Turner Broadcasting System, Inc. Announces Agreement for Sale
of Atlanta Hawks, Thrashers Franchises and Philips Arena
Operating Rights to Atlanta Spirit LLC

9/16/03 Rutherford Seydell II, Bruce Levenson, J. Michael Gearon, jr., Steven Belkin, Bud Seretean, J. Michael Gearon, Sr., Ed Peskowitz, and Todd Foreman, the principal members of Atlanta Spirit, LLC, prepare to announce their purchase of The Atlanta Thrashers, The Atlanta Hawks, and Philips Arena before a press conference on Tuesday.

Deal Now Goes to NBA and NHL for Expected Approval

TBS, Inc. to Retain Hawks, Thrashers Programming Rights and Minority Equity Position

Turner Broadcasting System, Inc. (TBS, Inc.) and Atlanta Spirit LLC have signed a binding agreement for the transfer of ownership of the National Basketball Association Atlanta Hawks franchise, the National Hockey League Atlanta Thrashers franchise and operating rights to the Atlanta sports and entertainment venue Philips Arena, it was announced today by Philip I. Kent, chairman and CEO of TBS, Inc., and the principals of Atlanta Spirit. The sale is conditioned on the approval of TBS, Inc. parent company AOL Time Warner Inc.’s Board of Directors and the NBA and NHL Boards of Governors.

TBS, Inc. will maintain a passive equity stake of 15 percent in the Atlanta Spirit venture that will own the teams and license programming rights to the TBS, Inc. entertainment networks. However, TBS, Inc. will have no going-forward financial or management responsibilities with respect to the teams or the arena operating company. It is expected that the ownership transfer will be completed this fall.

“We are pleased to have reached an agreement that we feel best serves the interests of our company, of the teams and Philips Arena and of Atlanta sports fans,” said Kent. “Our confidence in the Atlanta Spirit group’s vision and ability to successfully operate the teams and arena is further reflected in our continuing equity position as a partner in their venture.”

The sale of the Hawks and Thrashers franchises and operating rights to Philips Arena follows a decision by AOL Time Warner to consider offers on certain non-strategic business assets. “This transaction marks another important step in our strategy to improve our financial ratios and increase our financial flexibility,” said Wayne Pace, chief financial officer of AOL Time Warner Inc.

Atlanta Spirit LLC is an Atlanta-based investment partnership whose principals are Steve Belkin, Todd Foreman, J. Michael Gearon, Jr., Bruce Levenson, Ed Peskowitz and J. Rutherford Seydel, II.

“We have assembled an all-star team of owners with a great combination of local commitment, strong resources and significant experience in both basketball and hockey,” said Seydel, speaking on behalf of the partners. “We take these teams and Philips Arena in trust for the community, and our goal is to deliver exciting, winning hockey and basketball for our Atlanta fans.”

Turner Broadcasting acquired the Atlanta Hawks franchise in January 1977. The Atlanta Thrashers expansion franchise was acquired by TBS, Inc. in 1997. Philips Arena opened in September 1999.

Turner Broadcasting System, Inc., an AOL Time Warner company, is a major producer of news and entertainment product around the world and the leading provider of programming to the basic cable industry.

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