Verizon and Yahoo Team Up to Deliver Broadband Service to Verizon Online's DSL and Fiber Customers

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NEW YORK and SUNNYVALE, Calif. - Verizon Communications Inc. (NYSE:VZ) and Yahoo! Inc. (Nasdaq:YHOO) today announced a multi-year alliance to deliver a fully integrated co-branded broadband offering to subscribers to Verizon Online's DSL and new fiber-based FiOS services. The alliance combines the strengths of Verizon, the country's largest communications service provider, with Yahoo!, the leading Internet destination and world's most recognized global Internet brand.

This new co-branded service will be offered, at no additional charge, to Verizon consumer broadband subscribers. Beginning this summer, customers will have the choice of Yahoo! in addition to the portal service Verizon offers today, and Verizon's existing base of subscribers will have the option to switch to the Verizon Yahoo! service. The companies will gear up aggressive marketing campaigns on the Yahoo! network as well as 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.

"Our unique ability to now offer customers their choice of portal options from first-class partners like Yahoo! gives Verizon a real competitive edge over offerings from other broadband companies," said Bob Ingalls, president of Verizon's Retail Markets organization. "Broadband users looking for more value and a superior online experience will come to Verizon because they know they can count on us to deliver innovative services like the new Verizon Yahoo! product."

Dan Rosensweig, chief operating officer, Yahoo! Inc., said, "Yahoo! is the leading portal in the world because we focus on providing our users with the most exciting, innovative and valuable experience on the Web. We are very excited to team up with Verizon, the largest communications company in the U.S., as their partner of choice in order to provide Verizon's subscribers with a compelling new Verizon Yahoo! offering.

"Yahoo!'s relationship with Verizon gives us a prime opportunity to deliver to the millions of broadband customers in Verizon's territory what they want -- when they want it, how they want it and where they want it. We believe that together, Yahoo! and Verizon can provide the leading broadband experience on the Web."

The deal represents a win-win for both companies, with Yahoo! receiving monthly per-subscriber fees. Verizon Online will share in revenues from premium services subscriptions, searches and advertising.

The alliance announced today builds upon an existing relationship to offer a range of Yahoo!'s leading services to Verizon Wireless' more than 40 million subscribers. Verizon and Yahoo! have also agreed to continue to look for additional partnering opportunities outside the co-branded broadband services agreement announced today.

In addition to customized Yahoo! products and services optimized for broadband, customers will benefit from a single sign-in so that subscribers only need one user name and password.

The service will include Yahoo!'s leading tools and services including: a powerful customized browsing environment; a personalized home page with access to more than 150,000 content sources from across the Web; award-winning e-mail with industry-leading spam protection and 2 gigabytes of storage and continued access to Verizon Online e-mail accounts; a full suite of safety and security tools including award-winning parental controls; a suite of digital photos tools including unlimited storage and access to high resolution downloads; a premium- level customizable radio station; access to the Web's largest catalogue of music videos, and streaming at higher bit rates; premium broadband content; and much more.

"Yahoo! brings a unique blend of innovative Web services, deep experience in partnering with broadband service providers and strong brand stature to this alliance," said Steve Boom, Yahoo! Inc. senior vice president, Broadband Access and Bundled Services. "We believe our relationships with leading broadband service providers around the world will continue to help us widen and deepen relationships with consumers on a global basis, and are very excited to embark on this new relationship with Verizon."

Verizon Communications Inc.

Verizon Communications Inc. (NYSE:VZ) is one of the world's leading providers of communications services. With a diverse work force of approximately 208,000, Verizon has four business units: Domestic Telecom serves customers based in 29 states with wireline telecommunications services, including broadband, nationwide long-distance and other services. Verizon Wireless owns and operates the nation's most reliable wireless network, serving 42.1 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

Yahoo! Inc.

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 January 17, 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 in the Annual Report on Form 10-K for the fiscal year ended December 31, 2003 and Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2004, including, without limitation, under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which are on file with the U.S.! Securities and Exchange Commission (the "SEC") and available at the SEC's website at Additional information will also be set forth in those sections in Yahoo!'s Annual Report on Form 10-K for the year ended December 31, 2004, which will be filed with the SEC in the first quarter of 2005.

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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