AMERICA ONLINE ANNOUNCES BUILT-IN SPYWARE PROTECTION FOR MEMBERS

AOL(R) Spyware Protection Helps Safeguard Members from Potential Surveillance,
Security Threats, Identity Theft Software

First Premium Broadband Service to Offer Standard Spyware Protection

Recent Study Revealed that 91% of Broadband Households
Have Spyware/Adware Lurking on Home Computers

Dulles, VA – January 6, 2004 – America Online, Inc., the world’s leading interactive services company, today announced that it would make built-in spyware protection available to both narrowband and broadband members as it introduces additional enhancements to AOL(R) 9.0 Optimized over coming weeks.

AOL(R) Spyware Protection will help AOL and AOL for Broadband members identify and disable many potential types of surveillance and advertising software (also known as spyware or adware).  Spyware and adware are often surreptitiously installed when a person downloads a file sharing program or other software.  Spyware and adware programs can monitor what members type and the sites they visit, gather personal information such as passwords or e-mail addresses, and/or deliver unwanted ads.

Spyware is an electronic stalker that secretly watches the online activities of millions of Americans every day,” said David Gang, Executive Vice President of AOL Products. “Because spyware hides in the background and quietly attaches itself to other programs, most computer users don’t even realize they have it on their machines.  AOL Spyware Protection can help shine the light on potential spyware and help protect our members from some of its insidious behavior.  AOL for Broadband is the first premium broadband service to offer standard spyware screening, and through it, we're proud to continue to enhance our suite of industry-leading safety and security tools.”

In addition to the privacy and security risks, spyware and adware programs can also cause computer system stability and connectivity problems for users, which can lead to computer crashes, abnormal disconnects from their online services, and malfunctions in other software programs.

To help members find and disable spyware and adware, AOL Spyware Protection automatically scans a member's computer once a week.  Members also can manually initiate a spyware/adware scan by clicking on the AOL Spyware Protection icon on the member’s desktop, or they can set up automatic spyware scans at more regular intervals, such as daily/weekly or at a specific day and time.  The database for AOL Spyware Protection is regularly updated to help members find and disable the latest spyware and adware applications. 

A study conducted last year by the National Cyber Security Alliance found that the overwhelming majority (91%) of broadband users have spyware or adware on their home computers, much of it placed surreptitiously by music or file sharing programs.  Despite heavy use of such file-sharing software, 94% of broadband users did not know that spyware is often bundled with those programs.  The same study revealed that 86% of broadband users keep sensitive health, financial, or personal information on their home computers.

Last year, the Federal Trade Commission (FTC) issued a consumer alert warning online users about the dangers of spyware.  Outlining some of the potential risks, the alert told consumers that “spyware monitors a user's browsing habits and then sends that data to third parties. Sometimes the user gets ads based on the information that the spyware has collected and disseminated.  Spyware can be difficult to detect and remove.”

The non-profit Center for Democracy and Technology (CDT) reiterated that risk in a November 2003 report titled “Ghosts in our Machines”.  In the report, CDT concluded that “spyware represents a serious threat to users’ control over their computers and their Internet connections.”

The National Cyber Security Alliance study was conducted among a representative sample of 120 broadband users predominantly using DSL and cable connections. The study took place from May 14 to May 30 among broadband users in four regions - Columbus, Ohio; metropolitan Washington, D.C.; upstate New York; and Houston, Texas.

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

More information on spyware:

http://ww.aolepk.com/safety

http://www.cdt.org/privacy/031100spyware.pdf

http://www.staysafeonline.info/press/060403.adp

http://www.ftc.gov/bcp/conline/pubs/alerts/sharealrt.htm

Media Contact:
Andrew Weinstein
America Online
703-265-1746