PR: January 14, 1997

#00HTTP/1.0 200 OK #00HTTP/1.0 200 OK Last-Modified: Thu, 23 Jan 1997 18:48:36 GMT Content-Type: text/html Content-Length: 7905 PR: January 14, 1997

Yahoo! Reports Fourth Quarter Profit

Company Posts $8.6 Million in Revenues and $96,000 in Net Income for the Fourth Quarter

Santa Clara, California -- January 14, 1997 -- Yahoo! Inc. (NASDAQ:YHOO) today reported revenues totaling $8,551,000 for the fourth quarter ended December 31, 1996, a 55% increase over revenues of $5,515,000 reported in the third quarter ended September 30, 1996. Net income for the quarter was $96,000 or $0.00 per share, compared to a net loss of $1,145,000 or $0.04 per share in the third quarter ended September 30, 1996. The Company reported revenues of $1,075,000 and a net income of $92,000 or $0.00 per share in its year ago fourth quarter ended December 31, 1995.

The Company reported revenues of $19,073,000 and a net loss of $2,334,000 or $0.09 per share for the year ended December 31, 1996.

Yahoo! also announced that traffic on Yahoo! sites increased to an average of over 20 million page views per day during the month of December 1996, compared to an average of over 15 million page views per day in September 1996. Yahoo! Japan, which is included in the above page view totals, increased to approximately 1.4 million page views per day during the month of December 1996 from approximately 1 million per day in September 1996. A page view is defined as one electronic page of information displayed in response to a user request. According to PC Meter, Yahoo! remains the number one Search Engine and Directory for the fourth quarter in a row.

"The fourth quarter of 1996 was another landmark quarter for Yahoo! and its shareholders. We generated a nominal profit and positive cash flow during the fourth quarter, as we benefited from strong seasonal demand for Web-based advertising. We continued our focused strategy of introducing new properties, enhancing existing properties and investing in Yahoo! brand recognition. Yahoo! also continues to lead the industry in traffic and advertising revenue, which we view as strong evidence that Yahoo! is delivering the right information and services to the Web users and advertisers. During 1997, we will continue to place a higher priority on investing heavily in building the Yahoo! service and extending the Yahoo! brand on a global scale, than delivering short-term profits. We believe such investments are critical to sustaining our momentum and leadership position in this highly competitive and dynamic market," said Tim Koogle, president and chief executive officer of Yahoo!.

"The increase in Yahoo!'s popularity and acceptance during this past year would not have been possible without the tremendous support we have received from our users, advertisers, and partners. We look forward to staying committed to delivering the best navigational service on the Web, and continuing to introduce innovative new features for our users and advertisers in 1997," said Jerry Yang, co-founder and Chief Yahoo.

Yahoo!'s advertiser base increased to 550 advertisers in the fourth quarter, compared to 340 advertisers in the previous quarter. "Global and consumer-oriented marketers continue to recognize the effectiveness and power of targeted interactive advertising. During the fourth quarter, Yahoo!'s advertiser base grew increasingly diverse as illustrated by this sample of new and repeat advertising clients: American Airlines, American Express, Avon, Bank of America, Bell South, Charles Schwab, Coca Cola, Compaq Computers, Disney, Ford Motor Company, General Mills, General Motors, Hilton, IBM, Intuit, Kodak, Metropolitan Life, Motorola, Nabisco, Procter and Gamble, Publishers Clearing House, Sony, Spiegel, Sports Illustrated, Sportsline, Toyota, Virgin Records, Visa and Wal-Mart," said Koogle.

During the fourth quarter, Yahoo! continued its international expansion with the addition of two new properties, Yahoo! France and Yahoo! Germany to the already existing Yahoo! Japan, Yahoo! Canada and Yahoo! UK and Ireland properties.

Yahoo! also launched three new U.S. regional sites during the quarter, Yahoo! Boston, Yahoo! Chicago and Yahoo! Washington DC to its already existing Yahoo! New York, Yahoo! Los Angeles and Yahoo! San Francisco regional sites. These regional sites combine local content, news and entertainment programming, and free communication services, including bulletin boards, classifieds, yellow pages and interactive maps. The regional Yahoo! properties generate revenue from local and national advertisers interested in targeting key markets. During the fourth quarter, Yahoo! also launched "Yahoo! Get Local", a new service that provides users with online, local resources for more than 30,000 U.S. cities, covering over 40,000 zip codes. Get Local pages also include Yahoo!'s popular free communications services.

Yahoo! offers a globally-branded Internet navigational guide to information and entertainment on the Web. As the first online guide to the Web, Yahoo! is one of the most visible and recognizable names associated with the Internet. Yahoo! provides a context-based directory structure for Internet resources, as well as integrated AltaVista Web-wide search capabilities. The Company is continuing to develop a global family of Yahoo!-branded media properties in targeted geographic, subject matter and demographic areas. Yahoo! can be found on the Web at www.yahoo.com.

This announcement contains forward looking statements that involve risks and uncertainties, including those relating to the Company's ability to continue to increase its advertiser and user base, to successfully introduce new local and international media properties, and to sustain profitability in future periods. 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 the Company's services and advertising sales, the early stage of the Web as an advertising medium, and the Company's dependence on advertising revenues and third parties for sales, technology, content and distribution. More information about potential factors which could affect the Company's financial results is included in the Company's Registration Statement on Form SB-2, which was declared effective on April 11, 1996, and the Company's Quarterly Report on Form 10-Q for the period ended September 30, 1996, which are on file with the Securities and Exchange Commission.

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Yahoo! Inc.
Contact:
Jennifer Hwang
Yahoo! Inc
Jenhwang@yahoo.com
tel (408) 731-3362
fax (408) 731-3300

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