@Home Network Reports Fourth Quarter and 1998 Results Subscriber Base Grows to 331,000 @Home Revenue Increased 546% During 1998

@Home and Excite Announce Merger "Excite@Home" Defines Media Network of the Next Century

REDWOOD CITY, Calif., January 20, 1999 -- @Home Network (Nasdaq:ATHM) today reported revenues totaling $19.2 million for the fourth quarter ended December 31, 1998, a 39% increase over revenues of $13.8 million reported in the third quarter ended September 30, 1998. The net loss before cost of distribution agreements and merger and acquisition related costs for the fourth quarter was $7.6 million, or $0.06 per share, compared to $9.7 million, or $0.08 per share in the third quarter of 1998. Revenue and net loss before cost of distribution agreements and merger and acquisition related costs for the fourth quarter of 1997 were $3.7 million and $11.8 million, respectively. Cost of distribution agreements and merger and acquisition related costs for the fourth quarter of 1998 were $57.4 million, compared with $9.2 million recorded in the fourth quarter of 1997. The net loss after cost of distribution agreements and merger and acquisition related costs for the fourth quarter was $64.9 million, or $0.55 per share, compared to $23.3 million, or $0.20 per share in the third quarter of 1998. The Company reported a gross profit of $3.2 million for the fourth quarter of 1998, a 100% increase over the gross profit of $1.6 million reported in the third quarter of 1998. Weighted average shares outstanding were 117.7 million for the quarter ended December 31, 1998, excluding anti-dilutive shares reserved for outstanding warrants, convertible debentures, and employee stock options.

Revenue for the year ended December 31, 1998 was $48.0 million, a seven fold increase over revenue of $7.4 million reported in the year ended December 31, 1997. The net loss before cost of distribution agreements and merger and acquisition related costs for the year was $40.0 million, or $0.35 per share, compared to $46.5 million, or $0.45 per share in 1997. The net loss after cost of distribution agreements and merger and acquisition related costs for the 1998 year was $144.2 million, or $1.26 per share, compared to $55.7 million, or $0.54 per share in the 1997 year.

As previously announced, financial statements for the year ended December 31, 1997, including the fourth quarter of 1997, and the first three quarters of 1998 have been restated to reflect a change in accounting relating to the agreement with Cablevision Systems Corporation in October 1997 to distribute the Company's @Home service.

@Home's cable modem subscriber base grew nearly seven fold since the beginning of 1998. At December 31, 1998, @Home served 331,000 cable modem subscribers across North America, an increase of 58% from 210,000 subscribers reported at September 30, 1998. The base of homes with access to two-way upgraded plant increased to 13.2 million at December 31, 1998 from 10.0 million at September 30, 1998. These numbers include Internet access subscribers served by new @Home affiliates that are currently being converted to the @Home service, as well as these affiliates' upgraded homes passed. In addition, during the fourth quarter of 1998, the @Home service was launched in 15 new markets, raising the total number of active U.S. and Canadian markets to 59.

"In 1998, @Home established its broadband Internet leadership, while successfully forging innovative strategic agreements to enhance Internet backbone capacity and breadth of Internet services. With the announcement of our merger with Excite, @Home begins 1999 in an excellent position to become the new media network for the 21st century," said Tom Jermoluk, Chairman and CEO of @Home Network. Yesterday, @Home Network and Excite, Inc. (Nasdaq:XCIT) announced that the companies have signed a definitive merger agreement for an all-stock transaction valued at the time of the announcement at approximately $5.5 billion when based on primary shares outstanding and $6.7 billion when unexercised options and warrants are included. The combined organizations aim to accelerate broadband deployment and adoption by joining @Home's broadband technology platform, robust Internet backbone, and cable distribution agreements representing nearly 60 million homes worldwide, with Excite's award-winning Web portal and extensive narrowband reach. Excite and @Home will deliver to consumers the most personalized, open Internet services at any speed, any time, and on any communications device they choose.

Underscoring @Home's drive to extend the capabilities, service offerings and market reach of broadband services, in early January, @Home announced an agreement with AT&T; to create Internet backbone capacity that will scale to support ubiquitous broadband services throughout North America over the next 10 years. Initial backbone capacity is expected to support up to five million broadband users and is scheduled to be deployed in mid-1999. In addition, the agreement positions the Company for continued residential and commercial subscriber growth and enables the development of advanced IP-based services.

Evidencing @Home's compelling consumer gateway to multimedia and electronic commerce offerings on the Internet, @Home generated nearly 100 percent page view growth during the quarter and delivered 101 page views per visitor per month among @Home residential subscribers in the United States. Also, in addition to the rich media advertising benefits that will accrue with the Narrative acquisition, @Media extended its lavish multimedia content and service offerings through content agreements with MTV, BuyDirect.com, HEAT.NET and WeatherLabs.

@Home has demonstrated its leadership in the evolution of the Internet as a powerful advertising, direct marketing and commerce medium. During the quarter @Home announced its agreement to acquire Narrative Communications, a creator of high-impact rich media advertising solutions for the Web. Combined with Excite’s MatchLogic division, the companies will offer advertisers an all-in-one media solution to target, measure and report advertising on all devices on which the Excite and @Home combination is offered.

In the fourth quarter, @Home expanded distribution, enhanced market awareness, and drove subscriber growth. @Home announced that Compaq Computer Corporation and Dell Computer Corporation will integrate @Home's broadband Internet service experience with cable-ready Compaq Presario Internet PCs and Dell Dimension desktop PCs. Additionally, @Home's retail merchandising program featuring the "@Home™ Cable Internet Pre-Installation Kit," was among CompUSA's best selling products by volume this holiday season where the @Home and cable operator merchandising system was available. These initial retail merchandising locations produced several thousand subscribers during the quarter.

@Work continued to contribute to @Home Network's growth, ending the year with more than 1,686 installed accounts, an increase of 409 percent over 1997. During the quarter, @Work launched its Symetrical Digital Subscriber Line (SDSL) service aimed at small and medium sized businesses. The division also kicked-off "The @Work Solutions partner program" which offers resellers three partnership categories designed to expand @Work's penetration across multiple access platforms.

Cash and short-term investments as of December 31, 1998 totaled $419 million, up from $120 million at year end 1997. Capital expenditures in the fourth quarter of $8.9 million and for the year of $29.7 million supported the growth in the infrastructure necessary to roll out @Home services. Depreciation and amortization included in operating costs and expenses was $4.7 million and $15.0 million for the fourth quarter and year, respectively.

@Home Network
Based in Redwood City, California, @Home Network distributes high-speed, openly accessible Internet and Web services to residences and businesses using its own network architecture and a variety of transport options including the cable industry's hybrid-fiber coaxial infrastructure. The cable connection provides users significant increases in speed over conventional Internet services. Leveraging the "always on" attributes of cable, @Home allows for unique multimedia applications that go beyond current Web experiences. Individuals seeking additional information about availability and subscription can refer to the @Home Network Web site (www.home.net). Since its founding in 1995, @Home Network has reached affiliate agreements with eighteen leading cable companies-worldwide, including Bresnan Communications Company, Cablevision Systems Corp., CasTel, Century Communications, Garden State Cable, Insight Communications, InterMedia Partners, Jones Intercable, Lenfest Communications, Midcontinent Cable Co., Palet Kabelcom, Rogers Cablesystems Limited, Shaw Communications, and Tele-Communications Inc. (TCI) (Early in 1999, TCI's cable operations are expected to merge into AT&T; and thereafter be known as "AT&T; Broadband Services").

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 plans to record an asset in connection with the Cablevision distribution agreement; the successful completion of the merger of @Home and Excite; the schedule for deploying @Home's new Internet backbone and the amount of capacity that will supported by that backbone; and the demand for the @Home service and resulting subscriber penetration. Actual results may differ materially due to a number of risks, including: potential SEC comments in response to the Company's proposed adjustments; the risks associated with integrating Excite and @Home; the numerous technological, operational and financial challenges associated with deploying new Internet backbone and transitioning from @Home's existing backbone; and @Home's cable partners willingness to continued to make the investments required to upgrade the cable plant and their commitment to actively market the @Home service to their customers. 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 the risk factors described in @Home Network's Form S-3 Registration Statement filed on August 12, 1998 and in its Form 10-Q for the quarter ended September 30, 1998. @Home Network assumes no obligation to update the forward-looking information contained in this press release.