Price tag; AOL Time Warner's market cap is about $58 billion, but analysts say the assets

could be
worth up to $160 billion. Consensus price: $110 billion-if buyers were ready and assets could be
bought. That's a big if.(Brief Article)(Illustration)(Statistical Data Included)

Advertising Age July 22 , 2002

NETWORKS

What: TBS Superstation, TNT, CNN; HBO (``The Sopranos,'' above), part of Time Warner
Entertainment, which is 74.5%-owned by AOL Time Warner; The WB, majority-owned by TWE;
Atlanta Braves, Hawks, Thrashers.

Current value1: $13.0 billion

Top valuation2: $32.8 billion

Consensus price3: $24.8 billion

2000 revenue4: $6.8 billion

2001 revenue: $7.1 billion

2001 EBITDA: $1.8 billion

2002 revenue5: $7.5 billion

2002 EBITDA5: $1.9 billion

Buzz: Turner networks had a tough go during the upfront, especially with CNN; WB did much better.

PUBLISHING

What: 140 magazines including Time, People, Sports Illustrated and Golf. Accounted for 24% of ad
spending in U.S. magazines in 2001, according to Publishers Information Bureau estimates. AOL Time
Warner Book Group, including Warner Books, Little, Brown, Time Warner Books UK.

Current value: $5.5 billion

Top valuation: $19.3 billion

Consensus price: $15.0 billion

2000 revenue4: $4.6 billion

2001 revenue: $4.8 billion

2001 EBITDA: $909 million

2002 revenue5: $5.2 billion

2002 EBITDA5: $1.1 billion

Buzz: Gold standard of the magazine world-but tarnished by post-merger layoffs and ad slowdown.

CABLE SYSTEMS

What: Cable TV systems with 10.8 million subscribers. Majority of systems are owned by Time
Warner Entertainment.

Current value: $18.5 billion

Top valuation: $45.6 billion

Consensus price: $35.9 billion

2000 revenue4: $6.1 billion

2001 revenue: $7.0 billion

2001 EBITDA: $3.2 billion

2002 revenue5: $8.1 billion

2002 EBITDA5: $3.5 billion

Buzz: May be heading toward IPO as it unwinds Time Warner Entertainment venture with AT&T
Corp. Strong presence in major markets (NY1, below), which can still drive revenue especially if
digital services sales quicken.

AMERICA ONLINE

What: America Online, CompuServe

Current value: $11.6 billion

Top valuation: $41.0 billion

Consensus price: $16.0 billion

2000 revenue4: $7.7 billion

2001 revenue: $8.7 billion

2001 EBITDA: $2.9 billion

2002 revenue5: $9.2 billion

2002 EBITDA5: $1.8 billion

Buzz: World's No. 1 Internet service provider is dogged by slumping ad sales, management turmoil and
slowing subscriber growth. But all those $23.90-a-month subscriptions rake in a lot of cash. AOL has
big revenue opportunities to upgrade customers if it can figure out a clear broadband strategy.

FILMED ENTERTAINMENT

What: Warner Bros., owned by Time Warner Entertainment; New Line Cinema (``Austin Powers,''
above); film and animation libraries; TV production.

Current value: $7.8 billion

Top valuation: $19.5 billion

Consensus price: $15.2 billion

2000 revenue4: $8.1 billion

2001 revenue: $8.8 billion

2001 EBITDA: $1.0 billion

2002 revenue5: $9.6 billion

2002 EBITDA5: $1.3 billion

Buzz: Warner Bros. major franchises ``Potter'' and ``Matrix'' will keep studio near top; New Line does
the same with ``Blade'' and ``Lord of the Rings.''

MUSIC

What: Warner Bros. (Linkin Park, below), Atlantic, Elektra, Word Entertainment (recorded music).
Warner/Chappell (music library).

Current value: $1.4 billion

Top valuation: $4.5 billion

Consensus price: $3.2 billion

2000 revenue4: $4.1 billion

2001 revenue: $3.9 billion

2001 EBITDA: $419 million

2002 revenue5: $4.1 billion

2002 EBITDA5: $442 million

Buzz: No longer the crown jewel in the Warner empire, the group needs better, newer and younger
acts-or a faster ramp up for its AOL Music service.

Notes: Divisions' revenue includes sales to siblings; AOL Time Warner subtracts that from its revenue.
EBITDA is earnings before interest, taxes, depreciation and amortization. 1 Ad Age estimate of how
the stock market currently values the businesses, apportioning last week's $57.8 billion market
capitalization among divisions. Market cap is share price times outstanding shares. 2 Top asset
valuation among select analysts. Numbers would be lower after accounting for debt, joint ventures and
other factors. The Current Value is effectively a bottom asset valuation for now. 3 Ad Age estimate of
what a buyer would pay for the assets if buyers were present and the assets were available for sale.
Based on review of analysts' calculations and interviews with industry experts. Actual selling prices
would be affected by apportionment of debt and by interests in joint ventures. 4 Pro forma 5 Morgan
Stanley forecast

Sources: Advertising Age; AOL Time Warner; DeSilva & Phillips; Merrill Lynch; Morgan Stanley;
SoundView Technology Group; Vogel Capital Managment.