AOL.com Is First Major Portal to Deliver DVD Quality Videos

November 14, 2005, The AOL.com portal is the first to introduce a trial for a new “AOL Hi-Q” high quality video format. The AOL Hi-Q format builds on the AOL.com Web portal’s industry-leading video experience ( http://www.aol.com/video) and can deliver DVD quality videos, in addition to standard quality streaming video, free to broadband users. Consumers can view AOL Hi-Q video on demand as well as select to have new Hi-Q videos in a particular category of interest, such as online movie trailers, music videos, video game trailers and more entertainment content, pushed to them when they are available.

“Viewing online videos in the AOL Hi-Q format is a whole new experience,” said Kevin Conroy, Executive Vice President, AOL Media Networks. “From the latest video game trailers and music videos to our own original programming, such as AOL Sessions, AOL Hi-Q offers the broadest array of high-quality video content and provides consumers with a new way to enjoy videos online.”

Using one of the industry’s first commercial-grade, peer-to-peer grid distribution networks, developed in partnership with Kontiki, AOL® Hi-Q™ can deliver DVD quality videos directly to consumers more quickly and efficiently. The peer-to-peer distribution network built by Kontiki features robust security to protect copyrighted content through digital rights management (DRM) and a centrally managed, highly-scalable delivery model that enables AOL to reliably deliver content to consumers. Through the installation of a simple plug-in, a special AOL Hi-Q video player provides a high resolution display with image quality designed for full-screen viewing on PC monitors or televisions capable of showing a PC interface.

“We are very excited to further expand on our relationship with America Online with the development of the AOL Hi-Q video format,” said Scott Sahadi, Vice President, Business Development, for Kontiki. “AOL continues to lead the market in providing consumers with a rich, interactive experience with high quality videos by using Kontiki’s flagship Delivery Management System.”

For the trial, more than 100 AOL Hi-Q videos -- ranging from video game and online movie trailers to music videos -- will be available from the AOL.com® portal’s Video page (http://www.aol.com/video). Content optimized for the AOL Hi-Q format will be highlighted so that users can easily identify which videos support this higher quality level. As the trial expands, additional videos will be made available in the AOL Hi-Q format.

AOL Hi-Q Video is supported by a sponsorship from GM. Through the AOL Hi-Q video playback experience, 15-second video advertisements from GM will be featured in high quality.

In a related announcement, AOL and Warner Bros. announced today that hundreds of classic TV episodes from some of the most popular television series of all time such as Lois and Clark, Babylon 5, Welcome Back Kotter and Chico and the Man, will be available free and on demand in the AOL Hi-Q video format. The videos will be available from the AOL.com portal in early 2006. More information on the AOL and Warner Bros. announcement can be found at http://corp.aol.com/press.

AOL’s Hi-Q video format is yet another demonstration of AOL’s commitment to delivering next-generation video experiences via the AOL.com portal. AOL is one of the largest providers of streaming video today and is continuously expanding the scope of its licensing relationships to broaden the selection in key categories across music, television, movies, news, sports and more. In addition to its extensive video on demand programming, AOL recently launched a new, best-in-class Video Search product that provides access to a comprehensive library of videos across the Web, and a new Video Player product designed to provide a more seamless and consistent video playback experience and easy access to Video Search.

About America Online, Inc.
America Online, Inc. and its subsidiaries operate a leading network of Web brands and the largest Internet access subscription service in the United States. Brands include the AOL® service, the AOL.com website, and the AIM®, MapQuest®, Moviefone®, Netscape®, CompuServe® and ICQ® services. America Online offers a range of digital services including the TotalTalk® voice service. The company also has operations in Canada and Europe. America Online, Inc. is based in Dulles, Virginia, and is a wholly owned subsidiary of Time Warner Inc.(TWX)

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Jaymelina Esmele

Corporate Communications

America Online, Inc.

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