PicturePlace, AOL's Innovative Online Photo Service, Becomes PictureWeb;
Announces Strategic Alliances with Adobe Systems and Mystic Color Lab

Las Vegas, NV, January 4, 1996 -- PicturePlace, one of the companies grown
in The AOL Greenhousex , announced today that it has renamed its
fast-growing, first-of-a-kind online photo service available through
America Online and the World Wide Web to PictureWeb to better illustrate
its enhanced Web access. In addition, PictureWeb announced that it has
signed strategic alliances with Adobe Systems and Mystic Color Lab.
PictureWeb will be demonstrating enhancements to its service at Sands
booth #15062 and at AOL's booth, Sands #15862.

Alliances

PictureWeb and Adobe Systems announced a strategic alliance designed to
promote consumer digital photography among consumers. Adobe PhotoDeluxe
photo editing software for Macintosh and Windows can be used with
PictureWeb to provide easy access to photo digitization technology and
software for enhancing and modifying personal photographs. Special offers
for Adobe PhotoDeluxe users include a PictureWeb starter kit which
includes an AOL start-up disk.

PictureWeb also announced new, more cost-efficient film pricing through a
partnership with Mystic Color Lab, Inc. a leading, nationally recognized
provider of high-quality photoprocessing. In the first quarter of 1996 AOL
members and World Wide Web users will be able to send in a roll of film
and have pictures digitally converted and delivered online for worldwide
access and sharing. Members will receive processing of a roll of
24-exposure negative film, complete with prints, plus their pictures
digitized online in PictureWeb for less than $14, including shipping and
handling.

"PictureWeb continues to bring together some of the best products and
services to provide a complete solution for getting and using photos
online easier and faster," stated Terry Ulick, Co-founder of PictureWeb.
"Adobe Photo Deluxe is the perfect online product for combining fantastic
picture editing tools with incredible ease of use. Mystic Color Lab
enables us to do it faster, easier, and for less money. That's a great
deal for AOL members."

New: Full Internet Access

PictureWeb is the first online picture service that enables members to
quickly, easily and cost-effectively digitize and share photographs
electronically with friends and family using AOL and the Internet. Using
any web browser, AOL members and Internet users can access all PictureWeb
features and selectively share or send pictures anywhere in the world. AOL
members and Internet users can access PictureWeb via AOL Keywords PW or
PictureWeb or on the Internet at www.pictureweb.com.

Enhanced Service Features

At CES, PictureWeb developers will demonstrate new features including an
easier-to-use web interface, an online picture greeting card function, and
the service's ability to share PictureAlbums over the Internet. Founders
of the service state they will also announce a powerful new feature which
will allow users to upload their own picture files from scanners or
digital cameras into their PictureAlbums on the PictureWeb online
network.

"PictureWeb's user-friendly interface offers high-quality digital pictures
online with point and click simplicity. Getting pictures onto the screen
of a computer and incorporating digital images into email, homepages, or
other documents is as simple as dropping off a roll of film," said Elliot
Klein, Co-founder of PictureWeb.

PictureWeb's virtual PictureAlbums let members store high-resolution
pictures while freeing up valuable hard-drive space. PictureCircles enable
selective sharing of pictures with friends, family and business associates
online. The service offers 24-hour online picture access for a cost of no
more than .99 cents per photo (with no minimum), and no charges for
downloading, viewing or sending to other online areas. Once processed,
users can choose to selectively share access to their PictureAlbums with
other designated AOL members or any Internet e-mail address by adding them
to their 'PictureCircle' list.

 The AOL Greenhouse provides PictureWeb with online production support
including full utilization of AOL's publishing tools, Internet publishing
support, seed equity funding, marketing resources, online promotion, and
an audience of 4.5 million America Online subscribers. Partners in The AOL
Greenhouse are given the opportunity to team with interactive marketing
partners to assist in the development of new revenue streams.

America Online, Inc., (NASDAQ symbol: AMER), based in Vienna, VA is the
largest and fastest growing provider of online services in the world with
the most active subscriber base. AOL offers its subscribers a wide variety
of services, including electronic mail, conferencing, software, computing
support, interactive magazines and newspapers and online classes, as well
as easy and affordable access to services of the Internet. AOL has a
global workforce consisting of more than 3,000 people. Founded in 1985,
AOL has established strategic alliances with dozens of companies,
including Capital Cities/ABC, Viacom, Bertelsmann, Hachette, IBM, Compaq
and American Express. Personal computer owners can obtain America Online
software at major retailers and bookstores, or by calling 800-827-6364.
 
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