America Online Launches New Version - AOL 8.0.

Business Editors

DULLES, Va.--(BUSINESS WIRE)--Oct. 15, 2002

Biggest Upgrade in Company's History Puts Members First, Addresses

Biggest Concern With Sorting to Help Avoid Unwanted E-Mails

Highlights Include Unprecedented "Self Expression" Choices, New

Ways to Find People With Shared Interests in the AOL Community,

Parental Controls Enhancements That Offer Greater Family Safety

"Destination" Programming Schedule Delivers Original, Exclusive

Programming Daily and Even More Benefits for AOL Broadband Members

Star-Studded Event Salutes AOL Members and Community, Kicks Off

Record Breaking Marketing Campaign

America Online, Inc., the world's leading interactive services company, today unveiled AOL(R) 8.0, the newest version of its convenient and easy-to-use flagship service. Reflecting AOL's unmatched focus on consumers' online experience, AOL 8.0 enhances the features that members use most often, introduces a new approach to programming that will provide more relevant and timely content throughout the day, and builds on the sense of community that has always been at the heart of AOL's popularity.

AOL 8.0 responds to consumers' most frequently-cited concern - sorting through unwanted e-mail - giving members greater control over their incoming mail with a mail sorting feature that lets them choose to view only messages from people they know. The new version also introduces a distinct new online experience for members using broadband connections, and a new premium service, AOL(R) Call Alert, that lets members on dial-up connections know when they are receiving incoming telephone calls.

Today, the Company will celebrate the launch of AOL 8.0 with a star-studded gala tribute to AOL members at Avery Fisher Hall in New York's Lincoln Center. The event - AOL Live@Avery Fisher Hall, Lincoln Center - will be hosted by comedian Dana Carvey with a special performance by singer Alanis Morissette and an opening performance by international recording star Laura Pausini, who will release her first English album in the U.S. on November 5. They will be joined on-stage by AOL Time Warner and America Online's senior executives in honoring AOL's members. The event will be Webcast live on AOL for all members to enjoy at AOL Keyword: Launch Event.

Among the thousands of members invited are participants in such AOL communities as the June Pregnancy Circle group of women who became pregnant around September 11 and the "Just Us" discussion group among breast cancer patients and survivors. Other member participants include members who've met on AOL and gotten married and used the service to pursue hobbies as varied as refrigerator magnet collecting and Civil War re-creations, and some of the first AOL members.

AOL began a Sneak Preview release of the AOL 8.0 software last week, letting members download the new version beginning on Wednesday October 9. Already, more than 1.5 million members have done so.

Connecting to People and Things That Matter

Jon Miller, Chairman and CEO of America Online, said: "The heart of AOL is our members' online experience, and AOL 8.0 makes it more valuable than ever before. We've made it easier for people to do what they most want to do - connect to the people and things that matter in their daily lives."

Jimmy de Castro, President, AOL Interactive Services, said: "AOL 8.0 is all about how consumers use the Internet today. We've really listened to what people have told us they liked about the service and what they'd like to see us do better. Most of all, our members asked for help sorting through the mail in their inboxes and they wanted even more opportunities to take part in the online communities that make AOL special. On both fronts, we've delivered."

More Than 100 New and Enhanced Features

AOL 8.0 contains more than 100 new and enhanced features designed in response to member feedback. Highlights include:

-- Sweeping e-mail enhancements that help members deal with unwanted e-mails by separating their incoming messages into those from people they know, recognized bulk senders and unknown senders;

-- Enhanced self-expression features, including animated Buddy Icons, a choice of new Buddy Sounds, colorful backgrounds and stationary that let members tailor the appearance of their e-mail and instant messages to reflect their personalities and moods;

-- New ways for members to share the things they love online and to find people with similar interests in the AOL community through new MatchChat(TM) and Chat Conversation Search features. In addition, Music Share(TM) is the first in a suite of AOL's new Buddy Share(TM) features for digital media;

-- A choice of the six different versions of the Welcome Screen offering distinct programming tailored to member interests and updated through the day. Choices include "Headlines, Business News and Sports," "Headlines, Latest Music, Games and Homework Help," and "Headlines Nightlife and Great Discoveries;"

-- At-a-glance settings that enhance the flexibility of Parental Controls, and a new AOL Guardian(TM) feature that allows parents to get a "report card" of their kids' online activities;

-- Alerts & Reminders features that let members receive daily news, updates, and personal reminders both online and on their mobile phone or other wireless device; and

-- Enhanced reliability through a new feature that will automatically reconnect an interrupted session and return members to the areas they were visiting.

To help members learn what new features are available and how to make the most of them, AOL will be presenting a series of "AOL Classes" chats with AOL For Dummies author John Kaufield. The one-hour discussions will take place at 8:00 tonight and tomorrow night, and at 7:00 on Thursday, October 17 at AOL(R) Keyword: AOL(R) Classes or AOL Keyword: AOL Live. AOL 8.0 also includes a new "Did You Know?" feature that provides members with contextual explanations for new AOL 8.0 features.

Salute to Members, Super Bowl Contest Kick Off Record-Breaking

Marketing Effort

Today's AOL Live@Avery Fisher Hall, Lincoln Center event is the kick-off to the Company's most extensive multi-faceted marketing campaign ever, aimed at gaining new members and introducing current members to the upgrade through a variety of outreach efforts, special promotions, and more.

AOL 8.0 disks will be distributed for free through direct marketing campaigns and special displays in more than 65,000 retail outlets of 660 chains nationwide, including:

-- Target(R), Office Depot, Circuit City, The Home Depot,

BLOCKBUSTER(R), Sears, Kinko's(R), and CompUSA locations;

-- Additional chains served by Time Distribution Services such as

Winn Dixie, Circle K, Eckerd, Choice Hotels, Albertson's,

Safeway, Kroger, Rite Aid, and Food Lion;

-- United States Post Offices and a variety of other grocery,

drug, convenience stores, as well as tourist locations and

malls; and

-- Select retail locations serving the Latino market.

Additionally the Company will launch a multi-million dollar print and television campaign that highlights AOL 8.0's new features and community focus. The campaign entitled "Arrival," announces that, "The world is about to discover new ways to connect, share, and come together."

AOL Puerto Rico is also launching AOL 8.0 today, with other international AOL services to follow in the months ahead.

These efforts will be enhanced by three unique promotions that highlight AOL's unique member benefits:

-- A special sweepstakes, Go 8.0!, co-sponsored by the National

Football League. Members upgrading to AOL 8.0 will have the

chance to win an all-expense-paid trip for the winner and

seven friends to Super Bowl XXXVII in San Diego on January 26,

2003, with a prize package that includes all-expense paid

travel, VIP tickets to the big game, a luxury beach house

rental and a choice of day trips in San Diego;

-- A Designer Disk campaign that celebrates the launch of AOL 8.0

by asking top celebrities - legends in movies, fashion, music

and sports - to create a design of their own invention which

have been imprinted on a special Designer Disk set of AOL 8.0

CD-ROMs. The original signed artwork from Tom Cruise, Enrique

Iglesias, Donna Karan, Magic Johnson, Matthew Broderick, Kate

Spade, Elizabeth Hurley and a combined disk from Meryl Streep,

Nicole Kidman and Julianne Moore will be auctioned on eBay to

benefit each Designer's charity. This special limited edition

collection will be featured online at AOL Keyword: Designer

Disk so fans can check out their favorite celebrities' artwork

and learn more about the causes they care about. In addition,

1,000 of each collectible AOL 8.0 Designer Disk will be

distributed free at Bloomingdale's in New York City beginning

October 16th; and

-- e-Living: Live Your Best Online Life, a new consumer trade

paperback by AOL Online Advisor, by best-selling author and

national TV contributor, Regina Lewis. E-Living highlights the

best of AOL 8.0 and offers tips, tricks, secrets and shortcuts

for getting the most out of your time online. It also includes

inspiring real-life testimonials because in Regina's words:

"It's not about technology, it's about people!" For more

information and to order advance copies, visit AOL Keyword:

Regina Lewis or www.reginalewis.com.

Joe Redling, President of Marketing for AOL, said: "AOL 8.0's member-inspired enhancements give us a great story to tell to consumers. Our entirely new advertising campaign, 'Arrival,' underscores that AOL 8.0 is more than just a new version, it is a whole new vision."

Enhancing the No. 1 Activity

The most popular online activity for AOL members is communicating with friends and family through e-mail and instant messaging. Members send and receive more than 390 million e-mails and more than 1 billion instant messages per day.

AOL 8.0 introduces across-the-board enhancements that give members more ways to manage their personal communications online -- from avoiding junk mail and "spam" and protecting their privacy, to an easy way to read new messages from friends and family.

-- A new "BuddyMail(TM)" feature in e-mail helps members address

unwanted e-mails by easily identifying which incoming e-mail

messages are most important. BuddyMail categorizes all

incoming mail into one of three groups: mail from "People I

Know" (determined by the names in a member's Address Book and

Buddy List(R) feature), mail from "Bulk Senders," and mail

from "Unknown Senders." Special icons also identify for

members each type of mail that is in their mailbox before they

open it. A filtering feature helps members focus on the mail

category they are interested in and makes it easy to clean

their Mailbox of potentially unwelcome or unexpected mail, or

to focus specifically on mail from friends;

-- A new "Report Spam" button that allows members to notify AOL

and easily block unwanted e-mail with one click;

-- E-mail away messages that members can set to respond

automatically to messages they receive while on vacation or

otherwise not accessing their mail;

-- Address Book enhancements such as a new feature that

automatically adds addresses of e-mail recipients; enhanced

printing for labels and list formats, and coming later this

year, a new Address Book Import Assistant feature will make it

easy for members to import addresses from Outlook and Outlook

Express into their AOL Address Book;

-- New Alerts & Reminders services that allow members to receive

customized alerts and personal reminders that are delivered

online via an e-mail or an instant message, or on a wireless

phone or other wireless device. These features will be

enhanced further in the coming months, adding synching

capability with Palm devices and with Outlook, and an expanded

set of news alerts; and

-- A variety of new "self expression" options in both e-mail and

instant messages that let members personalize the messages

they send to others by choosing from more than 350 instant

message backgrounds, 900 Buddy Icons, 40 Themes, 100 sets of

"smileys," 500 instant message sounds and more than 200 e-mail

stationery backgrounds - a total of more than 100 trillion

different combinations.

The self-expression tools are just one of the many personalization options available in AOL 8.0, which also provides new ways for members to personalize their own online experience from the moment they're connected. The first time a member signs onto AOL 8.0, he or she will be given the choice of six different versions of the Welcome Screen, each highlighting different activities and interests. Members can choose, for example, a Welcome Screen that prominently features business news and sports scores, or one that highlights games and online homework help. Members can change their Welcome Screen choice easily at any time.

Similarly a new "Themes" feature gives AOL members a variety of choices for the basic appearance of the service itself, with a variety of choices for screen background and toolbar colors to make the service's appearance match each member's personality and preferences.

Building on AOL's Spirit of Community

The AOL service has always stood out for the proliferation of chats, message boards and other features that create a sense of community among a membership that now numbers more than 35 million worldwide. Consumer feedback consistently shows these elements to be among the most popular features of the AOL service, with 72% of members using such features on a regular basis. To enhance community, AOL 8.0 includes several new features to help members connect with one another, and a variety of tools that make it easy to share online content:

-- MatchChat, a new feature that lets members enter the subjects

about which they're interested in chatting, and informs them

when they sign on how many others are online who share those

interests. If they choose, the service will connect them to a

chat with those members;

-- A new Chat Conversation Search tool that members can use to

quickly find chats where a particular subject is being

discussed. If a member enters "Washington Redskins" for

example, the tool will identify chats taking place at that

moment where the team's name has been mentioned;

-- New and easy "homepage" profiles in the AOL Member Directory -

specifically requested by members - that can be personalized

with styled text and background stationery;

-- For the more than 300,000 message boards on AOL today, it is

now easier for members to access and participate in forums,

support groups and topical discussions;

-- A Music Share button on each instant message window that makes

it easy for members to listen to the same songs as they

instant message with one another;

-- New "Share" buttons at the top of each page on the AOL service

that build on the popularity of the Favorite Places heart,

automatically inserting a link to that page into an e-mail or

instant message;

-- New enhancements to the You've Got Pictures(TM) service that

make it easier than ever for members to find and share digital

photos online, as well as allow them to crop, adjust

brightness and reduce red-eye on their digital photos. A new

Picture Finder feature organizes pictures online and on the

hard drive at the same time, and displays them in reduced,

manageable frames six at a time. A screensaver feature allows

members to highlight any digital photo while the computer is

left idle and new AOL Photo Greetings service creates

personalized photo greeting cards for any occasion; and

-- A redesigned AOL shopping service with improved browse and

search tools so that members can shop for products by

department, category, store and price and compare similar

items from multiple manufacturers and retailers at once, plus

imaging technology from Viewpoint that lets consumers view

items more easily and zoom in on specific features.

David Gang, AOL's Executive Vice President of Product Marketing, who led the development of AOL 8.0, said: "This is the most valuable upgrade AOL has ever offered. From e-mail management, to automatic reconnection, to the AOL Guardian, Match Chat and countless other improvements and innovations, AOL 8.0 adds up to a whole new online experience that's more valuable than ever before."

Timely, Original Content Every Day

AOL 8.0 reflects a renewed commitment to providing members with more timely, relevant and entertaining online content, beginning a rollout that will continue over the next several months of a new series of online programming features that can only be found on AOL. New programming will offer members exclusive premieres of everything from movies to electronic devices, enhance community further, and bring the "appointment viewing" concept to the online world.

Highlights of AOL's new programming approach will include enhanced news coverage with more in-depth and timely reporting around the clock, and a schedule of recurring features timed to member interests throughout the day and the week -- such as a daily "Morning Money(TM)" package, Wednesday night live gossip show with nationally-known celebrity-watchers, and Sunday evening sports wrap-up. A relaunched "AOL Live" will give members the opportunity to interact with A-list celebrities and newsmakers -- with appearances this month by the likes of filmaker Michael Moore, "Abandon" star Katie Holmes, and actress Julianna Margulies.

AOL 8.0 will build on the success of AOL(R) Music programming like "First Listen" and Sessions@AOL with expanded opportunities for AOL members to enjoy exclusive previews of everything from movies to autos to new computers, books, as well as through a variety of new music features and programming. Today, for example, members can enjoy an exclusive excerpt from the upcoming "Harry Potter and the Chamber of Secrets," and the debut of the new album from recording star Faith Hill.

Content programming will also reflect AOL 8.0's enhanced focus on community-related features, with prominent programming features that let members "Shout Out(TM)" greetings or quick thoughts, that highlight members' opinions pro and con on the hot issue of the day and that spotlight AOL members' wide-ranging interests and hobbies as seen on their AOL Hometown homepages.

This upgrade also expands the Spanish-language news, sports and entertainment programming, special features, search and more available to members through AOL Latino (AOL Keyword: Latino) which is programmed by AOL Latin America (NASDAQ-SCM: AOLA). Later this fall, AOL's Spanish speaking members will be offered the opportunity to have Spanish language content and features incorporated into whichever version of the Welcome Screen they've chosen.

Jim Bankoff, AOL's Executive Vice President of Brand Operations, who directs content programming on the service, said: "AOL members are used to having the most convenient and easiest-to-use service on the Internet. Now, they're going to have the most exciting content at their fingertips as well. The incredible feedback over the past year to our exclusive AOL Music offerings like 'First Listen' and 'Sessions@AOL' has shown that our members love to get entertainment that nobody else can. The destination programming we're unveiling with AOL 8.0 is just the beginning of the new programming value we're creating for AOL members."

Major Advances in Reliability and Safety

Research shows that AOL members value the service's industry-leading speed and reliability, as well as its pioneering safety features. AOL 8.0 builds on those strengths, with faster operations and streamlined installation, plus a new function that will automatically reconnect an interrupted session and return members to areas they were visiting.

Additionally, AOL continues its leadership with significant enhancements to the Parental Controls currently used by more than 16 million people that make them even easier for parents to customize. Parents can now access their kids' account settings directly from the toolbar. Parental Controls will soon offer even more flexibility so that a parent can either log on to AOL or go to AOL.com from their office and change settings in real time for a child using their account at home. The settings are easier to monitor and alter with an at-a-glance review of all settings for each AOL Screen Name, and the ability to change each one with a click.

The new AOL Guardian(TM) feature gives parents the option of receiving a report after each online session a child has that lists each Web site the child visited or attempted to visit, how long he or she was online, and how many e-mail or instant message communications were exchanged.

Better on AOL Broadband

For the growing number of AOL members using the service with broadband connections - including the AOL Broadband service offered with Time Warner Cable and DSL partners Qwest, SBC, Bell South, Verizon and Covad - AOL 8.0 delivers a number of unique enhancements and special programming, including:

-- A new Welcome Screen programmed specifically for broadband

members and featuring video and music content integrated

directly into the page;

-- The new AOL(R) Companion, which takes advantage of broadband's

"always-on" connection to provide constant e-mail, and many

other AOL services whenever a member is working in another

application;

-- A new fall line-up of original broadband programming,

exclusives and events spanning news, sports, music,

entertainment and education, including Sessions@AOL, Broadband

Rocks(TM), highlights from "Inside the NFL," movie trailers

and more;

-- Video@AOL gives members a one-stop opportunity to view current

and archived videos from channels across the AOL service -

including Hot Picks, Autos, Entertainment, Games, Kids &

Teens, Music, News, Sports and Travel - at a single location;

and

-- Later this fall, a new Broadband Radio@AOL service that will

deliver CD-quality music and more features to enhance members

listening experience.

AOL Broadband members who access via AOL Broadband bundled with DSL service or through Time Warner Cable or Advance/Newhouse systems now have the ability for every Screen Name on a single account to connect to AOL at the same time using a high-speed connection and a home network.

Lisa Hook, President of AOL Broadband, said: "Every great feature of AOL 8.0 is even better on broadband. In fact, when you combine all our great audio and video content, special features created just for high speed, instant-on connections, and AOL's hallmark convenience and ease-of-use, it's the best online experience available. And families can find even greater value that ever on today's wired households, with our AOL Broadband service letting mom, dad and the kids all get online at once."

Availability

AOL members in the U.S. and Puerto Rico can upgrade to new version AOL 8.0 at AOL Keyword: Upgrade now, and later this fall at AOL Keyword: Nuevo AOL 8.0. Others can download the new version at www.aol.com. Consumers may also call AOL's Spanish language customer service line at 1-800-771-7084.

To learn more about AOL Broadband, members can visit AOL Keyword: Broadband or call1-800-574-1779 to learn about broadband, check local availability and place an order.

About America Online, Inc.

America Online, Inc. is a wholly owned subsidiary of AOL 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.

NOTE: Electronic Press Kit available at http://aoltimewarner.com/AOL/AOL8. B-roll of AOL 8.0 and soundbites from AOL Time Warner Chairman Steve Case and Executive Vice President of Product Marketing David Gang are available at the following times and coordinates:

FEED TIME: 5:00 - 5:30 AM EST COORDINATES: C-BAND: AMC 2 (C) /TRANSPONDER 21 /AUDIO 6.2 & 6.8 DL FREQ: 3720 (V)

RE-FEED TIME: 10:00 - 10:30 AM EST (FED IN ROTATION) COORDINATES: C-BAND: TELSTAR 5 (C) /TRANSPONDER 16 /AUDIO 6.2 & 6.8 DL FREQ: 4020 (H)

B-roll from the AOL Live @ Avery Fisher Hall, Lincoln Center event, including soundbites from AOL 8.0 Designer Disk celebrities and event performances, are available at the following times and coordinates:

FEED TIME: 3:30 - 3:45 PM ET COORDINATES: C-BAND: TELSTAR 6 (C) /TRANSPONDER 15 /AUDIO 6.2 & 6.8 DL FREQ: 4000 (V)

RE-FEED TIME: 7:00 - 7:15 PM ET COORDINATES: C-BAND: TELSTAR 6 (C) /TRANSPONDER 15 /AUDIO 6.2 & 6.8 DL FREQ: 4000 (V)

For more information contact: Pam Reynal at [phone].