TiVoÆ Expands Strategic Relationship With AOL Time Warner

15-Feb-01

TiVoÆ, Inc., (NASDAQ: TIVO) the creator of and leader in personal television, announced that it has expanded its existing strategic relationship with America Online to include an enhanced multi-million dollar marketing and promotional campaign with AOL Time Warner (NYSE: AOL), the world's first Internet-powered media and communications company. Under this agreement, TiVo will be promoted across AOL Time Warner online, print and television media properties, which will focus on educating consumers about the popular TiVo personal television service.Additionally, in a separate agreement that will further strengthen the companies' strategic relationship, TiVo will gain access to $43.5 million in restricted funds, which had been provided by AOL under its previously announced agreement, which the company will use for working capital, and in return, TiVo has agreed to reduce the exercise price of certain warrants held by AOL. TiVo will reduce the exercise price of a warrant to purchase 2,308,475 shares of common stock held by AOL from $23.11 to $7.29, and will also reduce the exercise price of a warrant to purchase 295,428 shares of common stock held by AOL from $30 to $7.29.""TiVo and AOL have a successful relationship, one that's enhanced by our similar missions - to do all we can to make our users' lives easier and more convenient,"" said Barry Schuler, Chairman and CEO of America Online, Inc. ""This extension of our marketing relationship will enable us to work closely with TiVo to help refine its marketing reach and educate both our audiences about their great service.""""AOL has been a great partner of ours for some time, and this expanded agreement with AOL Time Warner will enable TiVo to continue its aggressive marketing efforts to promote Personal TV to a broad audience, focusing on the marketing channels that have worked best for us in the past,"" said Mike Ramsay, President and CEO of TiVo. ""The combination of advertising across both online and traditional media will allow us to execute innovative marketing programs that can only be accomplished with a partner with the incredible reach of AOL Time Warner.""In June 2000, TiVo and America Online, Inc. announced a strategic agreement under which TiVo would become an AOLTV programming partner, offering AOLTV subscribers access to features of TiVo's Personal TVô Service. The agreement also included an America Online investment in TiVo of approximately $200 million. Under the terms of this new agreement, TiVo will spend $21.5 million in programs to promote the TiVo service on AOL Time Warner online and offline properties.For more information about TiVo, Inc., visit www.tivo.com.

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