Time Warner stockholders are not expected to recognize any gain or loss for U.S. federal income tax purposes, except with respect to cash received in lieu of fractional shares. The tax consequences of the distribution are explained more fully in the Tax Information Statement, noting especially pages 33 to 35 under the heading “Material U.S. Federal Income Tax Consequences of the Spin-Off.” The Tax Information Statement is above or click here for more information.

You are urged to consult your own tax advisor regarding the particular consequences of the distribution to you, including the applicability and effect of any U.S. federal, state and local, Canadian federal, provincial and territorial and other foreign tax laws.

Information regarding the determination of the tax basis in your Time Warner common stock and the AOL common stock that you received in the distribution is explained more completely in the “Tax Information Statement” that is posted above or click here for more information.