America Online, Inc. and DVD Express Announce Multi-Million Dollar Marketing Agreement

September 8, 1998

Dulles, VA and Los Angeles, CA, September 8, 1998 - America Online, Inc., the world's leading Internet online services company, and DVD EXPRESS, Inc., the leading online DVD superstore, today announced a new marketing alliance making it easier than ever before for consumers to purchase DVD-format movies. Through DVD EXPRESS's premier positioning on AOL, AOL.COM, the most visited consumer site on the Web, AOL's Digital City, the nation's most popular branded local content network, and CompuServe, the number one Internet online choice for busy adults, AOL, CompuServe and other Web consumers will have a fast and convenient way to choose from over 1600 movie titles in dozens of categories, and then have their new DVDs mailed to their home. Over the three-year term of the agreement, AOL will receive guaranteed payments totaling $15 million, and will be eligible for a share of revenues generated by DVD EXPRESS once certain revenue thresholds specified in the agreement have been met. AOL will also receive warrants to purchase shares in DVD EXPRESS. DVD EXPRESS's presence on AOL, AOL.COM and Digital City is expected to begin launching in early September. Under a separate, one-year, $1 million agreement, DVD EXPRESS will also have a presence on the CompuServe service. Under the terms of the agreement, DVD EXPRESS will receive featured positioning throughout the AOL service, including in the Entertainment, Shopping, Lifestyles, Travel, Influence and Research and Learn Channels. In addition, DVD EXPRESS will be prominently featured throughout appropriate areas of AOL.COM, Digital City and CompuServe. DVD EXPRESS will also feature promotions and special offers for AOL members and users of AOL.COM and Digital City as part of the new relationship. "DVD EXPRESS's proven track record as a DVD retailer and their strong commitment to customer service make them a great fit for all of our brands - AOL, AOL.COM, Digital City and CompuServe," said Bob Pittman, President and COO of America Online, Inc. "Our goal is to provide AOL and CompuServe members, and visitors to our Web brands, with the best in value and convenience, and DVD EXPRESS fits the bill." "We are proud to be in this long-term strategic relationship with AOL," said Mike Dubelko, CEO and founder of DVD EXPRESS. "This deal will help us quickly establish our market leadership and brand recognition in the online DVD category."

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