Verizon and Yahoo! Launch Integrated DSL Service Combining Broadband Speed with Premium Content

NEW YORK and SUNNYVALE, Calif. -- Verizon Communications and Yahoo! Inc. today began offering a new, fully integrated DSL service to Verizon Online DSL subscribers in 28 states and the District of Columbia. The service, named Verizon Yahoo! for DSL, combines the strengths of the two companies, including a range of broadband speeds at affordable prices and a wide variety of premium Yahoo! features at no additional charge.

Verizon today also introduced a new, entry-level consumer DSL Internet access service with a maximum connection speed of 768 Kbps (kilobits per second) downstream and 128 Kbps upstream for $14.95 a month with an annual service agreement, designed to attract dial-up users to broadband.

Verizon Yahoo! for DSL provides customers with the benefits of Verizon, one of the world's leading providers of communications services, and Yahoo!, the leading Internet destination and world's most recognized global Internet brand. Starting today, Verizon Yahoo! for DSL will be the default choice for all new Verizon DSL customers. Current DSL subscribers will also have the opportunity to select Verizon Yahoo! service later this week.

"Our alliance with Yahoo! is great news for consumers, because Verizon Yahoo! for DSL includes premium content and features that would cost up to $200 a year if purchased separately," said Bob Ingalls, president of Verizon's Retail Markets Group. "We're excited to offer our subscribers a choice of premium online experiences that now includes industry-leading Internet services from Yahoo!"

Dan Rosensweig, chief operating officer, Yahoo! Inc., said, "Yahoo! brings a unique blend of innovative Web services, deep experience in partnering with broadband service providers, and strong brand stature to this alliance. This preferred relationship with Verizon underscores Yahoo!'s success in partnering with access providers to create a powerful broadband Internet experience that delivers the most value to consumers."

The companies will gear up aggressive marketing campaigns on the Yahoo! network and through Verizon advertising, designed to attract new customers directly to the co-branded offering. Through this alliance, Verizon and Yahoo! expect to help increase broadband demand, as well as win converts from cable broadband access.

Customers who choose Verizon Yahoo! for DSL will receive the service with a "single sign-on." The premium Yahoo!^® features at no additional charge include:

Online Protection - a simple, all-in-one security software suite to help protect consumers from online threats and nuisances, including:

• Anti-virus protection for both the PC and e-mail

• Premium spam protection that learns and improves over time

• Pop-Up Blocker to prevent annoying pop-up ads

• Anti-spyware to detect software that may be considered spyware/adware

• Award-winning parental controls to monitor and control children's online activities

Mailing & Sharing - more means for consumers to stay connected to the people who are the most important to them, including:

• 9 award-winning Yahoo! Mail accounts with a virtually unlimited 2 GB of storage each

• Unlimited photo storage and high-resolution photo downloads with Yahoo! Photos

• Advanced photo-sharing capabilities through Yahoo! Messenger^®

Entertainment - more ways to have more fun online, including:

• Access to more than 1 million songs to listen, share with subscribers and take to go through Verizon Yahoo! Music Unlimited

• Access to the largest library of online, TV-quality music videos from Yahoo! Music

• LAUNCHcast Plus customizable commercial-free radio

• Leading basic and premium games, as well as tournament play with Yahoo! Games

My Internet - the ability to better tailor the Internet, including:

• Exclusive, on-demand news and entertainment video content

• More than 500,000 content sources to personalize your broadband-optimized home page

• Premium browser and Web Sidebar that keep your favorites at your fingertips

With today's introduction of Verizon Yahoo! for DSL, Verizon Online becomes the only major Internet service provider in the United States to offer its customers their choice from multiple portal experiences.

The new Verizon Yahoo! for DSL service builds on the range of Yahoo!'s leading services available to the more than 47 million Verizon Wireless subscribers. Verizon and Yahoo! also plan to launch an additional co-branded service for customers of Verizon's new FiOS fiber-based Internet access service later this year.

To learn more about the Verizon Yahoo! For DSL service consumers can call 866-232-2831. The service is available online at www.verizon.net/verizonyahoo and http://promo.yahoo.com/verizon.

About Verizon

With more than $71 billion in annual revenues, Verizon Communications Inc. (NYSE:VZ) is one of the world's leading providers of communications services. Verizon has a diverse work force of more than 214,000 in four business units: Domestic Telecom provides customers based in 28 states with wireline and other telecommunications services, including broadband. Verizon Wireless owns and operates the nation's most reliable wireless network, serving 47.4 million voice and data customers across the United States. Information Services operates directory publishing businesses and provides electronic commerce services. International includes wireline and wireless operations and investments, primarily in the Americas and Europe. For more information, visit www.verizon.com.

About Yahoo!

Yahoo! Inc. (Nasdaq: YHOO) is a leading provider of comprehensive online products and services to consumers and businesses worldwide. Yahoo! is the No. 1 Internet brand globally and the most trafficked Internet destination worldwide. Headquartered in Sunnyvale, Calif., Yahoo!'s global network includes 25 world properties and is available in 13 languages.

^{Cautionary Statement Regarding Forward Looking Information}

This press release contains forward-looking statements involving risks and uncertainties concerning Yahoo!'s launch of this new co-branded service as well as Yahoo!'s strategic and operational plans. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. All information set forth in this release is as of August 23, 2005, and Yahoo! does not undertake any duty to update this information. More information about potential factors that could impact Yahoo!'s business and financial results is included under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in Yahoo!'s Annual Report on Form 10-K for the fiscal year ended December 31, 2004 and the Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2005, which are on file with the U.S. Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov.

Yahoo!, the Yahoo! logo and other Yahoo! related product and service names are the trademarks and/or registered trademarks of Yahoo! Inc. All other trademarks and service marks are the property of their respective owners.

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