Lycos to Launch the Voice-Accessed Internet; Quack.com Provides Infrastructure and Support for New Voice Portal - Company Business and Marketing

Cambridge Telcom Report, May 29, 2000

Lycos, Inc. (NASDAQ:LCOS), the Internet's leading multibrand network, and Quack.com, a pioneer in voice-based delivery of Web content, announced an agreement to launch the first voice-accessed destination that delivers the content and services of a major Internet portal. The new voice portal will provide telephone users anywhere with free access to Web content and services simply by dialing a toll free number and speaking. Users will be able to hear their email read to them, check stock prices, weather, movie listings and most everything else they have come to rely on the Web for - all from a phone, regardless of whether a home phone, cellular phone, or pay phone.

The new service will be powered by Quack.com's voice-to-Internet technology that guides users to information from the Lycos Network of Web sites. Users will have the option to develop a customized Web profile using the My Lycos personalization platform, so that they can more rapidly access the information they choose as most relevant. Many of the same personalization features of My Lycos - calendaring, contact lists, email, personalized versions of news, weather, sports, stock portfolios, traffic and lottery information will all be accessible at product launch, planned for 3rd quarter, 2000.

"This new voice portal will revolutionize access to all the great content of the Lycos Network and from across the Web - anytime anywhere," said Ron Sege, executive vice president of Lycos. "With Quack.com's industry-leading technology, and Lycos content, together we'll allow anyone to "Go get it" from wherever they are."

The new Lycos voice portal has the added benefit of bringing the Web to many groups which have had very limited access to it until now. The new service can serve in part to bridge the "digital divide" which many cite as preventing those who cannot afford computers from accessing the Web. Sight-impaired Web users can also benefit from the audio-based navigation services, eliminating the need for expensive dedicated visual-to-audio translation equipment.

"We are excited that Quack's patent-pending voice-to-Web technology will enable Lycos to provide millions of users with fast, easy access to the Web from any phone," said Alex Quilici, president and co-founder of Quack.com. "Our ability to quickly deploy voice-accessible services based on Web information ensures that companies like Lycos can continually add new features and services to their voice portals."

Advertisers and e-commerce vendors will be able to use the new Lycos voice portal to deliver extremely targeted messages that are directly related to the information users are seeking. For example users searching for movies might hear a message for a restaurant close by, providing information with a high degree of relevance to the user, and delivering real benefits to both users and businesses.

"Personalized voice access and information services will be a key factor in the growth of the next generation of Internet offerings, and Lycos has taken the lead in this space," said Jason Pavona, director of wireless and personalization for Lycos. "Our market research has conclusively shown that voice access is one of the new features that our users find most relevant to their Internet use, and we plan to offer best of breed service."

Founded in 1995, Lycos, Inc. is a leading Web media company and owner of the Lycos Network, one of the most visited hubs on the Internet reaching nearly one out of every two U.S. Web users. The Lycos Network is a unified set of Web sites, attracting a diverse audience by offering a variety of services, including leading Web search and navigation resources; Web community and communications services including free homepage building, free Web-based e-mail, clubs, chat, instant messaging; a personalized My Lycos start page; a comprehensive shopping center featuring more than 2,400 merchants; and an assortment of compelling content such as games, music, news, fun and educational information and activities for kids as well as information about investing, technology, entertainment, sports, small business, travel and more. The Lycos Network is composed of Lycos.com, Tripod, WhoWhere, Angelfire, MailCity, HotBot, HotWired, Wired News, Webmonkey, Suck.com, Sonique, Quote, Gamesville and Lycos Zone. Headquartered near Boston in Waltham, Mass., Lycos, Inc. is a global Internet leader with a major presence throughout the U.S., Europe, Asia and Latin America.

On May 16, Lycos, Inc. entered into a definitive agreement with Terra Networks, S.A. (MC:TRR; NASDAQ:TRRA), a global Internet company and the leading provider of Internet access and interactive content and services to the Spanish- and Portuguese-speaking world, under which Terra will acquire Lycos in a stock-for-stock transaction. Upon completion of the transaction, Lycos shareholders will own approximately 37% to 46% of the new company, Terra Lycos. The formation of Terra Lycos is subject to shareholder and regulatory approval.