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AMERICA ONLINE AND SPRINT ANNOUNCE AGREEMENT

 WASHINGTON, April 26 /PRNewswire/ -- America Online, Inc. (NASDAQ: AMER), announced today a broad-ranging agreement with Sprint (NYSE: FON). The alliance will result in more strategic pricing for access to the Sprint network, allowing America Online to maintain simple and affordable pricing while rapidly expanding its base of subscribers. Sprint and America Online will also work together to develop joint marketing programs to accelerate subscriber growth for the two companies. In addition, Sprint will receive a warrant, exercisable immediately and during the term of the agreement, to purchase 450,000 shares of America Online common stock at $31.25 per share.
 "We're very pleased to announce this alliance with Sprint," said Steve Case, president and CEO of America Online, Inc. "With the strategic pricing and joint marketing that this agreement represents, our competitive position will be strengthened and we will be poised for more aggressive growth."
 "This agreement brings together America Online's innovation and success in the consumer online services market, with Sprint's experience in the data network market," said Chris Rooney, president of Sprint Data Services and Government Systems. "This agreement furthers Sprint's position as a leading provider of data network services."
 America Online announced last week that it cut its price for its popular consumer online services, making it less than half the price of a comparable service offering from Prodigy. A fixed monthly fee of $9.95 will now provide access to all of America Online's services for up to 5 hours each month.
 Sprint is a diversified international telecommunications company with more than $10 billion in annual revenues and the United States' only nationwide all-digital, fiber-optic network. Its divisions provide global long distance voice, data and video products and services, local telephone services to nearly 5.9 million subscriber lines in 19 states, and cellular operations that serve 42 metropolitan markets and more than 50 rural service areas.
 America Online, Inc. (NASDAQ: AMER), is the nation's fastest growing provider of online services to consumers in the United States. The Company offers subscribers a wide variety of services, including electronic mail, conferencing, news, sports, weather, stock quotes, software, computing support and online classes. These services can be accessed from a broad range of personal computers using America Online's proprietary icon-based windowing software. Founded in 1985, the company has established strategic alliances with more than 30 companies including IBM, Microsoft and Tribune Company. The company completed an initial stock offering in March 1992.
 -0- 4/26/93
 /CONTACT: Jean Villanueva of America Online, 703-448-8700, or Janis Langley of Sprint, 202-828-7427, or after hours, 703-533-3322/
 (FON AMER)


CO: Sprint; America Online, Inc. ST: District of Columbia

IN: TLS CPR SU: JVN

MH-DC -- DC013 -- 0711 04/26/93 12:46 EDT
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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Apr 26, 1993
Words:450
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