FTC: AOL Time Warner Complying

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In a letter Monday to a key House lawmaker, the Federal Trade Commission
reported no merger violations by AOL Time Warner Inc. under the FTC's order that
approved the deal last December.

In a four-page letter, the FTC outlined key merger provisions for Rep. Edward
Markey (D-Mass.) and reported broad compliance by the cable, film, television
and Internet conglomerate.

In approving the merger, the FTC's chief condition barred AOL Time Warner
from launching America Online Inc.'s online service on Time Warner Cable systems
prior to offering EarthLink Network Inc.'s Internet access service in its 20
largest cable markets.

'As of Nov. 30, 2001, AOL Time Warner will have offered its affiliated ISP
[Internet-service provider] service in each of Time Warner Cable's 20 largest
cable divisions no earlier than it offered EarthLink's broadband service,
consistent with its obligations under the order,' the FTC said.

The FTC letter was drafted by Joseph J. Simons, director of its Bureau of
Competition.

Simons said he drafted the letter because FTC chairman Timothy Muris is not
permitted to participate in matters associated with AOL Time
Warner.

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