Those looking for a low cost computer may want to explore the following in
greater detail.  AOL is a challenge with a screen reader and I haven't
tried the CompuServe 2000 software.  Still, if you are going to be online
this might be worth investigating as you can get a major rebate on a
computer purchase.


BW1132  JUN 30,1999       5:46 PACIFIC      08:46 EASTERN



( BW)(VA-AMERICA-ONLINE)(AOL) America Online, Inc. and eMachines Form
Strategic Alliance to Make PC Purchase and Internet Access More Easy and
Affordable

    Business Editors/Hi-Tech Writers

    DULLES, Va. and IRVINE, Calif.--(BUSINESS WIRE)--June 30, 1999--

eMachines PCs to Prominently Feature Easy Access to AOL and CompuServe

    $400 Rebates on eMachines PCs, Including $399 eTower, Offered
    With a 3-Year Subscription to CompuServe 2000

    America Online, Inc., the world's leading interactive services company,
and eMachines, Inc., a low-priced PC manufacturer, today announced a
strategic alliance designed to make getting online with eMachines PCs
easier and more affordable.
    Under the agreement, AOL and CompuServe 2000 software will be
integrated into all eMachines personal computers, and will be accessible
through icons prominently featured on the eMachines desktop. Also, AOL will
make a minority investment in eMachines.
    In addition, eMachines and AOL's CompuServe will offer a special
limited-time retail promotion beginning early this summer. Under the
promotion, consumers signing up for three-year memberships to the new and
improved CompuServe 2000 interactive service will receive a rebate of $400
in connection with the purchase price of three models of eMachines
computers, including eMachine's $399 eTower, as well as member perks,
discounts and special offers.
    "AOL's multi-brand strategy is designed to meet consumers' needs across
a wide range of Internet brands and services, and we're looking forward to
bringing this range of services to the growing value-oriented market
attracted to eMachines' very competitive pricing and features," said Jan
Brandt, President of AOL Marketing. "Consumers are increasingly purchasing
PCs for the sole purpose of getting online, and when they do, they want
easy access to the leading online brands like AOL and CompuServe.
Participating with eMachines in this rebate program will give computer
buyers even more incentive to sign up for the new CompuServe 2000, the
value leader in Internet access."
    "Our customers want value and competitive pricing, but they are also
looking for a quality Internet experience," said Stephen Dukker, President
and CEO of eMachines, Inc. "eMachines is proud to offer both first time PC
consumers as well as those adding multiple PCs in the home the access to
AOL's complete, easy-to-use and convenient online products right from our
eMachines desktop."

    About America Online

    Founded in 1985, America Online, Inc., based in Dulles, Virginia, is
the world's leader in interactive services, Web brands, Internet
technologies, and e-commerce services. America Online, Inc. operates: two
worldwide Internet services, America Online, with more than 17 million
members, and CompuServe, with approximately 2 million members; several
leading Internet brands including ICQ, AOL Instant Messenger and Digital
City, Inc.; the Netscape Netcenter and AOL.COM portals; the Netscape
Navigator and Communicator browsers; and AOL MovieFone, the nation's No. 1
movie listing guide and ticketing service.
    Through its strategic alliance with Sun Microsystems, the Company
develops and offers easy-to-deploy, end-to-end e-commerce and enterprise
solutions for companies operating in the Net Economy.

    About eMachines, Inc.

    Founded in September 1998, eMachines focuses on desktop computers
exclusively in the $399 to $599 price range. The company's Web site is
located at www.e4me.com.


     --30--CL/ph*

     CONTACT: America Online
              Wendy Goldberg, 703/265-2359
                 or
              eMachines, Inc.
              Pattie Adams, 408/945-1364


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