AOL to Offer Services Free to Broadband Users

NEW YORK, August 2:
Confirming speculation, Time Warner today announced that its AOL service will
offer its software, e-mail and other services for free to broadband users, as
it works to bolster its online advertising business.

"For the first time
in AOL's history, we're offering many of AOL's most compelling products, such
as its integrated software and e-mail as well as applications for safety and
security including parental controls, to broadband users free of charge,” said Jeff
Bewkes, the president and COO of Time Warner. “We've listened to our
customers, and many of them want to keep using these AOL products when they
migrate to broadband—but not pay extra for them. So now we can tell them:
'You've Got Mail—for Free.' This is the next logical step for AOL to
capitalize further on the explosive rise in broadband usage and online
advertising. With its robust and rapidly expanding advertising operation, we
expect to put AOL back on a growth path."

AOL’s chairman and CEO,
Jonathan Miller, added, “We'll now be able to maintain and deepen our
relationship with many more members who are likely to migrate to broadband.
Providing them with their familiar AOL software and e-mail for free, over any
broadband connection, will be critical to our future success. For members
who've left us over the past two years, we've kept your e-mail address. When
this effort is fully operational in early September, you'll be able to come home
again—for free. For those who have never tried the AOL software, e-mail
or our other products, we invite you to do so at no charge. The AOL Network has
over 100 million unique visitors per month, and we'll work hard to engage
Internet users with new products that will be available for free on the
Web."

Among the AOL products
that will be available for free to anyone with an Internet connection are:
AOL's integrated software; communications features, including AOL e-mail,
instant messaging, a local phone number with unlimited incoming calls and
social networking applications; and safety and security features, such as
parental controls.

AOL will continue to offer
its dial-up access subscription service, but will no longer aggressively market
it.