S generally acceptedaccounting principles GAAP

The Company has further stated that any additional declines in valuewould likely result in cable franchise rights impairment charges. The recentdecline (particularly during the second half of 2008) in the Companys stockprice is indicative of a significant decrease in the value of its cablefranchise rights. In anticipation of Time Warner Inc.s participation in the 2009 Citigroup GlobalEntertainment, Media & Telecommunications Conference today, the Company isannouncing that it currently expects to report a fourth quarter 2008 noncashpretax impairment charge on its cable franchise rights of approximately $15billion. In addition, the Company anticipates incurring a noncash pretax impairmentcharge of approximately $350 million related to its investment in ClearwireCorporation. The Company intends to finalize its impairment analyses prior to the release ofits 2008 financial results on February 4, 2009. As a result of these charges, Time Warner Cable now expects to incur a net lossand a Loss per Diluted Share in 2008.

Time Warner Cable is not otherwiseupdating its outlook for Revenues, Adjusted Operating Income before Depreciationand Amortization and Free Cash Flow. Use of Operating Income before Depreciation and Amortization, Adjusted OperatingIncome before Depreciation and Amortization and Free Cash FlowOperating Income before Depreciation and Amortization ("OIBDA") is a financialmeasure not calculated and presented in accordance with U.S generally acceptedaccounting principles ("GAAP"). The Company defines OIBDA as Operating Incomebefore depreciation of tangible assets and amortization of intangible assets.The Company also evaluates the performance of its business using OIBDA excludingthe impact of noncash impairments of goodwill, intangible and fixed assets, aswell as gains and losses on asset sales (referred to herein as "AdjustedOIBDA"). Management utilizes OIBDA and Adjusted OIBDA, among other measures, inevaluating the performance of the Companys business because they eliminate theuneven effect across its business of considerable amounts of depreciation oftangible assets and amortization of intangible assets recognized in businesscombinations. Additionally, management utilizes OIBDA and Adjusted OIBDA becauseit believes these measures provide valuable insight into the underlyingperformance of the Companys individual cable systems by removing the effects ofitems that are not within the control of local personnel charged with managingthese systems such as income tax provision, other income (expense), net,minority interest expense, net, income from equity investments, net, andinterest expense, net.

In this regard, OIBDA and Adjusted OIBDA are significantmeasures used in the Companys annual incentive compensation programs. OIBDA andAdjusted OIBDA also are metrics used by the Companys parent, Time Warner Inc.("Time Warner"), to evaluate the Companys performance, and OIBDA is animportant measure in the Time Warner reportable segment disclosures. Alimitation of OIBDA and Adjusted OIBDA, however, is that they do not reflect theperiodic costs of certain capitalized tangible and intangible assets used ingenerating revenues in the Companys business. Moreover, Adjusted OIBDA does notreflect gains and losses on asset sales or any impairment charge related togoodwill, intangible assets and fixed assets.