AOL to Increase Price for Unlimited Use by $2 Monthly Starting in April

February 9, 1998

DULLES, VA, February 9, 1998 - America Online, Inc. (NYSE: AOL) today announced that it will increase its monthly price for unlimited use of AOL and the Internet by $2 to $21.95, in order to fund continued improvement of its members' online experience and keep pace with the cost of members' increased usage. The price increase will become effective at the start of each member's monthly billing cycle in April. Steve Case, Chairman and Chief Executive Officer of America Online, stated, "Our expanding membership and surging usage confirm that consumers want the content, services, features and ease of use that are uniquely AOL. Members have tripled their time spent on AOL since we introduced unlimited use pricing. "Our members have told us - and their usage demonstrates - that they want us to continue to provide AOL on an unlimited basis. The pricing change we are announcing today will help AOL continue to make the necessary investments to provide the best possible Internet online experience, while keeping pace with the cost of our members' rise in usage." Mr. Case noted that the Company is committed to continuing its high level of investment in improving service. AOL has invested more than $700 million over the past year in building the world's largest dial-up network, adding more than 1,000 customer service representatives and developing new products and features, including its next-generation AOL 4.0 software, which is currently being rolled out. "At our new price, AOL will continue to offer the best value in cyberspace. No other major service allows families to have up to five separate 'screen names' for individual use - each with its own appropriate features and controls, for one simple monthly fee. No service makes Parental Controls as simple or flexible to meet family needs. And no service supplements basic Internet access with such a wide range of unique context, content and community features," Mr. Case said. "AOL members now spend on average more than 23 hours a month online compared with just 7 hours before unlimited use pricing was introduced. In the last year alone, Web hits by AOL members have quadrupled to 700 million daily, and the number of e-mail messages has more than tripled to 22 million each day. The explosive growth in usage underscores how important AOL is becoming in our members' everyday lives," Mr. Case added. "Each additional minute our members spend online adds to our cost of delivering unlimited use service. Revenues from advertising, commerce and other sources continue to grow as anticipated, but they are not yet able to cover the growth in member usage. The price increase will help cover these costs and fund continued investments in network access, customer support, programming and technological innovation," said Mr. Case. Although most AOL members take advantage of the unlimited use pricing plan, the Company will continue to offer other pricing plans with no changes, including: -"Bring-Your-Own-Access" rate of $9.95 monthly, which offers unlimited use of AOL to those members who already have an Internet connection; and -"Light Usage" plan of $4.95 monthly for the first three hours of use with each additional hour of usage costing $2.50.

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