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TeleSoft Partners Annual Venture Capital Ecosystem Meeting

Doug GarlandSVP Broadband & Mobile Services

October 20, 2003

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To be the most essential global

Internet service for consumers and

businesses

Yahoo!’s Mission

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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.

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Nine Quarters Of Revenue Growth

$0

$50

$100

$150

$200

$250

$300

$350

$400

$166

$ in millions$357

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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

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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

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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

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Deeper Consumer Relationships

Yahoo! Consumers 245MM+

• Search• News• Entertainment

Active Registered Consumers 123MM+

• My Yahoo!• Mail • Messenger

SubscriptionRelationship 4MM+

• SBC Yahoo! DSL • BT Yahoo! Broadband• Mail Plus

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0

10

20

30

40

50

60

70

80

2002 2003 2004 2005 2006 2007 2008

By the end of 2008, almost 70% of US Internet homes will have broadband connections

Broadband Growth

SOURCE: Strategy Analytics, 2003

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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!

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SBC Yahoo! Milestones

Nov 01 Sept 02April - 02

Sept 03

Enhanced DSL Launched

Strategic Alliance Signed

SBC Y! DialLaunched

SBC Y! DSLLaunched

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SBC Y! Subscriber GrowthSBC is the only carrier able to sustain double digit growth percentages in the face of a broadband industry slowdown

Broadband Providers 4Q '02 1Q '03 2Q '03Net Adds % Sub Growth Net Adds % Sub Growth Net Adds % Sub Growth

SBC 245 12.3% 270 12.1% 304 12.2%BellSouth 97 10.5% 101 9.9% 103 9.2%Comcast (& T) 367 11.3% 417 11.5% 351 8.7%Cox 136 10.7% 154 11.0% 112 7.2%TW 300 13.0% 100 3.8% 170 6.3%Charter 83 7.8% 134 11.8% 77 6.0%Verizon 148 9.0% 160 9.6% 101 5.5%Qwest 10 1.9% 16 3.0% 16E 2.9%Total 1,385 10.7% 1,353 9.4% 1,234 7.9%

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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

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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!

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Networks Slow limited intelligence Faster 2.5G Broadband 3G role-out

PhonesB&W, Text WAP, Fragmented OS

Color, Downloads, More Memory

Advanced OS

Client Platform

Proprietary, Limited V1 of BREW & J2ME V2 of BREW & J2ME

Carriers Walled GardenClosely managed

EcosystemIncreasing Openness

Consumer Interest

Very Little Early wins with new services Large Scale Interest

US Mobile Market Is Evolving2001 2003 2005

$$ Growing US MVAS Opportunity $$

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Significant Growth in Data Service Usage

11%

37%

19%

41%

29%

87%

T-Mobile T-Mobile 12%12%

18%

37%

72%

52%

59%

57%

Sprint Sprint 12%12%

21%18%18%25%31%Instant Messaging

85%75%87%88%76%2-Way Text Messaging

31%42%35%47%46%Email

6%2%5%10%10%Camera

41%

42%

Total Total

36%52%15%24%Internet

Verizon Verizon 20%20%

NextelNextel6%6%

Cingular Cingular 13%13%

AT&TAT&T18%18%Product (s)Product (s)

29%44%Downloads 32%38%

Source Telephia: Question: Q325 - Which of the following wireless data applications are you currently using on your wireless device?

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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

Source: @Plan Sept, 02

70% of wireless

customers are active

Yahoo! users

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Mobile Evolution Has begunY! Mobile Circa 2002 Y! Mobile 2004Y! Mobile 2003

3 Day Forecast: May 10 thru 12

Atherton, CA

More Home

1 Stock Market on a run.

2 Sprint to offer Yahoo…

3 Cisco buys Linksys for

4 Stock Market on a run.

5 Stock Market on a run.

Next Home

Last Updated: 2.15PM

8 Custom

0 Mail 5 Weather

1 MClips

2 Finance

3 News

4 Sports

6 Clubs

7 Custom

9 Messenger

The fourth-largest wireless telephone company and the Sunnyvale, California-based Internet media company on Thursday said they signed an agreement to distribute Yahoo

3 Day Forecast: May 10 thru 12

Atherton, CA

More Home

3 Day Forecast: May 10 thru 12

Atherton, CA

More Home

1 Stock Market on a run.

2 Sprint to offer Yahoo…

3 Cisco buys Linksys for

4 Stock Market on a run.

5 Stock Market on a run.

Next Home

Last Updated: 2.15PM

1 Stock Market on a run.

2 Sprint to offer Yahoo…

3 Cisco buys Linksys for

4 Stock Market on a run.

5 Stock Market on a run.

Next Home

Last Updated: 2.15PM

8 Custom

0 Mail 5 Weather

1 MClips

2 Finance

3 News

4 Sports

6 Clubs

7 Custom

9 Messenger

8 Custom

0 Mail 5 Weather

1 MClips

2 Finance

3 News

4 Sports

6 Clubs

7 Custom

9 Messenger

The fourth-largest wireless telephone company and the Sunnyvale, California-based Internet media company on Thursday said they signed an agreement to distribute Yahoo

The fourth-largest wireless telephone company and the Sunnyvale, California-based Internet media company on Thursday said they signed an agreement to distribute Yahoo

WAP 1.0

Text Alerts

WAP 2.0

PC2SMS

Messaging Clients

Connecting Applications

Enhanced Alerts

Downloads

MMS

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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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