Burger King Corporation and AOL Time Warner Announce Strategic Alliance and Partnership

Under this new partnership, Burger King Corporation and AOL Time Warner plan to create a series of integrated marketing concepts that will link the 12 million customers who visit BURGER KING® restaurants every day with innovative customized features within numerous media properties of AOL Time Warner in publishing, broadcast, music, film and online. BURGER KING® customers, for example, would soon be given digital codes with purchases to allow them access to special sites available on several America Online brands and . Once inside these sites, BURGER KING® customers would be able to participate in various sports and music promotions encompassing a wide range of companies within the entertainment industry.

"At Burger King Corporation, we are looking to welcome back millions of customers to BURGER KING® restaurants through new products, new partnerships, new strategies and a commitment to serve customers what they want and how they want it at a good value," said John H. Dasburg, chairman, chief executive officer and president, Burger King Corporation. "Partnering with a media powerhouse like AOL Time Warner will provide our customers a broad array of exciting, interactive and cutting edge experiences. By combining our brand with AOL Time Warner's top-drawer content and media distribution strengths, we will reach the widest audience in the online and offline worlds. This strategic alliance will bring more value to our customers than anyone in food service. This partnership will bring fun, valuable experiences to our customers."

"Our AOL Time Warner Global Marketing Solutions group has worked closely with the Burger King Corporation global marketing team to create a truly integrated partnership, one that enables us to reach BURGER KING® customers as well as their employees, franchisees and suppliers worldwide, with a wide range of values and opportunities," said Bob Pittman, co-chief operating officer, AOL Time Warner. "We are pleased to work with Burger King Corporation to align their brand with our programming in television, sports, music and filmed entertainment in new and innovative ways, and we believe this alliance demonstrates the kind of tailored cross-platform opportunities that only AOL Time Warner can design for its partners."

Under the multi-million dollar, multi-year alliance, AOL Time Warner and Burger King Corporation will create targeted promotions and programs that are designed to build customer loyalty and drive sales. The agreement takes advantage of each company's brands and marketing strengths through a broad package of opportunities such as:

Sports Moment of the Month: In an initiative designed to integrate interactive and print promotions, BURGER KING® customers and SPORTS ILLUSTRATED readers will be invited to share their opinions on the best "WHOPPER® Sports Moment of the Month," as part of an ongoing Special Advertising Section presented in the magazine, on and on . Consumers will also be encouraged to submit their own personal sports moment of the month, adding a local "sports hero" component to this national, multi-media program. Participants could also then be entered in a sweepstakes to win one of several prizes, which might include VIP tickets with airfare and accommodations to their favorite sports event. The winners may also be featured in a commemorative issue on the year's best sports moments. Selected sports moments are also planned to be featured in sports programming broadcast on TBS Superstation and TNT, as well as within America Online's brands.

Music: AOL Time Warner and Burger King Corporation intend to incorporate the latest popular and emerging music acts, encompassing a broad range of record labels, into a variety of interactive promotions to take advantage of the power of the online medium. Through a new "BK Backstage" custom site developed by AOL Music and featured on America Online's music sites and on , BURGER KING® customers would be able to get an exclusive "backstage all-access pass" to behind-the-scenes music and video content, such as free music downloads, pre-release streaming of the latest songs and videos, live chats with recording artists, and chances to win a variety of prizes, including backstage concert passes.

Television/Movie Opportunities: Burger King Corporation and AOL Time Warner are working together on a number of marketing opportunities with television programs to promote BURGER KING® products. Burger King Corporation also plans to be aligned with upcoming AOL Time Warner films, including the first installment of the long-awaited New Line Productions trilogy, "The Lord Of The Rings: The Fellowship of the Ring." Announced in May 2001, this unprecedented worldwide promotion will span more than 11,000 BURGER KING® restaurant locations worldwide and parallel all the groundbreaking elements of the movie itself.

The BURGER KING® brand will also be promoted across AOL Time Warner's unparalleled range of television, print and online media, including Turner network properties such as CNN and TNT; Time Inc. magazines including TIME, SPORTS ILLUSTRATED, and PEOPLE; and America Online brands including AOL, CompuServe and Netscape.

The companies will also work together on a variety of specially designed in-restaurant and drive-thru promotions to make AOL Time Warner content available to the more than 12 million customers who visit BURGER KING® restaurants every day. Customers at BURGER KING® restaurants, for example, may be able to pick up AOL software; learn about the latest Warner Bros. and New Line motion pictures; get information on hot, new musical acts from the Warner Music Group, as well as those from other record labels; and read special features from Time Inc. magazines, such as TIME and PEOPLE, on their tray liners.

In addition, a variety of AOL Time Warner entertainment benefits have been designed specially for BURGER KING® restaurant team members and managers to highlight the importance Burger King Corporation places on attracting and retaining high-quality restaurant employees. This unique angle on employee benefits may include concert tickets for team members; the potential for special pricing on AOL Time Warner products and services; and other entertainment experiences.

Burger King Corporation and AOL Time Warner will also work together to include a charitable component under which customers will help determine the allocation of charitable funds raised through the alliance.

About Burger King Corporation

Burger King Corporation created the American icon, the HOME OF THE WHOPPER®, in 1957. The company and its franchisees operate more than 11,370 restaurants in all 50 states and 58 countries and international territories around the world, with more than 92% of BURGER KING® restaurants owned and operated by independent franchisees. Since the company's founding in Miami in 1954, the BURGER KING® brand has become recognized for great flame-broiled taste and HAVE IT YOUR WAY® food customization. In fiscal year 2001, the BURGER KING® system had system-wide sales of $11.2 billion. Burger King Corporation is a part of Diageo DEO, the international food and drinks company. To learn more about the BURGER KING® system, please visit the company's web site at .

About AOL Time Warner

AOL Time Warner AOL is the world's first Internet-powered media and communications company, whose industry-leading businesses include interactive services, cable systems, publishing, music, networks and filmed entertainment.