AOL and Intel Join Forces to Bring AOL On–Demand Entertainment to the Living Room

AOL Video, Music and Picture Services Tailored for New Intel® Viiv™ Technology; Joint Efforts to Market Intel Viiv Technology and the Digital Lifestyle

Dulles, VA and Santa Clara, CA. – Jan. 5, 2006 – AOL and Intel Corporation announced today a joint effort to deliver AOL’s popular digital entertainment services, including its new AOL® Video Service, to consumers’ living rooms via Intel® Viiv™ technology–based PCs. AOL.com® content – from music, movies, TV shows, videos and more – will be tailored for Intel’s new platform, introduced today, making the content easily viewable on home television sets and other devices.

“Working together with Intel, we are creating a powerful new, on–demand entertainment distribution platform for video, one that meets consumers’ increasing demand for choice and control over their entertainment,” said Jon Miller, Chairman and Chief Executive of America Online, Inc. “This new initiative extends AOL’s leadership in the on–demand video space, which includes an extensive library of original and licensed videos, powerful video search, advancements such as the ‘Hi–Q’ video format, and more. Together with Intel and the Intel Viiv technology platform, we are creating new ways for consumers to watch and interact with content by bringing a high–quality, on–demand media experience into the living room.”

“AOL’s effort spans the delivery of movies, television, music, satellite radio and other digital programming, perfectly illustrating the power of what Internet broadcasting can deliver to our living rooms,” said Paul S. Otellini, president and CEO of Intel. “Adding the capabilities of Intel Viiv technology–based PCs will help make this experience even more effortless as AOL enables its customers to best manage who, what, when and where we enjoy digital entertainment.”

Intel Viiv technology enables a broad choice of on–demand, Internet–delivered digital entertainment alternatives, along with several options for how people view, manage and share content – from the “10–foot” living room TV viewing experience in the home to laptops or handheld devices on the go. Among other CE–like features, the platform includes new and powerful dual core processors and tailored chipsets and software that can enable high–definition video and surround–sound audio, and when configured the ability to turn the PC on and off instantly after initial boot.

The AOL Video service – available on Intel Viiv technology–based PCs later this year – will enable on–demand entertainment throughout the house. Consumers will get access to the AOL video library in categories spanning music, television, movies and games, with many available in DVD quality through the new AOL® Hi–Q® Video format. The AOL Video service will also feature In2TV, a first–of–its–kind broadband television network that will air such classic programs as Welcome Back Kotter, Babylon 5, Lois & Clark, La Femme Nikita, Growing Pains and more. The AOL Video service will be easily searchable using AOL Video Search, which has been optimized for a home theater environment.

Available today in the “Online Spotlight” area of Intel Viiv technology and Microsoft Media Center–based PC’s are AOL® Music On Demand, which features top videos, original in–studio performances, and select live concerts; AOL® Radio Featuring XM Satellite Radio with 250+ stations for AOL members and 150+ stations for free on the web; and AOL® Pictures, a free online digital photo service. Additional AOL.com services are planned to become available soon on the Intel Viiv platform, including AOL Music Now, AOL’s next generation, web–based digital music store and subscription service currently in preview.

AOL and Intel to Promote Digital Lifestyle through Advertising and Co–Marketing Campaigns
The companies will also work together on an innovative promotional campaign for Intel Viiv technology across key entertainment content areas on the AOL and AOL.com services, including a “Video Wall” takeover of the AOL.com homepage today to showcase features that will be made possible through the new Intel Viiv technology platform.

Intel will also be the presenting sponsor of Network LIVE and In2TV when it launches later this spring. Both sponsorships will include pre–roll video, logo, and banner advertisements. Additional Intel Viiv technology banner advertisements will also run across AOL’s Entertainment, Music and Television programming areas, in addition to being promoted in the AOL Pictures service. Intel Viiv technology branding will also be integrated into the AOL Video Player by early February.

In addition, as a part of the new AOL.com portal, AOL has introduced today a new Digital Lifestyle Hub (http://aol.com/digitallifestyle) to educate consumers about digital media content in the home and on the go. The digital home with Intel Viiv technology will be a feature of the site’s main page with a link to animated explanations of Intel Viiv technology–enabled AOL content and a customized Intel landing page devoted to the “Better with Intel Viiv technology” lifestyle.
Members should visit Keyword: Digital Lifestyle.

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).

Intel and Intel Viiv are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.

* Other names and brands may be claimed as the property of others.