America Online and Leading Online Brokerages Announce $75 Million Interactive Marketing Agreement

AOL to Launch New Brokerage and Mutual Fund Centers to Meet Exploding Demand for Online Personal Finance Services Dulles, VA, June 30, 1998 -- America Online, Inc., the world's leading Internet online service, today announced a two-year pact with three leading online brokerages for a combined total of $75 million - one of cyberspace's biggest-ever marketing agreements. The brokerages are DLJdirect Inc. (tm), E*TRADE (tm) and Waterhouse Securities Inc. The agreement will make DLJdirect (tm), E*TRADE and Waterhouse Securities the premier brokerages in AOL's new Brokerage and Mutual Fund Centers in the AOL Personal Finance Channel -- the most frequently visited channel on AOL and cyberspace's most popular personal finance destination. AOL's Personal Finance Channel will prominently feature these brokerages on the Channel's Main Screen, in the Quotes, Portfolios, Investment Research, Investment Snapshot and Market News areas, giving AOL members convenient, easy one-click access to these leading online brokers. In the Mutual Fund Center, members can also quickly access and investigate the mutual fund areas of these primary brokers to get information and trading options specific to mutual funds. The agreement calls for each brokerage to pay AOL $12.5 million annually over the pact's two-year term for a total of $75 million. AOL's new Brokerage and Mutual Fund Centers will bring an even greater level of convenience to AOL members by enabling them to directly access their online trading accounts for DLJdirect, E*TRADE and Waterhouse Securities from anywhere in the Personal Finance Channel. They will also be able to more conveniently access these brokerages' mutual fund information and trading tools. In addition, the new design will allow the brokers to better feature and promote their mutual fund services. Direct access to the three brokerages will also be closely integrated into AOL's newly launched Investment Research area. Easy access to the brokerages will add to the convenience of the Investment Research area, which offers tools from a variety of partners, enabling members to search for stocks and mutual funds as well as other key personal finance information. "Consumer demand for online personal finance services is exploding and AOL is at the center of this trend," said Bob Pittman, America Online's President and Chief Operating officer. "By combining AOL's hallmark ease-of-use and convenience with these leaders in the online brokerage world, this agreement will ensure that we continue to provide access to the best personal finance services in cyberspace. We're delighted to make DLJdirect, E*TRADE and Waterhouse Securities readily available to AOL members." Myer Berlow, Senior Vice President of AOL Interactive Marketing, said: "With 51% of all Americans investing in the stock market -- the highest percentage in 50 years -- and the mass market coming online with our service, it's no wonder that consumers are increasingly handling personal finances on AOL. Our agreements with these leading online brokerages will help them reach the largest active member community in cyberspace and help them - and AOL -- leverage the explosive growth and huge potential of online investing." Leading Online Brokerages Available through AOL "AOL is one of the engines that has fueled the growth of the Internet making customers more comfortable with accessing the worldwide web. This has had a powerful affect on online investing," said K. Blake Darcy, Chief Executive Officer of DLJdirect. "Since 1995, DLJdirect has been providing AOL members with a top-rated online brokerage service. This new alliance will enable DLJdirect to showcase its award-winning DLJ research, online access to IPOs and other powerful investing tools to the ever-increasing AOL community." A wholly owned subsidiary of Donaldson, Lufkin & Jenrette, DLJdirect is one of America's leading online brokers and is a recognized pioneer in the online trading industry. Serving the serious online investor, DLJdirect has grown to over 450,000 customer accounts since its inception in 1988, holds over $6 billion investor assets and has conducted $35 billion in online trade executions. Among the many accolades received, DLJdirect has been recognized as the #1 Internet Broker by Gomez Advisors, Inc. for four consecutive quarters (thru Q2 1998). "We are convinced that as more individuals begin to utilize the Internet that there will be just a few pre-eminent gateways to the Web and AOL will stand out among those few," said Christos M. Cotsakos, E*TRADE's President and Chief Executive Officer. "Through the years, our partnership with AOL has been a very successful part of our overall marketing program. With the launch of AOL's new Brokerage and Mutual Fund Centers in its Personal Finance Channel, we expect our alliance to further solidify E*TRADE's leadership position in the marketplace as it drives even greater traffic to our destination site customized exclusively for AOL customers." E*TRADE has offered savvy independent investors access to online investing services via America Online since 1992. Named by FUTURE BANKER as one of its "10 Masters of Electronic Delivery," E*TRADE has also been honored with the "Torchbearer Award" by FINANCIAL SERVICES ONLINE and "Most Valuable Product of the Year" in the financial services category by PC COMPUTING. With a 95 percent customer retention rate, E*TRADE holds more than $10 billion in customer assets and has saved its customers more than $800 million in commissions in the past six years. "Waterhouse Securities believes in putting the power of choice into investors' hands, and our presence in AOL's Brokerage Center is one important way we put that belief into practice," explains John Chapel, president of Waterhouse Securities, the discount brokerage firm ranked #1 two years in a row by SmartMoney magazine. "The Brokerage Center on America Online is reliable, easy-to-use and convenient -- three factors that are critical for successful online investing." In addition to being named the #1 overall discount broker two years running, Waterhouse webBroker was also named the #1 online trading service by SmartMoney in its July 1998 issue. Key factors in that success include Waterhouse webBroker's $12 flat fee commission for market and limit orders up to 5,000 shares and customer and technical support that's available 24 hours a day, 7 days-a-week.

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