Yahoo! also announced that its traffic grew to an average of 50 million page views per day during the month of September 1997, compared to the 38 million page view per day average reported during June 1997. Yahoo! Japan, which is included in the above page view totals, increased to more than four million page views per day in September 1997, compared to more than three million page views per day during June 1997. A page view is defined as one electronic page of information displayed in response to a user request.

Yahoo!(R) is ranked the No. 1 single largest search and navigational site on the Web. According to Media Metrix: The PC Meter Company, the site had an unduplicated overall audience reach of 37.0 percent of U.S. Internet households and 45.2 percent of business users in August. Among business users, the Yahoo! Network ranked No. 1 with 45.4 percent unduplicated reach in August and was followed by the Excite Network (29.4 percent) and Lycos (19.8 percent). Yahoo! ranked ahead of all Internet sites with business users, including aol.com and netscape.com. The Yahoo! Network also ranked No. 1 among home users with 37.0 percent unduplicated reach in August 1997 followed by the Excite Network (25.8 percent) and Lycos (16.4 percent). Among all Internet sites, Yahoo! ranked ahead of netscape.com and was second only to aol.com with home users.

An online survey conducted by The NPD Online Research Group (NPD) in June ranked Yahoo! as the navigational guide used most often, reflecting the highest levels of user opinion and loyalty to yahoo.com. Recent research by NPD ranked Yahoo! No. 1 with experienced Web users. In addition, Media Metrix found that users spend more than twice as much time at Yahoo! than any other guide or AOL (August 1997).

``We continued to experience strong traffic growth during the third quarter,'' said Tim Koogle, Yahoo!'s president and CEO. ``We continued adding key new community and electronic commerce services and expanding distribution, further enhancing our comprehensive network of properties and services and filling a wide variety of user and advertiser needs. We will continue to place a higher priority on investing in building the Yahoo! services and brand on a global basis than on delivering short-term profits in this competitive market environment.''

During the third quarter, Yahoo! focused on expanding its Internet community services. The company yesterday announced a definitive agreement to acquire Four11, an online communications and directory company. Yahoo! also recently launched Yahoo! Mail, a free email service for Internet users based on Four11's popular RocketMail technology. In addition, Yahoo! expanded its message and bulletin board services throughout its global network of properties.

Yahoo! expanded its electronic commerce efforts during the third quarter to provide its users with convenient and easy access to online shopping and services. The company launched Visa Shopping Guide by Yahoo!, a new electronic commerce service providing easy access to thousands of online and off-line merchants in 25 of the most popular product and service shopping categories. Yahoo! also entered an agreement with CDnow to provide Yahoo! users direct links to related CDnow music products from Yahoo! music-related search results and music category pages. CDnow joins Yahoo!'s other commerce partners including Amazon.com, Datek, DLJdirect, ESPN, E*Trade, Sabre Travelocity, SportSite Direct, Travelogix and Ziff-Davis.

During the quarter, Yahoo! further expanded its distribution on the Web through agreements with Compaq, Gateway, Microsoft and WebTV. Yahoo! was selected by Compaq to provide Yahoo! services to users directly from Compaq computers through the Compaq Presario's version of Microsoft's Internet Explorer 4.0. Yahoo! services will also be available directly from the desktop of Gateway computers that have integrated a Gateway-customized version of Internet Explorer 4.0. Yahoo! extended its agreement with Microsoft to be a featured search provider for the newest version of Internet Explorer 4.0, Preview Also, My Yahoo! is currently included as a channel on IE 4.0. In addition, Yahoo! is providing its popular Get Local and Yahooligans!(R) programming for WebTV's original and Plus Network services.

Yahoo! continued expanding its programming through local, regional and national properties during the quarter. Yahoo! and MTV: Music Television launched MTV/Yahoo! unfURLed, a guide to music on the Web, featuring a view into the hottest happenings in music on the Web, along with a comprehensive resource to music, artists, trends and other entertaining details about music on the Web. Yahoo! and NBC formed an online chat alliance, enabling Yahoo! Chat users to talk online with NBC ``Must-See-TV'' stars from the network's prime-time, late-night and daytime lineup. Yahoo! launched Yahoo! Miami during the quarter and now serves 12 of the largest markets in the United States in addition to Get Local(TM), which reaches more than 30,000 cities. These sites combine local content, news and entertainment programming, and free communication services, including bulletin boards, classifieds, yellow pages, and interactive maps. In the third quarter Yahoo! launched Yahoo! Korea (http://www.yahoo.co.kr), a guide to Korean Internet sites in the native Korean language, Hangul. Yahoo! also launched Yahoo! Australia & NZ (http://www.yahoo.com.au), a localized service for Australia and New Zealand.

About Yahoo!

Yahoo! Inc. is a global Internet media company that offers a network of branded Web programming that serves millions of users daily. As the first online navigational guide to the Web, www.yahoo.com is the single largest guide in terms of traffic, advertising, household and business user reach, and is one of the most recognized brands associated with the Internet. Yahoo! Inc. provides targeted Internet resources and communications services for a broad range of audiences, based on demographic, key-subject and geographic interests. Yahoo! is headquartered in Santa Clara, Calif.