DOJ Probing AOL Accounting Irregularities

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AOL Time Warner Inc. admitted that it is the subject of a U.S. Department of
Justice probe into accounting irregularities at its America Online Inc. Internet
unit and said in a prepared statement that it is cooperating with federal
authorities.

News of the DOJ probe came just one week after the company acknowledged that
the Securities and Exchange Commission had launched a 'fact-finding inquiry'
into the AOL unit's accounting practices. Those accounting irregularities were
brought to light in a series of articles in TheWashington Post
last week.

In a prepared statement, the company -- responding to a report of the DOJ
investigation in Wednesday's USA Today -- said, 'In the current
environment, when anyone raises a question about accounting, it's not surprising
that the relevant government agencies will want to look into the facts.'

The statement continued, 'As we said last week, we are cooperating 100
percent with the SEC, and we will cooperate with the Department of Justice, as
well. Most important, as we have consistently said, our accounting is
appropriate and in accordance with generally accepted accounting principles, and
our outside auditors, Ernst & Young [LLP], have repeatedly confirmed
that.'

AOL Time Warner stock was down 94 cents in midday trading to $11.46 per
share.

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