Business Opportunities

Yahoo! Reports Second Quarter 2004 Financial Results

Company Posts Revenues of $832 Million, Operating Income of $149 Million, Operating Income Before Depreciation and Amortization of $234 Million

Make Money Online SUNNYVALE, Calif.--(BUSINESS WIRE)--July 7, 2004-- Yahoo! Inc. (Nasdaq:YHOO) today reported results for the second quarter ended June 30, 2004. "Yahoo!'s second quarter results represent another record quarter for the Company and demonstrate continued execution of our core priorities," said Terry Semel, chairman and chief executive officer, Yahoo!. "Yahoo! is in the midst of a product renaissance, as we have been busier than ever rolling out new products and services we believe will be essential to our users."
-- Revenues were $832 million for the second quarter of 2004, compared to $321 million for the same period of 2003.

Stamps.com Reports Third Quarter 2003 Financial Results Revenue Up 32% Year over Year; Customer Acquisition Momentum Builds SANTA MONICA, October 29, Stamps.com™ ( STMP) today announced financial results for the third fiscal quarter ended September 30, 2003. Third quarter revenue was up 32% versus the same quarter last year, and up 7% versus the second fiscal quarter of 2003. In addition, the company reported an increase in customer acquisition during the third quarter, particularly with higher value Power Plan customers.

Internet Business Opportunity -- Revenues excluding traffic acquisition costs ("TAC") were $609 million for the second quarter of 2004, compared to $321 million for the same period of 2003.

Stamps.com Reports Second Quarter 2000 Financial Results Second Quarter Revenue Grows 80 Percent SANTA MONICA, Calif. July 13, Stamps.com today announced that second quarter revenue was $3.7 million, an increase of 80 percent over first quarter revenue. cash charges was $34.4 million, or $0.72 per share based on the weighted average common shares outstanding of 48.0 million. term investments ended the second quarter at $333.6 million, or $7 per share.

Free Money -- Gross profit for the second quarter of 2004 was $535 million, compared to $275 million for the same period of 2003.

ScanSoft, Inc. ( SSFT), a global leader of speech and imaging solutions, today announced financial results for the second fiscal quarter of 2005 ended March 31, 2005. ScanSoft reported revenue of $53.1 million for the quarter ended March 31, 2005, a 24 percent increase over revenue of $42.8 million for the quarter ended March 31, 2004.

Work At Home Business -- Operating income for the second quarter of 2004 was $149 million, compared to $63 million for the same period of 2003.

Stamps.com Reports Second Quarter 2003 Financial Results Revenue Up 34% Year over Year; Total Postage Printed Up 78% Year over Year SANTA MONICA, Calif. July 24, Stamps.com™ ( STMP) today announced financial results for the second fiscal quarter ended June 30, 2003. Second quarter revenue was up 34% versus the same quarter last year, and up 9% versus the first fiscal quarter of 2003. Total postage printed using the Stamps.com service during the second quarter was up 78% from the same period last year as customer usage of newer Stamps.com features such as NetStamps™ and Shipping Label continues to increase.

Free Online Affiliate Program -- Operating income before depreciation and amortization for the second quarter of 2004 was $234 million, compared to $98 million for the same period of 2003.

- ScanSoft, Inc. ( SSFT), a global leader of speech and imaging solutions, today announced financial results for the first fiscal quarter of 2005 ended December 31, 2004. ScanSoft reported revenue of $60.6 million for the quarter ended December 31, 2004, a 29 percent increase over revenue of $46.9 million for the quarter ended December 31, 2003.

Auction Coin Money Paper -- Cash flow from operating activities for the second quarter of 2004 was $250 million, compared to $92 million for the same period of 2003.

Franchise Business Opportunity -- Free cash flow for the second quarter of 2004 was $194 million, compared to $71 million for the same period of 2003.

Best Free Online Affiliate "Yahoo! is benefiting from its diverse and balanced sources of revenue, which have well positioned the Company to deliver strong, consistent, and profitable growth," said Susan Decker, chief financial officer, Yahoo!. "Yahoo! remains committed to making the appropriate investments in our products and services in order to ensure that they remain among the most popular on the Internet, and continue to contribute to the creation of long-term shareholder value."

Blogging Money Thebillivard Second Quarter 2004 Financial Highlights

Best Home Based Business Cash flow from operating activities and Free cash flow: Cash flow from operating activities for the second quarter of 2004 totaled $250 million, compared to $92 million for the same period of 2003. Free cash flow for the second quarter of 2004 totaled $194 million, a 172 percent increase over the $71 million reported for the same period of 2003.

Affiliate Marketing Program Cash, cash equivalents and investments in marketable securities were approximately $2,650 million at June 30, 2004, compared to $2,790 million at March 31, 2004. The net decrease in cash, cash equivalents and investments in marketable securities balances is primarily a result of $530 million used for acquisitions completed in the second quarter of 2004, net of cash acquired, offset by free cash flow of $194 million and $225 million of cash generated from the issuance of common stock as a result of the exercise of employee stock options for the quarter ended June 30, 2004.

Money Site Thebillivard Com Revenues: In the second quarter of 2004, Yahoo! reported revenues of $832 million, a 159 percent increase compared to the $321 million reported in the same period in 2003.

Online Business Opportunity Marketing services revenue for the second quarter of 2004 totaled $691 million, a 215 percent increase from the $219 million reported in the same period in 2003. The year over year increase in marketing services revenue resulted from strong growth in Yahoo!'s organic marketing services revenues, primarily in the search and marketplace properties, and incremental revenue associated with acquisitions completed during the past year.

Pay Per Click Affiliate Fees revenue for the second quarter of 2004 totaled $104 million, a 49 percent increase compared to the $70 million reported in the same period in 2003. This increase was primarily driven by the growth in the number of paying relationships for Yahoo!'s premium services, which were approximately 6.4 million at June 30, 2004 compared to approximately 3.5 million at June 30, 2003.

Cnn Money Listings revenue for the second quarter of 2004 totaled $38 million, a 17 percent increase compared to the $32 million reported in the same period in 2003. This increase was primarily driven by our search and marketplace listings.

Business Opportunity Lead Revenues excluding TAC and Gross profit: Revenues excluding TAC for the second quarter of 2004 totaled $609 million, a 90 percent increase compared to the $321 million in the same period of 2003. Gross profit for the second quarter of 2004 totaled $535 million, compared to $275 million in the same period of 2003. The increase in revenues excluding TAC for the quarter ended June 30, 2004, when compared to the same period in 2003, resulted from the combination of a strong increase in revenues from Yahoo!'s organic marketing services revenues, as well as the incremental revenue associated with the acquisitions completed during the past year.

Affiliate Program Directory Operating income and Operating income before depreciation and amortization: Operating income for the second quarter of 2004 totaled $149 million, compared to $63 million in the same period of 2003. Operating income before depreciation and amortization for the second quarter of 2004 totaled $234 million, a 138 percent increase compared to the $98 million achieved in the same period of 2003. The increase in operating income and operating income before depreciation and amortization for the quarter ended June 30, 2004, when compared to the same period in 2003, reflects strong growth in revenues excluding TAC while maintaining ongoing cost discipline.

Making Money Program Net Income: Net income for the second quarter of 2004 was $113 million or $0.08 per diluted share, compared with $51 million or $0.04 per diluted share for the same period of 2003.

Work From Home Business Please refer to the "Note to Unaudited Condensed Consolidated Statements of Operations" for definition of these key financial measures and "Business Outlook" attached to this press release.

Internet Marketing Affiliate Quarterly Conference Call

Money In The Bank Yahoo! will host a conference call to discuss second quarter results at 5:00 p.m. Eastern Time today. A live Webcast of the conference call, together with supplemental financial information can be accessed through the Company's Investor Relations Web site at http://yhoo.client.shareholder.com/earnings.cfm. In addition, an archive of the Webcast can be accessed through the same link. An audio replay of the call will be available following the conference call by calling 877-213-9653 or 630-652-3041, reservation number: 9286236

Internet Home Business About Yahoo!

Credit Card Affiliate Program Yahoo! Inc. is the No. 1 Internet brand globally and the most trafficked Internet destination. Headquartered in Sunnyvale, Calif., Yahoo!'s mission is to provide online products and services essential to consumers' lives and offer a full range of marketing solutions to enable businesses to connect with Yahoo!'s hundreds of millions of users worldwide.

Unclaimed Money This press release includes the following financial measures: revenues excluding traffic acquisition costs, operating income before depreciation and amortization, and free cash flow. These measures are defined as non-GAAP financial measures by the Securities and Exchange Commission and may be different from non-GAAP financial measures used by other companies. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. See Note to Unaudited Condensed Consolidated Statements of Operations and Reconciliations to Unaudited Condensed Consolidated Statements of Operations included in this press release for further information regarding these non-GAAP financial measures.

Mlm Business Opportunity This press release and its attachments contain forward-looking statements that involve risks and uncertainties concerning Yahoo!'s expected financial performance (as described without limitation in the Business Outlook section and quotations from management in this press release), 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 as an indication of future performance. The potential risks and uncertainties include, among others, decreases or delays in marketing services spending, including performance of the Company's recently acquired businesses; the actual increases in demand by customers for Yahoo!'s premium services; acceptance of new products and services; the Company's ability to compete with new or existing competitors; general economic conditions; risks related to the integration of recent acquisitions; dependence on key personnel; and the dependence on third parties for technology, services, content and distribution. All information set forth in this release and its attachments is as of July 7, 2004. Yahoo! undertakes no duty to update this information. More information about potential factors that could affect the Company's business and financial results is included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2003 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 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 SEC and available at the SEC's website at www.sec.gov. Additional information will also be set forth in those sections of Yahoo!'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2004, which will be filed with the SEC in the third quarter of 2004.

Ppc Affiliate Program Yahoo! and the Yahoo! logos are trademarks and/or registered trademarks of Yahoo! Inc. All other names are trademarks and/or registered trademarks of their respective owners.

Money Exchange Yahoo! Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)

Income Opportunity Home Based Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2003 2004 2003 2004
---------- ---------- ---------- ----------

Make Money With Affiliate Revenues $ 321,406 $ 832,299 $ 604,354 $1,590,085

Money Gram Cost of revenues 46,842 297,383 89,974 579,088

Home Internet Based Business ---------- ---------- ---------- ----------
Gross profit 274,564 534,916 514,380 1,010,997
---------- ---------- ---------- ----------

Advertising Affiliate Program Operating expenses:
Sales and marketing 122,106 191,875 235,585 358,170
Product development 45,099 87,140 81,497 164,129
General and
administrative 33,934 63,159 62,574 120,715
Stock compensation
expense (1) 891 7,140 1,466 19,712
Amortization of
intangibles 9,762 36,108 15,509 66,620
---------- ---------- ---------- ----------
Total operating
expenses 211,792 385,422 396,631 729,346
---------- ---------- ---------- ----------

Make Money At Home Income from operations 62,772 149,494 117,749 281,651

Homebased Business Opportunity Other income, net 10,334 13,179 22,864 27,557
Earnings in equity
interests 10,001 24,108 19,730 43,976
Minority interests in
operations of
consolidated
subsidiaries (1,126) (1,752) (3,034) (2,234)
---------- ---------- ---------- ----------

Online Affiliate Program Income before income
taxes 81,981 185,029 157,309 350,950

Money Investing Provision for income
taxes 31,153 72,517 59,778 137,226
---------- ---------- ---------- ----------

Work At Home Based Business Net income $ 50,828 $ 112,512 $ 97,531 $ 213,724
========== ========== ========== ==========

Affiliate Sales Program Net income per share -
diluted $ 0.04 $ 0.08 $ 0.08 $ 0.15
========== ========== ========== ==========
Shares used in per
share calculation -
diluted 1,257,154 1,449,707 1,244,365 1,438,128
========== ========== ========== ==========

Making Money
(1) Stock compensation expense is allocated as follows:

Home Based Mlm Business Sales and marketing $ 112 $ 2,376 $ 321 $ 5,981
Product development 588 2,548 874 7,271
General and
administrative 191 2,216 271 6,460
---------- ---------- ---------- ----------
Total stock
compensation
expense $ 891 $ 7,140 $ 1,466 $ 19,712
========== ========== ========== ==========

Pay Per Sale Affiliate Program ----------------------------------------------------------------------
Supplemental Financial Data (See Note)
---------------------------
Revenues excluding
traffic acquisition
costs ("TAC") $ 321,406 $ 609,141 $ 604,354 $1,159,291
Operating income
before depreciation
and amortization $ 98,166 $ 234,062 $ 182,791 $ 444,983
Free cash flow $ 71,353 $ 194,003 $ 149,478 $ 391,289
----------------------------------------------------------------------

Mad Money Yahoo! Inc.
Note to Unaudited Condensed Consolidated Statements of Operations

Business Opportunity From Home
The Company believes that the non-GAAP financial measures revenues
excluding traffic acquisition costs ("TAC"), operating income before
depreciation and amortization, and free cash flow are helpful, when
presented in conjunction with the comparable GAAP measures of gross
profit, income from operations, and cash flow from operating
activities.

Mortgage Affiliate Program Revenues excluding TAC is defined as gross profit before other cost of
revenues. Following our acquisition of Overture Services, Inc.
("Overture"), on October 7, 2003, our total costs of revenue include
TAC paid to affiliates of Overture in connection with its sponsored
search services. TAC also comprises a significant percentage of the
revenues reported from Overture. We believe revenues excluding TAC is
a useful measure to management and investors because it is more
comparable to our historically reported profitability numbers. A
limitation of revenues excluding TAC is that other cost of revenues
are excluded and therefore it does not represent the actual gross
profit for the period.

Microsoft Money Operating income before depreciation and amortization is defined as
income (loss) from operations before depreciation, amortization of
intangible assets and amortization of stock compensation expense. We
consider operating income before depreciation and amortization to be
an important indicator of the operational strength of the Company.
This measure eliminates the effects of depreciation, amortization of
intangible assets and amortization of stock compensation expense from
period to period, which we believe is useful to management and
investors in evaluating the operating performance of the Company as
depreciation and amortization costs are not directly attributable to
the underlying performance of the Company's business operations. A
limitation associated with this measure is that it does not reflect
the periodic costs of certain capitalized tangible and intangible
assets used in generating revenues in the Company's businesses.
Management evaluates the costs of such tangible and intangible assets
through other financial measures such as capital expenditures. A
further limitation associated with this measure is that it does not
include stock compensation expenses related to our workforce.
Management compensates for this limitation by providing supplemental
information about stock compensation expense on the face of our
consolidated statements of operations.

New Business Opportunity Free cash flow is defined as cash flow from operating activities less
net capital expenditures. In addition, for the quarters ended June 30,
2002 and December 31, 2003, free cash flow also included change in
long-term deferred revenue and Overture receivable settled through
acquisition, respectively. Change in long-term deferred revenue
represented cash payments received in advance of revenue recognized.
Overture receivable settled through acquisition represented a Yahoo!
accounts receivable balance owed from Overture that was settled as
part of the acquisition. We consider free cash flow to be a liquidity
measure which provides useful information to management and investors
about the amount of cash generated after the acquisition of property
and equipment, which can then be used for strategic opportunities
including, among others, investing in the Company's business, making
strategic acquisitions, strengthening the balance sheet and
repurchasing stock. A limitation of free cash flow is that it does not
represent the total increase or decrease in the cash balance for the
period.

Web Master Affiliate Program In addition, management refers to these financial measures to
facilitate internal and external comparisons to the Company's
historical operating results, in making operating decisions, for
budget planning purposes, and in some cases as a factor in determining
management compensation. These measures should be considered in
addition to, not as a substitute for, or superior to, gross profit,
income from operations, cash flow from operating activities, or other
measures of financial performance prepared in accordance with
generally accepted accounting principles.

Money Converter Yahoo! Inc.
Reconciliations to Unaudited Condensed Consolidated
Statements of Operations
(in thousands)

Affiliate Program Software Three Months Ended Six Months Ended
June 30, June 30,
----------------------- ----------------------
2003 2004 2003 2004
----------- ----------- ----------- ----------

Money Conversion Revenues for groups of similar services:
Marketing services $ 219,198 $ 690,634 $ 409,163 $1,326,102
Fees 69,926 103,851 133,655 192,321
Listings 32,282 37,814 61,536 71,662
----------- ----------- ----------- ----------
Total revenues $ 321,406 $ 832,299 $ 604,354 $1,590,085
=========== =========== =========== ==========

Best Home Business Opportunity Revenues by segment:
United States $ 271,345 $ 624,161 $ 509,891 $1,223,432
International 50,061 208,138 94,463 366,653
----------- ----------- ----------- ----------
Total revenues $ 321,406 $ 832,299 $ 604,354 $1,590,085
=========== =========== =========== ==========

Join Affiliate Program Cost of revenues:
Traffic acquisition
costs ("TAC") $ - $ 223,158 $ - $ 430,794
Other cost of
revenues 46,842 74,225 89,974 148,294
----------- ----------- ----------- ----------
Total cost of
revenues $ 46,842 $ 297,383 $ 89,974 $ 579,088
=========== =========== =========== ==========

Check And Money Order Cashing Revenues excluding TAC:
Gross profit $ 274,564 $ 534,916 $ 514,380 $1,010,997
Other cost of
revenues 46,842 74,225 89,974 148,294
----------- ----------- ----------- ----------
Revenues excluding
TAC $ 321,406 $ 609,141 $ 604,354 $1,159,291
=========== =========== =========== ==========

Business Investment Revenues excluding TAC by segment:
United States:
Gross profit $ 232,890 $ 413,788 $ 436,118 $ 802,896
Other cost of
revenues 38,455 60,304 73,773 122,921
----------- ----------- ----------- ----------
Revenues excluding
TAC $ 271,345 $ 474,092 $ 509,891 $ 925,817
=========== =========== =========== ==========

Business Opportunity Affiliate International:
Gross profit $ 41,674 $ 121,128 $ 78,262 $ 208,101
Other cost of
revenues 8,387 13,921 16,201 25,373
----------- ----------- ----------- ----------
Revenues excluding
TAC $ 50,061 $ 135,049 $ 94,463 $ 233,474
=========== =========== =========== ==========

Money Market Operating income before depreciation and amortization:
Income from
operations $ 62,772 $ 149,494 $ 117,749 $ 281,651
Depreciation and
amortization 34,503 77,428 63,576 143,620
Stock compensation
expense 891 7,140 1,466 19,712
----------- ----------- ----------- ----------
Operating income
before depreciation
and amortization $ 98,166 $ 234,062 $ 182,791 $ 444,983
=========== =========== =========== ==========

Business Home Internet Operating income before depreciation and amortization by segment:
Operating income
before depreciation
and amortization -
United States $ 91,446 $ 198,365 $ 168,969 $ 389,619
Operating income
before depreciation
and amortization -
International 6,720 35,697 13,822 55,364
----------- ----------- ----------- ----------
Operating income
before depreciation
and amortization 98,166 234,062 182,791 444,983

Internet Affiliate Program Corporate operating
costs and expenses:
Depreciation and
amortization (34,503) (77,428) (63,576) (143,620)
Stock compensation
expense (891) (7,140) (1,466) (19,712)
----------- ----------- ----------- ----------
Income from
operations $ 62,772 $ 149,494 $ 117,749 $ 281,651
=========== =========== =========== ==========

Fast Money United States:
Income from
operations $ 60,472 $ 128,556 $ 111,472 $ 249,845
Depreciation and
amortization 30,083 63,711 56,031 123,011
Stock compensation
expense 891 6,098 1,466 16,763
----------- ----------- ----------- ----------
Operating income
before depreciation
and amortization -
United States $ 91,446 $ 198,365 $ 168,969 $ 389,619
=========== =========== =========== ==========

Home Money Making Business International:
Income from
operations $ 2,300 $ 20,938 $ 6,277 $ 31,806
Depreciation and
amortization 4,420 13,717 7,545 20,609
Stock compensation
expense - 1,042 - 2,949
----------- ----------- ----------- ----------
Operating income
before depreciation
and amortization -
International $ 6,720 $ 35,697 $ 13,822 $ 55,364
=========== =========== =========== ==========

Affiliate Affiliatelandmine Free cash flow:
Cash flow from
operating
activities $ 92,123 $ 249,702 $ 190,751 $ 485,677
Acquisition of
property and
equipment, net (20,770) (55,699) (41,273) (94,388)
----------- ----------- ----------- ----------
Free cash flow $ 71,353 $ 194,003 $ 149,478 $ 391,289
=========== =========== =========== ==========

Make Money From Home Yahoo! Inc.
Business Outlook

Free Home Based Business Business Outlook

Casino Affiliate Program The following business outlook is based on current information and
expectations as of July 7, 2004. Yahoo!'s business outlook as of today
is expected to be available on the Company's Investor Relations Web
site throughout the current quarter. It is currently expected the full
business outlook will not be updated until the release of Yahoo!'s
next quarterly earnings announcement, notwithstanding subsequent
developments; however, Yahoo! may update the full business outlook or
any portion thereof at any time.

Money Maker Three months Year
ending ending
September 30, December 31,
2004 2004
------------ ----------------

Online Internet Business Revenues excluding traffic acquisition costs (2) ("TAC") outlook
(in millions):
Gross Profit $535 - $570 $2,145 - $2,215
Other cost of revenues $75 - $80 $310 - $320
------------ ----------------
Revenues excluding TAC $610- $650 $2,455 - $2,535
============ ================

Make Money Online With Operating income before depreciation and amortization (2) outlook
(in millions):
Income from operations $152 - $169 $620 - $650
Depreciation and amortization $73 - $78 $295 - $310
Stock compensation expense $5 - $8 $30 - $35
------------ ----------------
Operating income before depreciation
and amortization $230 - $255 $945 - $995
============ ================

Money Market Account (2) Refer to Note to Unaudited Condensed Consolidated Statements of
Operations.

Best Business Opportunity Yahoo! Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)

Debt Management Affiliate Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2003 2004 2003 2004
---------- ---------- ---------- ----------

Save Money CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 50,828 $ 112,512 $ 97,531 $ 213,724
Adjustments to
reconcile net
income to net cash
provided by
operating
activities:
Depreciation and
amortization 34,503 77,428 63,576 143,620
Tax benefits from
stock options 28,588 60,371 49,645 121,121
Earnings in equity
interests (10,001) (24,108) (19,730) (43,976)
Minority interests
in operations of
consolidated
subsidiaries 1,126 1,752 3,034 2,234
Stock compensation
expense 891 7,140 1,466 19,712
Gains from sale of
assets and other,
net 4,535 10,889 7,547 9,616
Changes in assets
and liabilities,
net of effects of
acquisitions:
Accounts
receivable, net (8,182) (37,011) (23,529) (35,822)
Prepaid expenses
and other
assets (9,180) 4,992 (3,965) 582
Accounts payable (3,008) 4,316 (405) (13,593)
Accrued expenses
and other
liabilities (5,193) 19,566 (933) 51,869
Deferred revenue 7,216 11,855 16,514 16,590
---------- ---------- ---------- ----------
Net cash provided by
operating activities 92,123 249,702 190,751 485,677
---------- ---------- ---------- ----------

Home Business Computer CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of
property and
equipment, net (20,770) (55,699) (41,273) (94,388)
Purchases of
marketable
securities (528,738) (347,458) (666,178) (862,013)
Proceeds from sales
and maturities of
marketable
securities 219,981 369,663 650,499 751,723
Acquisitions, net of
cash acquired - (530,110) (228,318) (573,877)
Purchases of other
investments (7,555) (491) (6,274) (491)
Proceeds from sale
of assets and other - 6,068 - 16,979
---------- ---------- ---------- ----------
Net cash used in
investing activities (337,082) (558,027) (291,544) (762,067)
---------- ---------- ---------- ----------

Web Affiliate Program CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from
issuance of debt, net 733,125 - 733,125 -
Proceeds from
issuance of common
stock, net 105,044 225,383 128,611 317,678
Structured stock
repurchase - - - (50,000)
---------- ---------- ---------- ----------
Net cash provided by
financing activities 838,169 225,383 861,736 267,678
---------- ---------- ---------- ----------

Money Transfer Effect of exchange
rate changes on cash
and cash equivalents 3,929 13 3,667 3,053

Small Home Based Business Net change in cash and
cash equivalents 597,139 (82,929) 764,610 (5,659)
Cash and cash
equivalents,
beginning of period 478,443 790,809 310,972 713,539
---------- ---------- ---------- ----------

Web Site Affiliate Program Cash and cash
equivalents, end of
period $1,075,582 $ 707,880 $1,075,582 $ 707,880
========== ========== ========== ==========

Eddie Money Yahoo! Inc.
Condensed Consolidated Balance Sheets
(in thousands)

Business Affiliate Program Dec. 31, June 30,
2003 2004
---------- ----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 713,539 $ 707,880
Short-term investments in marketable
securities 595,978 829,387
Accounts receivable, net 282,415 337,082
Prepaid expenses and other current assets 129,777 138,518
---------- ----------
Total current assets 1,721,709 2,012,867

Cash Money Long-term investments in marketable securities 1,261,693 1,112,556
Property and equipment, net 449,512 463,890
Goodwill 1,805,561 2,295,585
Intangible assets, net 445,640 504,841
Other assets 247,539 270,288
---------- ----------
Total assets $5,931,654 $6,660,027
========== ==========

Online Home Based Business
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 31,890 $ 27,075
Accrued and other current liabilities 483,628 552,867
Deferred revenue 192,278 213,378
---------- ----------
Total current liabilities 707,796 793,320

Network Marketing Affiliate Long term debt 750,000 750,000
Other liabilities 72,890 111,768
Minority interests in consolidated subsidiaries 37,478 43,812
Stockholders' equity 4,363,490 4,961,127
---------- ----------
Total liabilities and stockholders' equity $5,931,654 $6,660,027
========== ==========

Money Management Yahoo! Inc.
Unaudited Supplemental Financial Information and Business Metrics
(in thousands)

Federal Business Opportunity Q1 Q2 Q3 Q4
2003 2003 2003 2003
---------- ---------- ---------- ----------

Residual Income Affiliate Revenues for groups of similar services:
Marketing services $ 189,965 $ 219,198 $ 245,072 $ 545,498
Fees 63,729 69,926 79,358 85,179
Listings 29,254 32,282 32,391 33,245
---------- ---------- ---------- ----------
Total revenues $ 282,948 $ 321,406 $ 356,821 $ 663,922
========== ========== ========== ==========

Money Order Revenues for groups of similar services (Trailing Twelve Months):
Marketing services $ 703,858 $ 771,346 $ 850,657 $1,199,733
Fees 232,124 252,987 275,014 298,192
Listings 107,368 114,631 121,291 127,172
---------- ---------- ---------- ----------
Total revenues $1,043,350 $1,138,964 $1,246,962 $1,625,097
========== ========== ========== ==========

Affiliate Program Management Revenues by segment:
United States $ 238,546 $ 271,345 $ 299,759 $ 545,503
International 44,402 50,061 57,062 118,419
---------- ---------- ---------- ----------
Total revenues $ 282,948 $ 321,406 $ 356,821 $ 663,922
========== ========== ========== ==========

Ge Money Bank Revenues by segment (Trailing Twelve Months):
United States $ 878,532 $ 962,412 $1,052,036 $1,355,153
International 164,818 176,552 194,926 269,944
---------- ---------- ---------- ----------
Total revenues $1,043,350 $1,138,964 $1,246,962 $1,625,097
========== ========== ========== ==========

Legitimate Home Based Business Cost of revenues:
Traffic acquisition
costs ("TAC") $ - $ - $ - $ 152,583
Other cost of revenues 43,132 46,842 47,287 68,259
---------- ---------- ---------- ----------
Total cost of revenues $ 43,132 $ 46,842 $ 47,287 $ 220,842
========== ========== ========== ==========

Best Affiliate Marketing Cost of revenues (Trailing Twelve Months):
Traffic acquisition
costs $ - $ - $ - $ 152,583
Other cost of revenues 168,192 173,326 179,580 205,520
---------- ---------- ---------- ----------
Total cost of revenues $ 168,192 $ 173,326 $ 179,580 $ 358,103
========== ========== ========== ==========

Money Magazine Revenues excluding TAC:
Gross profit $ 239,816 $ 274,564 $ 309,534 $ 443,080
Other cost of revenues 43,132 46,842 47,287 68,259
---------- ---------- ---------- ----------
Revenues excluding TAC $ 282,948 $ 321,406 $ 356,821 $ 511,339
========== ========== ========== ==========

My Affiliate Program Affiliate Revenues excluding TAC (Trailing twelve months):
Gross profit $ 875,158 $ 965,638 $1,067,382 $1,266,994
Other cost of revenues 168,192 173,326 179,580 205,520
---------- ---------- ---------- ----------
Revenues excluding TAC $1,043,350 $1,138,964 $1,246,962 $1,472,514
========== ========== ========== ==========

Blog Money Thebillivard Com Revenues excluding TAC by segment:
United States:
Gross profit $ 203,228 $ 232,890 $ 261,290 $ 371,557
Other cost of revenues 35,318 38,455 38,469 58,446
---------- ---------- ---------- ----------
Revenues excluding TAC $ 238,546 $ 271,345 $ 299,759 $ 430,003
========== ========== ========== ==========

Business Home Idea Internet International:
Gross profit $ 36,588 $ 41,674 $ 48,244 $ 71,523
Other cost of revenues 7,814 8,387 8,818 9,813
---------- ---------- ---------- ----------
Revenues excluding TAC $ 44,402 $ 50,061 $ 57,062 $ 81,336
========== ========== ========== ==========

Niche Affiliate Marketing Revenues excluding TAC by segment (Trailing Twelve Months):
United States:
Gross profit $ 744,266 $ 822,088 $ 905,792 $1,068,965
Other cost of revenues 134,266 140,324 146,244 170,688
---------- ---------- ---------- ----------
Revenues excluding TAC $ 878,532 $ 962,412 $1,052,036 $1,239,653
========== ========== ========== ==========

Business Money International:
Gross profit $ 130,892 $ 143,550 $ 161,590 $ 198,029
Other cost of revenues 33,926 33,002 33,336 34,832
---------- ---------- ---------- ----------
Revenues excluding TAC $ 164,818 $ 176,552 $ 194,926 $ 232,861
========== ========== ========== ==========

Business Opportunity Home Operating income before depreciation and amortization:
Income from operations $ 54,977 $ 62,772 $ 83,498 $ 94,419
Depreciation and
amortization 29,073 34,503 33,013 63,099
Stock compensation
expense 575 891 485 20,078
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization $ 84,625 $ 98,166 $ 116,996 $ 177,596
========== ========== ========== ==========

Travel Affiliate Program Operating income before depreciation and amortization (Trailing Twelve
Months):
Income from operations $ 147,340 $ 202,594 $ 256,615 $ 295,666
Depreciation and
amortization 115,507 122,534 125,796 159,688
Stock compensation
expense 3,357 3,129 2,661 22,029
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization $ 266,204 $ 328,257 $ 385,072 $ 477,383
========== ========== ========== ==========

Easy Money Operating income before depreciation and amortization by segment:
Operating income before
depreciation and
amortization - United
States $ 77,523 $ 91,446 $ 106,607 $ 165,796
Operating income before
depreciation and
amortization -
International 7,102 6,720 10,389 11,800
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization 84,625 98,166 116,996 177,596

Make Money Business Depreciation and
amortization (29,073) (34,503) (33,013) (63,099)
Stock compensation
expense (575) (891) (485) (20,078)
---------- ---------- ---------- ----------
Income from operations $ 54,977 $ 62,772 $ 83,498 $ 94,419
========== ========== ========== ==========

Affiliate Internet Make Money Operating income before depreciation and amortization by segment
(Trailing Twelve Months):
Operating income before
depreciation and
amortization - United
States $ 257,795 $ 309,568 $ 357,601 $ 441,372
Operating income before
depreciation and
amortization -
International 8,409 18,689 27,471 36,011
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization 266,204 328,257 385,072 477,383

Money Clip Depreciation and
amortization (115,507) (122,534) (125,796) (159,688)
Stock compensation
expense (3,357) (3,129) (2,661) (22,029)
---------- ---------- ---------- ----------
Income from operations $ 147,340 $ 202,594 $ 256,615 $ 295,666
========== ========== ========== ==========

Home Base Business Opportunity Operating income before depreciation and amortization by segment:
United States:
Income from operations $ 51,000 $ 60,472 $ 77,684 $ 90,246
Depreciation and
amortization 25,948 30,083 28,438 57,423
Stock compensation
expense 575 891 485 18,127
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization - United
States $ 77,523 $ 91,446 $ 106,607 $ 165,796
========== ========== ========== ==========

Ecommerce Affiliate Program International:
Income from operations $ 3,977 $ 2,300 $ 5,814 $ 4,173
Depreciation and
amortization 3,125 4,420 4,575 5,676
Stock compensation
expense - - - 1,951
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization -
International $ 7,102 $ 6,720 $ 10,389 $ 11,800
========== ========== ========== ==========

Make Money Fast Operating income before depreciation and amortization by segment
(Trailing Twelve Months):
United States:
Income from operations $ 150,646 $ 197,244 $ 244,177 $ 279,402
Depreciation and
amortization 103,792 109,195 110,763 141,892
Stock compensation
expense 3,357 3,129 2,661 20,078
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization - United
States $ 257,795 $ 309,568 $ 357,601 $ 441,372
========== ========== ========== ==========

Affiliate Program Making Money International:
Income (loss) from
operations $ (3,306)$ 5,350 $ 12,438 $ 16,264
Depreciation and
amortization 11,715 13,339 15,033 17,796
Stock compensation
expense - - - 1,951
---------- ---------- ---------- ----------
Operating income before
depreciation and
amortization -
International $ 8,409 $ 18,689 $ 27,471 $ 36,011
========== ========== ========== ==========

Money Exchange Rate Free cash flow:
Cash flow from operating
activities $ 98,628 $ 92,123 $ 135,533 $ 101,860
Acquisition of property
and equipment, net (20,503) (20,770) (38,445) (37,611)
Overture receivable
settled through
acquisition - - - 28,071
---------- ---------- ---------- ----------
Free cash flow $ 78,125 $ 71,353 $ 97,088 $ 92,320
========== ========== ========== ==========

Affiliate Partner Program Free cash flow (Trailing Twelve Months):
Cash flow from operating
activities $ 353,633 $ 342,374 $ 405,642 $ 428,144
Acquisition of property
and equipment, net (64,769) (71,238) (96,390) (117,329)
Change in long-term
deferred revenue (30,000) - - -
Overture receivable
settled through
acquisition - - - 28,071
---------- ---------- ---------- ----------
Free cash flow $ 258,864 $ 271,136 $ 309,252 $ 338,886
========== ========== ========== ==========

Earn Money
Q1 Q2
2004 2004
---------- ----------

Serious Home Based Business Revenues for groups of similar services:
Marketing services $ 635,468 $ 690,634
Fees 88,470 103,851
Listings 33,848 37,814
---------- ----------
Total revenues $ 757,786 $ 832,299
========== ==========

Internet Marketing Online Revenues for groups of similar services (Trailing Twelve Months):
Marketing services $1,645,236 $2,116,672
Fees 322,933 356,858
Listings 131,766 137,298
---------- ----------
Total revenues $2,099,935 $2,610,828
========== ==========

Saving Money Revenues by segment:
United States $ 599,271 $ 624,161
International 158,515 208,138
---------- ----------
Total revenues $ 757,786 $ 832,299
========== ==========

Business Opportunity Weblog Revenues by segment (Trailing Twelve Months):
United States $1,715,878 $2,068,694
International 384,057 542,134
---------- ----------
Total revenues $2,099,935 $2,610,828
========== ==========

Christian Affiliate Program Cost of revenues:
Traffic acquisition
costs ("TAC") $ 207,636 $ 223,158
Other cost of revenues 74,069 74,225
---------- ----------
Total cost of revenues $ 281,705 $ 297,383
========== ==========

Make Money On The Internet Cost of revenues (Trailing Twelve Months):
Traffic acquisition
costs $ 360,219 $ 583,377
Other cost of revenues 236,457 263,840
---------- ----------
Total cost of revenues $ 596,676 $ 847,217
========== ==========

Unique Home Based Business Revenues excluding TAC:
Gross profit $ 476,081 $ 534,916
Other cost of revenues 74,069 74,225
---------- ----------
Revenues excluding TAC $ 550,150 $ 609,141
========== ==========

Affiliate Program Review Revenues excluding TAC
(Trailing twelve months):
Gross profit $1,503,259 $1,763,611
Other cost of revenues 236,457 263,840
---------- ----------
Revenues excluding TAC $1,739,716 $2,027,451
========== ==========

Cash Money Record Revenues excluding TAC by segment:
United States:
Gross profit $ 389,108 $ 413,788
Other cost of revenues 62,617 60,304
---------- ----------
Revenues excluding TAC $ 451,725 $ 474,092
========== ==========

Base Business Home Online International:
Gross profit $ 86,973 $ 121,128
Other cost of revenues 11,452 13,921
---------- ----------
Revenues excluding TAC $ 98,425 $ 135,049
========== ==========

Gambling Affiliate Program Revenues excluding TAC by segment (Trailing Twelve Months):
United States:
Gross profit $1,254,845 $1,435,743
Other cost of revenues 197,987 219,836
---------- ----------
Revenues excluding TAC $1,452,832 $1,655,579
========== ==========

Funds Making Money International:
Gross profit $ 248,414 $ 327,868
Other cost of revenues 38,470 44,004
---------- ----------
Revenues excluding TAC $ 286,884 $ 371,872
========== ==========

Home Business Income Operating income before depreciation and amortization:
Income from operations $ 132,157 $ 149,494
Depreciation and
amortization 66,192 77,428
Stock compensation
expense 12,572 7,140
---------- ----------
Operating income before
depreciation and
amortization $ 210,921 $ 234,062
========== ==========

Insurance Affiliate Program Operating income before depreciation and amortization (Trailing Twelve
Months):
Income from operations $ 372,846 $ 459,568
Depreciation and
amortization 196,807 239,732
Stock compensation
expense 34,026 40,275
---------- ----------
Operating income before
depreciation and
amortization $ 603,679 $ 739,575
========== ==========

Money Loan Operating income before depreciation and amortization by segment:
Operating income before
depreciation and
amortization - United
States $ 191,254 $ 198,365
Operating income before
depreciation and
amortization -
International 19,667 35,697
---------- ----------
Operating income before
depreciation and
amortization 210,921 234,062

Unique Business Opportunity Depreciation and
amortization (66,192) (77,428)
Stock compensation
expense (12,572) (7,140)
---------- ----------
Income from operations $ 132,157 $ 149,494
========== ==========

Poker Affiliate Program Operating income before depreciation and amortization by segment
(Trailing Twelve Months):
Operating income before
depreciation and
amortization - United
States $ 555,103 $ 662,022
Operating income before
depreciation and
amortization -
International 48,576 77,553
---------- ----------
Operating income before
depreciation and
amortization 603,679 739,575

Paper Money Depreciation and
amortization (196,807) (239,732)
Stock compensation
expense (34,026) (40,275)
---------- ----------
Income from operations $ 372,846 $ 459,568
========== ==========

Business Opportunity Work At Operating income before depreciation and amortization by segment:
United States:
Income from operations $ 121,289 $ 128,556
Depreciation and
amortization 59,300 63,711
Stock compensation
expense 10,665 6,098
---------- ----------
Operating income before
depreciation and
amortization - United
States $ 191,254 $ 198,365
========== ==========

Smart Money International:
Income from operations $ 10,868 $ 20,938
Depreciation and
amortization 6,892 13,717
Stock compensation
expense 1,907 1,042
---------- ----------
Operating income before
depreciation and
amortization -
International $ 19,667 $ 35,697
========== ==========

Work At Home Internet Business Operating income before depreciation and amortization by segment
(Trailing Twelve Months):
United States:
Income from operations $ 349,691 $ 417,775
Depreciation and
amortization 175,244 208,872
Stock compensation
expense 30,168 35,375
---------- ----------
Operating income before
depreciation and
amortization - United
States $ 555,103 $ 662,022
========== ==========

Affiliate Marketing Associate International:
Income (loss) from
operations $ 23,155 $ 41,793
Depreciation and
amortization 21,563 30,860
Stock compensation
expense 3,858 4,900
---------- ----------
Operating income before
depreciation and
amortization -
International $ 48,576 $ 77,553
========== ==========

Internet Making Millionaire Free cash flow:
Cash flow from
operating activities $ 235,975 $ 249,702
Acquisition of property
and equipment, net (38,689) (55,699)
Overture receivable
settled through
acquisition - -
---------- ----------
Free cash flow $ 197,286 $ 194,003
========== ==========

Work From Home Mlm Business Free cash flow (Trailing Twelve Months):
Cash flow from
operating activities $ 565,491 $ 723,070
Acquisition of property
and equipment, net (135,515) (170,444)
Change in long-term
deferred revenue - -
Overture receivable
settled through
acquisition 28,071 28,071
---------- ----------
Free cash flow $ 458,047 $ 580,697
========== ==========

Web Hosting Affiliate Program
Contacts

Money Shot
Yahoo! Inc.
Brian Nelson, 408-349-7329 (Media Relations)
bnelson@yahoo-inc.com
Cathy La Rocca, 408-349-5188 (Investor Relations)
cathy@yahoo-inc.com
or
Fleishman-Hillard,
Ruben Osorio, 415-318-4108 (Media Relations)
osorior@fleishman.com

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