AOL Reports Strong Start to Holiday Shopping Season.

Business Editors/Hi-Tech Writers

DULLES, Va.--(BUSINESS WIRE)--Nov. 27, 2000

AOL Shoppers' Spending Increases More Than One and a Half Times Over

Thanksgiving Week 1999

PlayStations, Scooters and Digital Cameras

Top Search List on Shop@AOL

With the holiday retailing season officially launched, America Online, Inc. (NYSE:AOL), the world's leading interactive services company, today announced that AOL shoppers' spending increased more than one and a half times during Thanksgiving week 2000 over last year at the same time.

According to preliminary figures, a total of 6 million AOL members made a purchase online last week alone, of which more than 90% were repeat shoppers. In addition, average spending per shopper over this Thanksgiving week was up 27% from last year. Close to 17 million AOL members now regularly shop online, making them the largest aggregate audience of buyers in cyberspace.

And, in a year when consumers' expectations are higher than ever before, research from the Wayne, Pennsylvania-based Internet Research Group indicates that 90% of AOL shoppers are saying they are satisfied with their online shopping experience.

Many of these shoppers are taking advantage of AOL's easy and convenient access to the nation's leading retail names, including Bloomingdale's, macys.com, NORDSTROM.com, Sears, Roebuck & Co. and Target.

Additionally, women are proving to be a growing force online during the holidays. According to recent research, two-thirds (63%) of AOL women aged 18-49 say they are going online for creative gift ideas this holiday season.

AOL buyers kicked off their holiday shopping with 1) Apparel, 2) Books, Music & Movies, 3) Electronics and 4) Toys & Games as strong initial categories. Top shopping search items for the week ending November 26 were PlayStations, Scooters and Digital Cameras.

Bob Pittman, President and COO of America Online, Inc. said: "As we gear up for another exciting holiday shopping season, it's clear that our members are embracing online shopping more than ever before. In addition to the influx of members who try online shopping for the first time during the holidays, we are seeing that experienced cybershoppers are returning in record numbers and spending more money. For this season's repeat buyer, shopping online is an habitual activity, and they are turning to AOL for the convenience, trusted brand names and customer service they expect."

Patrick Gates, Vice President of E-commerce of America Online said, "With a strong start over Thanksgiving week, we're working very closely with our merchant partners to prepare for the expected flood of holiday cybershoppers in the coming weeks. In 1999, online sales peaked the third week in December, and to get ready for this year, we are partnering with our best-of-breed retailers to offer consumers exciting promotions, the hottest merchandise and reliable last minute gift options."

About Shop@AOL

Known as "the Internet's Miracle Mile," Shop@AOL delivers the easiest, most compelling and dynamic shopping experience available in cyberspace.

AOL's cutting-edge shopping experience brings together millions of products from hundreds of brand-name merchants, a 100% Guarantee of satisfaction and security, a graphically superior and user-friendly interface, as well as convenient shopping tools and features, all in one easy to use, best-of-breed shopping destination.

Designed for both first-time and experienced online shoppers, Shop@AOL is available to AOL members at Shop@AOL (Keyword: Shopping), CompuServe members at Shop@CompuServe, and to visitors through the Web at [e-mail], Shop@Netscape, Shop@Spinner, Shop@Winamp and [e-mail].

About America Online, Inc.

Founded in 1985, America Online, Inc., based in Dulles, Virginia, is the world's leader in interactive services, Web brands, Internet technologies, and e-commerce services.