Time Warner challenges New York City action.

NEW YORK--(BUSINESS WIRE)--Oct. 11, 1996--Time Warner Entertainment Company, L.P. (TWE), announced that it has begun an action in Federal District Court for the Southern District of New York to prevent New York City from forcing Time Warner Cable to carry Fox News Service or Bloomberg News Service

Time Warner Entertainment also seeks a temporary restraining order and preliminary and permanent injunction to protect its rights and prevent the City from continuing to infringe on Time Warner's First Amendment and other legal rights.

In a letter dated October 10, 1996, Richard D. Parsons, President of Time Warner Inc., responded to David Klasfeld, Chief of Staff, Office of the Deputy Mayor for Economic Planning and Development, indicating that the City's continuing campaign to force carriage for the Fox News Service was improper and illegal. In addition, Mr. Parsons requested a meeting to review alternatives. At about 11:00 p.m. last night, without any notification to Time Warner, the City turned one of its Crosswalk Channels over to Bloomberg News Service. Time Warner has also been advised that the City intends to turn another Crosswalk Channel over to Fox News Service at midnight Friday.

Time Warner charges that the City has been attempting to force it to provide carriage of Fox News Service for the last two weeks in clear violation of Time Warner's franchise and its constitutional and legal rights. Turning control of these channels over to commercial broadcasters is another step in the City's unlawful and politically motivated campaign.

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CONTACT: Edward Adler

(212) 484-6630