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COMPANY AND                   CUSTOMERS                     DIVERSITY                     ENVIRONMENT               ETHICS, GOVERNANCE,      EMPLOYEES       SUPPLY CHAIN   COMMUNITY
REPORT OVERVIEW               AND CONTENT                                                                           AND PUBLIC POLICY        AND WORKPLACE

Cover Images from left to right:
HBO Films’ Life Support, starring Queen Latifah, is a candid look at the HIV crisis through the eyes of a mother,
former addict, and AIDS activist.
People magazine features the “Heroes Among Us” stories about ordinary people making a difference in
their communities.
Warner Bros. installed the first photovoltaic system in the entertainment industry, generating approximately
116,000 kilowatt hours (kWh) of clean renewable electricity from sunlight annually.
CNN’s “Planet in Peril” is a multimedia investigation into the state of the earth with Dr. Sanjay Gupta
and Anderson Cooper.

01 COMPANY AND REPORT OVERVIEW                             16 DIVERSITY AND INCLUSION                               33 EMPLOYEES AND WORKPLACE
02 Message from our President and CEO                      17 Marketplace                                           34 Listening to Our Employees

03 Time Warner Overview                                    19     Workforce and Workplace                           34   Employee Growth and Development

04 Changing Global Landscape                                21 ENVIRONMENT                                          35   Employee Benefits
                                                            22 Climate Change
04 Citizenship at Time Warner                                                                                       36   Health and Safety
                                                            25 Forestry and Paper
04 About this Report                                                                                                38 SUPPLY CHAIN
                                                            26    Waste Reduction                                   39 Ethical Sourcing
05 Broad Engagement
                                                            26    Green Building                                    39   Green Procurement
05 Corporate Responsibility Goals
   and Objectives                                           28 ETHICS, GOVERNANCE                                   40 Supplier Diversity
                                                               AND PUBLIC POLICY
07 CUSTOMERS AND CONTENT                                    29 Ethics                                               41 COMMUNITY
08 Journalistic Integrity                                                                                           42 Education and the Arts
                                                            30 Governance
09 Freedom of Expression                                                                                            44 Employee Engagement
                                                            31 Public Policy
09 Responsible Content

12    Access to Information

14    Recognition and Awards
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COMPANY AND              CUSTOMERS      DIVERSITY             ENVIRONMENT   ETHICS, GOVERNANCE,         EMPLOYEES                    SUPPLY CHAIN                 COMMUNITY
REPORT OVERVIEW          AND CONTENT                                        AND PUBLIC POLICY           AND WORKPLACE



   AND CEO                                 GOALS AND OBJECTIVES
                                        05 2006-2007 Objectives and
03 TIME WARNER OVERVIEW                    Progress Update
03 Ownership
                                        06 2008-2009 Objectives
03 Employees                               and Challenges

03 International Presence

03 Business Segment Profile


04 Citizenship Priorities by Business



                                                                            Time Warner is built on strong brands and businesses. Images from top left to right: Two and a Half Men,
                                                                            I Am Legend, Planet in Peril, TIME, FORTUNE, and Real Simple magazines, AOL Latino, Ben 10, Time Warner Cable’s
                                                                            All the Best, GreenDailey.com, Recount, The Dark Knight.

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COMPANY AND                CUSTOMERS                 DIVERSITY                  ENVIRONMENT               ETHICS, GOVERNANCE,       EMPLOYEES                 SUPPLY CHAIN             COMMUNITY
REPORT OVERVIEW            AND CONTENT                                                                    AND PUBLIC POLICY         AND WORKPLACE

                                                                                                          “Time Warner’s commitment to corporate social responsibility
                           Jeffrey L. Bewkes,                                                              is one of many ways we achieve long-term growth.”
                           President and
                           Chief Executive Officer


Time Warner has a proud tradition of leadership.     information, diversity of viewpoints, and respon-    goals are aligned – including our commitment
                                                     sibility to community – are also at the heart of     to providing high-quality journalism and enter-
Our company helped lead the way in creating the      our role as a corporate citizen.                     tainment, offering forums for diverse view-
modern media industry. In fact, many aspects                                                              points, reducing our environmental footprint,
of the media industry that we take for granted       We are excited to build on that record of business   observing high standards of ethical behavior,
today – from weekly magazines to DVDs, and from      and civic leadership. As we drive the growth of      providing employees with opportunities for          Jeffrey L. Bewkes
24-hour news networks to online services – were      our businesses through bold digital innovation,      development, and giving back to the commun-         President and Chief Executive Officer
pioneered by our predecessors at this company.       international expansion, and serving increasingly    ities where we do business.
                                                     diverse populations, we also have a greater
Our company also has a record of civic leader-       opportunity to help create a more connected,         As the world’s leading media and entertainment
ship, including being the first major U.S.-based      well-informed, and better world.                     company, our goal is to deliver superior returns
media company to issue a comprehensive                                                                    to our stockholders and exceptional value to
corporate social responsibility report in 2006.      This Corporate Social Responsibility Report will     our customers in a sustainable and long-term way.
We believe that delivering a superior return         provide you with an overview of our company’s
to our stockholders goes hand-in-hand with           role as a corporate citizen. You’ll see the many     Time Warner’s commitment to corporate social
fulfilling our broader role as a corporate citizen.   ways in which our business and citizenship           responsibility is one of many ways we achieve
Indeed, many of the principles that support                                                               long-term growth. I am proud to lead our
the success of our businesses – journalistic                                                              company in that continuing endeavor.
integrity, freedom of expression, access to

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COMPANY AND               CUSTOMERS                DIVERSITY                  ENVIRONMENT               ETHICS, GOVERNANCE,        EMPLOYEES                SUPPLY CHAIN              COMMUNITY
REPORT OVERVIEW           AND CONTENT                                                                   AND PUBLIC POLICY          AND WORKPLACE

                                                                             AOL                                        CABLE            FILMED ENTERTAINMENT                    NETWORKS      PUBLISHING
     2007                               $ 46,482                         $ 5,181                                     $ 15,955                         $ 11,682                    $ 10,270         $ 4,955
     2006                               $ 43,690                                                                                                                                                     TOTAL
     2005                               $ 41,835                                                                                                                                                  $ 46,482
     2004                               $ 40,439
     2003                               $ 38,008                    ($ 1,561) INTERSEGMENT ELIMINATIONS


TIME WARNER OVERVIEW                               Business Segment Profile                              December 31, 2007, Time Warner Cable served        television programming services. HBO offers
Time Warner Inc. is a leading media and enter-     AOL: AOL is a leading global ad-supported Web        approximately 14.6 million customers who           the most-watched premium subscription
tainment company whose businesses include          company, with a comprehensive display advertis-      subscribed to one or more of its services, rep-    television services in the U.S. and produces
interactive services, cable systems, filmed en-     ing network in the U.S. and Europe, Platform-A,      resenting approximately 32.1 million reve-         some of the world’s most innovative and
tertainment, television networks, and pub-         a leading social media network, and a worldwide      nue generating units. Among its products and       widely acclaimed programming.
lishing. Our company is home to some of the        audience of approximately 250 million monthly        services are RoadRunner High Speed Online
best-known brands in the industry, from CNN        unique visitors as of April 2008. AOL’s suite of     and Digital Phone.                                 Publishing: Time Inc. is one of the largest content
and TIME magazine to the Harry Potter              popular brands and products include AOL.com                                                             companies in the world, with a portfolio of more
franchise and HBO.                                 (available in 27 countries), AIM, Bebo, MapQuest,    Filmed Entertainment: Warner Bros. Enter-          than 120 magazines published worldwide. It is
                                                   Moviefone and Truveo. Many of AOL’s program-         tainment is a leader in filmed entertainment        the largest consumer magazine publisher in the
Ownership                                          ming sites are leaders in their categories,          and related businesses across current and          U.S. and is a leading publisher in the U.K. and
Time Warner is incorporated in Delaware, U.S.      including Music, Television, Black Voices and TMZ,   emerging media and platforms. These include        Mexico. As of the spring of 2008, one out of every
and headquartered in New York. Time Warner         according to comScore Media Metrix. AOL also         feature film, television, home entertainment,       two American adults reads a Time Inc. magazine,
common stock is traded on the New York Stock       operates one of the largest Internet subscrip-       comic books, brand licensing, international        and one out of every six who use the Internet
Exchange, under the symbol “TWX.” As of            tion businesses in the U.S.                          cinemas, and broadcasting. In 2008, New Line       visits a Time Inc. website each month. Time Inc.
December 31, 2007, there were 3.593 billion                                                             Cinema began to be operated as a unit of           has also extended its most powerful brands –
shares of TWX common stock outstanding.            Cable: Time Warner Cable Inc. is the second-         Warner Bros.                                       People, Sports Illustrated, TIME, and others –
                                                   largest cable operator in the U.S., delivering                                                          to online, mobile, and other media platforms.
Employees                                          video, high-speed data, and voice services           Networks: The company’s Networks business
At December 31, 2007, the company had a total      to customers served by technologically advan-        segment consists principally of domestic           More information about our businesses can
of approximately 86,400 employees.                 ced, well-clustered systems located mainly           and international networks and pay television      be found at www.timewarner.com.
                                                   in five geographic areas: New York, the Caroli-       programming services. The networks owned
International Presence                             nas, Ohio, southern California,and Texas. As of      by Turner Broadcasting System include
As of December 31, 2007, Time Warner entertain-                                                         popular and trusted brands such as CNN, TNT,
ment, networks, programming and interactive                                                             Cartoon Network, TBS, and Turner Classic
services reached more than 200 countries and                                                            Movies. Pay television programming consists
territories around the world.                                                                           of the multi-channel HBO and Cinemax pay

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COMPANY AND                CUSTOMERS                  DIVERSITY                  ENVIRONMENT              ETHICS, GOVERNANCE,        EMPLOYEES                  SUPPLY CHAIN              COMMUNITY
REPORT OVERVIEW            AND CONTENT                                                                    AND PUBLIC POLICY          AND WORKPLACE

                           Warner Bros. Inde-                                                                                        TIME highlights
                           pendent Pictures’,                                                                                        individuals’ exceptional
                           The 11th Hour, was                                                                                        contributions to public
                           a climate-neutral                                                                                         service.

CHANGING GLOBAL LANDSCAPE                             With this Report, we have set out to describe       • Enable global access to information                 • Develop socially responsible content on tele-
Issues such as climate change, shifts in the global   the ways in which the foundation of our               and communication                                     vision and in games targeted toward youth
economy, and a new generation of employees            citizenship strategy – freedom of expression,                                                             • Enable access to content on multiple platforms
with new expectations have contributed to the         journalistic integrity, access to information,      Cable
changing landscape in which every company             diversity of viewpoints, and responsibility to      • Lead the cable industry in the transition from      Publishing
operates. The media industry faces a unique set       community – supports our business strategy.           analog to digital broadcast television              • Uphold the highest standards of journalistic
of challenges and opportunities, as emerging                                                              • Implement sustainable environmental efforts           independence and integrity
technologies and changing consumer habits have        We recognize that there is a connection among       • Deliver high-quality customer service               • Lead the publishing industry in promoting
inspired our businesses to explore new and            our responsibilities to our employees, custom-                                                              forestry certification and sustainable forestry
innovative forms of content and means of global       ers, communities, and stockholders and that         Filmed Entertainment                                    practices by paper suppliers
distribution. Technology has enabled us to dis-       responsible corporate citizenship helps protect     • Combat digital piracy                               • Nurture diverse viewpoints and coverage
tribute content more cost-effectively around          the long-term sustainability of our company.        • Reduce the environmental impact of film
the world, but it also makes it easier for digital                                                          production and distribution                         ABOUT THIS REPORT
pirates to copy content and sell it illegally.        Citizenship Priorities by Business                  • Practice ethical sourcing of consumer products      The Time Warner 2008 CSR Report includes:
Our businesses also face risks relating to com-       While some company-wide priorities are driven       • Minimize and, when appropriate, eliminate           • An update on the objectives we set in 2006,
petition for the leisure and entertainment            from the corporate headquarters, each business        depictions of smoking and tobacco products            plus information regarding the progress
time of audiences, which has intensified in part       segment of Time Warner prioritizes citizenship      • Broaden offering of local content for global          we made toward reaching those objectives;
due to advances in technology.                        efforts related to its specific industries, opera-     audiences                                           • A discussion of how we support our com-
                                                      tions, and core business activities. Below are                                                              munities, stockholders, and employees;
CITIZENSHIP AT TIME WARNER                            some highlights.                                    Networks                                              • Highlights of our efforts to reduce our
While the changing global context presents us                                                             • Practice fair and accurate reporting                  environmental impact;
with new challenges, meeting those challenges         AOL                                                 • Investigate and report on important issues          • A report on our efforts to attract and retain
is part of a continuing process that can be           • Protect customer privacy                          • Showcase a diverse range of viewpoints and            employees representing diverse backgrounds
traced back to the founding of our company.           • Provide accessible online parental                  create opportunities for new voices to be heard       and viewpoints; and
                                                        controls and child-protection tools                                                                     • Excerpts from interviews with senior executives
                                                      • Advertise responsibly
                                                                                                                                                                This Report is issued on July 24, 2008.

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COMPANY AND               CUSTOMERS                 DIVERSITY                  ENVIRONMENT               ETHICS, GOVERNANCE,          EMPLOYEES                SUPPLY CHAIN               COMMUNITY
REPORT OVERVIEW           AND CONTENT                                                                    AND PUBLIC POLICY            AND WORKPLACE

                          CNN’s iReport enables                                                          Time Warner Cable is                                                             Bono and Jim Kelly,
                          citizen journalism.                                                            the first cable operator                                                          Time Inc.’s Managing
                                                                                                         to partner with Common                                                           Editor, during a
                                                                                                         Sense Media to help                                                             “Conversation on the
                                                                                                         parents make informed                                                            Circle,” Time Warner’s
                                                                                                         media viewing choices.                                                           interview sessions
                                                                                                                                                                                          with prominent poli-
                                                                                                                                                                                          tical, social and envi-
                                                                                                                                                                                          ronmental figures.

You can learn more about Time Warner’s corporate    In addition, over the last three years, we have      Below is a list of items identified through our        2 . A clearer articulation of the company’s CSR
citizenship, as well as find more examples and       worked with Ceres, a nonprofit coalition of           stakeholder discussions, which we have set                values and vision; and an explanation of
updates concerning the topics discussed in this     investors, environmental advocates, and pub-         out to address in this Report.                            how CSR supports Time Warner’s long-term
Report, at www.timewarner.com/citizenship.          lic-interest groups to help us hear some of                                                                    financial success (Section 1 and through-
                                                    the voices that comprise our stakeholders.           Identified CSR Opportunities                               out Report)
BROAD ENGAGEMENT                                                                                         1. Ethical sourcing: guidelines and monitoring        3. More international content
The role of a publicly held company is to create    This team helped Time Warner identify citizen-           system (Section 7)                                    (throughout Report)
value for its stockholders. We believe that to      ship challenges and opportunities that will          2. Energy and climate assessment: baseline            4. Diversity and its connection to Time Warner’s
serve this mission well, we must listen to our      strengthen our position as a responsible bus-            data and development of reduction                     business strategy (Sections 2 and 3)
many global stakeholders. First and foremost,       iness and global citizen. These stakeholders             strategy and targets (Section 4)
we listen to our investors; we also listen to our   have not endorsed or validated Time Warner’s         3. Depiction of tobacco in movies (Section 2)         CORPORATE RESPONSIBILITY
customers, employees, policymakers, suppliers,      2008 CSR Report, but have provided general           4. A broad view of diversity, which is inclusive      GOALS AND OBJECTIVES
and debt holders. Honoring our principle of a       guidance on approach and areas covered.                  of sexual orientation, disability, and religion   Below is a summary of our progress on the ob-
diversity of viewpoints means that we engage                                                                 (Sections 3 and 6)                                jectives we outlined in our 2006 CSR Report
groups with a variety of opinions. For example,     The team is composed of senior-level represent-      5 . CSR mission throughout the company                and a description of our goals for 2008-2009.
representatives from our Global Public Policy       atives from organizations including:                     (Section 1 and throughout Report)
office meet with policymakers on an ongoing          American Association for People with Disabilities,   6. Employee engagement and leveraging                 2006-2007 Objectives and Progress Update
basis to listen to and discuss concerns or issues   American Library Association, Calvert Group,             their creative strengths to support               The following is a high-level update on our prog-
about the media industry. Our businesses            Ltd., Catalyst, Center for Democracy and                 CSR (throughout Report)                           ress on the goals we set and the commitments
utilize customer service programs designed          Technology, The Conference Board, Forum for                                                                we made in our 2006 Corporate Social Respon-
to improve the overall customer experience.         the Future, Gay and Lesbian Alliance Against         Suggestions for Content Enhancement                   sibility Report. More information can be found
Employee Opinion Surveys provide Time Warner’s      Defamation (GLAAD), The Heinz Center for             1. Clarification of the difference between             in the specific sections throughout the Report.
employees with a formal and anonymous               Science, Economics, and the Environment,                editorial and entertainment content
mechanism to voice honest feedback about            Kaiser Family Foundation, Natural Resources             decisions (Section 2)
the company.                                        Defense Council, National Recycling Coalition,
                                                    and World Wildlife Fund.

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COMPANY AND                                                            CUSTOMERS                                                          DIVERSITY                 ENVIRONMENT               ETHICS, GOVERNANCE,        EMPLOYEES                  SUPPLY CHAIN              COMMUNITY
REPORT OVERVIEW                                                        AND CONTENT                                                                                                            AND PUBLIC POLICY          AND WORKPLACE

                                     Play a Leading Role                                       Use This Guide to Make
                                     Warner Bros. believes that everyone                       Choices for Healthy Oceans
                                     can play a leading role in environmental
                                                                                               Best Choices are abundant, well
                                     stewardship. By making a few simple
                                                                                                                                          Warner Bros. Home Video                                                        SI.com covers important                              AOL’s India portal was
 Seafood                             choices, you can help conserve natural                    managed and caught or farmed in
                                     resources and ensure a healthy                            environmentally friendly ways.
                                     environment for future generations.
                                                                                               Good Alternatives are an option,
                                                                                                                                          included a sustainable                                                         sports stories.                                      launched in April 2007.
                                                                                                                                          seafood watch pocket-
                                 ®                                                             but there are concerns with how
                                        To learn more about Warner Bros.
                                         Environmental Initiatives, visit:                     they’re caught or farmed —or with the
                                           www.wbenvironmental.com                             health of their habitat due to other

                                                    Brought to you in
                                                                                               human impacts.                             guide with Happy Feet
                                                    partnership with:                          Avoid for now as these items are
                                                                                               caught or farmed in ways that harm
                                                                                                                                          DVDs distributed in the
                                                                                               other marine life or the environment.
                                                                                                                                          U.S. and Canada.
                                                                                               Visit www.seafoodwatch.org for more
           Y E L L OW F I N   TUNA
                                                                                               detailed information on these and
                                                                                               other seafood recommendations.
   Seafood Guide                                 ©2007 Warner Bros. Ent. Inc.
                                                                                                   Contaminant information provided by:

                                      The seafood recommendations in this guide are
                                      credited to the Monterey Bay Aquarium Foundation
                                      ©2007. All rights reserved. Printed on recycled paper.                  112092-90-IN2

Determine our company-wide energy usage                                                                                                   that all new employees receive SBC training when    toring partners. Information about the company’s      value, and create the greatest returns for our
and greenhouse gas emissions                                                                                                              they join the company. More information about       ethical sourcing program is available in Section 7:   stockholders. We will continue to recruit and
In 2006 and 2007, we evaluated our domestic                                                                                               our ethics and compliance work is available in      Supply Chain.                                         promote the best talent to support the company’s
environmental footprint. We conducted an energy                                                                                           Section 5: Ethics, Governance, and Public Policy.                                                         growth opportunities. More information about
assessment initiative to determine Time Warner’s                                                                                                                                              2008-2009 Objectives and Challenges                   this goal is available in Section 3: Diversity and
energy usage and greenhouse gas emissions.                                                                                                Continue to increase employee satisfaction          We are proud of the significant progress we’ve         Section 6: Employees and Workplace.
                                                                                                                                          We found that overall satisfaction increased        made and below are several of our citizenship
The purpose of the energy assessment project                                                                                              from 70% in 2004/2005 to 74% in 2006/2007.          goals for 2008 and 2009.                              Enhance ethical sourcing program
was to develop a baseline against which we could                                                                                          More information on our employee and wellness                                                             We plan in 2008 and 2009 to reinforce our
measure company energy reduction efforts,                                                                                                 programs is available in Section 6: Employees       Reduce our company-wide                               program by rolling out an information manage-
to share best practices among divisions, and to                                                                                           and Workplace.                                      environmental footprint                               ment system that will include a preferred
generate cost savings opportunities.                                                                                                                                                          We view our work to date as the first phase            supplier database, partnering with industry
                                                                                                                                          Create Ethical Sourcing Guidelines                  in a greenhouse gas and environmental impact          peers to optimize our efficiency, and ex-
More information about this effort and its chal-                                                                                          In early 2007, our Board of Directors approved      reduction effort. In 2008 and 2009, we plan           panding partnerships with organizations that
lenges is available in Section 4: Environment.                                                                                            a set of Ethical Sourcing Guidelines for Time       to evaluate the feasibility of expanding our car-     can help strengthen our supply chain. More
                                                                                                                                          Warner. We developed these Guidelines in con-       bon footprint analysis, increase employee en-         information about this goal is available in
Enhance ethics and compliance awareness                                                                                                   sultation with more than 100 internal and exter-    vironmental awareness, and continue reducing          Section 7: Supply Chain.
During 2006, we launched a multimedia campaign                                                                                            nal stakeholders. By the end of 2007, we com-       energy usage and greenhouse gas emissions
at the Corporate level to raise employee aware-                                                                                           municated the guidelines to licensees and           in ways that make sense for our businesses.
ness around ethics and compliance; the campaign                                                                                           vendors of consumer products under contract         More information about this goal is available
also extended to several of our businesses.                                                                                               with Time Warner, and began a pilot program         in Section 4: Environment.
We also developed interactive annual training                                                                                             to help us select third-party compliance moni-
programs to refresh ethics and compliance train                                                                                                                                               Support the company’s growth in international
ing for current employees. All regular employ-                                                                                                                                                and U.S.-based multicultural markets
ees in the U.S. were educated about our Stan-                                                                                                                                                 A diverse company helps us to identify the best
dards of Business Conduct (SBC), and we require                                                                                                                                               growth opportunities, deliver the best customer

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REPORT OVERVIEW          AND CONTENT                                AND PUBLIC POLICY            AND WORKPLACE




09   Election 2008 –
     The CNN/YouTube Debates

09   Telling Important Stories

10   Awareness of Social Concerns

11   Public Service Announcements

12   Reaching Intended Audiences

12   Parental Controls

13   People with Disabilities

14   Customer Privacy and Online Safety


                                                                    HBO’s Autism: the Musical brings attention to a modern-day epidemic while celebrating the value of
                                                                    the human spirit.

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COMPANY AND                 CUSTOMERS                  DIVERSITY                   ENVIRONMENT              ETHICS, GOVERNANCE,        EMPLOYEES                 SUPPLY CHAIN                COMMUNITY
REPORT OVERVIEW             AND CONTENT                                                                     AND PUBLIC POLICY          AND WORKPLACE

                                                       CNN reporters travel to                                                         iReporters cover the                                 TIME reports on inno-
                                                       the news to bring viewers                                                       2008 U.S. presidential                               vative ideas that are
                                                       the breaking stories.                                                           election.                                            shaping the world.

Time Warner creates and distributes content that       JOURNALISTIC INTEGRITY                               integrity and accuracy are of the utmost impor-      Technology is changing the way that news is deli-
informs, entertains, and inspires people of all ages   Whether online, on demand, or on television,         tance to the brand, and systems are in place to      vered and received, and our businesses are
and in all walks of life, around the world. It is in   we strive to adhere to stringent standards           monitor quality control. For example, CNN’s policy   applying their standards for journalistic integrity
this endeavor that we have the greatest impact         of journalistic integrity and to meet the high       is that no taped piece goes on air without going     to new formats. For example, CNN.com invites
on society and are guided by the values on which       expectations of our audiences. We expect our         through two different approval processes.            the public to report on events they observe, in
our businesses were founded: journalistic integ-       reporters and editors to be fair and honest                                                               the form of iReports. Since CNN launched iReport
rity; freedom of expression; responsible content;      and to confirm the facts before articles or TV        Time Inc. has had a long tradition of journalistic   in August 2006, over 100,000 news-related
diversity of viewpoints; and access to information.    segments are released to the public. At CNN,         integrity dating back to its founding in 1923.       photos and videos have been submitted from
                                                                                                            Time Inc.’s editorial guidelines cover important     viewers. The pieces that are selected to appear
                                                                                                            aspects of reporting, writing, and editing,          on CNN or CNN.com are subject to the same
DISCUSSION POINT:                                                                                           including subjects such as privacy concerns and      strict guidelines that CNN applies to traditional
Jim Kelly, Managing Editor, Time Inc.                                                                       confidentiality. The Managing Editor of Time Inc.     reporting. Rather than simply share iReports
                                                                                                            holds frequent seminars every few weeks with         as they are posted, CNN.com verifies both the
                                                                                                            groups of journalists and editors to discuss         information and the identity of the person who
                                                                                                            the guidelines in detail and how they apply to       submitted it before publicly broadcasting or
“Over the last 10 years, it has been interesting to    reporter brings his or her own life experiences      real life examples. Several hundred employees        posting the information online. Thanks to iReport,
 note how popular journalism with a slant has          to their story. To be objective is to be a steno-    have already been through the course.                CNN – and therefore its audiences – has unparal-
 become. For example, if you are conservative or       grapher and even a stenographer doesn’t                                                                   leled access to up-to-the-minute, on-the-spot
 liberal you may be driven to find your news from       capture all the nuances. What we strive for at                                                            information from anywhere in the world.
 a source that shares your point of view. At Time      Time Inc. is fair journalism. The best kind of
 Inc., no magazine tries to appeal to a specific        journalist is never cynical, but is skeptical in a                                                        Similarly, at Time Inc., the editorial expectations
 political constituency. What we hope to do is pro-    healthy way. Honest, fair, and straightforward –                                                          are as high for content published on the Web
 duce journalism that is fair, honest and doesn’t      those are the kinds of journalists we have at                                                             as they are for content published in magazines.
 play favorites. The idea of producing objective       Time Inc. We don’t just talk about journalistic                                                           Particularly controversial stories that appear
 journalism, a phrase that is often debated, is not    integrity; we practice it every day in every one                                                          on the Web are reviewed by Time Inc.’s Managing
 possible in good journalism. Any editor or            of our magazines.”                                                                                        Editor or Editor in Chief and are vetted before
                                                                                                                                                                 they are published online.

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COMPANY AND                CUSTOMERS                DIVERSITY                   ENVIRONMENT               ETHICS, GOVERNANCE,        EMPLOYEES                 SUPPLY CHAIN               COMMUNITY
REPORT OVERVIEW            AND CONTENT                                                                    AND PUBLIC POLICY          AND WORKPLACE

                                                    HBO on Demand                                         HBO Documentary Films’                                                          CNN Heroes highlights
                                                    delivers children’s                                   Little Rock Central:                                                            the extraordinary
                                                    programming to                                        50 Years Later is a                                                             heroism of ordinary
                                                    millions of homes                                     candid look at the                                                              people.
                                                    across the U.S.                                       Arkansas school that
                                                                                                          became a symbol
                                                                                                          of the struggles and
                                                                                                          hopes of the Civil
                                                                                                          Rights Movement.

FREEDOM OF EXPRESSION                               audiences with the platforms they need to             magazines, news programs, and websites have          RESPONSIBLE CONTENT
It could be argued that no freedoms guaranteed      share and amplify their own ideas.                    achieved their popularity by delivering independ-    Determining the quality and social responsibility
are more cherished than those protected by the                                                            ent, high-quality journalism.                        of media, especially entertainment, can be dif-
First Amendment to the U.S. Constitution. As a      We believe in a free and independent press.                                                                ficult. What constitutes an entertaining night at
media and entertainment company, we stand           A fundamental principle of journalism in              Election 2008 – The CNN/YouTube Debates              the movies for one person may be provocative
for freedom of expression. Whether it is through    our networks and publishing businesses is             Our commitment to freedom of expression and a        and unsettling for another. To us, delivering high-
our entertainment, networks, publishing,            the ability of reporters to seek out and              diversity of viewpoints, coupled with the power      quality and socially responsible content does
or interactive services, we nurture the creative    report the facts without interference from            of technology, are continuing to provide innova-     not mean limiting the creativity of our film and
freedom of our employees, and we provide our        government. Our many industry-leading                 tion in journalism. In 2007, CNN partnered with      television producers or the investigative range
                                                                                                          YouTube to create a new kind of political debate     of our journalists. In fact, it means just the
                                                                                                          that gave ordinary citizens from around the          opposite. We encourage our people to bring a
                                                                                                          country the opportunity to question the presi-       multitude of different perspectives to the work
DISCUSSION POINT:                                                                                         dential candidates through self-created videos.      they produce by spotlighting important issues,
Jim Walton, President, CNN Worldwide                                                                      Approximately 7,900 video questions were sub-        provoking debate, and sometimes simply seeking
                                                                                                          mitted to YouTube for the two national debates.      to provide audiences with some respite from
                                                                                                          The CNN/YouTube debates generated strong             daily life.
“At CNN, we want to be accurate above all else,     Citizen journalism enables people to participate      interest among voters, particularly younger
 timely, and to take our viewers to where the       in the news and be a part of the process. CNN         Americans. The debates broke audience records,       Telling Important Stories
 news happens. We want to report the news from      embraces the changing technology that gives           with almost 4.4 million viewers tuning in to the     We believe that important stories should be
 all sides, from every angle, without bias. To do   us the tools for us to do our job better – to bring   Republican debate on television and more than        shared across all of our media platforms.
 this, we need to have a diversity of thought in    more news to more people. It’s not enough for         half a million online viewers watching this debate   Recent examples include two of HBO’s Emmy®
 planning the stories we cover and the questions    news organizations to report from on high with        on CNN.com’s live simulcast, making it the most-     Award-winning films: Baghdad ER, which took
 we ask. We need the positive creative tension      only one opinion. Balanced, unbiased news is          watched primary debate in cable news history.        viewers into a military emergency room in
 that comes as a result of employing journalists    critical in a free society. We are an independent                                                          the capital of Iraq, and When the Levees Broke:
 and producers from different walks of life and     and respected news source, and will continue                                                               A Requiem in Four Acts, Spike Lee’s probing
 with different experiences.                        to do whatever we can to hold on to that spot.”                                                            look at Hurricane Katrina’s devastation of
                                                                                                                                                               New Orleans.

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REPORT OVERVIEW            AND CONTENT                                                                    AND PUBLIC POLICY          AND WORKPLACE

                           HBO’s 14-part series,                                                          TIME reports on the                                                            HBO Documentary Films’
                           Addiction, brings                                                              science behind morality.                                                       Sand and Sorrow exam-
                           together the nation’s                                                                                                                                         ines the crisis in Darfur.
                           leading experts on
                           drug and alcohol

Warner Independent Pictures’ 11th Hour, with        three of the leading national substance abuse         Tobacco                                              or/producer about the importance of avoiding the
Leonardo DiCaprio, focused on the perils of         organizations to extend the reach of the content      We have steadily reduced the number of films we       depiction of tobacco unless it meets the criteria
global warming. In early 2008, CNN launched         as far as possible into local communities. HBO        produce with tobacco depictions, particularly        set out in our policy.
“Autism: Unraveling the Mystery,” a series of       believed that making the project accessible to        those intended for younger audiences. Since the
special reports that ran on all CNN platforms.      as many people as possible by opening its signal,     enactment of our tobacco policy in 2005, none        Beginning with films released in theaters after
CNN.com features an “Impact Your World”             streaming all the content for free on the Web,        of the G-rated films we produced have included        January 1, 2008, Time Warner companies include
section of the website that encourages viewers      and making the series available free as podcasts      smoking references of any kind. In 2007, only        an anti-smoking Public Service Announcement
to take action and create positive change.          would create a meaningful shift in America’s          27% of films rated PG or PG-13 contained              (PSA) prior to all films that depict tobacco pro-
In addition, CNN produced and launched “Planet      approach to addiction. As a result, the campaign      tobacco depictions compared to 32% in 2006           ducts for standard definition DVDs that are dis-
in Peril,” a multimedia worldwide investigation     has succeeded in touching tens of millions of         and 48% in 2005. Overall, since Time Warner’s        tributed in North America. In addition, any film
into the state of the earth with Anderson           Americans, building new awareness of what we          policy was enacted, the number of films we
Cooper and Dr. Sanjay Gupta.                        know about addiction.                                 produce or distribute in the U.S. that contain
                                                                                                          tobacco depictions has been reduced by 35%.          DISCUSSION POINT:
Addiction – A Multimedia Initiative                 Awareness of Social Concerns                          Our current system of data collection meas-          Richard Plepler, Co-President, HBO
Our businesses deliver content on multiple plat-    We understand that our entertainment program-         ures whether a film contains tobacco or not.
forms. In 2007, HBO’s “Addiction” exemplified        ming also has an impact on culture. Without
the ways we are able to deploy our vast media       curtailing artistic freedom, we’re sensitive to the   Time Warner updated its policy on the depic-       “HBO has a long and distinguished tradition of
resources to deliver important information          implications of the films and television programs      tion of tobacco in films in 2007. The policy is      addressing important issues through the
about a devastating disease. HBO created            we produce.                                           available at www.timewarner.com/citizenship.        various genres of our programming. Civil rights,
“The Addiction Project,” which consisted of a 14-                                                                                                             human rights, AIDS, and race are just a few
part documentary series; a four-disc DVD set;                                                             The policy is now included in the Feature Produc-   examples that we have tackled over the years.
the book “Addiction: Why Can’t They Just Stop?”;                                                          tion Manual for our filmed entertainment division, We’re very proud of any small role we play
four independent addiction-themed films;                                                                   and for every film that is produced that contains    in helping to elevate these issues further into
a robust website; and a national 30-city com-                                                             one or more characters smoking, a creative          the public dialogue.”
munity awareness campaign. HBO also engaged                                                               executive has a discussion with the writer/direct-

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                                                    CNN’s Impact Your World                                 “Rescuing Recess” is part                                                      Turner’s Cartoon
                                                    helps viewers take action                                of Cartoon Network’s                                                          Network launched
                                                    to make a difference in                                  effort to promote child-                                                     “Get Animated”
                                                    the world.                                               hood health.                                                                  to inspire a healthy
                                                                                                                                                                                           lifestyle for kids
                                                                                                                                                                                           ages 6-14.

on DVD depicting tobacco will contain the follow-   by the Institute of Medicine and U.S. Dietary           to motivate parents and community leaders           In 2007, HBO teamed with the National Basket-
ing certification language in the end credits:       Guidelines. Cartoon Network also pledged to             to become recess monitors for their schools.        ball Association (NBA), the Global Business
“No person or entity associated with this film       integrate positive messages about nutrition             In under two years, “Rescuing Recess” has           Coalition on HIV/AIDS, Tuberculosis and Malaria
received payment or anything of value, or enter-    and exercise into its own original programming.         received 14 nationally recognized awards            (GBC), and the Kaiser Family Foundation to de-
ed into any agreement, in connection with the       As part of this pledge, Cartoon Network added           for community service, program creativity,          velop television and radio PSAs that promote HIV
depiction of tobacco products.”                     a new dimension to its “Get Animated” initiative,       and effective communication strategies.             testing in the U.S. and abroad. Featuring Queen
                                                    which was launched in 2005 to inspire kids to                                                               Latifah and Jamie Foxx, along with leading NBA
Childhood Obesity                                   “get active, get healthy, and get involved.”            Public Service Announcements                        players, the PSAs aired on media outlets in the
In light of the increasing rates of childhood                                                               Public Service Announcements (PSAs) are another     U.S., and an international version was distributed
obesity, Time Warner companies are responding       This new initiative, “Rescuing Recess,” was laun-       way that Time Warner is able to help promote        throughout Africa, the Caribbean and Asia-Paci-
in three ways: by limiting the use of popular       ched in 2006 in partnership with several leading        awareness about a range of important social is-     fic regions.
characters from our children’s television shows     child-advocacy groups. Its mission is to build          sues. Through an array of our businesses’ media
to healthy food and beverage advertising; by        greater awareness of the value of daily recess          resources in print, interactive, DVD, and televi-   Total PSA Contributions
launching new initiatives that focus on physical    in the lives of elementary students – both for          sion, Time Warner provides in-kind media support    Time Warner is dedicated to supporting PSA
activity as part of overall wellness; and by sup-   personal and social health, and for better class-       by donating media space to various local and        contributions across the company. Over the
porting child-advocacy groups.                      room performance. “Rescuing Recess” sets out            national nonprofit organizations. Many of our        last two years, our in-kind media contributions
                                                    to educate parents, administrators, teachers,           donations are made through the Ad Council           for PSAs have exceeded:
In August 2007, Cartoon Network established         and students to become community advocates              (www.adcouncil.org). Time Warner’s support
guidelines concerning how the network’s original    for healthy physical activity as part of their          of the Ad Council dates back to 1946 when           2007: $190,000,000
characters may be licensed to advertise food        school wellness policies. It also uses high-visibili-   Time Inc. provided space in magazines for non-      2006: $250,000,000
or beverages. The guidelines state that when        ty campaigns such as “National Recess Week”             profit print ads. More recently, Time Warner
Cartoon Network characters are used in mes-                                                                 Cable and Turner Broadcasting have provided
sages aimed at children under the age of 12,                                                                TV spots and AOL has provided online space
the products in those advertisements must meet                                                              to run interactive PSAs.
nutritional criteria based on standards issued

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                                                    POGO is Turner’s                                                  KOL is AOL’s unique site
                                                    television channel                                                for kids.
                                                    created exclusively
                                                    for kids in India.

ACCESS TO INFORMATION                               primarily for adults. To help ensure that our con-   Our networks use a similar rating system, which     parents manage their children’s Internet experi-
Just as we support journalistic integrity and       tent reaches appropriate audiences, we volun-        we worked with industry experts to develop.         ence, both AOL and Time Warner Cable provide
freedom of expression, we support – and,            tarily participate in a number of industry-wide      The TV rating system divides shows into eight       protections that help parents to observe, limit,
indeed, our businesses are built on – access        rating systems. Ratings enable consumers,            different categories based on viewer maturity.      or otherwise monitor their children’s online
to information.                                     parents, and organizations that carry our con-                                                           activities. AOL, for example, offers free parental
                                                    tent to make informed decisions.                     Television networks use these TV ratings as guid-   control software. Available at parental controls.
Changing technologies continue to provide new                                                            ance to help determine appropriate scheduling       AOL.com, the software offers standard age-
opportunities to connect audiences and lay the      The best-known rating system includes the G,         times for programming and to determine whether      based access controls, selective controls on AOL
groundwork for a more inclusive global society.     PG, PG-13, R and NC-17 ratings developed by          parental advisories should be included before       instant messaging (AIM) and chat, timers that
When asked about CNN’s mission, founder             the Motion Picture Association of America and        programs begin airing.                              terminate online access at preset time limits,
Ted Turner said it was “to provide information      used by all of our film production businesses.                                                            and email reports on children’s online activities.
to people when it wasn’t available before.”         Warner Bros. takes an additional step and uses       Warner Bros. Interactive Entertainment and
                                                    its own internal guidelines to further regulate      Turner’s GameTap Entertainment submit their         Parents are not required to use these tools, but
At the same time that Time Warner is committed      how its adult-oriented films are advertised.          video games for ratings by the Entertainment        AOL actively informs its users that the tools are
to making our content accessible to a wider                                                              Software Ratings Board (ESRB). This rating          available and offers various forms of support
audience, we also want to provide customers with    For example, Warner Bros. Pictures does not          system, developed by the entertainment software     to parents to help them use the tools effectively.
the tools they need to make informed viewing        market R-rated films in print or on television        industry, uses symbols to indicate appropriate      In 2008, AOL intends to make its parental con-
decisions and we seek to make sure that our films,   when 35% of the expected target audience is          age ranges for players and provides standardized    trol software even more widely available on
 television programs, games, and other content      under the age of 17. Furthermore, the studio         content descriptors for game elements, such         the Internet, which we believe will enhance its
offerings reach their intended audiences.           does not engage in toy-driven promotions for         as violence, that may cause concern for players     value to millions of users.
                                                    any R-rated films and does not attach trailers        or parents.
Reaching Intended Audiences                         for R-rated films to G- or PG-rated films.
Many of our films, television programs, and doc-                                                          Parental Controls
umentaries can be enjoyed by people of all ages.                                                         We provide parents with tools they need to help
In some cases, however, our content is suitable                                                          to safeguard their children and that are easy for
                                                                                                         our customers to understand and use. To help

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                                                     “Autism: Unraveling                                                                                         Time Warner Cable pro-
                                                      the Mystery” was                                                                                           vides parents with
                                                      a multi-platform                                                                                           the tools they need to
                                                      CNN event.                                                                                                 make viewing choices
                                                                                                                                                                 for their family.

Time Warner Cable and AOL have partnered with        which was instituted in 2003, is made across         AOL has a contract in place with a vendor that         and hard-of-hearing people. In 2004, AOL
Common Sense Media, the nation’s leading non-        multiple SI platforms several weeks in advance       employs people with disabilities to test accessibil-   launched AIM Relay Services to allow users to
partisan organization dedicated to improving the     of publication.                                      ity support developed for priority products.           connect with telecommunication relay services
impact of media and entertainment on children                                                             AOL is also actively engaged in community activ-       right from their AIM Buddy Lists on their desk-
and families. Through this partnership, Time         People with Disabilities                             ities, and regularly sponsors conferences such         tops or their cell phones. In 2007, AOL released
Warner Cable and AOL customers receive easy-         For people with disabilities, the Internet is more   as the Assistive Technology Industry Association       website Basic – Accessible Version, a webmail
to-access, point-of-decision reviews, ratings and    than a convenient way to interact with the world.    Leadership Forum and the CSUN Technology and           product that was lauded by the National Federa-
program information designed to help parents         It may be a primary way of expressing choices,       Persons with Disabilities Conference, as well as       tion of the Blind and other leading consumer
make informed viewing choices about TV and           handling money and shopping, pursuing personal       consumer conventions hosted by the National            organizations. Its interface allows users who
movies. Time Warner Cable has integrated Com-        interests, and being part of a community.            Association of the Deaf, Telecommunications for        are blind or have low vision to engage in a robust
mon Sense Media’s extensive reviews and                                                                   the Deaf Incorporated, and other organizations.        email experience that is highly compatible with
recommendations into its cable television and        In July 2000, AOL adopted an accessibility policy                                                           screen reader software without the need for
high speed data services. Time Warner Cable is       designed to improve the usability of products        In early 2008, AOL tested the first real-time           a computer mouse. Users will find it by visiting
the first cable operator to partner with Common       and services for people with disabilities.           instant messaging (IM) feature targeted to deaf        http://mail.aol.com and clicking “Accessible
Sense Media to help parents make the best                                                                 and hard-of-hearing users that also offers a           Version” on the footer.
entertainment choices for their families.            The policy begins with educating employees and       natural flowing IM experience for everyone.
                                                     establishing guidelines for product and techno-      Built with guidance from Gallaudet University          Warner Bros. makes its releases available with
Sports Illustrated Swimsuit Issue                    logy development, and AOL is currently evaluating    and the Trace Research and Development Center          open and closed captions for the deaf and hard-
Sports Illustrated recognizes that the annual        its performance in these areas. Collaboration        at the University of Wisconsin-Madison, this           of-hearing audience. Warner Bros. DVDs have
Swimsuit Issue depicting models in bathing suits     with the disability community is also an essential   feature is in the latest beta version 6.8 of the       captioning or subtitles for the deaf and hard-
may not be appropriate for children. Accordingly,    component of AOL’s accessibility efforts.            popular AIM software that is available as a            of-hearing, and some titles have a description
subscribers who do not wish to receive the edi-                                                           free download at http://beta.aol.com.                  narration track for the blind. Warner Bros. also
tion are given the opportunity to skip to the next
issue, thereby extending their subscription with                                                          AOL has a history of making its products access-
no additional charge. Notification of this policy,                                                         ible to a broad and inclusive group of users,
                                                                                                          and has made great strides on behalf of deaf

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                                                    Approximately 25% of                                                                         AOL’s online education
                                                    TIME.com’s traffic                                                                            helps customers
                                                    comes from outside                                                                           better understand
                                                    the U.S.                                                                                     internet advising.

provides video description, captioning, and         Where our web properties and access services         how behaviorally targeted advertising works.          According to TRUSTe, surveyed companies were
subtitles on the enhanced content (extra feat-      are concerned, we strive to provide more than        The campaign includes banner ads featuring            judged according to criteria including the read-
ures) of the DVDs of all new theatrical releases.   fast access and optimal usability for our millions   an animated penguin that explains targeted            ability of privacy statements and notices, the ac-
In 2006, all 19 Warner Bros. releases were          of customers. As part of our commitment to           advertising quickly and simply, along with more       cessibility to account information and the ability
captioned, including Superman Returns, Happy        media access, we recognize that protecting           details available at PrivacyGourmet.com,              to make changes, cookie practices, in-network
Feet and The Departed; eight were released          customer privacy is critical to the success of       the blog run by AOL’s Chief Privacy Officer.           and out-of-network data sharing practices, choice,
with video description. In 2007, all 22 releases    our business. We therefore offer consumers                                                                 regulation, infrastructure, and customer service,
were captioned and nine were also released          a high level of privacy protection.                  AOL TRUSTe Award                                      among others. AOL consistently met or exceeded
with video description. At Turner, TNT carries                                                           In early 2008, TRUSTe, the leading Internet           expectations on all 14 criteria.
an average of 26 descriptive video service          AOL has appointed a Chief Privacy Officer and         privacy seal-of-approval, and Ponemon Institute,
hours per week and TCM carries video descri-        created a consumer advocacy and privacy              an independent research firm, named AOL as             RECOGNITION AND AWARDS
ption on approximately 35 theatrical features       team charged with ensuring best practices for        one of the top three Most Trusted Companies           Over the years, Time Warner has been recognized
per month or approximately 70 descriptive           protecting consumer privacy. In February             of 2007 for Privacy, following a two-stage survey     by many notable media and nonprofit organiza-
video service hours.                                2008, AOL announced its participation (along-        to gauge the privacy policies and practices of        tions. Perhaps the nation’s most prestigious hon-
                                                    side Google, Microsoft, Yahoo! and others)           over 200 companies. The 20 companies rated            ors for achievement and meritorious public ser-
Customer Privacy and Online Safety                  in the Internet Safety Technical Task Force.         most trusted, in an unaided consumer survey,          vice by TV and radio stations, networks, producing
Time Warner Cable had approximately 7.6 million     Led by Harvard’s Berkman Center and created          moved on to the expert review where policies,         organizations, individuals, and the Internet are
residential high-speed data subscribers at the      in cooperation with 49 state Attorneys Gen-          practices, and execution were tested for consis-      the George Foster Peabody Awards.
end of 2007. As of March 2007, the AOL Network      eral, the task force evaluates a broad range         tent care with regard to privacy issues.
receives approximately 110 million average          of existing and state-of-the-art online safety       The review included an evaluation of policies         Time Warner received eight Peabody Awards for
monthly domestic unique visitors and operates       technologies, including a review of identity         and practices, as well as interaction with            2006 and 2007. In 2007 and 2008, our studios
one of the web’s best-known portals along with      authentication tools to help sites enforce min-      support staff.                                        and networks received a total of 16 Academy®
a growing family of related websites that inclu-    imum age requirements.                                                                                     Awards, in 2006 and 2007 we received a total of
des MapQuest and Moviefone.                                                                                                                                    73 Emmy® Awards. In early 2008, CNN’s digital
                                                    In April 2008, AOL launched an online education                                                            news gathering operations garnered its third
                                                    campaign to help consumers better understand                                                               prestigious honor for innovation at the 59th

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                                                   Essence magazine
                                                   covers important
                                                   topics effecting
                                                   our communities.

Annual Technology & Engineering Emmy Awards        The GLAAD Media Awards are given for fair,          • Family Television Award – for outstanding         • The National Council of La Raza – for positive
for developing technology that enables journal-    accurate, and inclusive representations of the        family television in 2006                           portrayals of Latinos in 2007
ists to report, edit, and produce news packages    lesbian, gay, bisexual and transgender com-
from nearly anywhere on the globe. In September    munity and the issues that affect their lives.      • American Women in Radio and Television’s          • The Native Voice Media Awards – for building
2007, the International Broadcasting Conference,                                                         Gracie Allen Awards – for positive portrayals       bridges to Native American culture through
a leading global association guiding content       Since the publication of our 2006 CSR Report,         of women in entertainment in 2006 and 2007          media in 2007
delivery innovations within the broadcast indus-   many other organizations have also found many
try, honored CNN with two of its IBC Innovation    of our programs worthy of recognition, including:   • iParenting Media Awards – for outstanding         • Sentinel for Health Awards– for promoting
Awards, including a “Judges’ Prize” for the top                                                          product in television in 2007                       choices for healthier and safer lives in 2006
innovation of the past year. In addition, TIME,    • Cable Positive – for AIDS awareness and action
In Style, People, Entertainment Weekly and           in 2006, 2007, and 2008                           • IMAGEN – for positive portrayals of Hispanics     • Women’s Image Network Awards– for positive
Sports Illustrated collectively won eight Mag-                                                           in 2006 and 2007                                    portrayals of women in 2006
azine Publishers of America (MPA) Digital          • EDGE – for entertainment depictions of gun
Awards for 2008; they honor the excellence           education in 2006                                 • International Health and Medical Media – for
and innovation of magazine brands on digital                                                             health and medical programs in 2006 and 2007
platforms. In 2008, the Gay and Lesbian            • Environmental Media Awards – for environmen-
Alliance Against Defamation (GLAAD) recog-           tal awareness and education in 2006 and 2007      • Media Access Awards – for positive portrayals
nized People en Español for Maria Morales’                                                               of disability in the entertainment industry in
article, “RBD enfrenta la verdad” and Anderson                                                           2006 and 2007
Cooper 360 for the news segment, “The First
Casualty.” Time Inc. received two Champion                                                             • The National Association for Multi-ethnicity in
in Diversity awards in 2008 from the National                                                            Communications – for outstanding achieve-
Association of Minority Media Executives.                                                                ments in original, multi-ethnic cable program-
                                                                                                         ming in 2006, 2007, and 2008

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REPORT OVERVIEW        AND CONTENT                             AND PUBLIC POLICY            AND WORKPLACE



17   Domestic Market

18   International Market

20   Human Rights Campaign’s
     Corporate Equality Index

20   Implementation

                                                               Time Warner values diversity in front of and behind the camera. Images from top left to right: Harry Potter and
                                                               the Half-Blood Prince, House of Payne, The Wire, The Situation Room, Hairspray, I am Legend, Class of 3000,
                                                               People en Español.

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                                                                                                          Turner’s House of Payne                               Essence magazine has
                                                                                                          is cable’s #1 ad-support-                             delivered quality content
                                                                                                          ed sitcom telecast of                                 to African-American
                                                                                                          all time.                                             women for 35 years.


As a leading media and entertainment company,         MARKETPLACE                                          We are also reaching diverse audiences with          films, television shows, documentaries and maga-
Time Warner helps tell the world’s stories to a       Domestic Market                                     “mainstream” brands and businesses. For exam-         zine articles – will need to change as well. More
global audience. Therefore, cultivating diversity –   Time Warner is a leader in serving diverse audi-     ple, People magazine reaches one out of              than 40% of the U.S. population under the age
of our content, products, and people – is a           ences in the U.S. and has an established tradi-      every five Hispanics; nearly one third of HBO’s       of 35 is from a diverse background and about half
business imperative.                                  tion of building brands to reach these audiences.    subscribers are people of color; over 20%            the U.S. population growth over the next several
                                                      For example, HBO Latino has offered Spanish-         of “Adult Swim’s” audience is African-American;      years is expected to be in the Hispanic community.
In recent years, growth in the media industry         language programming since November 2000             and “House of Payne” on TBS is cable’s #1 ad-        We will need to continue to reach even larger
has come increasingly from international and          and AOL offers the #1 most-visited website for       supported sitcom telecast of all time.               diverse audiences with our “mainstream” brands.
U.S.-based multicultural markets. Audiences           African-Americans, Black Voices, and the #2                                                               As a company, we are investing resources in
are becoming more diverse, both in ethnicity          most-visited website for Hispanics, AOL Latino.     As the demographics in the U.S. continue to change,   researching and understanding the changing
and nationality, and are expecting greater diver-     For 35 years, Time Inc.’s Essence magazine          we know that our products – the content of our        domestic marketplace so that we can continue
sity in content. We are therefore striving to         has been the most respected and established
become more diverse as a company, both in our         magazine for African-American women. With
content and in our workforce. We believe that         over 200,000 attendees in 2007, the Essence         DISCUSSION POINT:
achieving more diversity in these areas will          Music Festival is the largest yearly gathering      Sheryl Hilliard Tucker, Executive Editor, Time Inc.
enable us to identify the best growth opportu-        of African-American musical talent in the world.
nities, deliver the best customer value, and          In 2007, the Festival celebrated its 13th anni-     “Designing content to meet the needs of a broad       the cutting edge of trends, news, and big ideas
create the greatest returns for our stockhold-        versary in New Orleans, where a portion of           viewership is important. When we are looking         to make sure we are covering topics in ways
ers. Accordingly, we are working to continue          its proceeds went to support the Children’s De-      at issues surrounding multicultural content or       that are exciting, interesting, and fresh to all
to foster and promote an internal culture that        fense Fund Freedom Schools of New Orleans.           diversity, it is important that these issues are     of our readers.”
values diversity of talent and ideas, as well                                                              relevant to a broad readership. We look at our
as to identify and aggressively pursue growth                                                              content through a diverse lens to increase
opportunities in multicultural and interna-                                                                our multicultural audience. We also have to
tional markets.                                                                                            appeal to younger people who see their world
                                                                                                           as diverse. It’s important for us to remain on

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                           AOL Black Voices is the                             In early 2008, AOL                                     Founded in 1930,                                        People in Español is the
                           #1 website for African-                             announced the beta                                     FORTUNE magazine is the                                 #1 magazine brand in
                           Americans.                                          launch of www.aol.hk,                                  only business brand with                                the Hispanic market.
                                                                               a dedicated web destina-                               editions in Europe and
                                                                               tion in Hong Kong.                                     Asia, including a Chinese-
                                                                                                                                      language edition.

to connect with it. In addition to company-wide      International Market                                 South America, and Asia. While many of our               AOL
efforts and research, all of our divisions are       International expansion is another opportunity       local-language films may never be seen beyond             AOL expects to have a presence in more than
exploring how best to connect to their markets       for growth for our company that is tied to divers-   their national borders, we believe they repre-           30 countries by the end of 2008, with content
in ways that make sense for them. For example,       ity. In pursuing international growth, we seek       sent not only important opportunities for our            specifically designed for local audiences.
Time Inc. conducts an in-depth Diversity Con-        to form strong local relationships that can help     business, but also an important contribution             As of this Report’s publication date, AOL has a
tent Review of its properties every three years      us grow our business.                                to cultural diversity, local economies, and en-          presence in 27 countries, including portals
to understand how inclusive we are in print                                                               tertainment in their countries. Below are a              in the U.K., Germany, France, Austria, Belgium,
and online titles. The review looks at a range of    In launching new ventures or partnering with         few more examples of ways in which we are                The Netherlands, India (Hindi and Tamil language
topics including the ways its magazines cover        existing businesses in other cultures, we start      expanding local content to reach new interna-            versions), Italy, Spain, Sweden, Switzerland,
issues from a wide range of communities and          by respecting the talent, experience, and track      tional audiences.                                        Poland, Australia, New Zealand, Mexico, Canada,
the diversity of the celebrities and newsmakers      record of our local partners, suppliers and                                                                   Hong Kong, and Taiwan.
that appear in our content. Time Inc. is also        creative collaborators. We also look at a range
examining ways to encourage journalists to           of CSR-related business issues including the
broaden the spectrum of voices in their stories      regulatory environment, cultural considera-          DISCUSSION POINT:
by consciously reaching out to new sources.          tions, and labor issues.                             Maneesh Dhir, EVP, AOL International

                                                     Among our divisions, Warner Bros. has gained         “The key to delivering a differentiated AOL exper-       ence. We evaluate each country before we make
                                                     considerable experience with this process.            ience in each global market is to provide rele-         a decision to enter the market. We have chosen
                                                     Since launching its local-language production         vant local services in each country, through local      to enter countries that we believe, based on
                                                     initiative in 1999, the studio has released           language websites, partnerships with local              both experience and research, have a significant
                                                     more than 180 such films produced in Europe,           companies to deliver content relevant to each           audience of consumers who will benefit from
                                                                                                           market, and tailored search solutions. When it          the range of products, services and content
                                                                                                           comes to locally-tailored solutions, we believe         that we offer. The fundamental benefit of the
                                                                                                           it is important to adapt the presentation and           Internet is all about the ability to bring a global
                                                                                                           content in a manner that is appealing to consu-         community together, so it is both natural and
                                                                                                           mers in the markets in which we have a pres-            critical for AOL to have a global presence.”

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COMPANY AND                CUSTOMERS                  DIVERSITY                  ENVIRONMENT                ETHICS, GOVERNANCE,         EMPLOYEES               SUPPLY CHAIN                COMMUNITY
REPORT OVERVIEW            AND CONTENT                                                                      AND PUBLIC POLICY           AND WORKPLACE

                                                      Pan’s Labyrinth, pro-                                               Waar is Het Paard Van                              Sports Illustrated
                                                      duced in Mexico and                                                 Sinterklaas is a Dutch                             China is written in
                                                      distributed in the U.S.                                             children’s film produced                            Chinese and covers
                                                      by Picturehouse,                                                    by Warner Bros.                                    Chinese and West-
                                                      became the highest-                                                                                                    ern sports.
                                                      grossing Spanish-
                                                      language film of all
                                                      time in the U.S.

Time Inc.                                             Turner                                                WORKFORCE AND WORKPLACE                             throughout the company at all levels and in mana-
Time Inc. is well established in international mar-   In 2004, Turner launched its POGO channel for         Attracting and retaining a diverse workforce is     gerial positions. The representation of women
kets. Its IPC Media unit is one of the U.K.’s con-    Hindi-language family and children’s entertain-       vital to our success. Time Warner has a broad       company-wide in the U.S. in 2007 remained close
sumer magazine publishers, and Grupo Editorial        ment in India, and the channel has since flour-        and inclusive approach to diversity. We believe     to the percentage of total women in the work-
Expansión is the third-largest consumer maga-         ished. In 2007, POGO produced 150 hours               that people from different cultures, ethnicities,   force, according to the U.S. Department of Labor
zine publisher in Mexico. Time Inc. is active in      of original programming in India and now ranks        sexual orientations, disability communities,        Bureau of Labor Statistics.
other markets, too.                                   second in the country in its viewer segment,          geographic regions, viewpoints, and genders
                                                      behind Cartoon Network, also a Turner property.       bring important values and qualities to the         We also track and look closely at the represent-
As of 2008, Time Inc. has over 30 international       Also in 2007, Turner formed a joint venture with      creation of Time Warner’s products.                 ation of women and people of color in the top
editions of its magazines under licenses with         India’s Alva Brothers to launch general enter-                                                            levels of our company. In an effort to increase
local publishers, including FORTUNE, Golf, Sports     tainment television channels in India. In addition,   We actively seek to recruit the most talented       opportunity, most slates for open positions at
Illustrated in China, and FORTUNE and In Style        Turner distributes approximately 50 region-           and diverse workforce. Over the last four years,    the Vice President level and above must contain
in Turkey. When Time Inc. expands internationally,    specific versions and local-language feeds of          the percentage of people of color has increased     a diverse set of applicants including women
it makes great efforts to select a partner that       Cartoon Network, Boomerang, Turner Classic
shares Time Inc.’s values. Time Inc. also reviews     Movies, and TNT in over 175 countries around
and discusses its editorial guidelines with the       the world.                                            DISCUSSION POINT:
new partner.                                                                                                Lisa Quiroz, Senior Vice President,
                                                                                                            Corporate Responsibility, Time Warner Inc.

                                                                                                            “For us, diversity is composed of three critical    are valued. Third, all of our businesses contin-
                                                                                                             areas. First, we focus on attracting, hiring,      uously examine emerging and diverse market-
                                                                                                             and developing the best and most talented          place opportunities in the U.S. and abroad.
                                                                                                             workforce, and that talent comes from all          More importantly, when we think of diversity of
                                                                                                             sectors of our society. Second, we make sure       people, we don’t just think of racial and ethnic
                                                                                                             our employees have an inclusive work ex-           designations, we think of gender, geography,
                                                                                                             perience where their thoughts and opinions         people with disabilities, and sexual orientation.”

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COMPANY AND                  CUSTOMERS                   DIVERSITY                    ENVIRONMENT             ETHICS, GOVERNANCE,          EMPLOYEES                    SUPPLY CHAIN                  COMMUNITY
REPORT OVERVIEW              AND CONTENT                                                                      AND PUBLIC POLICY            AND WORKPLACE

 U.S.-BASED REPRESENTATION – PEOPLE OF COLOR                                                                   U.S.-BASED REPRESENTATION – WOMEN
                                                                       Total % of Managerial Positions                                                                                 Total % of Managerial Positions
              Total % of People of Color*                              held by People of Color*                             Total % of Women by Women*                                 held by Women*
      2007                                  39%                2007                              28%                2007                                   41%               2007                                     42%
      2006                                  38%                2006                              27%                2006                                   41%               2006                                     41%
      2005                                  35%                2005                              25%                2005                                   43%               2005                                     41%
      2004                                  34%                2004                              24%                2004                                   43%               2004                                     42%
      2003                                  33%                2003                              24%                2003                                   44%               2003                                     42%

*Managerial positions include Top Management, Vice Presidents, Directors, Managers, and Professionals         *Managerial positions include Top Management, Vice Presidents, Directors, Managers, and Professionals

and people of color. Many candidates for top man-        and Transexual network), Alianza (HBO’s Hispanic     Across all our businesses, our senior executives         Time Warner’s 100 rating represents the fact
agement positions are promoted from within               Employee Networking Resource), BE@T (Black           champion inclusion through communication                 that the company offers equal benefits and
the company, and thus our efforts to hire women          Employees at Time Inc.), APLAWD (AOL People          to employees and customers, and by fostering             protections for its employees based on gender
and people of color into manager and director            Living and Working with Disabilities)and TWWN        an environment that encourages healthy debate.           identity or expression and sexual orientation.
positions are a long-term strategy to increase the       (Time Warner Women’s Network). At many
diversity of our top management.                         divisions, senior executives act as sponsors for     In a global marketplace, we know that diversity          Implementation
                                                         these affinity groups where they help provide         is a business imperative. We believe that achie-         Each division has an annual plan for diversity
Finally, we work to make sure that we are not only       guidance and act as a senior-level springboard       ving greater diversity will enable us to identify        that supports multicultural market expansion,
attracting and hiring the best and most diverse          for ideas.                                           the best growth opportunities, deliver the best          work-force diversity development, and work-
talent, but also are retaining that talent as appro-                                                          customer value, and create the greatest returns          place inclusion. Progress toward reaching
priate by creating an inclusive work environment.        Most of our businesses have also rolled out div-     for our stockholders.                                    the goals is considered by Time Warner senior
As of the end of 2007, all Time Warner divisions         ersity training and awareness programs that                                                                   management when assessing the division CEO’s
include identity, expression, or other legally           are included as part of the overall training given   Human Rights Campaign’s Corporate                        year-end compensation. We hold quarterly
protected classification in all EEO non-discrimina-       to newly hired and newly promoted supervisors.       Equality Index                                           meetings of a cross-divisional Diversity Group
tion or anti-harassment policies. In addition,                                                                Time Warner earned a perfect score of 100 on             chaired by Time Warner’s Senior Vice President,
most of our divisions provide financial support                                                                the Human Rights Campaign’s Corporate Equality           Corporate Responsibility to share best prac-
to employee-based affinity groups – professional                                                               Index (CEI) for 2008. The Human Rights Cam-              tices, lessons learned, and ideas for enhancing
development networks for diverse populations –                                                                paign is America’s largest civil rights organiza-        diversity and inclusion on a company-wide basis.
as one way to cultivate an inclusive work environ-                                                            tion working to achieve gay, lesbian, bisexual,
ment. Examples of our affinity groups include                                                                  and transgender equality. The CEI rates employ-
OUT@TW (Corporate’s Gay, Lesbian, Bisexual,                                                                   ers on a scale from 0 to 100 percent based
                                                                                                              on their treatment of gay, lesbian, bisexual, and
                                                                                                              transgender employees, consumers, and investors.

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REPORT OVERVIEW        AND CONTENT                             AND PUBLIC POLICY           AND WORKPLACE



22   A Company-wide Approach

22   Energy Usage and Greenhouse
     Gas Reduction: A Local Effort




                                                               Time Warner is committed to reducing our environmental footprint and to raising employee and customer
                                                               awareness about environmental issues.

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COMPANY AND                  CUSTOMERS                   DIVERSITY                   ENVIRONMENT                   ETHICS, GOVERNANCE,          EMPLOYEES                      SUPPLY CHAIN               COMMUNITY
REPORT OVERVIEW              AND CONTENT                                                                           AND PUBLIC POLICY            AND WORKPLACE

2007 SCOPE OF COMPANY VS. GREENHOUSE GAS EMISSIONS ASSESSMENT                                                                        2007 GREENHOUSE GAS EMISSIONS*

                                                                                                                                                                                                          SCOPE 1:
SCOPE        INCLUDED IN TIME WARNER                                  NOTES                                                                                                                               101,222 CO2e (12%)
             MEASUREMENTS                                                                                                                                         SCOPE 2:
                                                                                                                                                        (80%) 666,006 CO2e                                SCOPE 3:
1            Natural gas, fuel oil, refrigerants,                     Scope 1 and 2 measurements consist of energy usage at                                                                               62,236 CO2e    (08%)
             company-owned aircraft                                   U.S.-based owned and leased properties and include a
                                                                      combination of actual data and estimated data. When act-
2            Purchased electricity and steam                          ual data was not available, estimates were made using
                                                                      a national sample survey of energy data from the U.S.        * Scopes are defined in table to the left.
                                                                      Department of Energy (the Commercial Building Energy
                                                                      Consumption Survey or CBECS). Properties include,              2006 VS. 2007 EMISSIONS FROM PURCHASED ELECTRICITY AND STEAM*
                                                                      but are not limited to, studios, warehouses, office space,      (C02 IN METRIC TON EQUIVALENTS)
                                                                      server farms, and cable hubsites. Excluded are com-
                                                                      pany-owned or leased vehicles.                                                                               2006 Scope 2 Data      2007 Scope 2 Data

                                                                                                                                     TOTAL C02 EQUIVALENT                          638,108 CO2e           666,006 CO2e
3            Business travel (originating in the U.S.)                Scope 3 measurements consist of business travel origin-
                                                                      ating in the U.S. and arranged through Time Warner’s           CO2E PER SQUARE FOOTAGE                       .02 CO2e/sq. footage   .02 CO2e/sq. footage
                                                                      Travel Departments. Not included are taxi rides, daily em-
                                                                      ployee commuting or supply chain emissions.                    CO2E PER EMPLOYEE**                           8.1 CO2e/employee      8.9 CO2e/employee

                                                                                                                                      EQUIVALENT PASSENGER CARS                    388,748 cars           405,754 cars
                                                                                                                                      DRIVEN FOR ONE YEAR
                                                                                                                                    * Purchased steam was only included in the 2007 inventory and accounted for 121 CO2e.
                                                                                                                                   ** Per employee number is calculated using the number of U.S.-based employees as of
                                                                                                                                      December 31, 2006 and 2007.

Environmental issues have become an impor-               CLIMATE CHANGE                                            In 2006, we decided to focus on electricity usage           Energy Working Group
tant topic with nearly every major news outlet           As we indicated we would in Time Warner’s 2006            at domestic owned and leased properties, which              While the effort was led by the company’s corpor-
providing coverage of issues ranging from                CSR Report, we conducted an energy assessment             are a major source of our greenhouse gas emis-              ate headquarters, the expertise, experience,
the science of climate change to its economic            initiative to determine the greenhouse gas (GHG)          sions and the highest percentage of our energy              and data resides with the company’s real estate,
effects. Our publishing and film businesses               emissions associated with energy usage at our             expenditure. We kept the focus narrowed to                  environmental, and facilities managers across
have produced scores of articles and many                domestic properties and with select U.S.-origi-           electricity usage at domestic owned and leased              the U.S. As we embarked on this effort to assess
movies addressing pertinent environmental                nated travel. We also shared best practices for           properties because it allowed us to test our                our company-wide domestic energy usage,
issues. Stories about the effects of global              energy reduction among divisions.                         process for gathering the data and measuring                we created an Energy Working Group. Together,
warming have even appeared in FORTUNE                                                                              the GHG emissions associated with our elec-                 this cross-divisional working group developed
and Sports Illustrated.                                  A Company-wide Approach                                   tricity usage. In 2007, after we had successfully           our domestic baseline of energy usage and
                                                         With guidance from ICF International, a global            measured the electricity-usage, we expanded                 greenhouse gas emissions. As we move forward,
In addition to addressing climate change and             professional services firm, we focused the                 the parameters of our measurements to in-                   this Energy Working Group will continue to meet
energy efficiency, our company’s environmental            scope of the energy assessment initiative on              clude GHG emissions from other fuel sources,                to share best practices in energy management.
stewardship activities include our waste reduc-          U.S.-based owned and leased properties and                company-owned aircraft, and business travel
tion initiatives, sustainable forestry and paper         on select U.S.-based operations. We broke                 that is arranged through Time Warner’s Travel               Energy Usage and Greenhouse Gas Reduction:
practices, and green building design.                    the assessment into three defined scopes                   Departments and originates in the U.S.                      A Local Effort
                                                         (details above).                                                                                                      Many of our businesses have been addressing
                                                                                                                                                                               environmental issues for decades. Much work
                                                                                                                                                                               has already been done at each of our divisions

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COMPANY AND                CUSTOMERS                  DIVERSITY                 ENVIRONMENT                ETHICS, GOVERNANCE,       EMPLOYEES                 SUPPLY CHAIN               COMMUNITY
REPORT OVERVIEW            AND CONTENT                                                                     AND PUBLIC POLICY         AND WORKPLACE

                                                      AOL is a leader in                                                             Time Inc. and partners                               Warner Bros.’ Oscar-
                                                      energy efficiency in                                                            expanded the ReMix                                   winning Happy Feet
                                                      data centers.                                                                  program to promote                                   highlights the impacts
                                                                                                                                     recycling in NYC.                                    of over-fishing and
                                                                                                                                                                                          marine pollution.

to reduce usage and emissions. In the past two        Highlighted here are other examples of the ways      considered a PUE below 2.0. Since early 2002        After considering what would be both ambitious
years, our divisions have altered their infrastruc-   in which our divisions have made efforts to exa-     through early 2008, AOL’s remaining data cen-       and practical, Time Inc. became the first U.S.
tures and changed their business processes and        mine and reduce their greenhouse gas emissions.      ters have consistently demonstrated an average      publisher to set targets for producing less green-
procedures, with the goal of reducing energy use.                                                          PUE of below 1.6. In addition, AOL participates     house gas throughout its supply chains. Time
                                                      AOL – Energy Usage Reduction at Office                in the U.S. EPA’s “ENERGY STAR” program. It is      Inc. asked the paper companies to reduce carbon
U.S. EPA’s SmartWay Transport Partnership             Facilities and Data Centers                          estimated that activation of this feature on AOL    emissions 20% from a 2004 base by the year
Time Warner’s Corporate Transportation & Logis-       AOL has implemented energy conservation mea-         employee computers prevents 30 tons of CO2          2012. Some suppliers pointed out that they had
tics group joined the U.S. Environmental Protec-      sures across its Northern Virginia offices that       emissions annually.                                 already achieved some reductions before 2004
tion Agency’s SmartWay Transport Partnership          have reduced the energy usage by approximately                                                           and felt they deserved credit for their leadership
in 2007 to demonstrate our commitment to              22% over 2005 usage data, which represents a         In April 2008, AOL was a Best-in-Class Imple-       role. To accommodate these suppliers, Time Inc.
reducing greenhouse gas emissions and improv-         6,300 ton reduction in CO2 emissions, and saves      mentation Winner for the 2008 Uptime Institute      set some alternative but equally challenging goals.
ing the fuel efficiency of freight transportation.     AOL approximately $300,000 annually in energy        Green Enterprise IT Awards in the category          Keeping the same target year of 2012, the paper
As of May 2008, we are the only media and             costs. Much has been written about “Green IT”        of Facilities Site Physical Infrastructure (power   companies have the options of cutting carbon
entertainment company participating in the            with respect to the infrastructure associated with   and cooling) Overhead.                              output by 25% from a 2000 base or 30% from
SmartWay Transportation Partnership. As a             data centers and their round-the-clock computer                                                          a 1996 base.
shipper partner, Time Warner is committed to          servers, which require energy to run the systems     Time Inc. – Lifecycle Analysis
fuel efficient practices, and supporting Smart-        and to cool the temperature of the equipment.        Time Inc. was the first publisher to measure the     More information about Time Inc.’s environmental
Way carrier partners. We do this by encouraging                                                            greenhouse gas emissions of the entire supply       efforts can be found in Time Inc.’s 2007-2008
carriers to join the program, promoting air-to-       The energy conservation and efficiency measures       and disposal chain of two popular magazines,        Sustainability Report at www.timewarner.com/
ground mode shift and other fuel saving practices,    at the AOL data centers demonstrate results.         from logging operations to landfills. Through this   citizenship.
increasing shipping with SmartWay partner             Industry experts use metrics called the Power        landmark study, Time Inc. and its partners,
carriers, and encouraging third-party logistics       Usage Effectiveness (PUE) to measure the energy      Stora Enso, Canfor, Home Depot, and the H. John
providers to seek out SmartWay carriers for           efficiency of data centers. Excellent results are     Heinz Center for Science, Economics and the
our shipments. We also let transportation                                                                  Environment found that manufacturing pulp
vendors know that bidding preference is given                                                              and paper uses a significant amount of energy.
to SmartWay partners.

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COMPANY AND               CUSTOMERS                  DIVERSITY                   ENVIRONMENT              ETHICS, GOVERNANCE,        EMPLOYEES                 SUPPLY CHAIN               COMMUNITY
REPORT OVERVIEW           AND CONTENT                                                                     AND PUBLIC POLICY          AND WORKPLACE

                                                     Turner employees in the                                                         Time Inc. was the first
                                                     U.S. and Europe are dedi-                                                       publisher to measure
                                                     cated to reducing their                                                         the greenhouse-gas
                                                     environmental impact.                                                           emissions of the entire
                                                                                                                                     supply and disposal
                                                                                                                                     chain of two popular

Time Warner Cable – Fleet Management                 Turner Broadcasting - Clean Air                      Warner Bros. – Energy Efficiency at the               the production of each DVD, to find efficiencies
Time Warner Cable installed workforce manage-        Commuter Program                                     Studio Lot                                           in WHV and supply chain production processes,
ment systems (WMS) in almost all field divisions      Turner Broadcasting encourages employees at its      Since 2002, Warner Bros. has made an ongoing         and to deepen relationships among suppliers.
in 2007. The WMS is designed to help field tech-      Atlanta headquarters to find green alternatives       investment in energy efficiency that continues        Warner Bros. has partnered with Wal-Mart
nicians improve overall responsiveness to cust-      to their daily commute by providing employees        to save the division over 8 million kilowatt-hours   to participate in Wal-Mart’s carbon scorecard
omers while cutting their fuel usage. The WMS        with a menu of environmentally responsible opt-      of energy and approximately $1 million annually.     pilot effort.
achieves these results by adjusting vehicle routes   ions. Employees who participate in Turner’s          Energy efficient conservation retrofits include
to maximize time available for customer service,     Clean Air Commuter Program can select their          high efficiency lighting, occupancy sensors and       What’s Next:
minimize miles traveled, reduce average speeds,      preferred method of travel from a variety of         timers, high efficiency HVAC, thermostat controls,    We view our company-wide environmental work
and even avoid left turns that result in idling      options. These include a van-pool effort that        and variable speed motors. Warner Independent        to date as the first phase in a larger effort.
time at stoplights.                                  matches groups of employees by neighborhood          Pictures’ The 11th Hour was a climate-neutral        As we continue this effort to reduce our green-
                                                     and provides van service for group transporta-       production whose emissions were offset by            house-gas emissions we are already:
Time Warner Corporate Headquarters –                 tion to and from the office; assistance in iden-      investments in wind energy.
Energy Conservation                                  tifying carpool partners and special parking                                                              1. Evaluating the feasibility of including interna-
Time Warner occupies approximately one-third of      privileges for carpoolers; access to a Guaran-       Warner Home Video – DVD Production                      tional facilities and other emission sources
the Time Warner Center building in New York          teed Ride Home, a program that provides comp-        Carbon Footprint Analysis                               in GHG measurements and reduction efforts
City. The complex, which houses CNN broadcast        limentary transportation if unforeseen circum-       In 2007, Warner Bros. Home Video (WHV) con-          2. Increasing company-wide employee awareness
space, corporate offices, and a conference center,    stances such as working overtime or needing          ducted a DVD carbon footprint analysis to            3. Reducing energy usage and greenhouse gas
was designed to require 35% less energy than         to pick up a sick child from school interfere with   understand the greenhouse gas impacts of                emissions
the usage allowed by the New York State energy       planned commute alternatives; and free weekly        energy use and transportation in the manufact-       4. Piloting reduction programs
code. Among multiple environmentally friendly        public transportation passes.                        uring and distribution of its DVDs. The analysis,
practices, unused lights in the conference cen-                                                           part of WHV’s larger commitment to climate
ter are kept off when an event is not occurring                                                           change leadership, is intended to change how
and plasma TVs are turned-off after hours in                                                              energy is used within the division and its supply
an effort to conserve energy and reduce green-                                                            chain. The goal of the analysis is to quantify
house gas emissions.                                                                                      the amount of carbon emitted as a result of

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COMPANY AND               CUSTOMERS                  DIVERSITY                ENVIRONMENT               ETHICS, GOVERNANCE,        EMPLOYEES                 SUPPLY CHAIN              COMMUNITY
REPORT OVERVIEW           AND CONTENT                                                                   AND PUBLIC POLICY          AND WORKPLACE

                                             Time Warner employees                                                                 HBO is active                                       Warner Bros. has a
                                             can visit the company                                                                 in reducing its                                     15-year long tradition of
                                             intranet to learn about                                                               environmental                                       leading the industry in
                                             reducing their carbon                                                                 impact.                                             environmental efforts.

FORESTRY AND PAPER                                  ReMix – Recycling Magazines is Excellent            In early 2008, Time Inc. launched ReMix in New       and other packaging materials. We estimate that
Because of the enormous volume of paper requi-      In recent years, the demand for recycled paper      York City, where residents throw away more           these changes can prevent the emission of appro-
red to publish magazines, sustainable forestry      has surged and the supply has not kept up.          than 400,000 tons of recyclable paper each           ximately 1,311,800 pounds of greenhouse gases,
and responsible paper use are most relevant for     In 2004, Time Inc. launched a program called        year – enough to fill the Empire State Building.      conserve approximately 5 million gallons of water,
our Time Inc. division. For nearly 20 years,        Recycling Magazines is Excellent (ReMix) in part-   For the New York City campaign, the original         save more than 8 million BTU’s of energy, and save
Time Inc. has been a prominent player in global     nership with Verso Paper and the National           partners have been joined by Hearst Corp.,            more than 12,500 trees annually. Warner Home
sustainable forestry – the practice of harvesting   Recycling Coalition. ReMix is a national public     Pratt Industries, Time Warner Cable, and the         Video also announced that it would release two
trees in a way that does not deplete forests,       education campaign aimed at increasing the          nonprofit Council on the Environment of New           titles, Darfur Now, and The 11th Hour, with 100%
hurt wildlife or damage the landscape. Sustain-     recycling of magazines and catalogs. In addi-       York City. Ads to promote the ReMix program          certified sustainable packaging that is made in
able forestry helps confront global warming         tion to helping meet the global demand for          in New York City have run on subways, buses,         the U.S. without petroleum products. The papers
head on and is a good business practice. Through    paper, recycling helps curb global warming by       bus shelters, and taxis, as well as in movie         are 100% post-consumer recycled stocks, the
Time Inc.’s Certified Sustainable Forestry pro-      limiting the need to harvest trees to produce       theaters and through Time Warner Cable. More         inks are soy-based, and the shrink-wrapping is
gram, the division has increased the amount of      new paper and by lowering the amount of meth-       information about Time Inc.’s environmental          made of biodegradable corn.
certified fiber in its magazines from 25% in          ane released by decaying paper in landfills.         efforts is available in its 2007 – 2008 Sustain-
2002 to approximately 70% in 2006 with a goal       Successful ReMix programs are currently oper-       ability Report which is available at www.time-       In-store displays are also going green.
of 80% by 2009.                                     ating in Boston, MA; Prince George’s County,        warner.com/citizenship.                              Warner Home Video now designs product displays
                                                    MD; Milwaukee, WI; and Portland, OR. ReMix                                                               in ways that conserve natural resources and
This was achieved by developing strict standards    has had a measurable positive impact. Boston,       Warner Home Video                                    minimize over-all environmental impact. Initia-
and working in partnership with governments         for example, saw an 18% increase in magazine        In the spring of 2007, Warner Home Video chan-       tives include: redesigning the display pallets
and landowners who provide the majority of fiber     recycling, Prince George’s County went up           ged to chlorine-free, 30% post-consumer recy-        to use approximately 25% less corrugated
to the U.S. marketplace.                            19%, and even Portland, where citizens are al-      cled paper for wraps, inserts, slipcases, sleeves,   paper; using approximately 35% recycled fiber-
                                                    ready frequent magazine recyclers, achieved                                                              fluting and approximately 18-25% recycled
                                                    a 3% jump.                                                                                               content liner board; switching to water-soluble
                                                                                                                                                             and biodegradable inks with no heavy metals;
                                                                                                                                                             and eliminating corrugated fillers.

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COMPANY AND                CUSTOMERS                 DIVERSITY                  ENVIRONMENT                ETHICS, GOVERNANCE,        EMPLOYEES               SUPPLY CHAIN              COMMUNITY
REPORT OVERVIEW            AND CONTENT                                                                     AND PUBLIC POLICY          AND WORKPLACE

                                                                                                           In early 2008, FORTUNE                                                       Time Inc.’s publications
                                                                                                           magazine hosted a Brain-                                                     and websites play a lead-
                                                                                                           storm Green conference                                                       ership role in alerting
                                                                                                           for business leaders.                                                        the public to the dangers
                                                                                                                                                                                        of climate change and
                                                                                                                                                                                        helping them understand
                                                                                                                                                                                        the action that needs
                                                                                                                                                                                        to be taken.

WASTE REDUCTION                                      HBO                                                   Time Warner Cable – Electronic Billing,            of valuable materials from the division’s office
In addition to sustainable forestry efforts and      HBO has a program in place to recycle office           Reduced Packaging, and Set Top Boxes               and production areas. In 2007, donations
recycled paper efforts, our businesses work          supplies and equipment. In 2006, HBO sent 94          To reduce paper consumption and save money,        included set materials from the Ocean’s 13
to reduce their environmental footprint by           PCs and other computer-related equipment              Time Warner Cable has set out to drive customer    production to Habitat for Humanity and the
limiting the resources required for products,        to Dell’s Asset Recovery Program, through             enrolllment in electronic bill payment to 30%      Los Angeles Community College District; and
packaging, and distribution and by cutting down      which Dell properly disposes of end-of-life PCs.      by the end of 2008. The company estimates that     thousands of costumes and props to non-
the amount of waste produced throughout              In 2007, this number doubled. In 2006 and             the incremental electronic bill payment and        profit organizations and local theater groups.
our businesses. Following are a few examples of      2007, HBO also donated 673 computers and              paperless billing enrollments could save Time      In addition, Warner Bros. facilities recycle
reduction efforts happening at our divisions.        monitors to the Department of Education in            Warner Cable approximately $6 million per year,    100% of all scrap corrugate, cartons, dunnage,
                                                     New York City.                                        reduce late payments, and cut down on customer     and storage pallets. More information about
AOL                                                                                                        churn. Time Warner Cable is also working with      Warner Bros.’ environmental stewardship efforts
Although AOL recycles the usual materials (paper,    HBO works with a kitchen-grease disposal com-         its vendors to improve recycling of set-top box    can be found at www.wbenvironmental.com.
glass, aluminum cans, plastic bottles, cardboard,    pany to recycle 100% the cooking oil used in          packing materials. This will support environmen-
cell phones, batteries, CDs, toner cartridges, and   the network’s New York City cafeteria into high-      tal efforts, and reduce the amount of money        GREEN BUILDING
shipping pallets), non-recyclable trash remains.     energy fat for use in animal feed or biofuel          that Time Warner Cable pays its vendor for the     In 2006 and 2007, Time Warner’s divisions used
                                                     that can replace fossil fuel in industrial environ-   materials. Finally, Time Warner Cable is working   the lens of green building when embarking on
This non-recyclable trash from the AOL facility      ments. HBO also donates set materials to various      with its vendors to improve the energy-efficien-    new real estate development, retrofitting efforts
in Dulles, VA goes to a waste-to-energy-recovery     nonprofit organizations as part of its recycling       cy of set-top boxes and develop a policy that      or retrocommissioning endeavors. For example,
facility where the trash is burned to generate       program and created an in-house Environmental         restricts the use of environmentally harmful       HBO improved the efficiency of its New York City
electricity, rather than entering the landfill. AOL   Awareness Handbook that provides various              substances in the creation of set-top boxes.       offices by completing cost-saving efficiency
also has a computer recycling program, where         tips on reducing the environmental impact of                                                             measures, such as insulating the steam pipes
usable desktop computer systems (CPU, monitor,       HBO productions.                                      Warner Bros. – Set Materials, Home Video,          that enter the building and improving cooling
accessories) are donated to charity, sold at low-                                                          and the Studio Lot                                 efficiency in the data center.
cost to employees, or recycled appropriately.                                                              Warner Bros. reuses materials whenever possible.
In 2007, AOL donated over 3,700 desktop com-                                                               Warner Bros.’ Encore: A Community Reuse Part-
puter systems to charity and recycled over 420                                                             nership continues to provide local schools and
computer systems.                                                                                          nonprofit organizations with hundreds of tons

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COMPANY AND                 CUSTOMERS                 DIVERSITY                   ENVIRONMENT             ETHICS, GOVERNANCE,        EMPLOYEES                  SUPPLY CHAIN               COMMUNITY
REPORT OVERVIEW             AND CONTENT                                                                   AND PUBLIC POLICY          AND WORKPLACE

                                                      In 2007, Time Inc.’s IPC                                                                    Warner Bros.’ LEED™
                                                      Media moved into their                                                                      Silver certified green
                                                      environmentally friendly                                                                    building is the first
                                                      headquarters, the Blue                                                                      in the industry.
                                                      Fin Building in London.

AOL – LEED Certification                               or renovated four buildings using the LEED          York City is also targeted to be certified to LEED-    Learn More about Time Warner’s
In the U.S., the Leadership in Energy and Environ-    design standards as guidance. AOL’s new child-      Silver standards. MapQuest buildings in Denver        Environmental Efforts
mental Design (LEED) Green Building Rating            care center, which is anticipated to be the         and Pennsylvania reflect green design standards        You can learn more about Time Warner’s environ-
SystemTM is one benchmark for the design,             first childcare facility in Virginia that is LEED-   with renewable materials (e.g. bamboo flooring,        mental efforts, read Time Warner’s company-
construction, and operation of high performance       Silver certified, was completed in November          recycled content countertops), low volatile paints,   wide environmental statement, and download
green buildings. In 2006 and 2007, AOL built          2007 and AOL’s headquarters building in New         carpets, and furniture, and energy management         Time Inc.’s 2007 – 2008 Sustainability Report
                                                                                                          systems.                                              at www.timewarner.com/citizenship.

DISCUSSION POINT:                                                                                         Warner Bros. – Solar Powered Building                 To learn more about our green procurement
Alan Horn, President and Chief Operating Officer,                                                          In 2004, Warner Bros.’ retrofitted the Interna-        efforts, please go to Section 7: Supply Chain
Warner Bros. Entertainment                                                                                tional Television Distribution (ITD) building         on page 38.
                                                                                                          in Burbank,CA. This retrofit cut energy use in
“Sustainability requires long-term thinking.          Here again, we are utilizing long-term thinking     the building by 40% and subsequently earned
 I’m proud that the studio has joined me in sup-      and have proven the cost savings of designing       it a 2006 Green Building of the Year award from
 porting longer-term investments that are             with sustainability in mind. We will always con-    the Building Owners and Managers Association
 now paying off significantly. My favorite is the      tinue to improve our production footprint and       (BOMA). In addition, in 2006 Warner Bros.
 solar energy project. There’s something              hopefully do a better job of explaining to the      installed a 72-kilowatt solar electrical system,
 exciting about being able to harness sunlight        public what we do; it demonstrates that this        the first in the industry, on the historic Mill
 and use it to help power our studio facilities.      is a quality-driven company that also cares.        Building where skilled craftsmen build sets for
 We are already thinking about putting up             As far as talent goes, many actors are already      the company’s film and television shows. This
 more panels and taking advantage of our loca-        involved and interested in environmental            solar system generates enough clean, renew-
 tion, climate (sunny California!) and the roof       issues, so working here validates their values      able energy each year to power the equivalent
 space we have available. The other initiative that   and ultimately makes them better spokes-            of approximately 25 homes.
 I’m very proud of is our LEED Silver building,       people on these issues. And we all know how
 as well as our integration of green building prin-   powerful that can be.”
 ciples into all of our projects.

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REPORT OVERVIEW          AND CONTENT                             AND PUBLIC POLICY           AND WORKPLACE



29   Standards of Business Conduct

30   Board Relationship to Corporate
     Social Responsibility

30   Board Composition

31   Board Compensation

31   Stock Ownership

31   Responsiveness to Stockholders

31   More Information

32   Membership in Associations

32   Time Warner Political
     Action Committee

                                                                 An unwavering commitment to ethics is a core value of Time Warner. In 2007, we launched an employee-based
                                                                 awareness campaign, and employees were invited to submit poster ideas to increase involvement.

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COMPANY AND                CUSTOMERS                DIVERSITY                 ENVIRONMENT               ETHICS, GOVERNANCE,        EMPLOYEES                 SUPPLY CHAIN               COMMUNITY
REPORT OVERVIEW            AND CONTENT                                                                  AND PUBLIC POLICY          AND WORKPLACE

                                                                                                                                  The winning Ethics and                                Information about Time
                                                                                                                                  Compliance employee-                                  Warner’s governance
                                                                                                                                  awareness poster                                      practices is available at
                                                                                                                                  was chosen from over                                  www.timewarner.com.
                                                                                                                                  50 entries.


ETHICS                                              and customers first, and steering clear of ex-       We have also provided additional training to those   In 2007, Time Warner was recognized by Ethis-
At Time Warner, we are committed to fostering       cesses and ethical lapses. The Standards of         employees involved in conducting international       phere Magazine as one of the world’s most
a business environment where fair, honest,          Business Conduct are available at www.time-         business to support compliance with the Foreign      ethical companies – one of only two media and
respectful dealings with each other, our cust-      warner.com under Corporate Governance.              Corrupt Practices Act (FCPA). As we continue         entertainment companies awarded this honor.
omers, stockholders, competitors, suppliers,                                                            to expand our company’s international business       We also devote substantial resources to our
government agencies, and communities are            Since business situations can often be complicat-   dealings, training and awareness of the FCPA         system of internal control over financial report-
everyone’s responsibility. Our unwavering com-      ed or unclear, and the laws governing ethics and    and anti-corruption laws will continue to be a       ing and compliance programs that are designed
mitment to the highest ethical standards of         compliance are numerous, a strong compliance        focus for 2008 and beyond.                           to provide that the company’s financial state-
business conduct is a core value that is strongly   environment needs more than codes of conduct.                                                            ments and disclosures are accurate and complete,
endorsed at every level of management.              It also requires training, education, and em-       We welcome questions and concerns about any          and in accordance with the applicable legal
                                                    ployee trust. To that end, we pledged that by the   conduct that may run counter to our values,          requirements in all material respects. As part
Standards of Business Conduct                       end of 2006, all regular employees in the U.S.      and we will not tolerate retaliation for concerns    of this effort, specialized training is provided to
In 2004, our company’s Board of Directors revi-     would be trained on the Standards of Business       raised or reported in good faith. We want our        financial executives and lawyers to assist them
sed and strengthened our Standards of Business      Conduct and we are pleased to report that           employees to understand that Time Warner’s           in implementing standards effectively and to
Conduct, which applies to corporate employees       goal was met. In addition, new hires who are        Ethics and Compliance representatives work not       provide guidance on abiding by the comprehen-
and serves as a model for similar codes of con-     regular domestic employees of Time Warner           only to safeguard the company’s reputation,          sive internal controls and compliance proce-
duct adopted at each of Time Warner’s business      are required to receive training on the Stan-       but also to protect employees from unsafe,           dures we have in place.
units. Our Standards of Business Conduct stress     dards shortly after their arrival at the company,   unethical or criminal conduct in the workplace.
the importance of abiding by the law, being         and annual ethics and compliance training is        A recent employee survey confirms that our            Enforcement is also key to an effective ethics
truthful, being transparent in our business deal-   also conducted for existing employees. Ongoing      employees know they can report concerns with-        policy. A Corporate Compliance Review Committee
ings, putting the needs of our stockholders,        efforts in this area include multimedia training    out jeopardizing their status in the company         meets regularly to review individual compliance
                                                    programs, as well as an award-winning aware-        and know who to contact for guidance on ethics       matters for the entire company. The Audit and
                                                    ness campaign, that use a variety of media and      and compliance issues.                               Finance Committee of the Board is responsible
                                                    print outlets to reach our employees.                                                                    for reviewing and recommending changes to the

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COMPANY AND                CUSTOMERS                DIVERSITY                 ENVIRONMENT               ETHICS, GOVERNANCE,       EMPLOYEES                 SUPPLY CHAIN               COMMUNITY
REPORT OVERVIEW            AND CONTENT                                                                  AND PUBLIC POLICY         AND WORKPLACE

                                                                                                                                                                         The CNN YouTube debates
                                                                                                                                                                         broke ground with their
                                                                                                                                                                         coverage of the presiden-
                                                                                                                                                                         tial elections.

Standards of Business Conduct and for over-         In 2008, the Board amended the Nominating and       Board members and candidates stand for elect-       The Compensation and Human Development Com-
seeing the company’s Ethics and Compliance          Governance Committee’s charter to codify its        ion each year at the annual stockholders meeting,   mittee approves compensation for senior exe-
program. The Audit and Finance Committee            role in overseeing the company’s corporate social   and, as of February 2008, the company’s By-laws     cutives and oversees compensation and benefits
also appoints the company’s Chief Ethics and        responsibility programs.                            require a majority vote of outstanding shares       matters for the entire company. The Nominating
Compliance Officer, who provides the Commit-                                                             for a director to be duly elected. In February of   and Governance Committee oversees CEO suc-
tee with reports on the company’s Ethics            Board Composition                                   2006, the Board also created the position of Lead   cession and performance, governance practices,
and Compliance programs.                            As of June 2008, the Board had 12 members,          Independent Director who, among other things,       Director nominations, and Corporate Social
                                                    drawn from distinguished careers in business,       is responsible for serving as a liaison between     Responsibility efforts. The Nominating and Gov-
GOVERNANCE                                          finance, academia, and public service. The Board     the Chief Executive Officer and other Directors.     ernance Committee also approves “related per-
Time Warner is committed to strong corporate        has determined that 10 of those 12 Directors                                                            son transactions” involving related persons and
governance practices that allocate rights and       qualify as “independent” under the New York         Committee Structure                                 the company. “Related persons” are Directors,
responsibilities among the company’s owners,        Stock Exchange criteria and the standards est-      Having effective Board committees composed          Director nominees or executive officers of Time
directors, and managers in ways that maxi-          ablished by company’s Corporate Governance          of independent Directors who actively oversee       Warner Inc.; significant stockholders; and any
mize long-term value for our stockholders.          Policy. When considering new candidates, the        specific areas of responsibility is a key element    of their immediate family members or certain
We frequently go beyond regulatory require-         Board looks for a number of important qualities,    of the company’s corporate governance structure.    affiliated entities.
ments to promote effective oversight and            including a demonstrated reputation for inte-       The Board has three standing committees: Audit
management of our company.                          grity, independent judgment, and professional       and Finance, Compensation and Human Develop-        Meeting Schedule
                                                    accomplishment. The Board also seeks members        ment, and Nominating and Governance.                The Board of Directors holds regular quarterly
Board Relationship to Corporate                     who are drawn from a range of backgrounds and                                                           meetings and at least four special-purpose
Social Responsibility                               an overall composition that reflects diversity       Among other responsibilities, the Audit and Fi-     meetings each year to review the company’s
The Board’s role in our corporate citizenship       in gender, ethnic, and geographic backgrounds.      nance Committee oversees the quality and integ-     strategy, approve its business plan and budget,
is seen most directly in its involvement in cor-                                                        rity of our financial statements and accounting      act on the company’s annual proxy statement,
porate governance, workplace issues, ethics                                                             practices; appoints our Chief Ethics and Com-       and approve financial filings with the Securi-
and compliance, as well as through our public                                                           pliance Officer; appoints the independent auditor    ties and Exchange Commission (the “SEC”).
policy, philanthropic, and community initiatives.                                                       of the company; and reviews and recommends
                                                                                                        changes to our Standards of Business Conduct.

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COMPANY AND                CUSTOMERS                 DIVERSITY                   ENVIRONMENT                ETHICS, GOVERNANCE,       EMPLOYEES                SUPPLY CHAIN               COMMUNITY
REPORT OVERVIEW            AND CONTENT                                                                      AND PUBLIC POLICY         AND WORKPLACE

                                                                                                            Time Warner’s Global Public Policy team not only seeks to provide
                                                                                                            policymakers with a trusted source of business and strategic input,
                                                                                                            but also works to uphold our company’s values, including freedom
                                                                                                            of expression, journalistic integrity, responsible content, and access
                                                                                                            to information.

The Board of Directors also communicates infor-      Responsiveness to Stockholders                         Communicating with the Board of Directors          Freedom of expression goes hand-in-hand with
mally with management on a regular basis. Non-       In determining the company’s corporate govern-         Stockholders wishing to communicate                protecting intellectual property. To help ensure
employee Directors, all of whom are independent,     ance policies, the Board carefully considers           with the Board should address letters to:          that people continue to create the movies,
also meet by themselves, without management          the views expressed by stockholders. In recent                                                            television shows, magazine articles, and Internet
or employee Directors present, at every regularly    years, the Board has taken action in a number          Office of the Corporate Secretary                   content that we all enjoy, it’s vital to ensure that
scheduled Board meeting. Any Director may re-        of areas in part in response to views expressed        Time Warner Inc.                                   those creators are compensated for their efforts.
quest additional executive sessions. Additionally,   either individually or collectively by stockholders,   One Time Warner Center                             Accordingly, the protection of intellectual prop-
the Audit and Finance Committee meets at least       including: adopting Ethical Sourcing Guidelines;       New York, NY 10019                                 erty is a key public policy priority for us. We work
six times a year, and the Compensation and           amending the company’s By-laws to enable stock-                                                           with both the U.S. government and governments
Human Development, and Nominating and Gover-         holders with at least 25% of the combined voting       More Information                                   around the world to take action against those
nance committees meet at least four times            power of the company’s outstanding capital             For more information about the company’s           who illegally copy and sell our films and television
a year.                                              stock to request a special meeting of stockhold-       corporate governance, including copies             shows, whether online or from street-market
                                                     ers; amending the By-laws to provide for a             of its By-laws, Corporate Governance Policy,       stands. In the marketplace, we continue to work
Board Compensation                                   majority-vote standard for the election of Direct-     and committee charters, please visit               with the electronics industries to develop new
Currently, more than half of the annual compen-      ors; eliminating super-majority voting provi-          www.timewarner.com/governance.                     and secure ways to deliver our rich array of
sation paid to non-employee Directors is in the      sions that apply to stockholder votes; and adopt-                                                         content to consumers on a variety of devices.
form of equity.                                      ing certain policies in the area of executive          PUBLIC POLICY
                                                     compensation relating to performance-based             Time Warner’s Global Public Policy team not only   Freedom of expression also requires safeguards
Stock Ownership                                      compen-sation, performance-based equity                seeks to provide policymakers with a trusted       to protect our journalists. Time Warner takes
All Directors are encouraged to establish and        awards, and equity dilution.                           source of business and strategic input, but also   great pride in the independence and integrity
maintain an ownership interest in the company                                                               works to uphold our company’s values, including    of our print and TV journalists. We are staunch
(whether through exercising stock options                                                                   freedom of expression, journalistic integrity,     defenders of journalistic freedom and believe it
or purchasing shares). It is expected that with-                                                            responsible content, and access to information.
in three years of joining the Board, a Director
will own at least 5,000 shares of Time Warner
common stock.

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COMPANY AND                 CUSTOMERS                 DIVERSITY                  ENVIRONMENT                 ETHICS, GOVERNANCE,       EMPLOYEES                 SUPPLY CHAIN                COMMUNITY
REPORT OVERVIEW             AND CONTENT                                                                      AND PUBLIC POLICY         AND WORKPLACE

                                                                                              TIME magazine covers                                                                          CNN.com/world covers
                                                                                              the world’s most                                                                              important global issues.
                                                                                              influential people in the
                                                                                              TIME 100 issue.

is an important tool for there to be fair and         ment and technological innovation. We believe         Membership in Associations                           are posted on our website at www.timewarner.
transparent government. We support protect-           that technological advances, new investment,          Time Warner is a member of several trade associ-     com/citizenship. The PACs are required to
ing reporters from prosecution for refusing           and rapid innovation are fundamentally changing       ations, including the National Cable and Tele-       regularly report all activities to the Federal Elec-
to identify confidential sources except in             the communications and media marketplaces.            communications Association (NCTA), the Motion        tion Commission, and records of all PAC contribu-
special circumstances.                                This infusion of new services and unprecedented       Picture Association of America (MPAA), and the       tions are available at www.fec.gov.
                                                      competition will continue to benefit consumers.        Magazine Publishers of America (MPA).
As part of our agenda to promote responsible          Given this thriving and competitive marketplace,
content, children’s online safety is a top priority   we believe communications and economic reg-           Time Warner Political Action Committee
for us, and we have led the Internet industry         ulation should be used only when needed, and it       The Time Warner Political Action Committee (PAC)
with our multi-pronged approach. Both AOL and         should apply to all service providers on a tech-      is a separate legal entity that is administered
Time Warner Cable provide protections that            nology and competitively neutral basis.               by the Time Warner Global Public Policy Office in
allow parents to manage their children’s online                                                             Washington, D.C. In 2007, Time Warner Cable
activities. The company also works appropriat-        Similarly, in the areas of tax and trade, we sup-     established the Time Warner Cable Federal PAC,
ely with law enforcement to combat cyber-             port fair and transparent regulation. To this end,    which is also administered by the Time Warner
crime. Time Warner promotes protecting the            we are active proponents of free and fair trade       Global Public Policy Office. The Time Warner Cable
security and privacy of customer data, and sup-       and support the negotiation of market opening         PAC is affiliated with the Time Warner PAC and
ports efforts to educate consumers about              agreements at the bilateral, regional, and glo-       therefore both PACs are subject to the same con-
those protections.                                    bal level. With respect to taxes, we believe that     tribution limits as if they were a single PAC.
                                                      any taxation of our business should be simple         The Time Warner and Time Warner Cable PACs
Turning to the workforce and economic issues,         and non-discriminatory.                               support federal candidates on a bipartisan basis.
Time Warner supports the creation of a federal
standard for workplace fairness for gay, lesbian,                                                            Our standards for PAC giving, which apply to both
bisexual, and transgender employees. We also                                                                 the Time Warner and Time Warner Cable PACs,
support policies to encourage economic develop-

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COMPANY AND              CUSTOMERS     DIVERSITY                ENVIRONMENT       ETHICS, GOVERNANCE,         EMPLOYEES                   SUPPLY CHAIN                COMMUNITY
REPORT OVERVIEW          AND CONTENT                                              AND PUBLIC POLICY           AND WORKPLACE



34   Employee Opinion Survey           36    AOL’s Ergonomics Program

34   EMPLOYEE GROWTH AND               37    Warner Bros.’ Emergency
     DEVELOPMENT                             Warden Program
34   Annual Performance Review
                                       37    Feature and Television Productions
34   Leadership and Development              Safety Pass Program
                                       37    Safety Website
35   Health Benefits                    37    Safety Bulletins

35   Dependent Care – A Broader Lens   37    Collective Bargaining and
                                             Freedom of Association
35   Wellness Programs

36   Childcare Options

36   Flexible Work Arrangements

36   Awards

                                                                                  Kristie Lu Stout anchors CNN International from CNN’s Asian headquarters in Hong Kong. As of December 31,
                                                                                  2007, CNN managed 39 news bureaus and editorial operations, of which 10 are located in the U.S. and 29
                                                                                  are located around the world.

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COMPANY AND                CUSTOMERS                 DIVERSITY                 ENVIRONMENT                ETHICS, GOVERNANCE,        EMPLOYEES                  SUPPLY CHAIN             COMMUNITY
REPORT OVERVIEW            AND CONTENT                                                                    AND PUBLIC POLICY          AND WORKPLACE

                                                                                                                                                                                         Time Warner executives
                                                                                                                                                                                         at the annual European
                                                                                                                                                                                         Leadership Meeting.


Time Warner is committed to helping employees        Analysis of the 2006 – 2007 survey data yielded a    Our analysis of survey results also yielded guid-     development. Across Time Warner we have
feel valued and inspired. We aim to attract,         number of positive conclusions. In particular, our   ance on areas for improvement. In particular,         processes in place that foster performance
retain, empower, and motivate our employees          employees:                                           we found that: employees desire more support          discussions between managers and employees.
and to create an inclusive environment where         • are more satisfied and more likely to remain        for innovation, including willingness to take
all feel welcome.                                      with the company than in the 2004-2005             risks, and employees desire greater collabora-        Leadership and Development Programs
                                                       survey;                                            tion across functions and departments.                In 2006 and 2007, our company provided a
LISTENING TO OUR EMPLOYEES                           • identified multiple reasons for their satisfac-                                                           number of enterprise-wide leadership and
Employee Opinion Survey                                tion and loyalty, particularly the quality of      EMPLOYEE GROWTH AND DEVELOPMENT                       development programs that included: Chairman’s
In 2007, we completed our third company-wide           co-workers, confidence in executive and             In a highly competitive environment, it is increas-   Leadership to provide the company’s senior
set of employee opinion surveys. The purpose           divisional leadership, challenging jobs, and       ingly important to have a workplace that not only     leaders with an opportunity to build leadership
of this biannual survey is to understand overall       positive work environments;                        attracts, but also develops and retains talent.       skills and discuss business strategy; Break-
employee satisfaction and to identify areas for      • give senior leadership high ratings on valuing     We strive to hire the most talented and diverse       through Leadership designed for senior-level
improvement in categories such as leadership,          diversity, setting high-integrity standards,       employees; provide ongoing opportunities for          female executives; Time4Tomorrow, which
diversity, innovation, and collaboration. Approxi-     and communicating company strategy and             professional training; and create increasing op-      focused on high-potential executives based in
mately 60,000 employees worldwide participa-           performance; and                                   portunities for internal mobility.                    Europe and Asia; Nonprofit Board Leadership
ted in the survey.                                   • feel strong support from their immediate                                                                 programs that provided employees with train-
                                                       manager for the Standards of Business              Annual Performance Review                             ing to serve on nonprofit boards of directors;
The survey provides us with a roadmap for im-          Conduct and other ethics and compliance            At the most basic level, employees benefit from        and, at many divisions, Leading for Results,
provements, both within the divisions, and for         policies.                                          a formal mechanism for receiving feedback about       which provided training and development to
the company overall, that will help Time Warner                                                           their performance so that, together with their        Vice President-level managers.
remain a great place to work.                                                                             managers, they can create pathways for career

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COMPANY AND                                                                     CUSTOMERS               DIVERSITY                  ENVIRONMENT                 ETHICS, GOVERNANCE,         EMPLOYEES               SUPPLY CHAIN              COMMUNITY
REPORT OVERVIEW                                                                 AND CONTENT                                                                    AND PUBLIC POLICY           AND WORKPLACE

                                                                                An environmental pro-                                                                       The AOL childcare center
                                                                                duction handbook                                                                            in Dulles, VA is anticipat-
                                                                                is referenced by                                                                            ed to be the first LEED-
                                                                                Warner Bros. employ-                                                                        Silver certified childcare
                How to cut costs and
    reduce the environmental impact of production                               ees, as well as tele-                                                                       center in Virginia.
                                                                                vision and film produ-
                                                                                ction teams.

                   Brought to you by the Environmental Initiatives Department
                                Warner Bros. Entertainment Inc., Building 137
                                 Telephone (818) 954-3470, Fax (818) 954-2409

We continue to offer a variety of on going oppor-                                                       Health Benefits                                         Health Support.” This program provides support      of the employee’s immediate family. We provide
tunities for thousands of employees to engage                                                           Full-time employees select healthcare from the         and guidance if an employee or family member        support for employees when they need to care for
in professional development programs through-                                                           same menu of options and quality service that          is dealing with a major health issue; managing a    any loved one. As part of this inclusive approach,
out the year. These include workshops in manage-                                                        is given to all employees. We also offer specialized   chronic condition; or has been, or is planning      we extend our core benefits offerings to domestic
ment skills, communication and presentation                                                             programs to employees. For example, in 2007,           to be, admitted to a hospital.                      partners, allow employees to purchase long term
skills, career development, and team-building by                                                        we developed an initiative to assist the loved ones                                                        care insurance for their parents through our
organizations such as the American Management                                                           of Time Warner employees who pass-away while           Access is provided through a personal nurse who     company plan, and provide additional paid time
Association, the Center for Creative Leadership,                                                        employed by the company. Loved ones are offered        is assigned to the employee’s family to confiden-    off and a stipend of up to $5,000 to cover child
and the Cornell Management Program.                                                                     third-party assistance to help sort through finan-      tially answer questions, find available resources,   adoption expenses.
                                                                                                        cial and legal matters that may arise.                 provide assistance in following a treatment plan,
EMPLOYEE BENEFITS                                                                                                                                              and work with the employee’s family to help         Wellness Programs
We value our employees and provide competitive                                                          Since the publication of our last CSR Report,          manage symptoms and avoid complications.            Time Warner invests in services and education
medical employee benefits programs to support                                                            we introduced a healthcare service for employ-                                                             to help keep our employees healthy. Time Warner
their well-being. Our Total Rewards program                                                             ees and their families who are faced with a            Dependent Care – A Broader Lens                     businesses offer maternity support through
includes medical, dental, 401(k) savings, flexible                                                       serious or chronic medical condition. With just        We understand that employees have a range           access to personal obstetrics nurses (in some
spending accounts for healthcare and dependent                                                          a phone call, employees gain access to third-          of responsibilities outside of the workplace.       locations the nurse assigned to an employee
care transportation reimbursement accounts,                                                             party medical experts that provide current,            Our employee assistance programs, therefore,        may check in with the new mother at the hospital
disability management, pension (in some divi-                                                           comprehensive, and objective information on            take an inclusive approach in defining an            to confirm that she has the information she
sions) and life-insurance offerings. We evaluate                                                        over 50 different medical conditions to enable         employee’s “dependent” as someone who relies        needs), employee assistance, and mental health
the company’s benefits and compensation                                                                  individuals to be more knowledgeable in making         on the employee for financial or emotional           programs. Additionally, some of our businesses
practices on an ongoing basis to make sure that                                                         medical decisions.                                     well-being, even if this person is not a member     offer cash reimbursement for wellness activ-
we are rewarding our employees fairly for                                                                                                                                                                          ities, onsite fitness centers, and onsite health
their efforts.                                                                                          In 2007, to further bolster Time Warner’s care                                                             services. We also provide information to our
                                                                                                        management offerings, we began a new program                                                               employees about health and wellness through
                                                                                                        for employees and their families called “Personal                                                          seminars, screenings, and awareness campaigns.

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COMPANY AND               CUSTOMERS                 DIVERSITY                 ENVIRONMENT              ETHICS, GOVERNANCE,       EMPLOYEES                 SUPPLY CHAIN                 COMMUNITY
REPORT OVERVIEW           AND CONTENT                                                                  AND PUBLIC POLICY         AND WORKPLACE

                                                                                                                                                           Warner Bros. employees
                                                                                                                                                           and customers can
                                                                                                                                                           learn about the division’s
                                                                                                                                                           environmental efforts at

Childcare Options                                   of our publishing units, Southern Progress,        Turner Awards:                                      HEALTH & SAFETY
Some divisions of Time Warner provide onsite        offered a flexible work arrangement program         • In 2006 and 2007, Turner was listed as one of     Time Warner goes beyond compliance with enviro-
childcare, and a back-up care center is provided    to more than 800 employees. Some participants        the 100 Best Companies for Working Mothers        nmental, workplace, health and safety laws and,
in New York City for employees’ use when their      have chosen to adjust their daily schedule,          by Working Mother magazine.                       in many cases, leads our industry in safety prac-
regular childcare is unavailable. In addition,      beginning and ending the workday earlier. Others   • In 2007, Turner ranked in the top five in the      tices. A few examples include:
all employees can participate in an assistance      are electing to telecommute using laptops and        Women in Cable Telecommunications (WICT)
program that offers referral services for find-      Internet-based telephony. At Time Warner’s           Foundation PAR Initiative Survey in the follow-   AOL’s Ergonomics Program
ing day care options and nannies.                   corporate headquarters, we have found that           ing categories: Best Programmers for Women        In an industry where most employees are at the
                                                    during 2006 and 2007, approximately the same         in Cable, Best Companies for Women in             computer for many hours each day, AOL’s ergo-
Divisions also have programs in place to support    percentage of men and women participated in          Cable – Pay Equity, Advancement Opportunities,    nomics program has reduced and prevented
new parents. For example, AOL has a Well Baby       flexible work arrangements.                           and Resources for Work/Life Support.              injuries associated with carpal tunnel syndrome.
program open to new parents that is available                                                          • In 2006 and 2007, Turner ranked among the         One-on-one computer workstation evaluations
prior to conception through delivery. AOL also      Awards                                               Top 50 Companies for Diversity in Diversity       are completed, either in person or via telephone,
partners with Fatherhood Initiatives, a nonprofit    Time Warner companies received acknowledge-          Inc. magazine.                                    by a trained ergonomic specialist who evalu-
organization that helps engage fathers in raising   ment for their work/life programs from             • In 2006 and 2007, Turner was picked as            ates work processes, work habits, work station
their children.                                     numerous outside organizations in 2006 and           one of eight Top Companies for Women by           set-up, and ergonomic tool use, specialty key-
                                                    2007. Examples include the following:                Pink magazine.                                    board, mouse and wrist rest. AOL’s efforts are
Flexible Work Arrangements                                                                                                                                 reflected in its very low injury rate. Although
At some of our divisions, employees partner with    Turner and Time Inc.                               Time Warner Cable:                                  AOL is exempt from keeping U.S. Occupational
their managers to develop flexible work arran-       In 2007 and 2008, these Time Warner divisions      In 2007, Time Warner Cable ranked in the top        Safety and Health Administration injury and ill-
gement schedules. The purpose of these sched-       ranked in the Top 100 List of Adoption             four in the Women in Cable Telecommunica-           ness data due to the low-hazard class of its
ules is to enable employees increased flexibility    Friendly Workplaces, Dave Thomas Foundation        tions (WICT) Foundation PAR Initiative Survey       industry, for those sites where records are
in how, when, and where they get their work         for Adoption.                                      in the following categories: Best Operators for     kept, AOL has aninjury and illness rate of less
done and to increase employee satisfaction and                                                         Women in Cable, Best Companies for Women            than half the industry average.
decrease unwanted turnover. For example, one                                                           in Cable – Advancement Opportunities, and Res-
                                                                                                       ources for Work/Life Support.

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COMPANY AND               CUSTOMERS                 DIVERSITY                   ENVIRONMENT              ETHICS, GOVERNANCE,        EMPLOYEES                  SUPPLY CHAIN               COMMUNITY
REPORT OVERVIEW           AND CONTENT                                                                    AND PUBLIC POLICY          AND WORKPLACE

                                                                                                         Time Warner is committed to helping employees feel valued and
                                                    Time Inc. employees
                                                    bring a diversity of                                 inspired. We aim to attract, retain, empower, and motivate
                                                    viewpoints to the stories
                                                    they cover.                                          our employees and to create an inclusive environment where all
                                                                                                         feel welcome.

Warner Bros.’ Emergency Warden Program              Feature and Television Productions                   Safety Website                                        Safety Bulletins
For 20 years, Warner Bros. has run an Emergency     Safety Pass Program                                  Warner Bros. Studio Facilities’ Safety and Environ-   As of spring 2008, Turner Broadcasting and
Warden Program, and in March 2008, the 212th        Warner Bros.’ and Turner Broadcasting’s Safety       mental Affairs department has developed elec-         Warner Bros. have updated or newly created 40
class graduated from the program. The program       Pass program has changed the safety practices        tronic methods of providing safety information        safety bulletins to guide the movie and television
consists of a 16 hour curriculum offered in four    of an entire industry. The program was developed     to remote feature and television productions          industry employees in safe workplace activity.
sessions over a month’s time. The curricula in-     by Warner Bros. through a collaborative effort       through a unique website. The website provides        The bulletins have been distributed by film
clude an overview of the various natural, techno-   with dozens of unions, which represent the mot-      safety information to local California produc-        production companies in countries all over the
logical, and man-made hazards that can affect       ion picture and television industry workforce.       tions and to remote productions that may not          world and frequently, are considered to be
the employee at work and at home. American Red      In the last two years, the Warner Bros. Safety and   have the time to wait for mailing or shipping of      the industry standard.
Cross CPR/AED/Triage/First Aid Classes, use of      Environmental Affairs department and Turner          hard copies of materials. The website contains
a fire extinguisher, Psychological/Stress Issues     Broadcasting’s Production Safety and Loss            division-specific information that includes            Collective Bargaining and Freedom
in emergency/disaster situations, and review        Control department, along with other motion          information about injury and illness prevention       of Association
of the Warden’s emergency procedures.               picture and television studios, have participated    programs, written safety programs, manage-            Time Warner respects the rights of all employees
                                                    in the creation, development, and approval of        ment responsibilities, location check lists and       under federal labor law, and the rights of all
Once the Warden has graduated from the initial      additional safety classes that continue to educate   accidents reports, and links to other applicable      contract professionals who provide services to
course, he or she can take additional classes       our workforce and provide them with skills to        websites. More information is available at            Time Warner under collective bargaining rela-
in Terrorism, Damage Assessment, Search &           safely make our movies and television shows.         http://wbsafety.com.                                  tionships. Contract professionals include writers,
Rescue, Mortality Management, Radio and Com-        Together, the Warner Bros. and Turner teams                                                                directors, actors, designers, and others involv-
munications, just to name a few.                    developed new coursework and training pro-                                                                 ed in the production of motion pictures and tele-
                                                    grams that include Make-up Artists Using Air-                                                              vision programs in our Networks and Filmed
                                                    brush Techniques (to protect talent and artists                                                            Entertainment segments.
                                                    from equipment and chemicals associated with
                                                    airbrush makeup), Rigging, Firearms Safety
                                                    using Blank Ammunition, and Electrical Safety.

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REPORT OVERVIEW        AND CONTENT                             AND PUBLIC POLICY           AND WORKPLACE





40   Website and Database

40   Awards and Recognition

40   Metrics

                                                               Diverse suppliers bring a variety of perspectives to the marketplace and help enhance our overall procurement
                                                               process. Time Warner’s Supplier Diversity program is broad and robust. In 2007, Time Warner spent over $595.6
                                                               million with Minority and Women Owned Businesses (MWBEs).

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COMPANY AND               CUSTOMERS                 DIVERSITY                 ENVIRONMENT               ETHICS, GOVERNANCE,        EMPLOYEES                 SUPPLY CHAIN              COMMUNITY
REPORT OVERVIEW           AND CONTENT                                                                   AND PUBLIC POLICY          AND WORKPLACE

                                                                                                                                                                                       The Supplier Diversity
                                                                                                                                                                                       website & Database
                                                                                                                                                                                       sity.com) serves as a
                                                                                                                                                                                       resource tool for emp-
                                                                                                                                                                                       loyees and diverse


Time Warner is a global company with a worldwide    internal stakeholders comprised of representa-      the Business for Social Responsibility’s (BSR)       of our supply chain and to work with our business
supply chain. We understand that our sphere of      tives from divisional legal and marketing depart-   Beyond Monitoring group, which brings together       partners to monitor and continuously improve
influence extends beyond our immediate custom-       ments, as well as input from key external stake-    different industry leaders to study and identify     the profile of our supply chain.
ers and employees and that a company of our size    holder groups. The Time Warner Board of Direc-      the root causes of factory noncompliance.
and scale affects the global community through      tors approved the guidelines in February 2007.      We also joined a newly established supply chain      As we move forward, we plan to implement bus-
our supply chain. We strive to be a responsible     By the end of 2007, we communicated the new         initiative within the media industry, so we can      iness process adjustments as needed. We are
corporate citizen in the communities in which we,   guidelines to vendors and licensees in consumer     improve ethical sourcing compliance among            also scheduling semiannual check-ins with inter-
or our suppliers, do business.                      products working under current contracts with       our suppliers in partnership with other              ested shareholders, non-governmental organiza-
                                                    Time Warner. We then developed a risk asses-        entertainment companies that have a similar          tions, and other strategic stakeholders.
ETHICAL SOURCING                                    ment methodology that takes into account factors    sourcing base.
In 2006, we announced our plan to develop a         such as country of manufacture, product type,                                                            GREEN PROCUREMENT
Time Warner ethical sourcing program, and we        current licensee efforts, and contract size. This   We have taken these actions because we seek          We are expanding efforts to collaborate with
have made substantial progress in the last two      enabled us to determine our risk-based priorities   to benefit from the success and learning of           suppliers with whom we are already doing
years. As background, Time Warner purchases         for monitoring specific factories and licensees.     the pioneers in this area. We understand that        business, and with new suppliers, to reduce
traditional products and services to run our                                                            while our program is relatively new, much work       the environmental impact and costs associated
business, such as office supplies or furniture.      After identifying leading candidates to serve as    and innovation has occurred in the last decade       with the use of their products and services.
Our company also licenses its images, brands        our third-party compliance monitors, we conduc-     within the ethical sourcing arena. Based on          For example, HBO has made an effort to purchase
and characters to licensees who then use            ted a number of pilot audits to further evaluate    this learning, our program is being constructed      products and establish environmental criteria in
the images on toys, electronics, costumes,          their capabilities and refine our own relevant       around strategic monitoring and industry             its purchasing processes to reduce the impact
and other products that they sell. As we arti-      strategies and procedures. Using a risk assess-     partnerships.                                        on the environment. In 2007, 46% of the office
culated in our 2006 CSR Report, our goal was        ment methodology, we chose factories from                                                                supplies purchased by HBO contained recycled
to develop a set of Ethical Sourcing Guidelines     a wide cross-section of our licensee’s suppliers    For 2008, we have put a priority on the develop-     content, an increase of 5% from 2006. All copy
and to begin implementing business process          in order to gain a better understanding of our      ment and implementation of a multi-platform          paper purchased by HBO is 30% post-consumer
adjustments as needed.                              supply chain. To further expand our knowledge       data management system which we intend to roll       content, and letterhead is printed on 100% post-
                                                    and resources for ethical sourcing, we joined       out to all of our business partners in the third
In 2006, we developed a set of Ethical Sourcing                                                         quarter. This system will allow us to gain a clear
Guidelines based on input from more than 100                                                            understanding of the entire size and breadth

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COMPANY AND               CUSTOMERS                 DIVERSITY                 ENVIRONMENT               ETHICS, GOVERNANCE,       EMPLOYEES             SUPPLY CHAIN              COMMUNITY
REPORT OVERVIEW           AND CONTENT                                                                   AND PUBLIC POLICY         AND WORKPLACE

                                                                                                                                                                                  The Time Warner Supplier
                                                                                                                                                                                  Diversity team works
                                                                                                                                                                                  with MWBE organizations

consumer recycled, non-chlorine bleach paper        •   Internal Networking Activities                  Through this site, employees can access over    • Turner Broadcasting has won numerous
with the remaining business stationery printed      •   Goals & Measurements                            20,000 diverse suppliers to include in their      awards in Supplier Diversity. A few of its 2007
on 35% post-consumer content. In conjunction        •   Website & Database Management                   procurement opportunities. We recently com-       recognitions include “Corporate Champion of
with Canon Business Solutions, a “Think Green”      •   Awards & Recognition                            pleted a platform upgrade, making the web-        the Year” award presented by the Asian
campaign provides employee training on environ-                                                         site even more user friendly with expanded        American Heritage Foundation, and the “Round
mentally responsible and cost effective ways to     In January of 2007, Time Warner launched            and faster search capabilities, new reporting     of Applause” award, presented by the Georgia
use multi-functional printers and copiers in        a program to encourage large corporations           features, supplier testimonials, and simpler      Governor’s Mentor Protégé Program.
the most environmentally efficient manner pos-       doing business with Time Warner to utilize          navigation features. The website averages       • AOL was named the “2007 Outstanding Corp-
sible. Since 2006, HBO’s NYC-based janitorial       diverse suppliers as subcontractors. This “second   over one million hits per month.                  oration of the Year” for the Washington, D.C.
service companies have been using Green Seal        tier” program – so-called because it is intended                                                      region presented by the Women Presidents’
cleaning solutions.                                 to reach subcontractors – underscores the im-       Awards and Recognition                            Education Organization (WPEO). This award
                                                    portance the company places on the inclusion of     Each year, our supplier diversity teams work      represents AOL’s second recognition by the
SUPPLIER DIVERSITY                                  minority and women-owned businesses (MWBEs)         with numerous MWBE organizations locally          WPEO for its outstanding efforts with women-
Diverse suppliers bring a variety of perspectives   at all levels. The program began as a pilot with    and nationally, sponsoring and participating      owned businesses.
to the marketplace and help enhance our over-       40 primary suppliers in 2007.                       in events, activities, and programs geared      • Time Warner and its divisions also provide
all procurement process. A diverse supplier base                                                        to support MWBE business development.             scholarships to MWBE businesses to attend
is important for business reasons and we have       Website and Database                                The company has been recognized by many           various advanced management and busi-
a very broad and robust Supplier Diversity pro-     The Supplier Diversity website and database         organizations for its support of minority         ness courses.
gram. The program foundation consists of ten        (www.TWSupplierDiversity.com) serves as             business development.
areas of major focus, which we use to implement     the primary resource tool for employees and         • Time Warner was named by Diversity-           Metrics
and manage supplier diversity throughout Time       diverse suppliers. The website is used both            Business.com as one of America’s Top 50      Through the combined efforts of our business
Warner divisions:                                   as an external website for suppliers to visit          Corporations for Multicultural Business      divisions, our MWBE spend continues to grow
• Training & Education                              and begin the registration process and as              Opportunities. This is an award that the     year over year. In 2007, Time Warner spent
• Business Development                              an internal tool for employees to receive up-          company has received over the past           over $595.6 million with MWBEs, representing
• Communications                                    dates on the program, new initiatives, and             four years.                                  4.47% of our total discretionary spending.
• Tracking & Reporting Second Tier                  supplier profiles to review when considering
• External Outreach Activities                      bid opportunities.

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COMPANY	AND		             CUSTOMERS		          DIVERSITY	   ENVIRONMENT   ETHICS,	GOVERNANCE,		        EMPLOYEES		                  SUPPLY	CHAIN                 COMMUNITY
REPORT	OVERVIEW           AND	CONTENT	                                    AND	PUBLIC	POLICY            AND	WORKPLACE



42	    Providing	Opportunity	for	Diverse		 	
	     	Talent	to	Grow	and	Succeed

43	   Broadening	Public	Access	to	Arts	

44	   EmplOyEE	ENgAgEmENT
45	    Recognizing	Employees	for		
	     	Community	Involvement

45	   Recent	Awards	


                                                                          As part of our effort to broaden public access to the Arts, Time Warner funded the launch of Signature Theatre’s
                                                                          $15 ticket initiative, making every seat for every performance available for the price of a movie and popcorn.
                                                                          Photo by Joseph Moran

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COMPANY AND               CUSTOMERS                DIVERSITY                  ENVIRONMENT               ETHICS, GOVERNANCE,         EMPLOYEES                  SUPPLY CHAIN               COMMUNITY
REPORT OVERVIEW           AND CONTENT                                                                   AND PUBLIC POLICY           AND WORKPLACE

                                                   TOTAL TIME WARNER CONTRIBUTIONS                      TOTAL TIME WARNER IN-KIND CONTRIBUTIONS                TOTAL TIME WARNER CASH CONTRIBUTIONS
                                                   TO NONPROFIT ORGANIZATIONS                           TO NONPROFIT ORGANIZATIONS                             TO NONPROFIT ORGANIZATIONS

                                                   2007                   $ 259 MILLION                 2007                    $ 214 MILLION                  2007                  $ 45 MILLION
                                                   2006                   $ 315 MILLION                 2006                    $ 265 MILLION                  2006                  $ 50 MILLION
                                                   2005                   $ 294 MILLION                 2005                    $ 235 MILLION                  2005                  $ 59 MILLION


Time Warner’s community investment is a cor-        EDUCATION AND THE ARTS: AT THE CORE OF              Providing Opportunity for Diverse Talent               This program was conceived and developed
nerstone of our company’s CSR efforts. Our goal     OUR COMMUNITY INVESTMENT                            to Grow and Succeed                                    with the input of executives from HBO and
is to focus our resources smartly and strategi-     Time Warner’s corporate philanthropy is focused     A diversity of opinions and ideas is critical to the   Warner Bros.
cally so that our philanthropy connects directly    on education and the arts. Thus, we support         future of our business, our country, and the
to our company and its values, as we support        not-for-profit organizations that are                world. Through our grant programs, we nurture          To help meet the needs of smaller arts organ-
the communities where we live and do business.     • Providing opportunity for diverse talent to        diverse talent and enable new voices to be heard.      izations, we created the Diverse Voices
                                                       grow and succeed; and                                                                                   Small Theater Fund which provides support
As a funder, Time Warner strives to develop        • Broadening public access to arts experiences.      In the Arts:                                           to com-munity based theater and arts groups
thoughtful partnerships with our grantees.                                                              Diverse Voices in the Arts Initiative                  in New York City that present or develop work
Our corporate grantmaking process involves         Our investments reflect our commitment to pro-        In early 2004, Time Warner launched our Di-            by artists from diverse backgrounds.
careful evaluation and selection. Our signa-       moting diversity in Time Warner’s workplace and      verse Voices in the Arts Initiative to help
ture initiatives are funded through a request      in the communities where we live and do busi-        nurture emerging storytellers that represent           Youth Media and Creative Arts Initiative
for proposal process that involves research        ness. As part of this effort, we ask the non-profit   diverse perspectives. Included in this initiative      Through the Youth Media and Arts Fund, Time
and due diligence; only select organizations       organizations that receive Time Warner’s finan-       are Time Warner supported programs at three            Warner’s youth media and creative art initi-
are invited to apply. Senior Time Warner exec-     cial support to tell us how they address diversity   renowned New York City theaters known for              ative launched in 2005, the company supports
utives from across our company are also            as part of their larger mission – including board    their work in cultivating emerging playwrights:        high-quality New York City-based after-school
engaged in the process, providing guidance         membership, programs, and organizational pol-        Playwrights Horizons, the Public Theater, and          programs that engage underserved youth in
and recommendations on the proposals.              icies and hiring practices.                          Second Stage Theatre. In 2007, in conjunction          a variety of arts disciplines – from visual arts
Once awarded, grantee organizations are                                                                 with the Sundance Institute, we launched the           to performing arts to filmmaking. These pro-
asked to provide progress reports detailing                                                             Time Warner Storytelling Advancement Fund,             grams work with teens to give them the oppor-
fund usage.                                                                                             a new program which seeks to cultivate the             tunity to develop and express their voices
                                                                                                        works of diverse writers so their stories may
                                                                                                        be brought to the stage or film.

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COMPANY AND                CUSTOMERS                  DIVERSITY                  ENVIRONMENT                ETHICS, GOVERNANCE,       EMPLOYEES                SUPPLY CHAIN              COMMUNITY
REPORT OVERVIEW            AND CONTENT                                                                      AND PUBLIC POLICY         AND WORKPLACE

                                                                                              Students participate in                                                                    A scene from Macbeth
                                                                                              Prep for Prep, one of                                                                      performed by Classical
                                                                                              the college-readiness                                                                      Theater of Harlem at
                                                                                              nonprofit organizations                                                                     Marcus Garvey Park in
                                                                                              supported by Time                                                                          Harlem as part of
                                                                                              Warner.                                                                                    City Parks Theaters.

                                                                                                                                                                                         photo by Gary St. Fleur

while using the arts to help them acquire learn-      Time Warner College Prep Initiative                   Time Warner National Scholarship Initiative        Signature Theatre Ticket Initiative
ing skills that prepare them for success in school,   Since 2005, Time Warner has supported a select        The Time Warner National Scholarship Initiative    In 2005, Time Warner launched a ground-break-
life and work. An independent survey conducted        number of college preparatory programs in New         supports the work of several nationally recog-     ing ticket program in partnership with one of
by Policy Studies Associates in 2006 on Time          York City that work to increase the academic          nized scholarship organizations, including the     New York City’s most respected not-for-profit
Warner’s youth-focused grantees indicated that,       performance of under-served middle and high           Hispanic Scholarship Fund (HSF); the Point Foun-   theatres. Between the end of 2005 and the
as a result of Time Warner funding, 71% of youth      school students and help them make a successful       dation, which focuses on Lesbian Gay Bisexual      spring of 2007, the Signature Theatre Ticket
arts grantees reported increased self-confi-           transition to college. These programs include         and Transgender (LGBT) youth; UNCF; and the        Initiative gave more than 50,000 people the
dence and self-esteem in their students and 64%       rigorous academic components and communi-             American Indian College Fund.                      chance to see quality theater at an affordable
of grantees reported improved learning skills         cate high expectations to students. In addition,                                                         $15 ticket price, including a trilogy of plays
of participants. In 2007, annual reports from two     we strengthened ties between the company’s            Broadening Public Access to Arts                   by the late August Wilson. This opportunity was
Time Warner grantees, Reel Works and Urban            STARS (Students Taking a Right Step) internship       Time Warner has a long tradition of supporting     marketed through community groups across
Word NYC, stated that 86% of Reel Works alums         program and highly successful college prepar-         the public arts. Our funding is directed toward    New York which helped attract new audiences,
are still in high school or higher education and      atory nonprofit groups with the long-term goal         opportunities that support our company’s           many experiencing live theater for the first time.
90% of Urban Word’s core students finished high        of creating a pipeline of talent into the company.    efforts to reach new and diverse audiences.        The program received a great deal of press
school and went on to college.                                                                              Two examples:                                      attention and its success is being modeled in
                                                                                                                                                               other cities as an innovative example of corpo-
In Education:                                                                                               CityParks Theater                                  rate involvement in the arts. In 2007, Time
We believe that the long-term success of our                                                                In 2006, Time Warner and the CityParks Foun-       Warner re-committed to another four years
communities and company depends on growing                                                                  dation developed and launched a pilot program      of funding for the Signature Theatre Ticket
a college-educated workforce that reflects                                                                   that brought free theater performances to          Initiative which will keep tickets for all seats
the diversity of the global marketplace.                                                                    parks in New York City’s Harlem and Bedford-       at all performances at $20 through 2011.
                                                                                                            Stuyvesant neighborhoods. New locations and
With this in mind, we continue to support two                                                               additional park performances were added in
thriving initiatives dedicated to increasing                                                                2007, and plans are underway to continue grow-
college access among underserved youth.                                                                     ing the program’s community appeal in 2008.

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COMPANY AND               CUSTOMERS                 DIVERSITY                 ENVIRONMENT             ETHICS, GOVERNANCE,        EMPLOYEES                  SUPPLY CHAIN               COMMUNITY
REPORT OVERVIEW           AND CONTENT                                                                 AND PUBLIC POLICY          AND WORKPLACE

                                                    In 2008, Turner U.K.                                                         Our West Coast
                                                    employees visited                                                            employees are active
                                                    KwaZulu Natal in South                                                       in Hollywood Habitat
                                                    Africa and built two                                                         for Humanity.
                                                    houses for villagers
                                                    and AIDS orphans.

EMPLOYEE ENGAGEMENT                                 IPC Media (U.K.-based division of Time Inc.)      HBO                                                   Turner
Our company-wide employee volunteer programs        The Schools’ Design Programme is IPC’s flagship    HBO has a volunteer leave policy, which allows        Thousands of Turner employees, family members
are reflective of the extraordinary talents that     community project and complements Time            eligible employees up to five days’ paid leave         and friends participate in the division’s annual
comprise the Time Warner workforce. For example,    Warner’s broader community focus on youth and     to perform community service. Employees have          Turner Volunteer Day, which takes place in Turner
Time Warner’s Nonprofit Board Leadership Train-      arts education. The program targets art and       used this time to for multiple volunteer efforts,     communities across the world. Now in its 10th
ing and Matching Program prepares executives        design students at three schools in Southwark,    including helping rebuild in the Gulf Coast follow-   year, the day of local service brings together Tur-
to serve on the boards of nonprofit organizations.   the London borough where IPC’s headquarters       ing Hurricane Katrina and preparing the campsite      ner volunteers for a variety of community acti-
The program’s goal is to further develop leaders    is located, who undertake a 10-week afterschool   for Camp Homeward Bound, run by the Coalition         vities including cleaning parks, painting daycare
in the company and enhance the company’s repu-      course in graphic design. Each student then       for the Homeless through its Youth Services           centers, delivering food and visiting the elderly.
tation in the community. Since the program’s        completes a week’s work experience at IPC,        Program. HBO’s employee network and affinity           The division’s intranet offers information on
creation in 2005, 161 executives have participa-    where he or she is hosted by one of IPC’s art     groups are key champions of the division’s vol-       wide-ranging individual and group volunteer op-
ted and 70% are being or have been matched to       editors who helps the student put his or her      unteer initiatives. HBO also organizes an annual      portunities. In 2008, 20 Turner U.K. staff visited
serve on nonprofit boards. The program has been      learning into practice and gain experience and    charity drive, in which employee contributions        the KwaZulu Natal in South Africa and built two
 offered in New York, Atlanta, and Los Angeles.     understanding of designing magazine spreads.      to nonprofit organizations can be made through         houses for villagers and AIDS orphans. In addi-
                                                                                                      payroll deductions, and all employees who donate      tion to volunteering, the group raised £30,000
Our divisions also support the volunteer efforts    IPC allows its employees two days’ paid leave     a day’s pay receive a day off of work. In 2008,       to support the South African community. Turner
of their employees through other ongoing            each calendar year to take part in volunteer      employee participation in the drive increased         U.S. employees are eligible for up to 40 hours
programs. The following are a few examples:         activities in the community. Employees can take   by nearly 10%. Contributions from the campaign        of volunteer release time each year to volunteer
                                                    part in a wide range of charitable activities,    went to Earth Share, Echoing Green, the Chil-         during work hours. Participation in the program
                                                    with many choosing to use one of their volun-     dren’s Health Fund’s Operation Assist, and the        has increased every year since it launched,
                                                    teer release days to join with their colleagues   Wounded Warrior Project.                              with use of Volunteer Release Time increasing
                                                    and take part in the annual Time Warner Volun-                                                          20% in 2007.
                                                    teer’s Day. IPC hasset up a database, on their
                                                    intranet, of possible volunteering options for
                                                    people to consider.

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COMPANY	AND		               CUSTOMERS		               DIVERSITY	                  ENVIRONMENT                 ETHICS,	GOVERNANCE,		     EMPLOYEES		               SUPPLY	CHAIN               COMMUNITY
REPORT	OVERVIEW             AND	CONTENT	                                                                      AND	PUBLIC	POLICY         AND	WORKPLACE

                                                                                                              Time Warner’s community investment is a cornerstone of our company’s
                                                      Lynn Nottage,
                                                      Rajiv Joseph and                                        CSR efforts. Our goal is to focus our resources smartly and strategically
                                                      Tracey Scott Wilson,
                                                      three playwrights                                       to ensure that our philanthropy connects directly to our company and
                                                      participating in
                                                      the Time Warner                                         its values.
                                                      Community Program
                                                      at Second Stage
                                                      Theater in NYC.
                                                      Photo by Joseph Moran

 Warner	Bros.                                         Thanks	and	Giving	campaign	through	program-             nization.	In	addition,	Time	Warner	recognizes	      Recent	Awards		
 The	Warner	Bros.	Studios	Volunteer	Corps	was         ming	initiatives	and	promotional	advertising	           employees	who	have	made	exceptional	contribu-       November	2007,	Mayor	Bloomberg	presented	
 launched	in	1996	as	an	initiative	aimed	at	pro-      in	various	parts	of	the	AOL	network	with	the	goal	      tions	to	community	service	with	the	Andrew	         Time	Warner	with	the	Mayor’s	Award	for	Arts	
 moting	and	supporting	employee	volunteerism.	        of	soliciting	direct	donations	for	the	organization.	   Heiskell	Community	Service	Awards,	which	are        and	Culture	for	its	leadership	in	support	of	
 Volunteer	Corps	members	receive	a	monthly	           AOL	also	supports	other	nonprofit	organizations	        presented	each	June	at	a	special	luncheon	in	       the	Arts	in	New	York	City.
 newsletter	via	email,	listing	various	volunteer	     that	promote	the	health	and	well-being	of	chil-         New	York	City.	The	awards	are	named	in	memory	
 opportunities	with	nonprofit	organizations	          dren.	AOL	is	also	a	founding	partner	of	Network	        of	Andrew	Heiskell,	former	Chairman	and	CEO	of	     January	2008,	Preservation	Resource	Center	of	
 throughout	the	Los	Angeles	area.	Each	month,	        for	Good,	one	of	the	internet’s	leading	charita-        Time	Inc.,	and	himself	a	noted	philanthropist.      New	Orleans	presented	Time	Warner	with	the	PRC	
 one	volunteer	opportunity	is	chosen	as	the	          ble	resources,	which	brings	together	donors,	           Each	year,	senior	management	gathers	to	honor       Citizenship	Award	for	“keeping	the	nation	focused	
“Pick	of	the	Month”	event.	Employees	partici-         volunteers	and	charities	online.	Launched	in	May	       approximately	ten	winners	who	have	been	selec-      through	responsible	journalism	on	the	needs	of	
 pate	in	these	volunteer	activities	as	one	unified	   2008,	AOL’s	Employee	Directed	Giving	Campaign	          ted	from	among	hundreds	of	nominations	sub-         New	Orleans	as	it	works	to	recover	and	rebuild.”
 group	representing	Warner	Bros.	Studios.	            put	philanthropic	dollars	on	the	local	level	and	in	    mitted	from	across	the	company.	
 	                                                    the	hands	of	employees	to	support	their	favorite	                                                           April	2008,	Point	Foundation	presented	Time	
 AOL                                                  local	cause	through	funding	and	volunteerism.           The	awards	include	an	honorarium	for	the	emplo-     Warner	with	the	Point	Inspiration	Award	for	the	
 AOL	has	a	long	history	of	leveraging	the	power	                                                              yee	and	a	company	donation	to	the	not-for-profit	   company’s	championing	of	respect	and	inclu-
 of	the	Internet	to	benefit	those	in	need	and	        Recognizing	Employees	for	Community	                    organization	of	the	winner’s	choosing.	In	2008,	    sion	of	the	lesbian,	gay,	bisexual	and	transgender	
 improve	communities.	AOL	is	focused	on	helping	      Involvement                                             Time	Warner	will	mark	the	28th	anniversary	of	      (LGBT)	community,	and	its	support	of	the	Foun-
 children,	while	giving	its	employees	a	greater	      Several	Time	Warner	divisions	match	employee	           the	Andrew	Heiskell	Community	Service	Awards.       dation’s	Scholarship	program	for	LGBT	youth.
 voice	in	directing	philanthropic	efforts.	Through-   contributions	to	nonprofits	that	focus	on		
 out	the	2007	holiday	season,	AOL	promoted	           arts	or	education.	Some	divisions	also	support	
 the	St.	Jude	Children’s	Research	Hospital’s	         the	nonprofit	organizations	where	employees	
                                                      volunteer	for	at	least	30	hours	per	year	by	pro-
                                                      viding	a	cash	grant	of	up	to	$500	to	the	orga-

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REPORT OVERVIEW         AND CONTENT                                        AND PUBLIC POLICY     AND WORKPLACE



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