AOL Cuts Carriage Deal with China

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AOL Time Warner Inc. signed a reciprocal carriage deal with the Chinese
government that will give the company distribution for an entertainment channel
in China in exchange for carrying China Central Television (CCTV) on Time Warner
Cable systems.

The deal, announced Monday, boosts distribution for AOL Time Warner's China
Entertainment Television (CETV), a no-sex, no-violence, no-news channel that the
company bought a stake in last year.

CETV -- a Mandarin-language channel currently available in Singapore, Hong
Kong and other Pacific Rim markets -- will be distributed to cable subscribers
in the southern region of China, the company said.

In exchange, Time Warner will carry CCTV-9 -- an English language version of
China's state-run CCTV -- on 'select Time Warner Cable systems,' the company
said in a press release.

The agreement gives AOL Time Warner a foothold in China, which is poised to
become the world's largest media market. It also marks the first time a CCTV
network will gain 24-hour distribution in the United States.

'We are pleased to have achieved this landmark agreement, which represents a
significant step in the growing relationship between AOL Time Warner and the
people of China,' AOL Time Warner CEO Gerald Levin said in a prepared
statement.

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