Time Warner shareholders 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 Information Statement, which is posted on this webpage under the heading "Other Information." See pages 35 to 38 of the Information Statement under the heading "Material U.S. Federal Income Tax Consequences of the Spin-Off."

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 Time Inc. common stock that you received in the distribution is explained more completely in the "Tax Basis Information" that is posted on this webpage.