Partnership Agreement Signed

FUTURE NETWORK PLC 31 August 1999 Future and Netscape Online sign major partnership agreement The Future Network plc ('Future'), the video game, home computing and other specialist consumer magazines publisher which floated on the London Stock Exchange in June, today announces that its new media division, FutureNet (www.futurenet.com), has signed a major partnership agreement with Netscape Online (www.netscapeonline.co.uk), the new subscription-free Internet service from Europe's leading multinational Internet online service provider, AOL Europe and its AOL UK division. This announcement follows AOL Europe's successful launch last week in the UK of its new Netscape Online service, which is targeted at the emerging UK 'value' market segment - predominantly under-35 'DIY Internet' enthusiasts. Under this two-year agreement, Future will provide Netscape Online with a major new distribution and promotion channel for its free Internet service. Future will incorporate Netscape's ISP software on the CDs Future already distributes with it UK magazines. Future will also provide an agreed amount of advertorial and advertising space to Netscape within its UK magazines. Future publishes over 60 specialist consumer magazines in the UK, selling 2.1 million copies in the UK each month. Content will be supplied by Future's new media division, FutureNet, and will focus on areas of interest to Netscape Online's target audience, including games, technology, entertainment and sports news. This content will draw on feature and news material from FutureNet's range of specialist consumer websites (such as the games site futuregamer.com and the football site ufn.co.uk) and Future's UK magazines (such as Official PlayStation Magazine, Total Guitar and Total Football). In return for these services, Future will share the telephony, advertising, sponsorship, and eCommerce revenues generated from all customers that subscribe to the Netscape Online service using software obtained from Future's magazines. In addition, Future will be granted an 'anchor tenancy' sponsor's flag on Netscape Online's home page, and will be the primary anchor tenant on the games, technology, entertainment, and sport channels covering all subscribers to Netscape Online from whatever source. These flags will enable subscribers to link to Future's own websites. Future anticipates that the close overlap between its own readers and Netscape Online's target market means that these links with Netscape Online will greatly increase the number of visitors to its own websites, thereby providing additional advertising, sponsorship and e-commerce opportunities for Future. Future's existing online activities include the operation of over 18 magazine websites, with a further three due for launch in the next four weeks, the publication of an e-mail games newsletter and the creation of four web networks focused on games, music and football. Commenting on the deal, Future's Chief Executive, Greg Ingham said: 'Linking up with the world's leading Internet service provider gives Future's online business a great boost. This partnership with AOL will greatly enhance our own online visibility and provides us with an important new channel for reaching our customers. We see this as a major, but still early step towards unlocking the enormous potential that we believe exists for Future online.' The President and Chief Executive Officer of AOL Europe, Andreas Schmidt, said: 'This is yet another significant step in our Europe-wide multiple brand strategy. AOL UK has added the Netscape Online service, a subscription-free service, to our growing family of online brands to reach the new UK 'value' market segment - under 35, predominantly single 'DIY Internet' users. The readership profile for Future's magazines is a perfect fit for this emerging and distinct online audience.' Karen Thomson, Managing Director of AOL UK added: 'AOL UK's alliance with Kingfisher, through its Woolworths shops, has already put the Netscape Online brand on 800 High Streets across the UK. Our relationship with Future means we now have an unrivalled opportunity to reach more than 2.1 million potential new subscribers every month through some of the UK's most popular consumer magazines. 'The content aspect of this partnership is equally important to us. Netscape Online subscribers will now be able to reach top-quality online content prepared by Future's leading world-team of more than 800 editors specialising in game, technology, entertainment and sports news. We believe that our growing network of alliances with some of the UK's leading families of brands - added to the enormous market resonance of the Netscape name - will ensure that Netscape Online will quickly become a leading subscription-free Internet Service Provider in the UK.' Mark Gross, President of Future' global Internet business, FutureNet, added: 'This deal puts Future at the centre of online activities in the UK. We are not an Internet service provider nor do we want to be one, but this partnership enables us to capitalise on the revenue streams associated with free ISPs without the associated risks. Our unique content will help attract and retain subscribers to Netscape's portal, thereby driving advertising and e- commerce opportunities. By linking up with AOL we will benefit from their years of leadership and experience as the world's pre-eminent ISP and consumer service and expect to significantly enhance our website traffic as a result of our exposure through Netscape Online. This is just the beginning of an exciting new area for Future and FutureNet, and I anticipate being able to announce further deals and developments in the months ahead. For further information: Greg Ingham, Chief Executive Tel: 01225 442244 The Future Network plc Mark Gross, President Tel: 001 415 468 4684 FutureNet Rachel O'Neill Tel: 0171 348 8358 Rebecca Woods Tel: 0181 237 4003 Netscape Online James Longfield/Harriet Keen Tel: 0171 357 9477 Hogarth Partnership Background on The Future Network: The Future Network was founded in the UK in 1985. Since this time it has become a leading international publisher of video game, home computing and other specialist consumer magazines and Internet web sites. Future is the UK's 4th largest consumer magazine publisher and is the leading video game and home computing magazine publisher in the UK, France, Italy and the US. Headquartered in Bath, England, Future publishes over 100 titles worldwide and employs over 1,200 people in offices in Bath, London, San Francisco, New York, Paris, Milan and Munich. Future was floated on the London Stock Exchange on 25 June 1999 and has a current market capitalisation in excess of £630 million. Background on FutureNet: FutureNet is The Future Network's global Internet business, currently serving the PC, Mac, Games, Music, and Football communities in the U.S. and the U.K. with sites like maximumpc.com, macdaily.com, samplenet.co.uk, and ufn.co.uk. FutureNet provides rich, community and information-based services to people in these and related markets worldwide. The FutureNet model is simple: Aggregate content (from our magazines and affiliated sites) and provide services (such as auctions, email and discussion forums) to build high traffic in concentrated areas that will be of great value to marketers. FutureNet plans to role out in Germany, France, and Italy, other Future Network territories, next year. Background on AOL Europe: AOL Europe was formed in late 1995 as a joint venture between America Online Inc. and Bertelsmann AG, the world's third largest media group. From the first service launch in 1996, it has grown to 2.7 million households in just over 3 years, making it the largest European internet online service. AOL Europe is committed to the same multiple-brand strategy successfully developed by AOL in the US. AOL Europe manages all of AOL's, CompuServe's and Netscape Online's European services across 9 countries as well as its Web brand, AOL Instant Messenger. It employs almost 2000 people, including close to 1400 in customer services roles. Background on Netscape Online Netscape Online, AOL UK's subscription-free online service, is targeted at the 'value' sector and provides pure, high performance internet access backed by the powerful Netscape brand and AOL infrastructure. AOL is the service for the whole family, providing its members with interactive entertainment, information and education services while providing access to a global online community. CompuServe is aimed at the corporate customer and professional user, offering specialised information, large-scale databases, unmatched forums and professional communications tools. AOL Instant Messenger provides free, real-time communications to internet users. For further information or images, please contact Rachel O'Neill or Rebecca Woods. ** Additional note ** In headlines and stories, the proper usage of our corporate name is: 'AOL Europe, a venture between America Online, Inc. and Bertelsmann AG,' or 'AOL UK, a division of AOL Europe.' We appreciate strict adherence to this usage.

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