Over 250,000 Members Join #1 On-Demand Music Subscription Service on America Online; Catalog of 600,000 Songs Now Available on Demand for Just $8.95 a Month on MusicNet@AOL

Business Wire, March 30, 2004

Business Editors/Hi-Tech & Entertainment Writers

NEW YORK--(BUSINESS WIRE)--March 30, 2004

Subscribers Can Now Purchase Songs a-la-Carte

Just over a year after its launch, MusicNet@AOL has signed up more than 250,000 subscribers, making it the leading on-demand music subscription service available online, America Online announced today. AOL integrates MusicNet@AOL throughout its industry leading music programming and products. AOL Music represents the #1 music destination online with more than 19 million visitors per month (comScore MediaMetrix).

America Online also announced today an enhancement to MusicNet@AOL that lets subscribers to the popular music subscription service buy individual songs a-la-carte for 99 cents each. The option to purchase and burn songs to CD is now available to all subscribers who will pay one flat rate membership fee of $8.95 which allows them to download and stream on demand any of the 600,000 songs in MusicNet@AOL's catalog.

"A legal digital revolution is underway, and more than a quarter million fans experience it every day on AOL, where members have made MusicNet@AOL the nation's No. 1 on-demand music subscription service," said Bill Wilson, Senior Vice President, AOL Entertainment. "And now we've made the MusicNet@AOL experience better than ever. For less than the cost of a single CD a month, members have at their fingertips more than a record store's worth of music, letting them discover and explore a vast world of musical entertainment."

Alan McGlade, CEO of MusicNet, commented: "We couldn't be more thrilled about our successful partnership with AOL. In less than a year MusicNet@AOL has established itself as the largest on demand music subscription service with new customers coming on at a rapid pace. This is what happens when two leaders in their respective businesses join forces to deliver a great experience for consumers."

MusicNet@AOL lets subscribers quickly search for artists, songs, albums and music styles, and set up customized playlists and CDs. With the addition of a modestly priced wireless audio system attachment, MusicNet@AOL subscribers can turn their home stereo into a virtual jukebox, and experience having more music than a record store in their living room for less than the cost of a single CD per month.

Other unique benefits of MusicNet@AOL include integration with AOL's state-of-the-art Parental Controls, which let parents restrict their children's access to music containing inappropriate lyrics. MusicNet@AOL subscribers also can access exclusive AOL Music features, such as Sessions@AOL, First Listen, First View, Listening Parties, and Radio@AOL. They can also use AOL's extensive community features such as chat, instant messaging, message boards and more to join with like-minded music fans and virally share playlists.

The upgrades to MusicNet@AOL are part of AOL's continuing effort to provide its members access to the best online music experience. Through AOL Music, AOL members have one-click access to buy CDs, DVDs, tickets, sheet music, artist merchandise, as well access to exclusive world premier songs and videos on AOL.

Songs purchased to burn are saved in the industry standard Redbook Audio format and can be burned automatically to standard writable CDs using MusicNet@AOL. The CDs can be played in PCs, home and car stereos and portable CD players. MusicNet@AOL subscribers can pay for their song purchases with their AOL card on file.

About MusicNet

MusicNet is the world's leading online music service provider. The top US and global consumer brands private label MusicNet's comprehensive suite of digital music services. MusicNet enables its partners to offer their customers a fully customized experience, including the ability to buy music downloads and subscriptions, choose from the industry's largest catalog of licensed music, explore engaging editorial programming and enjoy an easy-to-use interface. Headquartered in New York, MusicNet's shareholders include Bertelsmann AG, EMI Music, RealNetworks, Sony Music Entertainment and Time Warner, Inc.

About America Online, Inc.

America Online, Inc., is a wholly owned subsidiary of Time Warner, Inc. (NYSE:TWX). Based in Dulles, Virginia, America Online is the world's leader in interactive services, Web brands, Internet technologies and e-commerce services.