AOL Acquires Pictela - DOC

							AOL Acquires Pictela
High-Definition Brand Content Platform Boosts AOL’s Innovative Advertising Offering

December 16, 2010 07:03 AM Eastern Time  

TORONTO--(EON: Enhanced Online News)--AOL Inc. [NYSE: AOL] today announced it has acquired Pictela,
Inc., the provider of an award-winning global technology platform for serving and distributing high-definition brand
content across online advertising and social media. The transaction brings further scale to AOL’s suite of premium
advertising tools for advertisers, agencies and publishers, including the company’s innovative new Project Devil
display advertising format which AOL plans to roll out to the Canadian market soon. Pictela will remain a separate
group within AOL Advertising, based in New York, and will continue to provide its products and services to outside
partners. Deal terms were not disclosed. Pictela joins other strategic acquisitions made by AOL in 2010 including
StudioNow, 5min Media, TechCrunch and Thing Labs.

“As AOL continues to expand its reach on a global scale, we are excited to be adding Pictela to the AOL
Advertising family,” said Graham Moysey, AOL Canada’s General Manager. “Our Canadian clients will immediately
feel the benefits of Pictela’s beautiful, content rich, mediadisplay formats which meet Interactive Advertising Bureau
(IAB) and Online Publishers Association (OPA) standards. Pictela ads will be seen on AOL Canada properties and
will further enhance the consumer experience as we continue to evolve the intersection between content and
advertising.” 

Formed in 2009, the Pictela platform delivers videos, photos and applications in real time across the Web in a range
of formats that meet IAB and OPA standards. Pictela is certified by some of the world’s largest publishers and is
distributed by AOL, Glam Media and Hearst, among others.

“We believe that joining AOL is an outstanding opportunity to combine with a company that is as committed to
redefining brand advertising on the Web as we are,” said Greg Rogers, Co-Founder and Chief Executive Officer of
Pictela. “As one of the world’s premium global publishers, AOL will not only be one of our biggest customers, it will
also be our greatest resource with the scale, technology and commitment to world-class content to help realize the
true potential of the online environment.” 

High-Definition Content with Flexibility for Leading Brands

Pictela has experienced rapid growth with clients across retail, consumer packaged goods, automotive, entertainment
and travel sectors. Every high-definition asset in a Pictela unit can be navigated without the user leaving the page.
Content can be updated instantly during a campaign, based on data from advanced analytics that measure
impressions, interactions and time spent across both paid and shared placements. Pictela data shows that the solution
can drive engagement metrics that are three times higher than traditional online advertising.*

Transaction Complements Project Devil

Today’s acquisition is the first for AOL Advertising since AOL became an independent, public company in
December 2009. It follows the U.S. launch of AOL’s Project Devil display advertising format last September. AOL
plans to debut Project Devil ads in the Canadian market by the end of Q1 2011.

Early indication from consumer interaction with Project Devil ads in the U.S., according to AOL internal data, show
that Devil ads greatly outperform standard online ads, engaging users to interact with brand advertising at much
deeper levels. By uncluttering the page, ensuring 100% advertiser share of voice and providing a large, multi-
functional advertising canvas, early Devil ad campaigns have achieved significantly better Interaction Rates (ITR)
than the industry average for rich media banners.

* “2009 Year-in-Review Benchmarks” by DoubleClick

Forward-Looking Statements

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation
Reform Act of 1995 regarding business strategies, market potential, future financial and operational performance and
other matters. Such forward-looking statements include, but are not limited to, statements regarding the anticipated
benefits of the transaction and other statements identified by words such as "may," "will," "intend," "should," "expect"
or similar expressions. These statements are based on management's current expectations and beliefs, and are
subject to uncertainty and changes in circumstances, including, but not limited to, changes in our plans, strategies and
intentions; the competitiveness and quality of our products and services; our ability to retain, hire and develop key
employees; our ability to timely and successfully enable Project Devil across AOL properties; and the intensity of
competition. Any forward-looking information is not a guarantee of future performance and actual results may vary
materially from those expressed or implied by the statements herein, due to changes in economic, business,
competitive, technological, strategic and/or regulatory factors, as well as factors affecting AOL's operations and
businesses. More detailed information about these factors as they relate to AOL may be found in the section entitled
"Risk Factors" in AOL's Annual Report on Form 10-K, filed with the Securities and Exchange Commission. AOL is
under no obligation to, and expressly disclaims any obligation to, update or alter the forward-looking statements
contained in this press release, whether as a result of new information, future events or otherwise.

About AOL

AOL Inc. (NYSE:AOL) is a leading global Web services company with an extensive suite of brands and offerings
and a substantial worldwide audience. AOL's business spans online content, products and services that the company
offers to consumers, publishers and advertisers. AOL is focused on attracting and engaging consumers and providing
valuable online advertising services on both AOL's owned and operated properties and third-party websites. In
addition, AOL operates one of the largest Internet subscription access services in the United States, which serves as
a valuable distribution channel for AOL's consumer offerings.

About Pictela

Pictela, Inc. provides a global platform for distributing high definition brand content and advertising. Pictela units
support videos, photos, text and applications. Since forming in 2009, Pictela has experienced rapid growth with
clients across Retail, CPG, Automotive, Travel and Entertainment. Pictela technology has been certified by premium
publishers and approved by top social networks.

Contacts
AOL
Caroline Campbell, 404-444-7970
c.campbell@teamaol.com

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