"This deal is a smart business decision for both companies," said Allen Weiner, director and principal analyst, Dataquest. "For MSN, the deal underscores its vision in developing creative new distribution channels to reach an increasing number of Web eyeballs. For Yahoo!, MSN represents another in the long line of strategic allies that will further the company's stature as a prominent brand name on the Net."

Yahoo! (http://www.yahoo.com/) is the single largest guide to the Web in terms of reach and has consistently ranked No. 1 since Media Matrix (formerly known as PC Meter) began publishing results in January 1996. Today, Yahoo! offers the most comprehensive directory on the Web, consisting of Web sites hand-cataloged by Yahoo! experts for intuitive search results. "Yahoo!'s Web navigation expertise is ideal in helping MSN users get the information they're looking for," said Jeff Mallett, senior vice president of business operations at Yahoo!. "As the No. 2 online service in the United States and a top 10 Web site on the Internet, MSN reaches a large number of people every day. We're also continuing to expand the value-added programming we offer our users with content from leading sources such as MSNBC and CarPoint."

"By integrating Yahoo!'s directory into the MSN search and directory services and Best-of-Web reviews, we are giving our users quick and easy access to the best that the Web has to offer," said Laura Jennings, vice president, MSN. "Users of MSN will find it easy to start their Internet experience here and be able to make the most of their time online. By expanding the reach of MSNBC and CarPoint, we further establish them as leaders in their categories and expose new users to these valuable Microsoft services."

About Yahoo!
Yahoo! Inc. (NASDAQ "YHOO") 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.

About MSNBC
MSNBC is the Internet's premier news source. Combining the worldwide resources of NBC News and the technological leadership of Microsoft, MSNBC allows its online users to get the news they want, when they want it and how they want it. The combination of MSNBC on the Internet and MSNBC Cable gives consumers 24-hour access to the most current and comprehensive news available anywhere.

About CarPoint
Microsoft CarPoint is a comprehensive automotive Web site, offering users complete car-buying information. First available in August 1996, CarPoint gives users access to detailed specifications, reviews from the world's leading automotive writers, detailed pricing information and interactive decision-management tools.

About MSN
The Microsoft Network of online services makes it easy for consumers to harness the power of the Internet to lead more informed, fun and productive lives. MSN combines a comprehensive set of core Internet services, including e-mail, online forums and communities, and content and services programming, with direct access to leading Microsoft sites for news, travel, investment, car buying, games and entertainment. Specific programming and services available on MSN include the Microsoft Encarta® multimedia encyclopedia, the Expedia(R) travel service, Disney's Daily BlastSM and Family.comSM, the Slate(R) online magazine, the CarPoint online automotive service, the Microsoft Investor online investing service, and up-to-date news and information from MSNBC News. The MSN home page can be reached at http://msn.com/. Additional press information is available at http://press.msn.com/.

Users can visit the MSN home page at http://msn.com to order MSN 2.5, the upcoming release of The Microsoft Network. Users with the Microsoft Windows® 95 operating system and a modem can try the new MSN with a free one-month trial* by calling (800) FREE-MSN (373-3676) and requesting a CD.

About Microsoft
Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Microsoft, MSN, CarPoint, Encarta, Expedia, Slate and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Family.com and Daily Blast are service marks of Disney Online. The Microsoft Network is operated by Microsoft Corp. on behalf of Microsoft Network LLC.

**MSN offer: For users of the Windows 95 operating system only. One-month free unlimited trail is available to new members of MSN in the United States or Canada only. A credit card is required. MSN premium charges, access charges (if access is purchased from a provider other than MSN) and local phone and/or long-distance toll charges may apply. Access availability may be affected by local market network activity and capacity. Offer expires Dec. 31, 1997.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/corpinfo/ on Microsoft's corporate information pages. Additional information about Yahoo! can also be found on the Web at http://www.yahoo.com/docs/info/.