The population of worldwide Internet users is expected to surge from 50 million in 1997 to 100 million users in 1998, according to a study released in December 1997 by International Data Corporation. Together with MCI, Yahoo! will now offer Internet users a branded alternative to current Internet online services. Through MCI, Yahoo! Online powered by MCI Internet will provide subscribers with a complete, integrated, easy-to-use online service including a browser customized to feature Yahoo!® aggregated content, 24-hours-a-day, 7-days-a-week toll free customer service, and online and CD-ROM distribution of the client software. Yahoo! Online will offer subscribers nationwide dial-up access with local phone numbers in major metropolitan areas and X2 modem capability. MCI's powerful network will ensure reliable connections and fast response times.

"Yahoo! has established itself as the leading provider of content, communication, community and commerce services on the Web and has a loyal base of more than 26 million unique users each month in the U.S.," said Jeff Mallett, chief operating officer of Yahoo!. "Through our partnership with MCI, Yahoo! Online will provide a complete solution for new Internet users as well as Yahoo!'s current customers who have been accessing our services from work, school, and public access points and would like personal access from home. Yahoo! Online takes advantage of our existing business and services while extending our distribution both online and off-line to offer Internet users all the value of Yahoo! with the great reliability of MCI's Internet network."

"What better pair of companies than MCI, with the Internet's biggest backbone, and Yahoo!, the Internet's No. 1 navigational guide, to bring a powerful new online service to market," said David Trachtenberg, MCI's director of brand marketing. "This partnership is a win for consumers who will now have access to complete and rich Internet content from Yahoo! with MCI's tradition of quality, reliability and value pricing."

Yahoo! Online powered by MCI Internet will leverage Yahoo!'s extensive partner relationships to provide subscribers value-added features in online content, communications, community, and commerce:

Content: As the world's leading Internet navigational service, Yahoo! has some of the most popular Web programming, including news, sports, stock quotes, travel, entertainment and weather. Content currently available throughout Yahoo!'s network of properties will be available to Yahoo! Online powered by MCI Internet subscribers. The new service will also feature personalized services such as financial portfolios and My Yahoo!. In addition, Yahoo! plans to leverage its relationships with nearly 300 content, products, and services partners to provide Yahoo! Online subscribers with new premium content and services.

Communication and Community: Yahoo! Online subscribers will have access to free member communication and community services, including email, chat, message boards and classifieds. Yahoo! Online will also offer subscribers premium value-added communication services.

Commerce: Yahoo! Online members will benefit from Yahoo!'s merchant alliances, providing an ideal solution for convenient 24-hour online shopping and values in the most popular product and service categories such as apparel, books, music, and software.

Yahoo! Online will be jointly promoted by MCI and Yahoo! and is expected to be available nationwide later this quarter.

About MCI
MCI has been instrumental in the Internet's development and offers one of the world's most advanced portfolios of Internet and intranet products and services, including access, software, Web site hosting and consulting. MCI's Internet backbone network, one of the world's most advanced Internet networks, serves as the platform for these services and operates at an unparalleled speed of 622 megabits per second. MCI provides nationwide dial-up Internet service which supports speeds up to 56K (X2 technology) with local dial-up in more than 300 cities.

MCI, headquartered in Washington, D.C., offers the industry's most comprehensive portfolio of communication services. With 1996 revenues of $18.5 billion, MCI ranks as one of the world's largest telecommunications companies. MCI is also the world's second largest carrier of international traffic and operates one of the world's most advanced Internet networks. Since its founding in 1968, MCI has been a leader in bringing the benefits of long distance competition to businesses and consumers and is now leading the charge to open U.S. local calling markets to competition. On Nov. 10, 1997, MCI announced a definitive merger agreement with WorldCom, Inc. to form a new company called MCI WorldCom.

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.

This announcement contains forward looking statements that involve risks and uncertainties, including those relating to the development, implementation and marketing of the service by MCI and Yahoo!. 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 other Yahoo! branded services (including, in particular, the intensely competitive environment for dial-up Internet access services such as Yahoo! Online), the early stage of the Web as an advertising medium, the company's dependence on advertising revenues and third parties for sales, technology, content and distribution (including the company's dependence on MCI to implement and operate elements of the Yahoo! Online service). 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, 1996, the company's quarterly report on Form 10-Q for the period ended Sept. 30, 1997, and the company's registration statement filed on Form S-3 on Jan. 8, 1998, which is on file with the Securities and Exchange Commission (http://sec.yahoo.com/edgar/latest/yhoo.html).