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

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

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

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

Xdrive manages an online, centralized storage platform that givessubscribers access to, and protection of, all their digital assets -regardless of location used to access the Internet. Xdrive providesits subscribers with: storage safety and security; and automaticbackup 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 VicePresident of New Business Ventures, AOL Digital Services.

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

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

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

The Xdrive transaction is AOL's first major corporate acquisitionsince 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 WarnerInc. (NYSE: TWX). Based in Dulles, Virginia, America Online is theworld's leader in interactive services, Web brands, Internettechnologies 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 millionsof individuals and businesses backup and access files from the office,at home, or on the road, all through an easy-to-use interface.