America Online and AT&T Wireless Launch Simplified Mobile Instant Messaging Services; Mobile Instant Messaging Lets Mobile Users Easily 'Chat' While on the Move

DULLES, Va. & REDMOND, Wash. --(Business Wire)-- Feb. 10, 2004
AOL(R) Instant Messaging(TM) (AIM(R)) and ICQ(R) Clients Based On Wireless Village Standard

America Online Inc., the world's leading interactive services company, and AT&T Wireless (NYSE:AWE) today announced the availability of new mobile instant messaging services that streamline the wireless instant messaging (IM) experience. An embedded version of the AOL(R) Instant Messenger(TM) (AIM(R)) service is now prominently featured on the main menu screen of select AT&T Wireless phones, bringing the power of instant messaging to the foreground of wireless.

AT&T Wireless customers can already access AOL(R) services via SMS text messaging or the company's mMode(TM) service. This will be the first time that AIM will be embedded on select AT&T Wireless phones, just as the phonebook and text messaging features are today. Wireless customers can now use their phones to easily stay in touch with their online AIM and/or AOL buddies, see which buddies are logged in when sending instant messages, and conduct real-time IM chats.

"Given the huge success of AOL Mail and AIM on mMode, we are excited to expand our relationship with AT&T Wireless and offer subscribers new and exciting mobile instant messaging services from AOL," said Bill Schwebel, Vice President and General Manager, AOL Mobile, America Online Inc. "These new mobile instant messaging services provide added convenience to AT&T Wireless subscribers, allowing them the ability to stay in close touch with friends, family and co-workers while on-the-go."

"With this feature, instant messaging on wireless phones will finally be as simple as sending a text message," said Glenice Maclellan, vice president of messaging services at AT&T Wireless. "Together, America Online and AT&T Wireless are making it faster and easier for users to stay connected to their IM communities, which we expect will drive further adoption of wireless IM services. We believe that customers will choose to use some combination of text messaging, instant messaging, picture messaging, and wireless email based on individual needs and preferences," said Maclellan.

In addition to the built-in versions of the AIM and ICQ(R) services, the IM-To-Text feature available on AT&T Wireless phones lets AOL members and registered users of the AIM service send instant messages directly from their desktop computers to AT&T Wireless customers simply by addressing the IM to the phone number of the person they want to reach. In turn, AT&T Wireless subscribers can respond to incoming messages from their phones -- even if they don't have an AIM or AOL screen name. With AOL's IM Forwarding feature, subscribers also can forward incoming instant messages to their mobile phones through the desktop settings of their AIM and ICQ service, ensuring that their IMs follow them wherever they go.

At launch, the embedded instant messaging feature is available on Nokia 3100 and 3200 handsets. IM-To-Text and IM Forwarding are available on all AT&T Wireless two-way text messaging capable phones. Additional instant messaging-enabled wireless phones will be rolled out throughout the year. Instant messages cost $.10 each to send; all instant messages received are free of charge. Only AT&T Wireless offers unlimited incoming messages free of charge.

The new instant messaging software clients are based on the Wireless Village open standard for mobile instant messaging and presence services, which are used to exchange messages and presence information between mobile devices and Internet-based instant messaging services. The Wireless Village initiative lets device manufacturers such as Nokia develop wireless applications based upon a single standard, allowing wireless providers such as AT&T Wireless tools needed to deploy messaging and other applications in a quick and cost-effective manner.

About America Online, Inc.

America Online, Inc. is a wholly owned 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.

About AT&T Wireless

AT&T Wireless (NYSE:AWE) is the second-largest wireless carrier, based on revenues, in the United States. With 21.980 million subscribers as of December 31, 2003, and revenues of more than $16.6 billion over the past four quarters, AT&T Wireless delivers advanced high-quality mobile wireless communications services, voice and data, to businesses and consumers, in the U.S. and internationally. For more information, please visit us at www.attwireless.com.

This press release contains "forward-looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by management with information that is currently available to management. Forward-looking statements may include, without limitation, management's expectations regarding: our future financial and operating performance and financial condition, including the company's outlook for the fiscal year 2004 and subsequent periods; our plans to evaluate strategic alternatives and the outcome of that evaluation; subscriber growth; industry conditions; the strength of our balance sheet; our liquidity and needs for additional financing; and our ability to increase revenue, margins and operating free cash flow. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T Wireless' control, that could cause actual results to differ materially from such statements. Without limitation these factors include: the risks associated with the implementation of our technology migration strategy, our plans to evaluate strategic alternatives, our ability to continue to reduce costs and increase the efficiency of our distribution channels, the potential competitive impacts of industry consolidation or alternative technologies, potential impacts on revenue and ARPU from competitive pricing and slowing penetration in the wireless industry, the effects of vigorous competition in the markets in which we operate, the risk of decreased consumer spending due to softening economic conditions, acts of terrorism, and consumer response to new service offerings. For a more detailed description of the factors that could cause such a difference, please see AT&T Wireless' filings with the Securities and Exchange Commission, including the information under the heading "Additional Factors That May Affect Our Business, Future Operating Results and Financial Condition" and "Forward Looking Statements" in its quarterly report on Form 10-Q filed on November 14, 2003.