AOL Members Now Have Instant Access To Apple's iTunes Music Store; Exclusive AOL Recordings Now Available on iTunes Music Store.

Business Editors

DULLES, Va. & CUPERTINO, Calif.--(BUSINESS WIRE)--Dec. 18, 2003

America Online, Inc. and Apple today announced that AOL members can now preview, purchase and download songs available on AOL Music, the world's number one music destination, by simply clicking an iTunes button placed next to featured tracks. The iTunes button will immediately launch Apple's iTunes Music Store, the world's number one download music service, and automatically select the featured track for preview or one-click purchase and download. In addition, AOL members can use their AOL Wallet or card-on-file to conveniently purchase and download songs from iTunes. Starting today, AOL is also offering iTunes Music Store customers the opportunity to purchase exclusive and original music from its popular music programs Sessions@AOL and Broadband Rocks.

"Now for the first time millions of music fans on AOL, who watch their favorite artists perform in an intimate studio setting on Sessions@AOL, have the option to purchase the song digitally via iTunes and then download it right to their iPod," said Evan Harrison, vice president and general manager, AOL Music.

"Apple and AOL are making it easy for AOL's millions of U.S. subscribers to legally purchase and download music," said Rob Schoeben, Apple's vice president of Applications Marketing. "AOL members can now conveniently use their AOL screen names and passwords to log onto the iTunes Music Store and use their AOL Wallet or card-on-file to immediately purchase and download songs."

AOL members who purchase songs from the iTunes Music Store will have the benefit of Apple's groundbreaking personal use rights and 99 cents-per-song pricing, and access to online gift certificates for family and friends, an "Allowance" feature that lets parents automatically deposit monthly funds into their kids' iTunes Music Store account, and more than 5,000 audiobooks. The iTunes Music Store offers a catalog of more than 400,000 songs from all five major music companies and over 200 independent music labels.

"'Man on the Moon' is my favorite live song; this version turned out pretty well, and a little different from what you'd get at a concert," said Michael Stipe, lead singer for R.E.M. "I had a blast doing Sessions@AOL and hope you enjoy this little slice of it. Prep the iPods, here we come; and thanks for listening."

Select exclusive recordings from AOL's breakthrough original music programs, Sessions@AOL and Broadband Rocks, are available immediately on the iTunes Music Store. Intimate, in-studio recordings from Sessions@AOL include:

-- 50 Cent, "P.I.M.P."

-- Fleetwood Mac, "Landslide"

-- Toby Keith, "I Love This Bar"

-- REM, "Man on the Moon"

-- Sarah McLachlan, "Fallen"

-- Jason Mraz, "The Remedy"

-- David Bowie, "Rebel Rebel"

-- Liz Phair, "Why Cant I"

-- Iggy Pop, "I Wanna Be Your Dog"

-- Jet, "Are You Gonna Be My Girl"

-- Obie Trice, "Got Some Teeth"

-- The Bangles, "Manic Monday"

-- Pink, "Trouble"

Select exclusive live performance tracks from AOL's concert series Broadband

Rocks include:

-- Hilary Duff, "Come Clean"

-- Lou Reed, "Perfect Day"

-- Limp Bizkit "Break Stuff"

According to AOL's recent Online Shopping Cities survey, music and video products top the list of planned online holiday gift purchases, with more than half of those surveyed planning to buy them. Sales of digital singles now outpace physical single sales by nearly a six-to-one margin, according to Nielsen SoundScan.(1)

AOL members can access the iTunes Music Store and more information at AOL Keyword: iTunes. Direct links to buy songs are being integrated throughout AOL's music programming and products beginning today.

About America Online

America Online, Inc., is a wholly owned subsidiary of Time Warner Inc. Based in Dulles, Virginia, America Online is the world's leader in interactive services, Web brands, Internet technologies and e-commerce services.

About Apple

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.

(1) Figures cited are for the week ending Dec. 14, 2003.