Time Warner Sets Digital-Media Fund

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Time Warner Inc. has established a $500 million fund for
making investments in digital-media companies.

The fund will concentrate on obtaining noncontrolling
stakes in companies involved in electronic commerce, interactive content, technology
infrastructure and other digital-media activities.

Time Warner expects the fund's average investment to be in
the $5 million to $20 million range, although the company said smaller investments will be
considered.

Time Warner has made investments in e-commerce and Internet
firms in the past, including Replay Networks Inc., OpenTV Inc., Intervu Inc., WebMD Inc.,
Fortune City and Bolt Inc., but this is the first time the company has created a separate
fund for making such investments.

Comcast Corp. set up a similar venture-capital fund this
past January, seeding it with $100 million.

"As we continue to invest in our own digital-media
businesses, there are increasing opportunities to enhance and complement those efforts
through strategic equity investments in other digital-media enterprises," Time Warner
Digital Media president Richard Bressler said in a prepared statement.

"With the formation of this investment fund, we are
adding a new degree of efficiency and strategic direction by taking a coordinated,
portfolio approach to our digital-media investments," he added.

A separate team of professionals -- which the company is in
the process of assembling -- will manage the fund.

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