1 TeleSoft Partners Annual Venture Capital Ecosystem Meeting Doug Garland SVP Broadband & Mobile Services October 20, 2003

2 To be the most essential global Internet service for consumers and businesses Yahoo!’s Mission

3 Our Strategy Leverage the power of the Yahoo! global network… to create the most innovative, highest quality products for our consumers… and provide the most efficient and effective marketing platform for businesses.

4 Nine Quarters Of Revenue Growth $166 $ in millions $357

5 Two Core Businesses Marketing Services Brand Advertising Sponsored Search Listings Fees Consumers & Businesses - SBC Yahoo! DSL & Dial - Premium Yahoo! Mail services - Yahoo! Personals - Small Business Services

6 Small and Medium Sized Businesses Largely untapped market Sponsored Search Fastest growing Segment within Internet advertising –$5 billion category by 2006 Overture acquisition positions Yahoo! as largest player in growing ad segment Marketing Services Online Advertising Market Continues to Grow Double digit year-over-year revenue growth Yahoo! reaches Blue Chip clients – two thirds of Ad Age Top 100 advertisers

7 New Yahoo! Search – Faster, Easier, Results. Expanded vertical integration –News Search –Product Search –Search IMV Global advancements –Launched Search 4.0 in Europe, Brazil and Australia Integration of Inktomi algorithmic –News Search –Brazil

8 Deeper Consumer Relationships Yahoo! Consumers 245MM+ Search News Entertainment Active Registered Consumers 123MM+ My Yahoo! Mail Messenger Subscription Relationship 4MM+ SBC Yahoo! DSL BT Yahoo! Broadband Mail Plus

9 Broadband Growth SOURCE: Strategy Analytics, 2003

10 Top Global Broadband Partner Strong alliances in three largest broadband regions Unparallel level of integration Large base of broadband customers Mission: Bundle connectivity from partners with next generation Internet experience from Yahoo!

11 SBC Yahoo! Milestones Nov 01Sept 02April - 02Sept 03 Enhanced DSL Launched Strategic Alliance Signed SBC Y! Dial Launched SBC Y! DSL Launched

12 SBC Y! Subscriber Growth SBC is the only carrier able to sustain double digit growth percentages in the face of a broadband industry slowdown Broadband Providers4Q '021Q '032Q '03 Net Adds% Sub GrowthNet Adds% Sub GrowthNet Adds% Sub Growth SBC % % % BellSouth % % % Comcast (& T) % % % Cox % % % TW % % % Charter83 7.8% %77 6.0% Verizon % % % Qwest10 1.9%16 3.0%16E2.9% Total1, %1, %1, %

13 BT Yahoo! Broadband Launched just 11 weeks after announcing alliance Still early but new DSL sales are strong and migration rates are higher than expected Developing other initiatives with BT

14 Success Drivers Focused on key business drivers –Acquire customers –Increase engagement –Reduce churn Deep integration –Customer care –Suite of Y! products and services, plus additional “premium services” Great user experience –Delivers what broadband users want, while also covering the basics –Leverages the best of Yahoo!

15 US Mobile Market Is Evolving $$ Growing US MVAS Opportunity $$

16 Significant Growth in Data Service Usage 11% 37% 19% 41% 29% 87% T-Mobile 12% 18% 37% 72% 52% 59% 57% Sprint12% 21%18% 25%31%Instant Messaging 85%75%87%88%76%2-Way Text Messaging 31%42%35%47%46% 6%2%5%10% Camera 41% 42% Total 36%52%15%24%Internet Verizon 20% Nextel6%Cingular13%AT&T18% Product (s) 29%44%Downloads32%38% Source Telephia: Question: Q325 - Which of the following wireless data applications are you currently using on your wireless device?

17 Yahoo! Well Positioned In Wireless Data Yahoo! has strong “PC-Net” strengths: –Brand, User base, Services Key mobile usage and interest aligned with Yahoo! services –Community –Personalization –IM, Mail –Information Services Sept, 02 70% of wireless customers are active Yahoo! users

18 Mobile Evolution Has begun Y! Mobile Circa 2002 Y! Mobile 2004 Y! Mobile 2003 WAP 1.0 Text Alerts WAP 2.0 PC2SMS Messaging Clients Connecting Applications Enhanced Alerts Downloads MMS

19 Consumer Satisfaction is Key Fastest growing free mail service Hundreds of thousands of movie ratings & reviews since launch of My Movies Fastest Growing DSL Services Time spent up 20% YOY since redesign in Jan

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