AMERICA ONLINE REPORTS RECORD $312.3M REVENUES

Net Earnings Exceed $15 million After Adding Over 900,000 New Subscribers

VIENNA, VA, May 8, 1996 - America Online, Inc. reported today that its
revenues for the three months ended March 31, 1996 rose to a record
$312,340,000, increasing more than 185 percent from revenues of
$109,104,000 in fiscal 1995's third quarter.

Net income for the latest three months improved to $15,127,000, or $0.14
per share, after taking into effect a special charge of about $850,000
relating to the Company's acquisition in January of Johnson-Grace, Inc.,
as well as goodwill amortization costs of $1,825,000, which equates to
$0.01 per share. A year earlier, the Company reported a net loss of
$3,296,000, or $0.05 per share, reflecting its $7,550,000 charge against
earnings for acquired research and development.

In addition to service revenues tripling in the quarter to $285.5 million,
America Online said its revenues from merchandise sales, advertising,
transactions and network access climbed to a new high of nearly $26.9
million, roughly double the previous year's other revenues of $13.7
million.

Propelled in part by healthy sales of personal computers over the holiday
season, AOL grew by more than 905,000 net new members in the latest
quarter and at March 31, 1996 was serving approximately 5.5 million
subscribers in the United States.

In the year since it acquired Advanced Network & Services, Inc. and started
to build its own dial up TCP/IP network, the Company's AOLnet has grown to
more than 100,000 28.8 kbps modems deployed in more than 400 cities
throughout the United States. Just six months ago, AOLnet comprised fewer
than 25,000 modems and in that time traffic on the Company's network has
leaped from about 20 percent to greater than 50 percent.

"Planned investments in people, partners and member acquisition have paid
off," said Chief Executive Steve Case, "as AOL stretched its lead during
the quarter over other online services and struck exciting deals that will
take AOL to increasingly more people via Microsoft's Windows 95, AT&T's
WorldNet and Apple's Mac platforms."

Pointing out that much of the benefit to date from its network cost
efficiencies has been re-invested in customer support, Case explained that
the Company recently opened its fifth separate call center -- this one in
Oklahoma City -- in only the last year. "While total employment has
tripled to nearly 5,000 over the last 12 months, we've expanded our Member
Services organization from about 800 to some 3,000 people," said Case.
Today, he noted that more than 75 percent of the Company's employees are
dedicated to serving members and supporting its extensive technology
infrastructure.

"With these latest results," the Company's chief executive said, "AOL is
emerging as a multi-faceted organization that possesses significant new
avenues of growth. In addition to being able to manage our network
destiny, we are moving the AOL content to important and cost-effective new
distribution channels. We are creating alternative revenue streams,
expanding our original content portfolio, making good on promises and
partnerships in Europe, taking our service to new geographic markets, and
building AOL into a major global brand."

America Online, Inc., (NASDAQ Symbol: AMER), based in Vienna, VA, is the
largest and fastest-growing provider of online services in the world, with
more than 6 million members. Through its services, 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 on the Internet. Founded in 1985, AOL today has a global work
force consisting of nearly 5,000 people. Personal computer owners can
obtain America Online software at major retailers and bookstores or by
calling 800/827-6364.
 
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