Time Inc.

Bonnier Magazine Group Buys 18 Magazines from Time Inc.

25 January 2007

New York, NY - Bonnier Magazine Group and Time Inc., a Time Warner company (NYSE: TWX), today announced that Bonnier will acquire Time Inc.'s Parenting Group and Time4 Media titles. Through this transaction, Stockholm-based Bonnier and its U.S. magazine partner, World Publications, will become one of the largest consumer publishing groups in America, with 40 titles and annual revenue of more than $350 million.

Under the proposed agreement, Bonnier will acquire 18 titles, which will join World Publications' award-winning, market-leading collection of magazines, such as Saveur, Spa and Islands. The expanded portfolio strengthens the company's position among special-interest magazines and increases its new media opportunities.

Jonas Bonnier, Chairman of the Bonnier Magazine Group, said: "We are extremely pleased to have reached an agreement that elevates Bonnier to the highest echelon of consumer publishers nationwide. The potential synergies between the new properties and World's existing titles - as well as the corporate and individual growth that it will lead to - makes the future bright for all of us."

This is Bonnier's third acquisition in the United States during the past year and its first major purchase of a magazine group after its partnership with World.

Terry Snow, CEO of World Publications, said: "These new titles are a perfect strategic fit with World's special-interest magazines and what we excel at - connecting people with their passions. And I am especially looking forward to working with this talented group of editing and publishing executives. We're committed to building high-quality brands through exceptional editorial products, whether in print or online, and the potential to be the leading multimedia resource in our new and existing special-interest areas is very exciting to us."

Dick Parsons, Time Warner Chairman and Chief Executive Officer, said: "This is a smart transaction that advances both the interests of our shareholders and Time Inc.'s future success. This sale and our other recent divestitures are enabling us to concentrate our resources on developing our most strategic and promising opportunities to grow our businesses."

Ann Moore, Time Inc. Chairman and CEO, said: "I am very pleased to have found the right buyer for The Parenting Group and Time4 Media, one that will be able to nurture their specialized titles. This transaction underscores Time Inc.'s commitment to focus our energy, resources and investment on our biggest and most profitable brands. I'd also like to welcome Bonnier to the New York publishing world, which continues to be an active and vibrant industry."

The acquired magazines are as follows: Parenting, Babytalk, Popular Science, Field & Stream, Outdoor Life, Yachting, MotorBoating, Salt Water Sportsman, Skiing, SKI, TransWorld SKATEboarding, TransWorld SNOWBOARDING, TransWorld MOTOCROSS, TransWorld SURF, ride bmx, QUAD, SHOT BUSINESS and TransWorld business. Editorial, sales and marketing staff will remain in New York, California and Colorado.

The acquisition is subject to regulatory approval. J.P. Morgan Securities Inc. acted as financial advisor to Time Inc. on this transaction; AdMedia Partners Inc. acted as financial advisor to Bonnier.

About Bonnier
Bonnier (www.bonnier.com) is a 200-year-old company with approximately $2.9 billion in annual revenue. Based in Stockholm, Bonnier has operations in more than 20 countries, including magazine divisions in Denmark, Norway, Sweden, Finland and Spain. Some of its best-known titles are Illustreret Videnskab, a popular science magazine; I Form, a health and fitness title; and Bo Bedre, a home and garden monthly.

About World Publications
Over the past three decades, World Publications (www.worldpub.net) has grown from a single magazine title into one of America's most successful special-interest multimedia companies. World's magazines continue to garner industry awards for their writing, design, photography and journalistic coverage. The company is also known for producing quality custom publications, television, websites, events and marketing programs in all of its markets. The company's headquarters are in Winter Park, Florida, and it maintains offices in New York, Newport, Rhode Island, Santa Barbara, California, and a dozen other locations throughout the United States.

About The Parenting Group
The Parenting Group delivers over 15 million mom impressions and 20 million consumer touchpoints every month to the valuable mom market. Its two flagship brands are Parenting, the nation's premier magazine for moms, and the Babytalk portfolio, which includes the monthly Babytalk magazine and its siblings Babytalk First Months and Babytalk Mom-to-Be. The Parenting Group's other extensions include: Parenting.com; MomConnection, an online research tool; First Moments, a sampling operation; and a custom publishing unit.

About Time4 Media
Time4 Media is a multi-media company serving large, enthusiast audiences via magazines, websites, television and radio programming, feature- films and live events. Leading publishers of men's special interest magazines, Time4 Media titles include some of America's biggest and best-known brands including Field & Stream, Popular Science, SKI, Yachting, and TransWorld SKATEboarding. The company's 14 consumer and three trade publications, all leaders in their categories, have a combined monthly circulation of nearly six million and an audience of more than 33 million. Nine National Magazine Awards nominations and four wins over the past four years are evidence of a relentless focus on editorial quality. Related web properties, including the largest outdoor, action sports and snow sports communities online, bring Time4 Media's combined audience to more than 60 million active, passionate enthusiasts. The company's Warren Miller Entertainment division, producers of the largest action sports movie tour on the planet, serves as a film, video and television production enterprise for all Time4 Media brands.

About Time Inc.
Time Inc., a Time Warner company, is one of the largest content companies in the world. With approximately 150 magazines, it is the largest magazine publisher in the U.S. and U.K. Each month, one of out every two American adults reads a Time Inc. magazine, and one out of every 10 visits a company website (more than 19 million unique visitors). Time Inc.'s popular brands and successful franchises extend to online, television, cable VOD, satellite radio, mobile devices, events and branded products.

About Time Warner Inc.
Time Warner Inc. is a leading media and entertainment company, whose businesses include interactive services, cable systems, filmed entertainment, television networks and publishing.

Contact Info:
Bonnier
Erik Mânsson
+46 70 569 2930
erik.mansson@bonnier.se

World Publications
Dean Turcol
(407) 405-0097
dean.turcol@worldpub.net

Time Inc.
Dawn Bridges
(212) 522-2494
dawn_bridges@timeinc.com

Time Warner Inc.
Edward Adler
(212) 484-6630
edward.adler@timewarner.com

Keith Cocozza
(212) 484-7482
keith.cocozza@timewarner.com