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FOR IMMEDIATE RELEASE  
     
Contact: Leigh Dally
@Home Network
781/768-2036
   
     

@Home Network Rich Media Study Reveals Broadband Advertising Offers More Effective Branding and Communications Channel

Study Provides Benchmarks for Assessing Internet Advertising Success


REDWOOD CITY, Calif., Mar. 1, 1999 - @Home Network™ (Nasdaq: ATHM), the leading provider of high-speed cable Internet services, today disclosed the final results of its Rich Media I Advertising Program, a five-month broadband advertising research study co-developed by @Home and Intel Corporation and administered by IPSOS-ASI market research. The study was developed to determine the effectiveness of rich media advertisements in a broadband environment compared to narrowband (dial-up) ads. It measured ad effectiveness on brand recall, interaction within the ad, comprehension and likability.

The results confirm that broadband advertising significantly increases brand recall, provides more effective branding experiences, engages viewers for a longer period of time, and offers lower cost-per-branding impression (CPB). The ads tested on @Home outperformed narrowband advertising in all areas. Recall percentages tested 34 percent higher than IPSOS-ASI's average for narrowband ads, comprehension and shift in brand imagery improved over narrowband benchmark statistics by 30 percent, and on average, consumers who chose to click spent between 30 seconds and five minutes interacting with the ads.

"This program provided us with an excellent opportunity to put broadband and rich media advertising to the test," said Deb Kimball, General Manager of Toysrus.com, a participant in the program. "Our goal was to raise awareness of Toysrus.com and specifically to drive online sales. We extended our electronic storefront and simulated the experience of interacting with select toys. Broadband delivery speeds and multimedia intensive ads generated positive sales results during our peak season and achieved over 50 percent brand recall."

AT&T, Bank of America, First USA, Intel Corp., Johnson & Johnson, Levi Strauss & Co., and Toys "R" Us participated in the inaugural Rich Media I study with the purpose of understanding the impact of broadband rich media advertising in delivering their marketing message.

Study results show that broadband rich media advertising integrates the best of advertising media to more effectively communicate product and service information. Broadband rich media advertising offers the entertainment of television, the copy detail of print, and the targeting and call to action of direct mail, in one highly engaging interactive ad. Further analysis of live ad performance for the seven campaigns reveals the superior benefits of broadband advertising.

What It Means - Broadband Improves Recall and Branding Experience

  • Rich media delivered over broadband makes a deeper impression upon consumers than does narrowband advertising. The study shows that @Home broadband recall averages 44 percent which is 34 percent higher than narrowband advertising recall.
  • Broadband advertising provides a more effective branding experience. According to study findings, comprehension and shift in brand imagery improved 30 percent over the baseline established by the IPSOS-ASI's database of over 30,000 surveys of banners and interstitials.
  • Ad viewers in the study spent a significant amount of time focusing attention on rich media ads. Over half of the viewers who clicked on the ad spent 30 seconds to five minutes actively engaging with ad information and the brand. Through rich interactivity, broadband advertisements provide a platform for immersive branding experiences not possible with standard 30-second TV commercials.
  • The higher recall rates generated by broadband rich media advertisements lower the cost per branding impression relative to narrowband advertisements. Augmenting click-through rates as a measure of advertisement success, Cost Per Branding impression (CPB) reflects the value of brand recall and viewer comprehension rates in assessing the effectiveness of a given advertisement. Higher brand recall and viewer comprehension drive deeper penetration of branding messages.

"Quantifying the entire branding experience -- not just click-through -- that rich media ads generate is a highly valuable metric for advertisers," said Susan Bratton, director of interactive advertising for @Home Network. "By taking the lead in trying to understand and quantify how consumers view and use online advertising, we're helping the early adopters and the industry on the whole to comprehend the broader value of rich media and broadband advertising to get the most from it."

About @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 eighteen leading cable companies-worldwide, including 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, Lenfest Communications, Midcontinent Cable Co., Palet Kabelcom, Rogers Cablesystems Limited, Shaw Communications, and Tele-Communications Inc. (Early in 1999, TCI's cable operations are expected to merge into AT&T and thereafter be known as "AT&T Broadband Services").

     
 

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@Home and the logo are registered trademarks, and @Home Network and Enliven are trademarks of At Home Corporation. All other brands and product names may be trademarks or registered trademarks of their respective owners.

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: advertiser's use of the benchmarks for assessing Internet advertising success and the ability to help advertisers understand and quantify how consumers view and use online advertising. Actual results may differ materially due to a number of factors, including: the technological, operational, and financial challenges of developing an integrated advertisement that subscribers find useful and compelling; the degree of customer and industry acceptance and support for the ad; and the companies' ability to manage the advertisement. The matters discussed in this press release also involve risks and uncertainties described from time to time in @Home's filings with the Securities and Exchange Commission. In particular, see the risk factors described in @Home'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 assumes no obligation to update the forward-looking information contained in this press release.

     


       
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