---

BW: America Online Posts Record Earnings

“America Online, Inc. (NYSE: AOL) today announced record results
for the third quarter of fiscal 2000, ended March 31, 2000… The
quarter’s net income, fully taxed and excluding one-time items,
totaled $271 million, or $0.11 per diluted share, up from $104
million, or $0.04 per diluted share, on the same basis last year.
The Company reported net income of $438 million, or $0.17 per
diluted share, up from $411 million, or $0.16 per diluted share, in
fiscal 1999’s third quarter. Reported net income included one-time
gains from the sale of investments totaling $275 million this
quarter and $567 million in last year’s third quarter. The year-ago
quarter also includes one-time charges of $103 million. Excluding
these items, operating income for the quarter climbed more than
155% over the year-ago quarter to $383 million.”

“During the quarter, the Company advanced its “AOL Anywhere”
strategy through a number of key initiatives:

AOL/Gateway Internet Appliances: At Spring Internet World 2000
earlier this month, the Company unveiled the groundbreaking
AOL/Gateway family of specialized Internet appliances – AOL
Gateway countertop appliance, wireless Web pad and desktop
appliance
– that will extend the “AOL Anywhere” strategy.
Using Netscape’s Gecko browser engine technology and the Linux
operating system, these appliances
with the “Instant AOL”
feature – which automatically launches the service as soon as the
device is switched on – will make AOL’s content, features and
services conveniently available to consumers in every room of their
homes.”

“The Alliance also launched new strategic partnerships with…
Red Hat Linux to add iPlanet Messaging Server and iPlanet Web
Server to the portfolio of products available on Linux…”


Press Release