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GTE's GTE Interworking division said it has been awarded a two-year, $500 million extension of its contract with America Online to continue to operate AOLnet, AOL's high-speed, dial-up network. The contract also stipulates that AOLnet will be expanded, bringing the total value of the contract to about $1.2 billion. The company said the deal extends its contract with AOL through June 2002. The original contract was signed between GTE unit BBN and AOL in March 1995.