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

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 onthe AOL.com Web portal's industry-leading video experience(http://www.aol.com/video) and can deliver DVD quality videos, inaddition to standard quality streaming video, free to broadband users.Consumers can view AOL Hi-Q video on demand as well as select to havenew Hi-Q videos in a particular category of interest, such as onlinemovie trailers, music videos, video game trailers and moreentertainment content, pushed to them when they are available.

"Viewing online videos in the AOL Hi-Q format is a whole newexperience," said Kevin Conroy, Executive Vice President, AOL MediaNetworks. "From the latest video game trailers and music videos to ourown original programming, such as AOL Sessions, AOL Hi-Q offers thebroadest array of high-quality video content and provides consumerswith a new way to enjoy videos online."

Using one of the industry's first commercial-grade, peer-to-peergrid distribution networks, developed in partnership with Kontiki,AOL(R) Hi-Q(TM) can deliver DVD quality videos directly to consumersmore quickly and efficiently. The peer-to-peer distribution networkbuilt by Kontiki features robust security to protect copyrightedcontent through digital rights management (DRM) and a centrallymanaged, highly-scalable delivery model that enables AOL to reliablydeliver content to consumers. Through the installation of a simpleplug-in, a special AOL Hi-Q video player provides a high resolutiondisplay with image quality designed for full-screen viewing on PCmonitors or televisions capable of showing a PC interface.

"We are very excited to further expand on our relationship withAmerica 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'sflagship Delivery Management System."

For the trial, more than 100 AOL Hi-Q videos -- ranging from videogame and online movie trailers to music videos -- will be availablefrom the AOL.com(R) portal's Video page (http://www.aol.com/video).Content optimized for the AOL Hi-Q format will be highlighted so thatusers can easily identify which videos support this higher qualitylevel. As the trial expands, additional videos will be made availablein the AOL Hi-Q format.

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

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

AOL's Hi-Q video format is yet another demonstration of AOL'scommitment to delivering next-generation video experiences via theAOL.com portal. AOL is one of the largest providers of streaming videotoday and is continuously expanding the scope of its licensingrelationships to broaden the selection in key categories across music,television, movies, news, sports and more. In addition to itsextensive video on demand programming, AOL recently launched a new,best-in-class Video Search product that provides access to acomprehensive library of videos across the Web, and a new Video Playerproduct designed to provide a more seamless and consistent videoplayback experience and easy access to Video Search.

About America Online, Inc.

America Online, Inc. and its subsidiaries operate a leadingnetwork of Web brands and the largest Internet access subscriptionservice in the United States. Brands include the AOL(R) service, theAOL.com website, and the AIM(R), MapQuest(R), Moviefone(R),Netscape(R), CompuServe(R) and ICQ(R) services. America Online offersa range of digital services including the TotalTalk(R) 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 ofTime Warner Inc. (TWX)

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