America Online Inc.
today announced a multi-million dollar marketing alliance with online
digital video store DVD EXPRESS Inc..

Over the three-year term of the agreement, AOL said it 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 the online digital video retailer.

Under a separate, one-year, $1 million agreement, DVD EXPRESS will have a
presence on the CompuServe service,
an AOL subsidiary.

The agreement calls for DVD EXPRESS to receive featured positioning on
AOL channels, as well as throughout appropriate areas of AOL.COM, Digital City and CompuServe.

“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.”

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