AOL TIME WARNER LOWERS 2002 PROJECTIONS

Revenue Growth Pegged at 5% to 8% for Year

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NEW YORK (AdAge.com) -- AOL Time Warner disclosed more modest growth projections for 2002, including an expectation of flat growth in the first quarter of 2002.

In a conference call with investors Monday after the market's close, AOL Time Warner management projected 5% to 8% revenue growth in 2002, and 8% to 12% growth in earnings before interest, taxes, depreciation and amortization, or Ebitda.

AOL had initially

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projected 31% Ebitda growth and 12% to 15% revenue growth. Initial projections show the company achieved 5% revenue growth and 18% Ebitda growth in 2001; final results will be released Jan. 30.

The 2002 projection calls for no economic growth and investments in the business, said CEO-designate Richard Parsons. Mr. Parsons -- who becomes chief executive after CEO Gerald Levin retires in May -- said the company was penalized by the market last year when its optimistic projections met the advertising recession.

"We got no credit for our achievements because of the high standards we set," he said.

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