AOL Service in France Surpasses 1 Million Member Milestone.

Business Editors/Hi-Tech Writers

PARIS--(BUSINESS WIRE)--June 7, 2001

Focus on Member Experience, Successful Flat Rate Promotions and

Convenient New Services Drive Record

Subscriber Growth and Market Leading Time Online

Flat Rate Leader Continues Call on France Telecom for

Consumer-Friendly Affordable Flat Rates

AOL France, a leading interactive services provider, today announced that the AOL service in France had surpassed the 1 million member milestone, achieving record growth in subscribers and time online in the past year. The AOL service's momentum was fueled by the success of the Company's flat-rate promotions, its hallmark ease-of-use and convenience, and powerful business model.

AOL France's emphasis on the member experience has made it the leader in time online. Over the past twelve months, the average time spent online per member on the flagship AOL service has climbed to over 60 minutes per day, as members integrate the service into their daily lives. This figure represents a threefold increase since the launch of AOL France's landmark flat-rate promotional pricing plan and a level similar to that in the US and the UK, where AOL services are available on flat rate plans.

The additional value that consumers find in the AOL service was highlighted by recent Jupiter MMXI (April 2001) data:

-- 20% of all time spent on the Internet in France is spent on AOL France
proprietary services and content;

-- Time spent in AOL France brands' proprietary services and content is more
than 10 times that of the nearest competitor; and

-- AOL Time Warner brands touch 40 percent of France's Internet users.

Michael Lynton, President of AOL International and Chief Executive Officer, AOL Europe, said, "Over the last year, AOL France has continued to set records in membership and usage with breakthrough flat-rate promotions and improvements to our unmatched member experience. You can see the results in the unmatched amount of time AOL members spend on our service, the best indication of the value that they find in it."

Lynton continued, "We look forward to offering even greater convenience and ease-of-use as our unique multiple-revenue-stream model and global scale support continued investments in new products and services such as our 6.0 software and AOL Mobile services. In turn, our strong billing relationships with that growing subscriber base and their unmatched time online enhance our ability to drive new revenues through advertising and e-commerce opportunities.

"This milestone is just the beginning. Our proven model and our access to AOL Time Warner content and resources uniquely position us to lead the growth of the interactive medium in France and across Europe," concluded Lynton.

Stephane Treppoz, Managing Director of AOL France, said, "Our strong momentum is a testament to our unmatched value - including ease-of-use, world-class content, communications and convenience features, our unparalleled shopping experience, global community, family friendly parental controls and free customer service. We will drive forward that leadership position by continuing to develop the products and services that make our members' lives even easier."

Treppoz also reiterated AOL France's call on France Telecom to enable the expansion of flat-rate offerings in the French market by implementing cost-based unmetered wholesale pricing for Internet access.

Treppoz stated, "AOL changed the face of the Internet in France with its flat-rate promotions last year, allowing hundreds of thousands of consumers to experience the full potential of the medium. We once again encourage France Telecom to adjust its initial proposal to match the cost-oriented, capacity-based rates offered under FRIACO in the UK to ensure that all French consumers enjoy affordable flat rates for Internet access."

AOL Europe/ Roper Starch Cyberstudy Underscores Strength of AOL Model and Foundation for Growth

AOL France said that the results of the recently released AOL Europe/ Roper Starch Cyberstudy 2001 -- believed to be the most comprehensive research to date into attitudes and activities among online consumers in Europe's key Internet markets of France, Germany and the UK -- underscored the strength of the Company's business model and consumer-focused approach underlying its growth. AOL France pointed out that more than 50 percent of members on its flat-rate promotions were new Internet users, outpacing the explosive growth reflected in the Cyberstudy findings among the overall online market, which showed that more than one-third (34%) of online consumers joined the market in the past twelve months.

AOL's focus on the member experience is critical in France, where according to the Cyberstudy, users outpace online consumers in Germany and the UK in accessing local entertainment information, using online instant messages, getting information about films, and meeting new people with common interests.

The Cyberstudy also reported that Europeans are highly attuned to e-commerce and other transactional activities online, another area in which AOL has set the standard with its global partnerships and unique Shop@AOL service. The most experienced French consumers (those online over three years) report spending EUR 209 ($187) over the prior three-month period and 52 percent of them anticipate increasing their online purchasing in the future (compared with 41 percent of all French consumers).

About AOL France

AOL France, a division of AOL Europe, is France's leading interactive services provider.

AOL Europe is Europe's leading Internet, online and e-commerce service, reaching consumers in nine countries and four languages across Europe. From its first service launch in 1995, AOL Europe has broadened its successful multiple-brand strategy to include the leading AOL and CompuServe subscription services, the AOL and CompuServe portals and the AOL Instant Messenger, CompuServe Office and Netscape registered user services. As part of its AOL Anywhere strategy, AOL Europe has announced a number of alliances with technology manufacturers and mobile network operators to extend its world-class content, community and hallmark ease of use to the mobile platform.