DULLES, VA, September 28, 1998 -- America Online, Inc. announced today that General Colin Powell, Chairman of America's Promise and former Chairman of the Joint Chiefs of Staff, and Franklin Raines, Chairman and CEO-designate of Fannie Mae and former Director of the U.S. Office of Management and Budget, have been elected to its Board of Directors. "I am proud today to announce the election of General Colin Powell and Frank Raines to America Online's Board of Directors. Both of them possess records of proven leadership and commitment to public service that will be invaluable to our company as we work to build our business and the interactive medium into the next millennium," said Steve Case, Chairman and CEO of America Online, Inc. Mr. Case added: "General Powell's record of service to our country, both in the military and in his current work with America's Promise, is without equal in our times. His commitment to America's children and our country's future fits squarely with AOL's determination to build an online medium that improves people's lives -- helping them to learn, to organize their lives, and even to engage more fully in the political process." Mr. Case continued: "Frank Raines is a visionary leader in both the world of public policy and the mass marketplace. He has played key roles in landmark achievements for our society, including 1997's historic balanced budget agreement and the use of technology to lower the cost of providing mortgages to American families. His expertise in the world of public policy will serve AOL in meeting the critical challenges facing the Company and in fulfilling our commitment to build a medium that benefits society as no other before." "It is a tremendous honor to have them join our Board," concluded Mr. Case. "The potential of the Internet to change and improve peoples' lives and to reconnect them to their community is extraordinary," said General Powell. "I'm honored to serve on the Board of a company that has been leading the way in shaping a medium that that will open new doors of opportunity to millions of people throughout the country and the world." "In the next few years, public policy decisions in Washington and around the world will have as much to do with the development and ultimate impact of the Internet as any technological advance," said Mr. Raines. "I look forward to serving a Company that is at the center of these policy discussions and is playing a large role in determining the success of this new medium." About General Powell (Ret.) General Powell was a professional soldier for 35 years, rising through the ranks to become the twelfth Chairman of the Joint Chiefs of Staff, the highest military position in the Department of Defense. Chairman from 1989 until his retirement in 1993, General Powell oversaw 28 military crises including Operation Desert Storm in the Persian Gulf War. Today, General Powell serves as Chairman of America's Promise: The Alliance for Youth, the national campaign on behalf of the nation's young people. America Online and America's Promise last year joined forces to put the interactive medium to work to help improve the lives of more than 15 million at-risk youth. Built with design and financial support from America Online, a new America's Promise Web site was created to assist this nationwide effort. General Powell is the recipient of numerous civilian awards, including two Presidential Medals of Freedom, the President's Citizens Medal, the Congressional Gold Medal, the Secretary of State Distinguished Service Medal, and the Secretary of Energy Distinguished Service Medal. He has also received numerous U.S. military awards and decorations as well as an honorary knighthood (Knight Commander of the Bath) from H.M. Queen Elizabeth II of Great Britain. General Powell also is the author of a best-selling autobiography, My American Journey, which traces his life from his birth to immigrant Jamaican parents in Harlem, to his role in advising Presidents Reagan, Bush and Clinton. General Powell, 61, earned a bachelor's degree in geology at the City College of New York (CCNY) and a Master of Business Administration Degree from George Washington University. About Franklin Raines Franklin Raines is the Chairman and CEO-Designate of Fannie Mae. He will become Fannie Mae's Chairman and Chief Executive Officer on January 1, 1999. Mr. Raines was nominated by President Clinton to be Director of the Office of Management and Budget in 1996 and served in that capacity for two years. Mr. Raines was the President's key negotiator in the talks that led to the passage of the bi-partisan Balanced Budget Act of 1997. As OMB Director, Mr. Raines also helped the President coordinate the procurement, financial management, information and regulatory policies for all federal agencies. From 1991 to 1996, Mr. Raines was Vice Chairman of Fannie Mae, in charge of the company's legal, credit policy, finance, and other corporate functions. He is widely credited with having commenced the company's successful efforts to utilize technology to lower the costs of mortgage origination. Prior to joining Fannie Mae, Mr. Raines was a general partner in municipal finance at Lazard Freres & Company. Before Lazard Freres, he served from 1977 to 1979 as Associate Director for Economics and Government in the Office of Management and Budget, Executive Office of the President; and Assistant Director of the White House Domestic Policy Staff. Mr. Raines serves as a member of the Board of Directors of Fannie Mae. He also is Chairman of the Visiting Committee of the Kennedy School of Government, and was formerly President of the Board of Overseers of Harvard University. Mr. Raines was elected a Fellow of the American Academy of Arts and Sciences, a member of the National Academy of Social Insurance and a member of the Council on Foreign Relations. Mr. Raines, 49, was graduated magna cum laude with a B.A. from Harvard College and cum laude with a J.D. from Harvard Law School. He also attended Magdalen College, Oxford University as a Rhodes Scholar. In addition to these two new members, the AOL Board of Directors includes: Stephen M. Case, Chairman of the Board and Chief Executive Officer, America Online, Inc.; Daniel F. Akerson, Chairman and Chief Executive Officer, Nextel Communications, Inc.; Frank J. Caufield, General Partner, Kleiner, Perkins, Caufield & Byers; Robert J. Frankenberg, President and Chief Executive Officer, Encanto Networks; General Alexander M. Haig, Jr., Chairman and President, Worldwide Associates, Inc.; William N. Melton, President and Chief Executive Officer, CyberCash, Inc.; Dr. Thomas Middelhoff, Chairman and Chief Executive Officer, Bertelsmann AG; and Robert W. Pittman, President and Chief Operating Officer, America Online, Inc.