Warner Bros. International Television Takes Stake In Spain’s Leading Pay Television Platform Canal Satelite Digital

(February 15, 2000 – Madrid, Spain) – Warner Bros. International Television has acquired a 10% equity stake in Spain’s leading pay television platform Canal Satelite Digital, exercising a purchase option granted by Canal Satelite Digital in 1997. The transaction will be implemented by means of a capital increase to take place immediately. With this new incorporation, Sogecable will now hold an 83% stake in Canal Satelite Digital’s capital. This shareholders’ agreement also includes the right by Warner Bros. to appoint a director to Canal Satelite Digital’s Board of Directors. Warner Bros., a Time Warner Entertainment Company LP, has also exercised the right granted by Sogecable to purchase 10% of Cinemania, S.L., a company, which produces the Cinemania thematic channels. Sogecable will hold the remaining 90%. Warner Bros. will also appoint a director to the company’s Board. Sogecable’s CEO, Javier Diez de Polanco, stated after this agreement that: “The incorporation of such an important partner as Time Warner Entertainment’s Warner Bros. reflects and enforces Canal Satelite Digital’s leading position and opens new expectations in our fruitful relationship in those areas where we have already satisfactorily collaborated together.” “With this investment from Warner Bros., we are reinforcing our confidence in the Spanish pay TV market and in Sogecable, Spain’s leading digital broadcasting company,” said Jeffrey R. Schlesinger, President, Warner Bros. International Television. “We are pleased to be extending our already mutually beneficial relationship and look forward to the many new challenges and opportunities that lie ahead in the digital era.” Sogecable and Warner Bros. have relationships in several areas including pay television (in which Sogecable holds the exclusive pay TV first and second window rights for Spain for first-run feature film and selected television productions distributed by Warner Bros. International Television Distribution); feature film production (through the film company Bel Air Entertainment); feature film distribution (through the Warner Bros./Sogecable partnership Warner Sogefilms) and cinemas (through Warner-Lusomundo-Cines de Espana). Further, Sogecable maintains relationships with other Time Warner companies including Turner Broadcasting System International, which is a partner with Sogecable in Compania Independiente de Noticias de Television (CINTV), which produces the CNN+ channel, Spain’s first 24-hour news channel managed by a private company. In addition, Sogecable also distributes Turner Classic Movies (TCM) channel, the children’s channel Cartoon Network and the CNN International news channel in Spain through the channels offered by Canal Satelite Digital. # # #