Barry Schuler Named Chairman and CEO Of New AOL Time Warner Digital Services Development Group; Group to Develop Home Networking Solutions and Digital Home Services

Business Wire, April 9, 2002

Business & Technology Editors

NEW YORK & DULLES, Va.--(BUSINESS WIRE)--April 9, 2002

Bob Pittman, COO-elect of AOL Time Warner, will also

Lead America Online

AOL Time Warner today announced that Barry Schuler, Chairman and CEO of America Online, will lead a new division that will develop digital services for AOL Time Warner platforms.

Mr. Schuler, who will relinquish his responsibilities as head of America Online, will continue to report to AOL Time Warner COO-elect Bob Pittman.

Mr. Pittman, who ran America Online's operations before the AOL Time Warner merger, will take over Mr. Schuler's operating responsibilities at AOL. Mr. Pittman will also continue to fulfill his responsibilities as COO-elect of AOL Time Warner.

AOL Time Warner CEO-elect Dick Parsons said: "The Digital Services Development Group will focus on new interactive products that can be a major source of AOL's future growth and offer important benefits to AOL Time Warner's other businesses as well. Bob and I asked Barry Schuler to lead our efforts in this area because he is uniquely qualified to direct our developmental programs for home networking solutions, digital home services such as digital music delivery, and other critical interactive products.

"Nobody understands AOL's operations and potential better than Bob Pittman, and no one is better qualified to manage this business. Bob is taking on this role at a time of both opportunity and challenge. The opportunity at AOL is as great as ever because member growth is strong, average time spent online is at a record level, and brand recognition, customer satisfaction and member retention are all outstanding. In fact, our revenue, combined with the total amount of time people spend on our service, makes AOL one of the world's leading media companies in its own right. At the same time, the challenge facing us at AOL is to improve the performance of its advertising business in the current advertising slowdown by building on AOL's unique competitive position and capabilities," Mr. Parsons said.

Mr. Pittman said: "AOL has enormous strengths and opportunities. The Company has the leading brand and most loyal customers in the Internet space. It has an established record of market leadership and innovation that is second to none. With the help of COO Mike Kelly and the other extraordinary people who operate AOL, my immediate focus will be to build on all these strengths and continue to drive subscriber growth, while also taking the necessary steps to get our advertising business back on track. We will work closely with Steve Case, Dick Parsons and the rest of the AOL Time Warner organization to drive AOL to even greater heights. I'm also excited about continuing to work with Barry on important digital priorities, not only for AOL but also for the entire Company."

Mr. Schuler said: "Inventing new products and services is my first love and the Company's best use of my talent. I am excited to build this new group, which will create a whole new generation of digital products for consumers and will help drive the growth of AOL Time Warner."

About Barry Schuler

Mr. Schuler became Chairman and CEO America Online, Inc. in January 2001, following the completion of the AOL Time Warner merger. Before that, Mr. Schuler was President of the Interactive Services Group at America Online, Inc., where he was responsible for the flagship AOL service, Netscape Communications and CompuServe. Prior to its acquisition by AOL in 1995, Mr. Schuler was CEO of Medior Inc., an interactive multimedia company that he co-founded in 1989.

About AOL Time Warner

AOL Time Warner is the world's first Internet-powered media and communications company, whose industry-leading businesses include interactive services, cable systems, publishing, music, networks and filmed entertainment.