Update on Previously Announced AOL Initiatives
AOL said it is progressing with its previously announced $350 million program to expand system capacity and customer support, as follows:
* AOL is on track with its program to increase the current total of 200,000-plus modems in AOLnet by 75 percent to improve connectivity, and expects to be able to handle more than 16 million member sessions daily by the end of June. AOL has added more than 150,000 modems over the past year to what is now the world's largest dial-up network.
* The Company will soon break ground on its third data center. It will be a 180,000 square foot facility and will double the amount of data center space for the AOL host computer systems.
* AOL has begun bringing on an additional 600 customer support representatives, which will bring the total to more than 4,500 by June. AOL's customer service organization accounts for approximately 75 percent of the Company's total workforce.
* The Company is also expanding its member communications initiatives to keep members informed about the steps it is taking to improve the quality of the member experience.
* AOL has also agreed that for a transitional period during which it builds out its system to meet the unprecedented demand, the Company will indicate that its service is subject to availability during peak periods, including providing this disclosure in the registration process for new members
Bob Pittman, President and Chief Executive Officer of AOL Networks, said: "We believe AOL offers the best value in cyberspace - with the widest range of content, unique functionality, the best ease of use and the largest community. In the months to come, the investments we are making in system capacity, technology and programming will make AOL an even more rewarding experience. We appreciate the patience and support of our members as we move to solve the temporary access problem."
The issues associated with the extraordinary demand for AOL and all company initiatives for managing those issues are limited to the United States and do not affect America Online's growing international business.
America Online, Inc., based in Dulles, VA, is the world's most popular Internet online service, with approximately 8 million members worldwide. AOL offers its subscribers a wide variety of services, including electronic mail, conferencing, software, computing support, interactive magazines and newspapers, and online classes, as well as easy and affordable access to services of the Internet. Founded in 1985, AOL has a global workforce of more than 6,000 people. |
