America Online, Inc. Announces Acquisition of Xdrive, Inc.

DULLES, Va.--()--Aug. 4, 2005--America Online, Inc. the world's leading interactive services company, today announced that it has acquired Xdrive, Inc., a leading provider of online storage and backup services.

Financial terms of the deal were not disclosed. The company was previously privately held.

Xdrive, founded in 1999 and headquartered in Santa Monica, California, will operate as a stand alone, wholly-owned subsidiary of AOL under the Digital Services business unit and continue to be based in southern California.

Current and future subscribers of Xdrive will continue to be able to utilize the full suite of services, in accordance with the Xdrive 'Terms of Service' agreement.

Xdrive manages an online, centralized storage platform that gives subscribers access to, and protection of, all their digital assets - regardless of location used to access the Internet. Xdrive provides its subscribers with: storage safety and security; and automatic backup of a wide variety of digital assets - such as music, pictures, and video.

The Xdrive unit, the Xdrive management team, and its talented, highly-skilled 34 employees will report to Gio Hunt, Senior Vice President of New Business Ventures, AOL Digital Services.

"The digitization of consumer home media is skyrocketing, with consumers and AOL members increasingly looking for easier ways to protect and manage a wide variety of important data files and digital media assets," Hunt said. "Xdrive will further enhance AOL's consumer storage offerings to deliver a more safe and secure digital lifestyle for our members."

"Our mission has always been to help manage, integrate, and protect consumers' digital assets and enable anytime, anywhere access to files, from any internet connection," said Brett O'Brien, CEO & Founder, Xdrive. "This is a great marriage of Xdrive's cutting-edge storage technology with the massive infrastructure, network redundancy and exceptional safety and security reputation of AOL."

Xdrive has received several positive recognitions for its platform and services, including being named "One of the Best Online Services" by PC Today (July 2005) and "One of the 20 web services worth paying for" by Computer Shopper (May 2004). A list of noteworthy reviews and media citations is also available at http://corp.aol.com/press/media_xdrive.shtml

The Xdrive transaction is AOL's first major corporate acquisition since Mailblocks, Inc. and Advertising.com in the summer of 2004.

For more information on Xdrive, Inc., please visit www.xdrive.com. Xdrive and the Xdrive corporate logo are trademarks of Xdrive, Inc.

About America Online, Inc.

America Online, Inc. is a wholly owned subsidiary of Time Warner Inc. (NYSE: TWX). Based in Dulles, Virginia, America Online is the world's leader in interactive services, Web brands, Internet technologies and e-commerce services.

About Xdrive, Inc.

Xdrive is a personal hard drive on the internet. It's the easiest, most cost-effective, and most powerful way to securely store, access, share and backup files and folders online. Xdrive has helped millions of individuals and businesses backup and access files from the office, at home, or on the road, all through an easy-to-use interface.

Contacts

AOL Corporate Communications
Nicholas J. Graham, 703-265-1746

Contacts

AOL Corporate Communications
Nicholas J. Graham, 703-265-1746