Yahoo! also announced that traffic on the Yahoo! global network of properties increased to an average of 144 million page views per day during the month of September 1998, compared to an average of 115 million page views per day in June 1998. Yahoo! Japan, which is included in the above page view totals, increased to approximately 11 million page views per day during the month of September 1998 from approximately 8 million per day in June 1998. A page view is defined as one electronic page of information displayed in response to a user request.

Yahoo! today also announced that its registration base grew to more than 25 million unique registrations, representing the number of submissions to date of personal data through the Yahoo! universal registration process. Yahoo! registered members now have access to a dozen registered services, including My Yahoo!, Yahoo! Mail, Yahoo! Chat, Yahoo! Pager, Yahoo! Clubs and Yahoo! Calendar.

Yahoo!'s popularity among Web users consistently remains high. Yahoo.com is ranked the No. 1 Web site in reach among work users (46.0 percent) and is second only to aol.com in home reach (40.4 percent). According to Media Metrix's latest findings, the Yahoo! network is ranked No. 2 with a combined work/home reach of 46.9 percent (August 1998).

"Our financial results in the third quarter reflect Yahoo!'s continued global leadership position on the Internet," said Tim Koogle, president and CEO, Yahoo!. "Our strong revenue growth during the quarter was the result of expanded services and growth in advertisers and merchants. We continue to manage the business carefully and generate a positive cash flow from operations. As we enter the next phase of the business, we are focused on investing substantially on several fronts to grow our worldwide presence."

Yahoo! became a component of the Nasdaq-100 index during the third quarter.

Programming and Media

Yahoo! continued to expand its Web programming for users during the quarter. Yahoo! Sports (http://sports.yahoo.com) launched free Full Fantasy Football, enabling fantasy team owners to build and manage a team of their favorite NFL players. Yahoo! also launched Yahoo! Small Business (http://smallbusiness.yahoo.com), a comprehensive online resource to help small businesses and entrepreneurs compete effectively. Yahoo! merged Yahoo! Metros with Get Local (http://local.yahoo.com) to provide a comprehensive guide for state, metropolitan, county and city information and services. In addition, Yahoo! Lodging (http://lodging.yahoo.com) and Yahoo! Local events (http://localevents.yahoo.com) were launched to provide information, reservation bookings and ticket purchasing capabilities for lodging and events.

Merchant and Shopping Services

In addition to an extensive offering of premier merchant services, Yahoo! expanded its merchant and shopping services during the quarter to include Yahoo! Auctions (http://auctions.yahoo.com), a person-to-person online auction service enabling users to easily browse, buy, or sell items. For travelers, Yahoo! Travel (http://travel.yahoo.com) introduced a new feature allowing users to comparison shop among package vacations and cruises. The company also enhanced Yahoo! Yellow Pages (http://yp.yahoo.com) to feature in-depth information pages for each business, proximity searching capabilities, maps and directions.

Community and Communication Services

During the third quarter, Yahoo! enhanced its comprehensive suite of community and communication services for Web users. Yahoo! Clubs (http://clubs.yahoo.com) was launched to enable individuals to create personal, customizable Web communities integrating Yahoo!'s popular communications tools. The company unveiled Yahoo! Calendar (http://calendar.yahoo.com) to provide registered Yahoo! users with a full-featured, Web-based personal calendar they can view, edit and manage from any Net-connected computer. In addition, Yahoo! and AT&T expanded their previous relationship, making AT&T an Internet access service provider for the Yahoo! Online service.

International Services

Yahoo! extended its premier merchant program internationally during the quarter. Amazon.com and CDnow expanded their previous relationships with Yahoo! to become premier global merchants on many Yahoo! World sites. Yahoo! also extended the globalization of its communication and personalized services. Yahoo! Mail and My Yahoo! were made available by Yahoo! France (http://www.yahoo.fr) and Yahoo! Germany (http://www.yahoo.de). In addition, several new advertisers joined Yahoo!'s international properties during the third quarter, including Charles Schwab International, Cisco Systems, Energizer-Eveready Ltd., General Motors, Pepsi, Pirelli, Printemps, Renault, and Turner Broadcasting. New advertisers on Yahoo!'s Asian properties during the quarter include Chinese Book Store, Ericsson, Motorola, Nescafe and Philips.

About Yahoo!

Yahoo! Inc. is a global Internet media company that offers a branded network of comprehensive information, communication and shopping services to 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. The company has 14 international Web properties outside the United States. Yahoo! has offices in Europe, the Asia Pacific and Canada and is headquartered in Santa Clara, Calif.

This announcement contains forward looking statements that involve risks and uncertainties, including those relating to the company's ability to grow its user and advertiser base and its advertising and commerce revenues, and to generate positive cash flow from operations. Actual results may differ materially from the results predicted and reported results should not be considered an indication of future performance. The potential risks and uncertainties include, among others, the company's limited operating history, the increasingly competitive environment for advertising sales and for Yahoo! branded services, the early stage of the Web as an advertising and commerce medium, the company's dependence on advertising revenues and on third parties for technology, content and distribution. More information about potential factors that could affect the company's business and financial results is included in the company's Annual Report on Form 10-K for the year ended Dec. 31, 1997 and Quarterly Report on Form 10-Q for the period ended June 30, 1998, including (without limitation) under the captions, "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors," "Competition," and "Proprietary Rights," which are on file with the Securities and Exchange Commission (http://www.sec.gov). The accompanying condensed consolidated statements of operations and balance sheets are an integral part of this announcement.

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