AOL Inks TV Partnerships

Furthering its AOL Anywhere strategy to make its flagship online service available through
non-PC devices, America Online Inc. Tuesday announced four partnerships in the development of its AOL TV product.

The partners are: DIRECTV Inc.; Hughes Network Systems (HNS); Philips
Electronics; and Network Computer Inc. (NCI).

AOL said its TV offering will expand connected interactivity to television
and will be designed for easy use, convenience, and transmit AOL
functionality to TV sets. Set-top boxes will be connected to AOL through
built-in 56-kilobit modems and will have Universal Serial Bus ports to support Digital Subscriber Line
(DSL) connectivity. Unnamed new features are also slated.

Satellite television service
provider DIRECTV, with 7 million subscribers, will
work with AOL to create a new service that integrates digital
satellite television programming from DIRECTV with AOL TV’s
enhanced interactive television Internet service.

HNS, which is the world’s second largest
manufacturer of the DIRECTV system in the world will design and
develop the dual purpose AOL TV/DIRECTV set-top receiver. Although satellite TV programming will be available through the box, high-speed satellite Internet connectivity will not be offered.

Set-top box provider Philips Electronics has been tapped to produce an
advanced set-top box enabled for AOL TV.

NCI is slated to provide a complete software
platform for the AOL TV service. NCI’s TV Navigator software will
work in tandem with the Philips and DIRECTV System set top boxes to display
various Internet-based television services and content for both
dial-up and satellite set-top boxes. In addition, NCI’s Connect Server will
manage and administer the AOL devices connected to the network.
These technologies will offer an open Internet platform scalable to
support AOL’s customer base, and are future-proof to
support additional information appliances.

“AOL has always focused on making the online experience a key
part of our members’ lives,” said Bob Pittman, America Online’s president and chief operating officer.

“As consumers want to extend that interactive experience to
connected non-PC devices, we will continue to deliver our hallmark
ease-of-use and
convenience, and as connected interactivity becomes available on platforms
like the television,
AOL will be there for consumers. This extension of the AOL brand also will
provide significant
opportunities to our advertising and commerce partners,” Pittman said.

“We anticipate that AOL’s powerful brand will drive the acceptance and
value of interactive television.
Our membership base of more than 17 million, who are embedding connected
interactivity into
their lives, will be among those most interested in extending this
experience to other devices,” said Barry Schuler, president of America
Online Interactive Services Group.

AOL spokesman Wendy Goldberg would not say when the offering will debut. She said modifications have to be made to AOL’s service before the service can be offered.

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