@Home Network Reports Subscriber Base Grows to 90,000

Upgraded Homes Passed Increases to 5.7 Million

@Home and @Work Customer Bases Increase by 80 Percent During Quarter

REDWOOD CITY, Calif., April 16, 1998 -- @Home Network™ (Nasdaq:ATHM) today reported revenues totaling $5.8 million for the first quarter ended March 31, 1998, a 57% increase over revenues of $3.7 million reported in the fourth quarter ended December 31, 1997. The net loss for the first quarter, before a non-cash charge of $83.3 million related to the fair value of common stock warrants issued to cable system operators in connection with distribution agreements, was approximately $11.7 million, or $0.10 per share, compared to $11.8 million, or $0.11 per share, before similar a non-cash charge for the fourth quarter of 1997. Including the non-cash charges, the net loss for the first quarter of 1998 was $95.0 million, or $0.85 per share, compared to a net loss of $184.4 million, or $1.67 per share, in the fourth quarter of 1997. Revenue and net loss for the first quarter of 1997 was $0.8 million and $10.9 million, respectively. Shares outstanding were 111.6 million for the quarter ended March 31, 1998 excluding shares reserved for outstanding warrants and employee stock options. Additionally, in accordance with recent accounting pronouncements, shares used in computing net loss per share for all periods presented exclude outstanding unvested shares subject to repurchase by the Company, this having a modestly negative impact to the Company’s quarterly loss per share results.

At March 31, 1998, @Home™ had 90,000 cable modem subscribers across North America, an increase of 80% from 50,000 subscribers reported at December 31, 1997. The number of @Home cable modem subscribers has grown from 26,000 at the end of the third quarter of 1997, to 50,000 at the end of the fourth quarter of 1997, to 90,000 as reported today. The base of homes with two-way upgraded plant increased to 5.7 million at the current quarter end from 4.5 million at December 31, 1997. These numbers now include Cablevision subscribers that are currently being converted to the @Home service, as well as Cablevision’s upgraded homes, both of which were immaterial to @Home Network’s results this quarter. @Work™ continued its significant contribution to @Home Network’s growth, ending the first quarter with more than 590 installed accounts, up 80% from 331 installed accounts at December 31, 1997.

Commenting on the Company’s results, Tom Jermoluk, chairman, president and CEO of @Home Network, said, "With key strategic distribution and business alliances in place, we entered 1998 in position to aggressively drive business operations. We are pleased to report that in the first quarter, we achieved our goals in key operational and financial areas, reporting sequential revenue growth of 56 percent and subscriber growth of 80 percent."

During the quarter, @Home was selected by Tele-Communications, Inc. (TCI) to develop software and integration services, including e-mail services, for up to 11 million advanced digital set-top devices. Additionally, BankAmerica and Intuit reached an agreement in principle with TCI and @Home Network to deliver interactive financial services to consumers via advanced digital set-top devices or the PC. Lastly, @Home Network and PC Connection, a leading direct marketer of brand-name personal computers and related peripherals, announced @Home Network’s first computer reseller distribution agreement, expanding @Home’s and @Work’s marketing reach.

@Work continues to build its platform of applications and open up new markets for the service. During the first quarter, @Work and Cox Communications launched Cox@Work, a comprehensive turnkey solution that provides small and medium sized businesses with high-speed access to the Internet via Cox’s hybrid-fiber coaxial cable infrastructure. Through an agreement with Exodus Communications, a leading provider of Internet systems and network management solutions for mission critical Internet operations, @Work and Exodus plan to introduce and market a new @Work-branded service which will deliver outsourced network-based commercial applications and related management services to corporate customers. In addition, @Work announced an agreement with the National Computer Board (NCB), the information technology arm of the Singapore Government, to provide hosting and facilities management services to support the development and global extension of broadband content.

Leveraging @Home’s high-bandwidth network and fast download speeds, @Media and Release Software launched SoftwareNow, a service which allows users to download and preview, rent or purchase a broad range of software products. @Media also selected NetGravity, a market leader in online advertising management solutions, to provide @Home with the ability to dynamically target and manage multimedia advertising inventory and generate detailed reports for advertisers.

Cash and short-term investments as of March 31, 1998 totaled $104.0 million. Capital expenditures in the first quarter of $6.6 million supported the growth in the infrastructure necessary to roll out @Home and @Work services. Depreciation and amortization was $2.8 million for the first quarter of 1998.

@Home Network distributes high-speed Internet services to consumers and businesses using its own network architecture and a variety of transport options centered on the cable industry’s hybrid-fiber coaxial infrastructure. The cable connection provides users significant increases in speed over conventional Internet services and easy-to-use navigation. Leveraging the "always on" attributes of cable, @Home allows for unique multimedia applications that go beyond current Web experiences. Since its founding in 1995, @Home Network has reached affiliate agreements with eight leading cable companies passing approximately 50 million homes in North America: Tele-Communications, Inc., Comcast Corporation, Cox Communications, Cablevision Systems Corp., InterMedia Partners, Marcus Cable, Rogers Cablesystems Limited, and Shaw Communications.

Traded on Nasdaq under the symbol ATHM, @Home Network is based in Redwood City, California. Additional information about @Home Network is available on the Internet at www.home.net.

This press release contains forward-looking information within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbors created by those sections. These forward-looking statements include statements related to the Company’s business operations and the future scope and success of the Company’s @Home and @Work services. Actual results may differ materially due to a number of risks, including: the challenges related to Company’s ability to drive its business operations; the technological, operational and financial challenges of developing and marketing new services; and the degree to which customers will desire such new services. The matters discussed in this press release also involve risks and uncertainties described from time to time in @Home Network’s filings with the Securities and Exchange Commission. In particular, see "Factors That May Affect Future Operating Results" in the Company’s Form 10-K for the year ended December 31, 1997 and "Risk Factors" in the Final Prospectus for @Home Network’s initial public offering. @Home Network assumes no obligation to update the forward-looking information contained in this press release.