AOL Time Warner Reports Results for Full Year and Fourth Quarter.

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AOL Time Warner Reports Results for Full Year and Fourth Quarter.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 30, 2002

AOL Time Warner (NYSE: AOL)

NOTE:AOL Time Warner's results announced today do not include the

pro forma effect of the consolidation of AOL Europe, which is

expected to occur on January 31, 2002, or a full year's

results of IPC Media, which was acquired on October 17, 2001.

Unless otherwise specified, results discussed herein have been

adjusted to normalize out the effect of merger-related costs

and significant and non-recurring items that have occurred in

each period, which are discussed in more detail in the

accompanying footnotes. Supplemental financial information is

attached that provides the Company's reported results and

reconciles those results to the normalized results discussed

herein. It should be noted that unusual or nonrecurring items

might occur in any period and users of this financial

information should consider the types of events and

transactions for which adjustments have been made. In

addition, 2000 results have been prepared on a pro forma basis

assuming the AOL Time Warner merger was in effect January 1,

2000.

AOL Time Warner Reports Results for Full Year and Fourth Quarter

-- Performance in Line with Preliminary Results Announced on January 7 -- Full Year Normalized EBITDA up 18% to $9.9 Billion; Total Revenues Increase 6% to $38.2 Billion; Normalized Free Cash Flow Increases by 238% to $3.0 Billion -- Fourth Quarter Normalized EBITDA Grows 14% to $2.8 Billion; Quarterly Revenues up 4% to $10.6 Billion; Subscription Revenues Climb 16% to $4.4 Billion AOL Time Warner Inc. (NYSE: AOL) today reported financial results for its fourth quarter and full year ended December 31, 2001, which were consistent with the preliminary results announced on January 7.

Revenues for the year rose 6% to $38.2 billion, up from $36.2 billion in 2000, led by a 12% increase in subscription revenues to $16.5 billion. While content and other revenues improved 4% to $13.2 billion, advertising and commerce revenues declined 3% to $8.5 billion.

EBITDA for the year increased 18% to $9.9 billion, and cash EPS for the year rose 26% to $1.18. These compare to EBITDA of $8.4 billion and cash EPS of $0.94 in 2000.

Revenues for the quarter increased 4% to $10.6 billion, from $10.2 billion in the comparable 2000 period. Subscription revenues increased 16% to $4.4 billion, and content and other revenues increased 4% to $4.0 billion. Advertising and commerce revenues declined 14% to $2.2 bi...

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