@Home Network Reports First Quarter Results

Subscriber Base Grows to More Than 460,000

@Home Revenue Increased 30% Over Prior Quarter

REDWOOD CITY, Calif., April 13, 1999 -- @Home Network (Nasdaq:ATHM) today reported revenues totaling $25.1 million for the first quarter ended March 31, 1999, a 30% increase over revenues of $19.2 million reported in the fourth quarter ended December 31, 1998. The net loss before cost of distribution agreements, merger and acquisition related costs, and investment gain from a business combination for the first quarter was $8.9 million, or $0.07 per share, compared to a loss of $7.6 million, or $0.06 per share in the fourth quarter of 1998. Revenue and net loss before investment gain and cost of distribution agreements and merger and acquisition related costs for the first quarter of 1998 were $5.8 million and $11.7 million, respectively.

Cost of distribution agreements and merger and acquisition related costs for the first quarter of 1999 were $21.8 million, compared with $19.5 million recorded in the first quarter of 1998. The investment gain from a business combination for the first quarter of 1999 was $12.6 million. The net loss after cost of distribution agreements, merger and acquisition related costs, and investment gain from a business combination for the first quarter was $18.1 million, or $0.15 per share, compared to a loss of $64.9 million, or $0.55 per share in the fourth quarter of 1998.

The Company reported a gross profit of $6.5 million for the first quarter of 1999, a 103% increase over the gross profit of $3.2 million reported in the fourth quarter of 1998. Weighted average shares outstanding were 120.5 million for the quarter ended March 31, 1999, excluding anti-dilutive shares reserved for outstanding warrants, convertible debentures, and employee stock options.

As previously announced [ http://www.home.net/news/pr_990120_01.html ], financial statements for the first quarter 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.

At March 31, 1999, @Home served more than 460,000 cable modem subscribers across North America, an increase of 39% from 331,000 subscribers reported at December 31, 1998 and an increase of 413% from the 90,000 subscribers reported at March 31, 1998. The base of homes with access to two-way upgraded plant increased to 15.0 million at March 31, 1999 from 13.2 million at December 31, 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 first quarter of 1999, the @Home service was launched in nine new markets, raising the total number of active U.S. and Canadian markets to 68.

"Establishing @Home's position as the new media network for the 21st century, we announced our merger with Excite earlier this quarter," said Tom Jermoluk, chairman, president, and CEO of @Home Network. "In addition, as the leading Internet broadband portal, we drove strong subscriber growth, forged important new domestic and international cable distribution partnerships, leveraged retail distribution programs, and launched compelling content offerings during the quarter."

During the first quarter, @Home and Excite. Inc. announced the signing of a definitive merger agreement for an all stock transaction. Combining @Home's broadband technology platform, robust Internet backbone and cable distribution partners representing over 65 million homes worldwide, with Excite's award-winning Web portal and extensive narrowband reach, the combined organizations will deliver to consumers the most personalized, open Internet services at any speed, any time, and on any communications device they choose. Additionally, @Home announced an agreement with AT&T; to create an Internet backbone with initial capacity for five million users and the ability to expand the capabilities, service offerings and market reach of broadband services.

Expanding distribution and driving deployment of broadband services worldwide, @Home signed important international and domestic cable distribution agreements. In April, @Home announced an agreement to form a joint venture, @Home Japan, with Jupiter Telecommunications and Sumitomo Corp, representing 5.1 million homes passed, to develop and market a Japanese version of @Home's high speed Internet service in Japan, the world's second largest Internet market. @Home Solutions, a venture that will offer turnkey, fully-managed and comprehensive broadband cable Internet services to small and medium-sized cable operators and systems, announced its founding affiliate relationship with Falcon Communications, giving the venture access to approximately 1.2 million homes in 23 states. Further expanding @Home's exclusive distribution footprint with leading multiple system operators in North America, @Home announced an agreement with Videon CableSystems and Prime Cable. @Home currently has affiliate relationships with 21 cable operators with access to more than 65 million homes passed by cable worldwide.

@Home enhanced market awareness and consumer availability of the @Home service. @Home and Motorola announced the cable Internet industry's first national advertising campaign utilizing print, broadcast, telemarketing, direct marketing and retail initiatives. @Home continued to drive retail deployment of the @Home service through its network of leading PC original equipment manufacturers. In addition, the launch of @Home v1.6 during the quarter streamlines the installation process by offering support for plug and play cable modems through a Universal Serial Bus (USB) port standard in most new PCs.

@Work continued its significant contribution to @Home Network's growth, ending the first quarter with more than 2,200 installed accounts, up approximately 31% from 1,686 installed accounts at December 31, 1998. Additionally, @Work expanded its distribution network nationwide through the addition of 60 channel partners in the first quarter.

As the leading broadband Internet portal, @Home reported 125 average page views per visitor per month in the United States and generated more than 116 million page views in the first quarter, up more than 57% from the 66 million page views in the fourth quarter of 1998.

@Home demonstrated its leadership in the evolution of the Internet as a powerful advertising, direct marketing and commerce medium. During the first quarter, @Media added 33 new advertisers including Ford, Visa, Ralston-Purina, Whirlpool, and Macy's. Further, @Media launched an international media development program, a second rich media advertising study with six leading advertisers and completed its acquisition of Narrative Communications, a creator of high impact rich media advertising solutions for the web. Finally, @Media continued to expand upon its value added content offerings and announced agreements with Buysafe.com, .comfax and Corbis, the Place for Pictures on the Internet.

Cash and short-term investments as of March 31, 1999 totaled approximately $405.9 million. Capital expenditures in the first quarter of $13.1 million supported the growth in the infrastructure necessary to roll out @Home and @Work services. Depreciation and amortization was $28.9 million for the first quarter of 1999, including $6.1 million from operating activities.

@Home Network
Based in Redwood City, California, @Home Network (Nasdaq: ATHM) 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 21 leading cable companies-worldwide, including AT&T; Broadband and Internet Services, Bresnan Communications Company, Cablevision Systems Corp., CasTel, Century Communications, Charter Communications, Cogeco Cable Inc., Comcast Corporation, Cox Communications, Garden State Cable, Insight Communications, InterMedia Partners, Jones Intercable, Jupiter Telecommunications, Lenfest Communications, Midcontinent Cable Co., Palet Kabelcom, Prime Cable, Rogers Cablesystems Limited, Shaw Communications, and Videon CableSystems, Inc.

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: @Home's ability to develop and deploy a new media network for the 21st century that provides consumers with the most personalized, open Internet services at any speed, any time, and on any communications devices; the completion of the merger of @Home and Excite; @Home and its partners' ability to deploy and market services in small and medium sized markets through @Home Solutions and in Japan through @Home Japan; the amount of capacity and the scope of new service offerings that will be enabled by @Home's new Internet backbone; and @Home's continued leadership in the evolution of the Internet. Actual results may differ materially due to a number of risks, including: the risks associated with integrating Excite and @Home; numerous technological, operational and financial challenges associated with deploying the new Internet backbone and with developing and offering the @Home service for new U.S. and foreign markets; the degree of customer acceptance of the @Home service; potential competition from other broadband providers; and @Home's cable partners willingness to continue to make the investments required to upgrade the cable plant and actively market the @Home service to their customers. In addition, certain transactions described in this press release are subject to the completion of definitive agreements. 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 filed on April 9, 1999 and in its Form 10-K for the year ended December 31, 1998 filed on February 19, 1999. @Home Network assumes no obligation to update the forward-looking information contained in this press release.