Excite@Home Reports Third Quarter 1999 Results

- Revenues Nearly Doubled Year-Over-Year to $113 Million -
- Cable Modem Subscribers Reached 840,000 -
- 89 Million Average Daily Page Views in September -

REDWOOD CITY, Calif., October 19, 1999 - Excite@Home (Nasdaq: ATHM) today reported revenues of $113 million for the quarter ending September 30, 1999, an increase of 95% compared to pro forma revenues of $58 million for the third quarter of 1998. Pro forma results combine the historical results of Excite Inc. and At Home Corporation, which merged on May 28, 1999.

The Company reported a pro forma net operating loss for the quarter of $4 million, or $0.01 per share, compared to a pro forma net operating loss of $8 million, or $0.02 per share, in the third quarter of 1998. Pro forma net operating losses exclude expenses for the amortization of goodwill and other intangible assets, as well as certain other non-operational expenses. Non-operational expenses totaled $494 million in the quarter, driven primarily by the amortization of goodwill created by the merger of Excite and @Home.

Commenting on the quarter, Excite@Home chairman and CEO Tom Jermoluk said, "I am extremely proud of our accomplishments in this first full quarter operating as a combined company. Our teams are executing on our strategy as a seamless organization, as evidenced by the strong results delivered in all key business segments. We have terrific momentum going into the final quarter of the year, and fully expect to hit the key milestones we've targeted since the beginning of the year, such as our one-millionth broadband subscriber and our first quarter of operating profitability."

George Bell, president of Excite@Home, added, "Beneath our numbers this quarter were significant improvements to our operational metrics, and the growing success of marketing programs that drove broadband subscriber growth. In particular our MatchLogic targeting, AOL switching campaign and new OEM and retail distribution agreements set the stage for unprecedented levels of subscriber penetration and gains in our narrowband media business."

Growth in Subscription Services

@Home Consumer Broadband Service
At the end of the third quarter, Excite@Home had 840,000 cable modem subscribers worldwide, an increase of 35% from the 620,000 reported at June 30, 1999 and a fourfold increase from the 210,000 reported a year ago. This represents penetration of 3.9% of the 21 million homes in Excite@Home's global footprint now upgraded to two-way, digital cable plant; a year ago penetration stood at just 2.1% of 10 million upgraded homes. These numbers include Internet access subscribers served by @Home affiliates that are currently being converted to the @Home service, as well as these affiliates' upgraded homes passed.

The @Home service was launched in 11 new markets during the quarter, bringing the total availability to 105 markets worldwide. Four new cable companies joined the @Home Solutions partnership for smaller operators, bringing the total number of partners to six, covering more than one million homes. A total of 23 cable companies now offer or are preparing to offer the @Home service to a total footprint of 72 million homes worldwide; 15 million homes have been added during 1999.

Excite@Home's international high-speed access footprint grew significantly during the quarter with the addition of Telenet of Belgium and the planned venture with Tele-Columbus in Germany. The Company now has a presence in five countries outside of North America passing a total of 13 million homes or nearly 20% of Excite@Home's total homes under contract. Eleven million homes have been added this year, all with exclusive, seven-year access agreements. @Home's first international service launch took place in the Netherlands during the second quarter, with other regions scheduled to follow in 2000.

During the summer, several of the Company's cable partners offered special promotions to AOL subscribers. Under the program AOL's $9.95 bring-your-own-access monthly subscription fees were rebated for a number of months as an incentive to subscribe to the @Home service. This promotion has been the most successful customer acquisition program targeted at online customers to-date, generating thousands of new customers.

Excite@Home expanded its retail merchandising programs during the quarter through agreements with major retail outlets and OEMs. Retailers in major markets across the U.S., including Circuit City, The Good Guys! and Office Depot, will participate in a program to merchandise and sell the @Home Cable Internet Pre-Installation Kit. Additionally, Excite@Home now has a direct distribution relationship with Dell Computer, in which Dell offers @Home service to their customers as they purchase computers.

@Work Services for Businesses
The @Work division of Excite@Home offers high-speed Internet services to business customers via cable, DSL and dedicated T1 connections, using the Company's private, 15,000-mile OC-48 fiber-optic facilities for transport. Approximately 1,100 new @Work accounts were installed during the quarter, bringing the total number of active @Work accounts to approximately 4,200 at September 30, 1999.

In addition, @Work supplemented its service offerings to include electronic commerce and hosting capabilities. In July, Excite@Home announced a definitive agreement to acquire iMall, a leading provider of e-commerce solutions for merchants, including web-site development, online shopping carts, and payment processing. First Data Corp., a major shareholder of iMall, entered into a 10-year agreement with Excite@Home to market and distribute iMall's e-commerce services to its merchant base. Merchants using these e-commerce services will have access to the Excite Shopping Service, which has the potential to drive substantial traffic to merchants' electronic storefronts.

Media and Marketing Services

Excite Portal
Traffic on the Excite Network rose to 89 million average daily page views during September, up 10% from 81 million page views in June and 78% from 50 million a year ago. The Company continued to grow its base of registered users, reaching a total of 44 million registrations at September 30, 1999, up 16% from the 38 million reported at June 30, 1999, and more than tripling over the year-ago period. In addition, 43% of visitors to Excite.com have personalized their Excite start pages, tailoring them to their individual preferences and needs, the highest percentage among major portals. Local versions of the Excite portal service are now available in 10 countries outside the United States, including Japan, Spain, Sweden, Australia and the U.K.

Among the key growth drivers of Excite's traffic during the quarter was the success in the adoption of Excite's communications services and information management tools. Excite Planner (http://planner.excite.com), an online calendar and address book, as well as Excite Assistant (http://assist.excite.com/assist/html/download/), a desktop window containing a user's Excite personalized information, were launched during the third quarter, and have proven extremely popular with Excite customers. The Company's Excite Voicemail (http://voicemail.excite.com) and Excite Voicechat (http://voicechat.excite.com) services have also received strong responses, helping make Excite.com a more integral part of customers' daily lives.

Excite@Home took significant steps this quarter to expand its e-commerce services in the areas of ticket sales and auctions. The Company announced a $55 million investment in Tickets.com, and a content deal to integrate Tickets.com services throughout the Excite portal and the @Home broadband service. Excite@Home also announced an investment in FairMarket Inc. (http://auctions.excite.com), helping to create an online auction network that reaches nearly three-quarters of all Internet users.

Leveraging its expertise in the creation of online content, Excite@Home introduced a portal service targeted at businesses. Located at http://www.work.com and also available through the 'Business' channel of Excite.com (http://www.excite.com/business), the new portal offers a business-to-business resource for solving business problems on the Web. Business-oriented e-commerce is a key element of the portal; Excite@Home has made investments in E-Stamp, Biztravel.com and other partners in support of the site's e-commerce offerings.

Earlier this month, Excite@Home announced a major distribution relationship with IBM, under which Excite.com will be the featured start page for the "rapid Internet access" key included on all IBM Aptiva computers during the holiday season. The site will be co-branded with IBM, offering users personalized Excite content alongside IBM information such as customer support.

Excite Digital Marketing Services
The Excite.com portal has consistently been ranked first or second among portals in revenue efficiency metrics, including revenue per point of reach and revenue per registered user. The Company's efficiency in converting traffic to revenue is enhanced by the targeted ad serving and rich media capabilities of Excite@Home's Matchlogic and Enliven subsidiaries. MatchLogic's database of behavioral profiles, which is the largest database of its kind on the Internet, increased to 72 million during the quarter from 65 million in the second quarter. MatchLogic ran 1,280 campaigns during the quarter, serving over 9.5 billion ad impressions across the Web and sent more than 45 million targeted e-mails. This quarter, Enliven developed several innovative broadband ad campaigns, for Procter & Gamble and furniture.com, among others, laying the ground for wide acceptance of rich-media advertising, which generally carries higher CPM pricing.

Extension to New Devices
Excite@Home's "All Band, All Device, All the Time" strategy calls for Excite's content and value-added services to be available to users anytime, anyplace-through narrowband and broadband PC connections, set-top TV connections and wireless devices. In pursuit of this goal, the Company expects to launch a broadband version of Excite this winter, making Excite the default start page for users of the @Home service.

Wireless connectivity to Excite content is a key element of Excite@Home's strategy. During the quarter, the Company announced an alliance with AirFlash.com to develop a wireless version of Excite's personalized content. Additionally, the Company announced an agreement with Paragon Software to allow users of the Excite Planner to download address book information from Excite into their mobile phones using Paragon's FoneSync technology.

Excite@Home also continues to develop Internet services for the television. The Company announced during the quarter a suite of modular content applications and network services specifically for television set-top boxes, to be made available to its cable partners later this year. AT&T; has already announced its intent to use the services in the rollout of its digital television platform.

About Excite@Home
Excite@Home (Nasdaq: ATHM) is a global media company offering media services through Excite (http://www.excite.com) and broadband subscription services through @Home (http://www.home.com) and @Work (http://work.home.net). The Company's rich media advertising and database marketing divisions, Enliven (http://www.enliven.com) and MatchLogic (http://www.matchlogic.com) offer advertisers highly targeted interactive marketing and reporting services across all platforms of delivery. The Company has a worldwide footprint of 72 million cable homes to deliver on its vision of bringing personalized content to consumers "All Band, All Device, All the Time."

This press release contains forward-looking statements that involve risks and uncertainties, including those relating to the Company's ability to grow its subscriber and advertiser bases for its subscription broadband service, its ability to grow its users and advertising bases for its narrowband web sites and services, the timing for introducing new services; the degree of acceptance of rich-media advertising; and the Company's ability to achieve its key milestones including obtaining one million broadband subscribers and operating profitability in the fourth quarter. Actual results may differ materially due to a number of factors, including the increasingly competitive environment for Internet advertising sales and e-commerce services; the Company's dependence on third parties for technology and content; the Company's dependence on the actions of its cable partners to upgrade the cable plant and market and install the @Home service; the Company's ability to successfully integrate its acquired companies; the Company's ability to successfully expand its retail and direct distribution programs; the Company's ability to continue to achieve revenue per page view and revenue per point of reach goals; and the early stage of development and unproven market for devices other than the PC for delivery of Internet content. In addition, certain transactions described in this press release are contingent upon the parties' success in executing definitive agreements and/or obtaining corporate approvals, and there can be no assurance that such transactions will be completed. Reported results should not be considered as an indication of future performance. The matters discussed in this press release also involve risks and uncertainties described in Excite@Home's filings with the Securities and Exchange Commission. Excite@Home assumes no obligation to update the forward-looking information contained in this press release.