Yahoo! Announces Major Agreement with British plc to Deliver Innovative Co-Branded Broadband Service in the United Kingdom

( BW)(YAHOO!/BRITISH-TELECOM)(YHOO) Yahoo! Announces Major Agreement with British Telecommunications plc to Deliver Innovative Co-Branded Broadband Service in the United Kingdom

Business Editors/High-Tech Writers

SUNNYVALE, Calif. & LONDON--(BUSINESS WIRE)--June 16, 2003--

Companies Also Join Forces to Create Narrowband Product and Compelling Communication Services Using Yahoo! Mail and Messenger Platforms

Yahoo! Inc. (Nasdaq:YHOO) and British Telecommunications plc have announced a far-reaching alliance to deliver a powerful new experience to consumers in the United Kingdom. Through the agreement, BT Openworld broadband and narrowband ISP customers will receive access bundled with an exciting and exclusive Internet experience, featuring a co-branded browser and user environment and a range of compelling products and features. The companies also announced their intention to develop innovative communication services utilizing Yahoo! Messenger. Additionally, the companies plan significant developments to BT's email offerings using the award-winning Yahoo! Mail platform. "We believe the powerful combination of Yahoo!'s world-renowned brand and BT's leading market position can help drive increased DSL adoption in the United Kingdom," said Terry Semel, chairman and CEO, Yahoo! Inc. "With this announcement, Yahoo! is the first Internet brand to have entered into this kind of deep access and programming alliance in the three largest broadband regions, Europe, Asia and North America. Through our global network, Yahoo! serves the largest broadband audience in the world and we are committed to providing the best broadband user experience anywhere." Pierre Danon, CEO of BT Retail, said: "I firmly believe BT and Yahoo! will offer a vastly superior customer experience compared to any Internet rivals and that we can attract more new subscribers by offering customers the best Internet experience that money can buy. For customers to get the most of the Internet, several factors are crucial. Access must be safe and fast, use must be personalized and flexible, and content must be compelling. By joining with Yahoo!, we can satisfy all of these criteria, as well as providing customers with support from two world class organizations. Both organizations share a common aim -- to deliver the best possible online experience. Joining forces will allow us to achieve this, but also makes great business sense by strengthening both of our market-leading positions." The first product to be developed through the partnership will be a comprehensive broadband service. Designed from the ground up for broadband customers, BT Yahoo! Broadband will offer an array of new and exciting applications, not available elsewhere, in the first truly integrated service of its kind in Europe. With a customized browser, a personalized homepage, and a host of other broadband services, including streaming news and entertainment, BT Yahoo! Broadband will offer consumers in the UK an unrivalled Internet experience. BT Yahoo! Broadband is expected to launch to new customers later this year, and existing BT Openworld broadband customers will be able to migrate to the new service thereafter. Additionally, a version for narrowband customers is expected to be available in the coming months. Yahoo! and BT expect to embark on a significant, coordinated joint marketing effort to support the suite of integrated products. Today's announcement follows a limited commercial arrangement by the companies in February this year, for the co-promotion of Yahoo! premium services and BT Broadband.

About Yahoo!

Yahoo! Inc. is a leading provider of comprehensive online products and services to consumers and businesses worldwide. Yahoo! is the No. 1 Internet brand globally and the most trafficked Internet destination worldwide. Headquartered in Sunnyvale, Calif., Yahoo!'s global network includes 25 World properties and is available in 13 languages.

About BT Openworld

BT Openworld, BT's mass market Internet division, is one of the UK's leading Internet service providers. It delivers broadband and narrowband services to more than 1.7 million business and consumer customers in the UK through www.btopenworld.com. The company offers a wide range of Internet access packages and payment options. Broadband packages include: BT Openworld Home 500 Plug & Go and Business 500 Plug & Go -- self-install broadband products. Other products cover a choice of download speeds, from up to 500kbps, to up to 2Mbps, single or multi-user set-ups for PC or Mac, and static or dynamic IP addresses. BT Openworld also provides broadband over satellite for business users. Narrowband products include: BT Openworld Anytime, BT Openworld Surftime, BT satellite for business users. Narrowband products include: BT Openworld Anytime, BT Openworld Surftime, BT Openworld Connect Anytime -- designed specifically for business customers, and Pay-as-you-go services. BT Openworld also provides additional value-added services to business users, such as LAN, Teleworker and Web Design solutions. BT Openworld is developing a range of applications and services available to its own customers and those of other ISPs. Last year BT Openworld launched five sites aimed at computer gamers, music fans, classical music lovers, sports and betting enthusiasts and keen travellers: www.gamesdomain.co.uk, www.dotmusic.com, www.btopenworld.com/classical, www.btopenworld.com/sport and www.btopenworld.com/travelclub. These provide a mix of free and subscription based services.

This press release contains forward-looking statements that involve risks and uncertainties concerning Yahoo!'s expected financial performance as well as Yahoo!'s strategic and operational plans. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, decreases or delays in advertising spending; the actual increases in demand by customers for Yahoo!'s premium and enterprise services, including adoption of access services such as those described in this press release; acceptance of new products and services, including adoption of access services such as those described in this press release; general economic conditions; risks related to the integration of recent acquisitions; the ability to adjust to changes in personnel, including management changes; and the dependence on third parties for technology, services, content and distribution. All information set forth in this release and its attachments is as of June 16, 2003, and Yahoo! undertakes no duty to update this information. More information about potential factors that could affect Yahoo!'s business and financial results is included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2002 and Quarterly Report on Form 10-Q for the three month period ended March 31, 2003, including (without limitation) under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," both of which are on file with the Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov.

Note to Editors: Yahoo! and the Yahoo! logos are trademarks and/or registered trademarks of Yahoo! Inc. All other names are trademarks and/or registered trademarks of their respective owners.

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CONTACT: Yahoo! Inc Scott Morris, 408/349-6347 (Media Relations) [email protected] Cathy Larocca, 408/349-5188 (Investor Relations) [email protected] or Fleishman Hillard (for Yahoo! Inc.) Tara Kirchner, 415/318-4121 (Media Relations) [email protected] or British Telecommunications plc, London, U.K. Tony Henderson, 011-44-(0)7801-977-338 (Media Relations) [email protected]