YAHOO! EUROPE AND TIM (TELECOM ITALIA MOBILE) JOIN FORCES TO DELIVER RANGE OF WAP INTERACTIVE SERVICES

Yahoo! Europe and Telecom Italia Mobile ("TIM" - part of the Telecom Italia Group) today announced they have signed an agreement for Yahoo! Europe to provide TIM with a comprehensive range of Wireless Application Protocol (WAP) content and services.

TIM is the largest mobile telephone services operator in Europe by total client base. The agreement therefore represents one of the most significant relationships between a mobile network operator and an Internet company in Europe, to date.

Under the terms of the agreement, Yahoo! Europe will provide the TIM WAP Gateway with the following WML content and services. WML is a language that allows the text portions of web pages to be presented on cellular phones and personal digital assistants (PDAs) via wireless access.

The Yahoo! services and content include:

Yahoo! Mobile Services: Mail, News, Finance, Sport and Weather
Yahoo! Mobile Messenger: A facility that allows users to send and receive instant messages via a telephone, PC, Mac or PDA to and from anyone online
My Yahoo! Link: Access to My Yahoo! content, configured on HTML base only

The Yahoo! content will be prominently displayed on the TIM WAP gateway and will complement the existing services available from TIM (TIM by Acotel) and the soon to arrive content from TIM's recent agreement with SEAT.

Market research indicates that within the next five years up to 50% of Internet access will be from mobile devices, and that the number of these devices worldwide will exceed one billion. Italy currently has one of the highest mobile-phone penetration rates in Europe (approximately 50%). It is estimated that by 2004, 61% of the mobile phones in use in Italy will have the capacity to effect Internet connections (source: Forrester Research).

The agreement with TIM is a further development in the Yahoo! Everywhere initiative which delivers Yahoo! services formatted for both fixed and wireless connections via PCs, mobile telephones, personal digital devices and digital TVs connected to the Web. Yahoo! Europe continues to prioritise this strategy and has aggressively pursued distribution deals with both handset manufacturers and mobile network operators. Yahoo! Europe's net revenues for the first quarter ended March 31, 2000 were $22,151,000 and Yahoo! Europe's traffic grew to more than 940 million page views during the month of March 2000.

Fabiola Arredondo, Managing Director of Yahoo! Europe commented:

"We are delighted to be working with TIM, Europe's largest and fastest growing mobile network operator to deliver the Yahoo! portfolio of WAP-enabled services to Italian users. This agreement will increase our distribution of favourite and locally compelling Yahoo! products and services to the Italian market and is a continued positive step forward in the evolution of our Yahoo! Everywhere strategy across Europe."

Marco De Benedetti, CEO of TIM, commented:

"In line with our vision of a world of services independent from technology, we are proud to announce the agreement with Yahoo! Europe. The agreement will enrich and complement our extraordinary world of WAP. After the launch of i-TIM - interactive services - we are providing an enormous number of contents to distribute our services to customers in Italy and in the world. This is the framework for the agreement with Yahoo!."

About Yahoo! Europe

Yahoo! Europe provides commerce, communication and media services throughout Europe to meet the needs of local consumers. Yahoo! Europe is comprised of the Yahoo! sites for the UK & Ireland (www.yahoo.co.uk), France (www.yahoo.fr), Germany (www.yahoo.de), Italy (www.yahoo.it), Spain (www.yahoo.es), Sweden (www.yahoo.se), Norway (www.yahoo.no) and Denmark (www.yahoo.dk). The Yahoo! offices in London, Paris, Munich, Milan, Madrid, Stockholm and Copenhagen are staffed by local nationals and Yahoo! Europe is headquartered in central London.

Yahoo! Europe is part of Yahoo! Inc. a global Internet communications, commerce and media company that offers a comprehensive branded network of services to more than 145 million unique individuals each month worldwide. As the first online navigational guide to the Web, www.yahoo.com is the leading guide in terms of traffic, advertising, household and business user reach, and is one of the most recognized brands associated with the Internet. The company also provides online business services designed to enhance the Web presence of Yahoo!'s clients, including audio and video streaming, store hosting and management, and Web site tools and services. The company's global Web network includes 22 local World properties outside the United States. Yahoo! has offices in Europe, the Asia Pacific, Latin America, Canada and the United States, and is headquartered in Santa Clara, Calif.

About TIM

TIM represents the essence of technological leadership in Italy and the world. TIM, a home-grown Italian success story, is a highly dynamic joint-stock company with thousands of shareholders throughout the world. It has more customers than any other European mobile telephony operator, and is world leader in the provision of GSM services. In Italy, TIM boasts 19.2 million customers. In addition, TIM has 15.8 million international customers via its equity interests and investments in other companies (figures updated to 31.3.2000). TIM has consolidated a presence in Europe, Asia and Latin America. In the first quarter of the current year, the company posted a net profit of 825 billion lire (426 million euro), and generated a gross operating margin of 1,771 billion lire (915 million euro), equal to 50% of total revenues (which amounted to 3,541 billion lire or 1,829 million euro). Some 133 billion lire (68.8 million euro) of revenues were derived from value added services, an increase of 231% with respect to the corresponding period of the previous year.

Media Contacts:
Yahoo! Europe
Sue Jackson   Tel: ++ 44 207 368 3876   suej@uk.yahoo-inc.com
TIM
Patrizia Vallecchi   Tel: ++ 39 335 6334169   pvallecchi@mail.tim.it