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. On July 6, 1995, Time Warner acquired the other 50% interest in Paragon from KBLCOM Incorporated. In connection with this transaction, $226 million of Paragon's indebtedness was repaid using funds provided equally by each of Time Warner and TWE. A summary of financial information of Paragon is set forth below: PARAGON COMMUNICATIONS Three Months Six Months Ended June 30, Ended June 30, 1995 1994 1995 1994 (millions) Operating Statement Information Revenues $ 92 $ 87 $179 $173 Operating income 20 20 40 41 Net income 16 15 47 31 June 30, December 31, 1995 1994 (millions) Balance Sheet Information Property, plant and equipment, net $412 $392 Cable television franchises 201 206 Total assets 656 628 Debt 226 249 Total liabilities 305 323