PGA OF AMERICA MEDIA CONFERENCE

June 20, 2002

Jim Awtrey

Mark Lazarus

Drew Reifenberger

MODERATOR: Good afternoon, everyone and thank you for joining the Turner Sports and PGA of America conference call.

Today we are going to make two announcements. I will give you a brief overview and then I'm going to turn it over to Turner Sports President Mark Lazarus, executive vice president and general manager of Turner Sports Interactive Drew Reifenberger, as well as PGA of America CEO Jim Awtrey for some brief remarks.

The first component of this announcement is a six-year extension to our television agreement with the PGA. TNT will continue airing four days of the PGA Championship as well as exclusive coverage of the PGA Grand Slam of golf through 2011. This marks a 21-year partnership.

The second component is a ten-year alliance with Turner Sports Interactive to manage the operations of PGA.COM.

Mark?

MARK LAZARUS: First of all, we are thrilled to extend our relationship with the PGA of America, truly a partnership, an enduring partnership. I think it's rooted in the fact that we share an enthusiasm for exploring ways to bring fans the most comprehensive golf coverage possible.

It's clearly a relationship that has been one in the true spirit of partnership, and we are grateful for their willingness to allow us to grow with them and for us to work with them in growing our businesses together.

We have been partners with the PGA of America on the television side since 1991, and we will continue that now for what will be a 21-year partnership, truly something special in this time of fast-moving change and shift in properties from network to network. We will air four days of coverage for the PGA Championship as we do currently, and exclusive coverage of the PGA Grand Slam of Golf through the year 2011.

The second part of this announcement involves PGA.COM. Turner Sports Interactive, which is led by Drew Reifenberger, who is also on the call and I will have to speak in a moment currently, produces NASCAR.COM, which is one of the Top 3 league Web sites. We will now manage and work with the PGA of America to run PGA.COM.

We are incredibly excited to utilize all of our company's resources to make PGA.COM the best available site, not only in terms of news coverage, but in the creation and hosting of features and services which will be led by the functionality of the Book for Golf Tee Time System.

This is a system that allows golfers around the country to book tee times at courses which currently number at 1,200 courses around the country and will be expanding rapidly as we get into business together.

Again, Drew, I'm going to turn this over to give you a brief overview of the vision we have for PGA.COM.

DREW REIFENBERGER: Good afternoon. Thanks, Mark.

The general concept here is we think there's an opportunity to build a definitive on-line interactive distinction for golfers. What that means is simply put, that, our goal here is to -- we think there's a number of entrants already until the marketplace covering golf very well. We intend to reach out to some of those, in fact, to augment our own coverage.

But we think the value chain of what the PGA and their virtual property and their system of professionals, and our ability to create reaching frequency through our distribution systems and expertise as producers of content, which is really our core business, is the magic combination to not just cover golf, but really get deep, deep into the play of golf and everything about golf; as Mark mentioned, the Tee Time reservation system.

So PGA.COM going forward is going to be an end-to-end solution, whereas, you can go into make tee times, to use directories, to find courses, book travel, everything you could ever imagine with the play of golf, which is clearly expertise and core business of the PGA.

Secondly, we believe there's tremendous latent demand for instruction. We have some big ideas on how to bring the PGA's expertise in this area on line. And then equally as important, then hand the people back off to the PGA professional.

So there's a complete transition to on-line and off-line, and frankly, back and forth, in ways to track your game and follow your game and so forth.

The third thing, as I discussed, is coverage. And we will cover the major events, all of golf, and you can expect obviously a particular emphasis on the PGA Championship, Ryder Cup, the Senior PGA Championship and the Grand Slam.

Finally, we have a major emphasis on the trade. Trade from the manufacturer's side, the industry side, resorts and whatnot. And then ultimately, the PGA member side and everything related to becoming a member and what all that meanings means in having at your fingertips information for that.

So that's a very brief overview, but our intentions.

MODERATOR: Jim, we'd liked to hear from you as well.

JIM AWTREY: We are excited to take a partner that we have been very successful with the last few years. I can only think of how we came up with significant hours of four-day coverage and many people thought, for example, that that was too much coverage in golf, and now you're seeing other people following suit.

I think that's why we feel so strongly about this relationship. You take a strong PGA brand, well known and integrate it throughout golf and combine it with a leading media partner and a new parent, AOL Time Warner. It just gives us a chance to take 27,000 PGA professionals that are working at all golf courses and in the business every day and integrate them with a media partner and really create some significant programs that will help both grow the game and interact with the business of golf.

So we are excited extend this partnership. We think the world of the TNT relationship, AOL Time Warner, and we just think it's going to be great for our business.

Q. Does the contract include the PGA and the PGA Grand Slam of golf. That's not all four Grand Slam events we are talking about, or is that separate?

MARK LAZARUS: The PGA Grand Slam of golf is an event that is run in the November time period, which we and PGA of America invite the winners of the four majors and they all come. We've been doing this now for 10 years, I think, 11 years. The four winners of the majors are invited for a two-day event.

Q. Could you tell me, will any of these new deals, the TV or the Web site deal, have an impact on the upcoming PGA Championship in August?

MARK LAZARUS: Well, I think the one that's different, you'll see is that as we take on the PGA.COM relationship and the management of that property, we will enhance the on-line experience for golf fans with the upcoming event this August.

DREW REIFENBERGER: Yeah, you can expect that we will have taken over full operations of the PGA Championship site.

And expect a pretty robust site for this season. We'll get to see some of the things that we have begun to roll out in much greater form.

Over the years to come, that's the beauty of such a long-term deal, as broadband and higher process of the Internet itself becomes available.

Q. So you will take over management of the site immediately then?

DREW REIFENBERGER: Yes.

Q. You mentioned NASCAR.COM and you talk about that being a fast-growing sport. Could you compare that to golf in terms of all of the popularity with Tiger and the interest; do you see a big comparison between the two? How much do you see this going up, five time, ten times? What are your expectations?

DREW REIFENBERGER: We don't have any hard, fast numbers quite like that. We have some expectations of growth, to be sure. I don't have any hard numbers for you today.

As for the two groups, as you can imagine, we spent a lot of time comparing our experiences with NASCAR, and they are very alike in their passion for their sport. Being a NASCAR fan and being a golfer is largely a life-style choice as much as it is being a fan of a particular game.

One of the things we said in the release, we were talking about the biggest difference is, these people are players; so they are fans of the game, but they are also playing the game. Of course, in NASCAR, there's probably a few race car drivers in there, as well, but the large majority of the fans are still a spectator operation. That's where the richness comes in. That's where we think we can create tremendous linkage between following the game of golf and playing the game of golf.

MARK LAZARUS: I would add to that; you characterize the Web site. And we don't consider these positions that we are taking with our partners as deals around Web sites. It's about interactive experience and the ability to transact with customers, to provide service to customers. Web sites are one functionality of interactive services which we believe is a much broader scope and the point of view we take with these.

Thank you for joining us. And thanks to Jim and the PGA of America for entrusting us with their brand, and we look forward to continuing the relationship.

JIM AWTREY: Mark, I think it's the appropriate time given the opportunities that might happen over the next month, to have you taking over the Web site with Tiger on the verge of maybe having won the first three majors.

MARK LAZARUS: We look forward to that.

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