America Online And TiVo Announce New Strategic Agreement And Equity Investment

AOL And TiVo To Develop AOLTV Set-Top Box Incorporating Features Of TiVo's Leading Personal Television ServiceWorld's Leading Interactive Services Company And The Leading Provider Of Personal Television Will Work Together To Enhance Television View

15-Jun-00

America Online, Inc. (NYSE: AOL), the world's leading interactive services company, and TiVo, Inc., (NASDAQ: TIVO) the creator of personal television, announced a new three-year strategic agreement in which TiVo will become an AOLTV programming partner, offering AOLTV subscribers access to features of TiVo's Personal TVô Service. Under the agreement, AOL and TiVo will work together to develop a dual-purpose AOLTV-branded set-top box and TiVo will become the exclusive provider of personal TV features on these set-top boxes. As part of the agreement, America Online will make an investment in TiVo of up to $200 million and receive warrants to purchase additional TiVo shares. ""We're pleased to expand our relationship with TiVo, a pioneer in personal television, to enhance the services we will be providing AOLTV subscribers,"" said Barry Schuler, President of AOL Interactive Services. ""Bringing TiVo's personal television features to AOLTV will be another way we can offer our members the best possible interactive television experience. ""AOLTV, part of the AOL Anywhere initiative, will offer AOL members an exciting, new interactive service designed to enhance the television viewing experience. The AOLTV branded set-top box incorporating TiVo's features has been targeted for delivery in early 2001. ""We believe our agreement with AOL positions us to lead the evolution of personal TV to the next level and begins to bring TiVo closer to delivering the ultimate television experience,"" said Mike Ramsay, TiVo's President and Chief Executive Officer. ""Delivering better TV is our mission at TiVo, and we're pleased that by working with America Online in the development of an AOLTV set-top box, we will have the potential of delivering a far richer, more entertaining TV experience for viewers and accelerate adoption of the TiVo Service."" The TiVo Personal TV Service digitally records television shows, without videotape, so consumers can watch what they want, when they want to watch it. Under this agreement, AOLTV subscribers using AOLTV branded set-top boxes will be able to use features of the TiVo Service to pause, slow motion, or instant replay live TV. Or, with the simple click of a button, the user can tell TiVo to automatically find and record their favorite programs every time they air. One of the unique attributes of TiVo is its ability to recommend shows that match consumers' interests through TiVo's Suggestions feature.This agreement expands upon the previous alliance between America Online and TiVo, announced in August 1999, under which the two companies agreed to collaborate to bring consumers a new interactive experience by combining TiVo's personal television features with AOL TV's enhanced interactive television experience. About TiVoTiVo (NASDAQ: TIVO) is the creator of the personal television service. Founded in 1997 with the mission to dramatically improve consumers' television viewing experiences, TiVo developed a technology that serves as a platform for delivering a variety of home entertainment services. TiVo's Personal TV Service simplifies the way we watch and enjoy television by digitally recording television shows, without video tape, so you can watch what you want, when you want to watch it. TiVo was the first to deliver on the promise of consumer choice and control over TV viewing, building a loyal and passionate subscriber base. TiVo's leadership is grounded in its ability to forge critical partnerships, working together with the giants of the media, technology, consumer electronics, and television industries. Industry support of TiVo is reflected in its partner roster that includes AOL, Blockbuster, BSkyB, DIRECTV, Philips, Sony and the leading cable and network television companies. Today, the TiVo Service is available in the United States on the Philips Personal TV Recorderô and the Sony Digital Network Recorder ô in nearly 3500 consumer electronics retail and online outlets. TiVo is headquartered in San Jose, California, with offices in Los Angeles, California. Additional information can be found at www.tivo.com. About America Online, Inc. Founded in 1985, America Online, Inc., based in Dulles, Virginia, is the world's leader in interactive services, Web brands, Internet technologies and e-commerce services. America Online, Inc. operates: America Online, with more than 22 million members, and CompuServe, with more than 2.7 million members, the company's two worldwide Internet services; several leading Internet brands including ICQ, AOL Instant Messenger and Digital City, Inc.; the Netscape Netcenter and AOL.COM portals; the Netscape Navigator and Communicator browsers; AOL Moviefone, the nation's number one movie listing guide and ticketing service; and Spinner.com and NullSoft's Winamp, leaders in Internet music. Through its strategic alliance with Sun Microsystems, the company develops and offers easy-to-deploy, end-to-end e-commerce and enterprise solutions for companies operating in the Net economy.

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