TIME WARNER ENTERTAINMENT COMPANY, L.P. SUPPLEMENTARY INFORMATION SUMMARIZED FINANCIAL INFORMATION OF PARAGON COMMUNICATIONS (Unaudited) TWE has an indirect 50% ownership interest in Paragon Communications ("Paragon"), a cable system joint venture accounted for on the equity basis. In January 1995, Time Warner agreed to acquire the other 50% interest in Paragon from KBLCOM Incorporated. Such transaction is expected to close during the third quarter of 1995. A summary of financial information of Paragon (100% basis) is set forth below: PARAGON COMMUNICATIONS Three Months Ended March 31, 1995 1994 (millions) Operating Statement Information Revenues $ 87 $ 86 Operating income 20 21 Net income 31 16 March 31, December 31, 1995 1994 (millions) Balance Sheet Information Property, plant and equipment, net $ 396 $ 392 Cable television franchises 203 206 Total assets 624 628 Debt 222 249 Total liabilities 288 323