare 20101 Share Rank

Domestic Box Office 18.1% 2

1 As of March 31, 2010

Source: Box office mojo

stAtIstICs

Q1:10 keY DiGiTal properTies WarnerBros.com

TMZ.com

TheWB.com

Essence.com (a joint venture with Time Inc.)

kidsWB.com

DCBeyond.com

MomLogic.com

CWTV.com (a joint venture with CBS)

W a r n e r B r o s . e n T e r T a i n m e n T

spring 2010

Q1:10 DVD releases Title Label Release Date

The final Destination New Line Cinema 1/5/10The Invention of Lying Warner Bros. 1/19/10Whiteout Warner Bros. 1/19/10The Time Traveler’s Wife New Line Cinema 2/9/10The Box Warner Bros. 2/23/10The Informant! Warner Bros. 2/23/10Where The Wild Things Are Warner Bros. 3/2/10Ninja Assassin Warner Bros. 3/16/10The Blind Side Warner Bros. 3/23/10Sherlock Holmes Warner Bros. 3/30/10

Q2:10 DVD releases Title Label Release Date

Edge of Darkness Warner Bros. 5/11/10 1

Invictus Warner Bros. 5/18/10 1

Valentine’s Day New Line Cinema 5/18/10 1

The Book of Eli Warner Bros. 6/15/10 1 1 expected release date

CompanY sHare 20101 Share Rank

U.S. DVD Sell Through 2 20.5% 1 1 As of March 31, 20102 Primarily includes standard dVd and Blu-ray disc

Source: nielsen VideoScan and internal data

12

stAtIstICs

Q1:09 DVD releases Title Label Release Date

Appaloosa New Line Cinema 1/13/09

Pride and Glory New Line Cinema 1/27/09

RocknRolla Warner Bros. 1/27/09

Nights in Rodanthe Warner Bros. 2/10/09

Body of Lies Warner Bros. 2/17/09

Q2:09 DVD releases Title Label Release Date

Yes Man Warner Bros. 4/7/09

Chandni Chowk to China Warner Bros. 5/5/09

The Curious Case of Benjamin Button Warner Bros. 5/5/09

He’s Just Not That Into You New Line Cinema 6/2/09

Gran Torino Warner Bros. 6/9/09

friday the 13th New Line Cinema 6/16/09

Inkheart New Line Cinema 6/23/09

W a r n e r B r o s . e n T e r T a i n m e n T

spring 2010

BroaDCasT anD CaBle TV proDuCTion For THe 2009/2010 seasonTitle (Scripted) Network Season

Smallville CWN 9Cold Case CBS 7Nip/Tuck fX 7One Tree Hill CWN 7Two and a Half Men CBS 7The Closer TNT 6The New Adventures of Old Christine CBS 5Supernatural CWN 5The Big Bang Theory CBS 3Chuck NBC 3Gossip Girl CWN 3Dark Blue TNT 2fringe fOX 2The Mentalist CBS 2Southland TNT 2Children’s Hospital ASWM 1The forgotten ABC 1Human Target fOX 1Memphis Beat TNT 1Miami Medical CBS 1The Middle ABC 1Pretty Little Liars ABCf 1Life UneXpected CWN 1Rizzoli & Isles TNT 1Romantically Challenged ABC 1Rubicon AMC 1Unnatural History CTN 1V ABC 1The Vampire Diaries CWN 1

Title (Unscripted) Network Season

America’s Best Dance Crew IV MTV 1America’s Best Dance Crew V MTV 1The Bachelor XIV ABC 1Bachelor Pad ABC 1Bachelorette VI ABC 1High School Reunion VI TV Land 1Leave it to Lamas E! 1Lopez Tonight 1 TBS 1There Goes the Neighborhood CBS 1True Beauty II ABC 11 late-night program

THe CW neTWork 2009/2010 primeTime proGramminG sCHeDule Title Season

Smallville 9America’s Next Top Model 8One Tree Hill 7Supernatural 5Gossip Girl 390210 2Melrose Place 1Life UneXpected 1The Vampire Diaries 1

FirsT run sYnDiCaTion 2009/2010 season Title Season

Extra 16The People’s Court 13Judge Mathis 11The Ellen DeGeneres Show 7The Tyra Banks Show 5TMZ 3The Bonnie Hunt Show 2Judge Jeanine Pirro 2

seleCT series in oFF-neTWork sYnDiCaTion 1

1 As of March 31, 2010

13

stAtIstICs

All of UsThe BachelorCheyenneCold CaseEREverwoodfamily Mattersfriendsfull HouseThe fresh Prince of Bel-AirThe George Lopez ShowGilmore GirlsGrowing PainsThe Jamie foxx ShowLiving SingleLove ConnectionMADtv

MartinMaverickNight CourtThe O.C.One Tree HillSeinfeldSmallvilleSupernaturalThird WatchTwo and a Half MenThe West WingVWhat I Like About YouWhose Line Is It Anyway?Will & GraceWithout a Trace

W a r n e r B r o s . e n T e r T a i n m e n T

14

seleCT oriGinal proGramminG For 2010

Series Season Premiere Date

Big Love 4 1/10/10 How to Make it in America 1 2/14/10 The Ricky Gervais Show 1 2/19/10 Life and Times of Tim 2 2/19/10 funny or Die 1 2/19/10 Real Time with Bill Maher 8 2/19/10 Treme 1 4/11/10 Neistat Brothers 1 6/4/10 1

True Blood 3 6/13/10 1

Hung 2 6/27/10 1

Entourage 7 6/27/10 1

Bored to Death 2 fall 2010 1

Eastbound and Down 2 fall 2010 1

Boardwalk Empire 1 fall 2010 1 films Premiere Date

Temple Grandin 2/6/10 You Don’t know Jack 4/24/10 Special Relationship 5/29/10 1

Mini-Series Premiere Date

The Pacific 3/14/10 Documentaries Premiere Date

A family Is A family Is A family: A Rosie O’Donnell Celebration 1/31/10 Sergio 5/6/10 1

Smash His Camera 6/7/10 1

Homeless: Motel kids of Orange County Summer 2010 1

Crossing 12th and Delaware Summer 2010 1

If God Is Willing and the Creek Don’t Rise When the Levees Broke 2 Summer 2010 1

Traumatology: The Art of Coming Home fall 2010 1

stAtIstICs

H B o

Special Events Premiere Date

Bill Maher…But I’m Not Wrong 2/13/10 Robert klein: Unfair and Unbalanced 6/12/10 1

Sports Season Premiere Date

Real Sports with Bryant Gumbel 16 1/19/1024/7 Jimmie Johnson: Race to Daytona 1/26/10Magic & Bird: A Courtship of Rivals 3/2/10Road to Dallas: Countdown to Pacquiao/Clottey 3/6/1024/7 Mayweather-Mosley 4/10/10Broad Street Bullies 5/4/10 Hard knocks 6 8/11/10 1

Vince Lombardi Documentary fall 2010 1

Boxing After Dark On-GoingWorld Championship Boxing On-Going1 expected

oriGinal proGramminG in oFF-neTWork sYnDiCaTion1

Series Mini-Series

Curb Your Enthusiasm Band of BrothersDeadwood Entourage Oz Sex and the City Six feet Under The Sopranos1 As of March 31, 2010 (includes programming on basic cable)

Q1:10 DVD releases Series Release Date

Big Love: The Complete Third Season 1/5/10

Q2:10 DVD releases

Series Release Date

True Blood: The Complete Second Season 5/25/10 1

Curb Your Enthusiasm: The Complete Seventh Season 6/8/10 1

Entourage: The Complete Sixth Season 6/22/10 1

Hung: The Complete first Season 6/22/10 11 expected

Q1:09 DVD releases Series Release Date

Little Britain USA: The Complete first Season 1/13/09Summer Heights High: The Complete first Season 2/24/09In Treatment: The Complete first Season 3/24/09

Q2:09 DVD releases

Series Release Date

True Blood: The Complete first Season 5/19/09Entourage: The Complete fifth Season 6/30/09Eastbound and Down: The Complete first Season 6/30/09

spring 2010

spring 2010

stAtIstICs

15

Q1:10 Top DiGiTal properTies

Average Monthly Domestic Unique Property Visitors (in M)1

SI Digital2 14.4 CNNMoney.com 14.3 People.com 13.9 Time.com 9.8 MyRecipes Network3 9.8 EW.com 6.4 Time Inc. U.S. Sites 52.1

1 Average for the quarter ended March 31, 2010

2 Includes sI.com, sIkids.com, Golf.com and Fannation.com

3 Includes content from Myrecipes.com, Cookinglight.com and relevant sections of other sPC sites

Source: comScore media metrix 360

Top Time inC. maGazines BY aD Dollars1 Magazine Magazine Category 2010 Rank1

People Celebrity Weekly 1Sports Illustrated Sports-General 1Time Weekly Newsmagazines 1InStyle Womens fashion 2Real Simple Womens Lifestyle 2Southern Living Regional 2Entertainment Weekly Entertainment 1fortune Business-Corporate 2Golf Magazine Sports-Golf 1Cooking Light Epicurean 1Essence African-American 1Money Personal finance 11 through March 31, 2010, excludes newspaper supplements

Source: PIB

T i m e i n C .

Top Time inC. maGazines BY reaDersHip1

fall ‘09 Spring ‘09 fall ‘08Magazine (‘000)2 (‘000)3 (‘000)4

People 45,117 43,603 43,529Sports Illustrated 21,264 21,068 20,968Time 20,642 20,749 20,792Southern Living 15,621 15,653 16,339Cooking Light 11,436 11,281 12,068Entertainment Weekly 10,650 10,792 12,060InStyle 10,427 9,646 9,505Real Simple 8,068 8,808 8,583Money 7,697 7,856 7,993Essence 7,491 7,409 8,096Health 7,117 7,277 7,651People en Espanol 5,892 5,808 6,3551 readership is defined as the estimated total number of adults 18 years old and older in the conterminous 48 u.s. states who have read or looked into each magazine title (purchased and passed along) within its specific publication period (i.e., within the last week if a weekly) and is measured by in-person survey with a sample size of approximately 26,000 households

2 Measured from March 2009 to October 2009 3 Measured from september 2008 to April 2009 4 Measured from March 2008 to October 2008

Source: mrI, fall 2009

CompanY sHare

20101 Share Rank

Domestic Print Advertising Dollars 21.2% 11 through March 31, 2010, excludes newspaper supplements

Source: PIB

Caution Concerning Forward-Looking StatementsThis quarterly business review 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 the expectations contained herein due to changes in economic, business, competitive, technological, strategic and/or regulatory factors, and other factors affecting the businesses of Time Warner. More detailed information about these factors is set forth in filings by Time Warner with the Securities and Exchange Commission, including Time Warner’s most recent Annual Report on form 10-k and any subsequent Quarterly Reports on form 10-Q. The forward-looking statements are made only as of the date of this document and Time Warner is under no obliga-tion to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise.

All trademarks and service marks referenced herein are owned by the respective trademark or service mark owners. ©2010 Time Warner Inc.Published May 5, 2010