America Online and 'Baywatch' Announce Marketing Agreement; Brings AOL Brand to 'Baywatch's' Worldwide Audience.

DULLES, Va.--(BUSINESS WIRE)--Aug. 26, 1998--

AOL & "Baywatch" Co-Sponsor Racecar in Ford LA Street Race;

Racecar and AOL Service to be Incorporated in

Upcoming "Baywatch" Episode

AOL's Entertainment Asylum and Digital City Los Angeles Host

"Baywatch" 'Walk-On' Sweepstakes; David Hasselhoff to

Announce Winner in Live Online Chat

America Online, the world's leading Internet online service, announced today a marketing deal in which AOL will receive prominent placement on the internationally popular "Baywatch" television show.

AOL will receive significant international, national, and regional exposure through placement in a "Baywatch" episode and co-sponsor the AOL "Baywatch" racecar, No. 40, which will race in the Ford Los Angeles Street Race on September 7.

"We're thrilled to partner with a show as popular as 'Baywatch' in such a unique marketing opportunity. 'Baywatch's' worldwide audience of more than 1 billion viewers enables us to further reach a worldwide audience and extend the AOL brand in the offline world," said Eddie Leonard, Vice President of Brand Development for America Online. "In addition, our sponsorship of the LA Street Race gives us exposure to the growing audience of racing fans and the local community and surrounding areas of Los Angeles."

The AOL "Baywatch" racecar No. 40 was unveiled on August 5 during a news conference for the Ford LA Street Race. The car will be driven by AOL driver Damon Lusk in the race. In addition, the AOL online service will be incorporated into the story line of "Baywatch's" February sweeps episode, which will feature David Hasselhoff's character, Lt. Mitch Buchannon, competing in the race event.

AOL's 12.5 million members and "Baywatch" fans will also have a chance to participate in this partnership. AOL's Entertainment Asylum (AOL keyword: asylum) and Digital City Los Angeles (AOL keyword: LA) are hosting a "Baywatch" 'Walk- On' Sweepstakes in which one winner will have the opportunity for a walk-on role in the AOL racecar episode of "Baywatch."

The contest includes free airfare for the winner and a guest, a three day/two night stay in Los Angeles, and a day on the set of "Baywatch," including the walk-on role; the winner will be announced on September 1 during a live online chat with David Hasselhoff on AOL Live (AOL Keyword: AOL Live).

More information about the contest and the "Baywatch" episode can be found at AOL keyword: Baywatch and on the Web at: www.asylum.aol.com/tv/baywatch_walk_on/.

"One of the reasons for 'Baywatch's' long term success has been its cutting edge partnerships with progressive companies like AOL," remarked Joe Scotti, VP of Marketing and Sales for Pearson Television. "'Baywatch' was also one of the first syndicated shows to be enhanced for television which has helped it continue to be one of the world's most popular shows."

"Baywatch" Producer Kevin Beggs added, "The opportunity to partner with AOL, with its 12.5 online members, is a perfect creative and strategic fit for 'Baywatch.' Finding high- tech ways to enhance our program and to reach new viewers is extremely important to 'Baywatch' and our parent company, Pearson Television."

AOL's Digital City Los Angeles, the city's No. 1 online guide, is also participating in the LA Street Race with the sponsorship of AOL racecar No. 58. Local LA sportscaster Jim Hill of KCBS-TV, a first-time driver of the racing circuit, hopes to be behind the wheel of AOL car No. 58.

Jim began his training for the race at the Richard Petty Driving Experience in Las Vegas and has been practicing on local tracks with AOL's driving team. Racing fans can keep track of Jim's efforts to qualify for the race and follow all the LA Street Race events through Digital City LA at www.la.digitalcity.com/nascar or AOL keyword: LA Sports.

The Ford Los Angeles Street Race will take place on a 1.4 mile, six turn track on the streets of Exposition Park in Los Angeles over Labor Day weekend. The event will be a full weekend of racing excitement that includes races sanctioned by NASCAR, American Cities Racing League, Ultra Wheel Spec Truck Series and PRO Racing Series.

America Online, Inc., based in Dulles, Virginia, operates two worldwide Internet online services: AOL Interactive Services, with more than 12.5 million members; and CompuServe, with approximately 2 million members.

America Online also operates AOL Studios, the world's leading creator of original interactive content.

Other branded Internet services operated by America Online, Inc. include AOL.COM, the world's most accessed Web site from home; AOL NetFind, AOL's comprehensive guide to the Internet; Digital City, the nation's most popular local content network; AOL Instant Messenger, an instant messaging tool available on both AOL and the Internet; and ICQ, an instant communications and chat technology on the Internet.

CONTACT: America Online Inc.

Kathie Lentz, 703/265-3286

KMLentz@aol.com