AMERICA ONLINE, INC.

NEWS RELEASE

                     AMERICA ONLINE, INC. BOARD OF DIRECTORS
                      APPROVES NEW SHAREHOLDER RIGHTS PLAN

Dulles,  VA, May 14, 1998 -- America Online,  Inc.  (NYSE:  AOL) today announced
that its Board of Directors  has ordered the  redemption  of all rights  granted
under its current  shareholder  rights plan and adopted a new shareholder rights
plan. In addition to certain  other  modifications,  the new plan  increases the
exercise price of the rights to $900, subject to adjustment, in order to reflect
the significant  increase in the Company's stock price and long-term value since
the former  rights  plan was  adopted in 1993.  In  adopting  the new plan,  the
Company  stated  that it was not doing so in  response  to any  known  effort to
acquire  the  Company  but that the plan is  designed to assure that all America
Online  shareholders  will receive fair and equal  treatment in the event of any
unsolicited attempt to acquire the Company.

The new plan  was  implemented  by  declaring  a  dividend  distribution  of one
preferred share purchase right for each  outstanding  share of America  Online's
common stock. The dividend will be distributed to shareholders of record on June
1, 1998 and will be payable as of the close of  business  on that date.  The new
rights  will  expire on May 12, 2008  unless  redeemed  prior to that date.  The
distribution  of the  preferred  share  purchase  rights is not  taxable  to the
Company's shareholders.

Each right will  entitle  registered  holders of the  Company's  common stock to
purchase one  one-thousandth of a share of a new series of junior  participating
preferred  stock.  The rights will be exercisable  only if a person or group (i)
acquires 15% or more of the  Company's  common stock or (ii)  announces a tender
offer the  consummation  of which would  result in  ownership  by that person or
group  of 15% or  more  of the  common  stock.  Once  exercisable,  and in  some
circumstances  if certain  additional  conditions  are met,  the new rights plan
allows America Online  shareholders (other than the acquiror) to purchase common
stock in America Online or in the acquiror at a substantial discount.

Prior to the acquisition by a person or group of beneficial  ownership of 15% or
more of the Company's  common  stock,  the Board of Directors of the Company may
redeem the Rights in whole,  but not in part, at a price of $.001 per Right. The
redemption  of the Rights may be made  effective at such time, on such basis and
with  such  conditions  as the Board of  Directors  in its sole  discretion  may
establish.  Immediately upon any redemption of the Rights, the right to exercise
the Rights will terminate and the only right of the holders of Rights will be to

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receive the Redemption Price. A detailed  description of the rights plan will be
mailed to shareholders at the time of the distribution.

America Online,  Inc. [NYSE:  AOL],  based in Dulles,  Virginia,  is the world's
leader in branded interactive services and content.  America Online operates two
worldwide Internet online services: AOL Interactive Services,  with more than 12
million members; and CompuServe,  with approximately 2 million members.  America
Online  also  operates  AOL  Studios,  the world's  leading  creator of original
interactive content.  Other branded Internet services operated by America Online
include  AOL.COM,  the world's  most  accessed  Web site from home;  AOL Instant
Messenger,  an instant  communication tool available to everyone on both AOL and
the Internet; and AOL NetFind, AOL's comprehensive guide to the Internet.