First of the big ideas

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Our Mission

• To be the most visited online destination in the
  world.

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The Lycos Network Overview

• Fastest growing online network
• Reach 1 of every 2 Web users
• 50,000 new registrations each day
• Worlds largest online community
• Owner of 4 of Top 20 Web sites
• Lycos, Tripod, Angelfire, HotBot
• Leading multi-brand media model
• 30 million unique users
• 46.5 unduplicated reach

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The Lycos Network Strategy

• Leader in Navigation, Community, Commerce
  Aggregation
• Unique multiple brand media model
• Massive reach and scalability
• Demographic and content segmentation
• Revenue and cost synergies
• Integrated sales and user profiling
• Leveraging of infrastructure

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Audience Circulation
The Lycos Network Strategy
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Building Brand
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Building Brand
Unaided Ad Awareness 233
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Real Brand - Real Numbers
Unaided Brand Awareness 12 Unaided
Awareness 233 Tagline Association 142
Overall Imp./Top 2 Box 15 Find What
You Want Fast 29
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Far Reaching Distribution
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Distribution Success

• Comparison of Reach Growth

Source Media Metrix July 1, 1998 - July 31, 1999
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Distribution Success

• Lycos Network Sites Reach Growth

Source Media Metrix July 1, 1998 - July 31, 1999
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Reveue Streams
Advertising
E-Commerce

• Interstitials
• Sponsorships
• Premiere Graphics
• Banners
• Channels
• Keyword
• Showcase Boxes

• Slotting Fees
• Transaction Royalties
• Store Hosting

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Home Page Banners
Placements for banners on Lycos Network Home
Pages
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Channel Advertising
Auto Advertiser Banner Targeted to Auto Content
Here
Drop Down Box Search
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Keyword Banners Text Links
Banners 1) Keyword Cruise is typed
in 2) Travel Advertiser Banner
Bullseye Text 1) Keyword Cruise is typed
in 2) Travel Advertiser triggers Bullseye
link
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Distinguished Advertisers
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Base Metrics Are All Strong

• Average CPM at 23.50
• Expanding Duration and Value
• Improved Targeting
• Pedigree Client List
• Record July Quarter

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Commerce Aggregation
The Power of One
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Online Shopping Growth
U.S. Consumer
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LYCOShop Building Blocks

• Store Building
• Transaction Processing
• Auctions
• Classifieds
• Shopping Bot
• Recommendation Engine
• Buying Guides
• Merchant Rating
• Rewards
• User Interface
• Credit Card

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A Powerful Commerce Hub

• An essential distribution point
• Hundreds of millions of committed payments

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Lycos Ventures

• Powerful Strategic Fund with First Class Partners
• 75 million in funding
• Substantially expanded deal flow
• 300 business plans a month
• Lycos Network as a King Maker
• Creates visibility, revenue, and awareness for
  startups
• Awareness creates value for our partners
• Lycos captures first mover advantage
• Impact of fourfold increase in Research and
  Development

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Ventures To Date

• Gains

• Current Holdings

• Bidders Edge 19.9
• Frictionless 16.7
• Valent 16.7
• NeoPlanet 11.8
• Conducent 10.0
• AdOne 9.8
• Fairmarket 8.5
• SmartAge 6.0
• Student Advantage 1.6

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International Presence

• Joint Venture Strategy
• undervalued asset
• no consolidation of revenue or traffic
• Joint venture with leading companies worldwide
• Local presence in more than 24 markets

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International Presence

• Europe

European Joint Venure Bertelsmann Japanese Joint
Venture Sumitomo Korean Joint Venture
Mirae Singapore Joint Venture Singapore Telecom
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Growth

• Quarterly Revenue Growth
• (in millions)

Average Daily Page Views (in millions)
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Setting the Pace

• Sequential Quarterly Growth
• Q3 Q4
• Lycos 15 29
• Yahoo 13 23
• Excite 0 27
• Infoseek (2) 22

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Lycos ROI

• Rate of return since Public Offering

Lycos
SP
NASDAQ
1 year
2 year
3 year
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Opportunity!
Reach
Market CapValue in Billions
63.7
47.2
46.5
4.4
Source Media Metrix 8/31/99
Source Nasdaq.com 8/31/99
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Consistent Performance

• 13 Straight quarters of
• double digit revenue growth
• exceeding Wall Street top line revenue estimates
• exceeding Wall Street bottom line consensus
• 3 Straight years of 100 traffic growth
• 12 strategic investments
• 8 acquisitions
• proven financial and operational integration

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Summary

• Focused growth strategy
• Industry leading traffic growth
• Industry leading revenue growth
• Innovative e-commerce initiative
• Leading international position
• Consistent financial performance

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