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Technology Stocks : America On-Line (AOL)

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To: Annette who wrote (38456)2/3/2000 7:40:00 PM
From: Captain Jack  Read Replies (3) of 41369
 
WHITE PLAINS, N.Y., Feb 3, 2000 (BUSINESS WIRE) -- Prodigy
Communications Corporation (Nasdaq: PRGY) is alerting consumers with
more than one ISP on their PC to be aware that AOL(R) 5.0 alters their
existing software and settings without their knowledge. These changes
have a direct and negative impact on how users access and use their ISP
of choice. In particular, users may be blocked from surfing the Web,
lose access to their e-mail program or be prevented from accessing
their customized homepage. Further, customers who have installed AOL
5.0 may be blocked from registering with other ISPs. Prodigy launched
today a "Just Click No" consumer information website at www.prodigy.com
to help Prodigy Internet(R) members understand, diagnose and correct
the problems users experience as a result of AOL 5.0 software.
Prodigy's "Just Click No" website warns Prodigy members about these
software problems and provides step-by-step instructions on how to
restore full functionality for those whose systems have been modified
by AOL 5.0.

Whether an inadvertent by-product of its design, or an engineered
effect, loading AOL 5.0 software has created a host of detailed and
difficult technical problems which the average user cannot easily
understand or correct alone--ultimately preventing Prodigy's customers
from using, accessing and enjoying the Prodigy Internet service.

"AOL is clearly taking advantage of consumers by not telling them about
the changes AOL 5.0 will make to their system nor fully explaining how
these changes will affect their ability to enroll in and use other ISPs,
" said Prodigy Chief Technology Officer Bill Kirkner.

Over the last few months, Prodigy has worked closely with its members
to address the problems they experience as a result of loading AOL's
software. Prodigy will continue to reach out to its current members- as
well as its potential members - to warn them of AOL 5.0's software
problems and will actively provide solutions to ensure that they retain
access to the full Prodigy Internet service experience.

"Prodigy is committed to ensuring that our customers have full use of
our services. We are taking action now to alert them to the problems
posed by AOL's software as well as the available solutions," continues
Kirkner. "Our goal is to give consumers the information they need to
retain control over their software choices."

An increasing number of Internet users choose to access the Internet
through more than one ISP, and create multiple accounts on the same
computer. While AOL's software has implicitly recognized this by
providing access to AOL through other ISPs, the most recent version of
AOL's software impedes the ability of Prodigy customers or customers of
any ISP using standard Internet applications, such as Microsoft(R)
Internet Explorer 5.0 - to use significant features of ISPs other than
AOL. In some cases, AOL's software prevents consumers from registering
for Prodigy Internet service once AOL 5.0 is installed.

In addition to its consumer information program, on February 2, Prodigy
sent a letter to AOL, stating, in part: "...AOL has been fully aware of
the damaging impact some of its 5.0 'features' have on its competitors.
In fact, as has been widely reported in the news media, AOL was alerted
by its own beta testers that the new version would interfere with its
competitors' business by derailing their customers and potential
customers... AOL could have and should have taken steps to eliminate
these problems prior to release (of its 5.0 upgrade)."

In the letter, Prodigy also called on AOL to take all necessary steps
to resolve these problems.

"Although we are alerting our members to these problems, we believe
that AOL has a responsibility to provide a broad-based solution for all
consumers negatively affected by AOL 5.0," concludes Kirkner.
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