Swatch Group and AOL Time Warner announce an innovative marketing and technology collaboration

Biel/Bienne / New York, April 26, 2001, Internet Time @250 - AOL Time Warner and The Swatch Group announced today a collaboration designed to utilize the strengths of each company in the areas of media, entertainment, technology, sports, timekeeping and next generation Internet access devices.

Under this multiyear agreement AOL Time Warner will create unique and innovative programs and promotional initiatives for The Swatch Group's eighteen global brands across online, print and television platforms, including Time Inc. and the America Online interactive properties.

As part of the new relationship, The Swatch Group intends to strategically develop, promote and market a range of product lines with AOL Time Warner entertainment content, as well as next generation Internet enabling technologies within their watch products and wrist devices across AOL Time Warner properties. These products will de designed to make Internet access easier and create an additional emotional and exciting experience for the consumer. For instance, using Swatch technologies currently available on Syncro.Beat and Net.Invader product lines, consumers could store their favorite AOL website addresses as well as AOL screen names for quick access to unique online activites which will be offered by AOL Time Warner and The Swatch Group.

The Swatch Group Ltd. is today the world's largest manufacturer of finished watches and producer of hight quality movements, watch components and electronic devices. The Swatch Group Ltd. achieved a new record in the year 2000 with gross sales up to CHF 4.26 billion (+ 17.6%) and a net income of CHF 651 million, representing an almost +50% increase over the preceding year.

AOL Time Warner (NYSE:AOL) is the world's first Internet-powered media and communications company, whose industry-leading businesses include interactive services, cable systems, publishing, music, networks and filmed entertainment.