America Online and NetGrocer Announce Exclusive Multi-Year Agreement to Offer NetGrocer Nationwide Online Supermarket Shopping

Dulles, VA, and New York, NY, July 14, 1998 - America Online, Inc. (NYSE: AOL), the world's leading Internet online services company, and NetGrocer, the first nationwide online supermarket on the World Wide Web, today announced an agreement making NetGrocer the exclusive online supermarket shopping delivery service on AOL and AOL.COM, the most visited consumer site on the World Wide Web. AOL will receive a guaranteed minimum payment of $15 million over the duration of the agreement: three years on the AOL service and two years on AOL.COM. AOL also will share in advertising and transaction revenues once certain thresholds are met, and will receive warrants to purchase shares in NetGrocer. NetGrocer will make its nationwide service available to AOL's more than 11 million U.S. members and millions more visitors to AOL.COM - together, the largest audience in cyberspace. NetGrocer's products will be promoted on the AOL service in such popular areas as the Shopping Channel, the Interests Channel, the Lifestyles Channel, the Personal Finance Channel and the Health Channel. NetGrocer lets shoppers across the United States purchase non-perishable supermarket items online at competitive prices. Brand name products are available in categories including groceries, pet care, health and beauty and housewares. A variety of lower priced brands are also available. NetGrocer is the first and only online supermarket to cover cities, towns and rural areas nationwide and charges no membership fees. All transactions are secured by the latest online secure socket layer technology. "The NetGrocer service embodies AOL's hallmark ease-of-use and convenience -- offering a wide array of products consumers need, making it simple to order them, and then delivering them straight to their doorsteps," said Bob Pittman, AOL's president and chief operating officer. "We expect NetGrocer's offerings to be a big hit with our convenience-minded audience." "This agreement benefits NetGrocer, AOL members and manufacturers looking to market online," said Daniel Nissan, NetGrocer president and CEO. "With AOL, NetGrocer can now reach cyberspace's largest mass-market audience, and AOL members will have more convenient, direct access to our online supermarket. This combined advertising and commerce environment will enable NetGrocer to provide makers of brand name products with an avenue to develop one-on-one marketing relationships."

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