Lycos Music and BMG Launch Integrated Marketing Campaign Promoting Top BMG Artists

Business Wire, Nov 19, 2001

Business/Technology/Entertainment Editors

WALTHAM, Mass.--(BUSINESS WIRE)--Nov. 19, 2001

Collaboration Includes Artists The Calling, Dave Matthew's Band, David Gray, Lit, Outkast, Pink and Usher

Online and Offline Promotion Includes Joint TV Ad Campaign, New Online Artist Features with Downloads and Videos, Sweepstake Giveaways and Integration Across Terra Lycos Network

Terra Lycos (NASDAQ: TRLY and Madrid Exchange: TRR), the largest global Internet network, today announced an integrated marketing campaign that fuses online and offline advertising and promotion for Lycos Music and BMG artists. The initiative includes a joint TV advertising campaign with BMG, a unit of Bertelsmann AG, Lycos Music artist pages with exclusive content, an online sweepstakes and campaign integration across Terra Lycos sites.

The new campaign seamlessly integrates both online and offline media to promote seven of BMG's most popular artists. The online component on Lycos Music (music.lycos.com) includes in-depth artist pages with downloads and videos from multiple BMG artists and labels including Arista's Outkast, Pink and Usher and RCA's The Calling, Dave Matthew's Band, David Gray and Lit. The online artist pages and the new offline TV ad spots, launching on Wednesday, are delivered with the same creative in both mediums. The eight 30-second spots, two of them featuring Dave Matthews Band, are running in select markets on national cable on MTV, VH1, BET and Comedy Central, programming that specifically targets an audience with a high propensity to listen and to purchase music.

The campaign also includes a consumer sweepstakes on Lycos Music that provides music fans with an opportunity to win a $100 CD Now gift certificate by registering on the site and artist promotion across the Lycos Network, with the artists featured through online and Lycos Radio ads.

"Our strategic relationship with Bertelsmann offers our users access to BMG's biggest names in music, as well as introduces our users to emerging stars," said Mark Stoever, vice president of media for Terra Lycos, U.S. "We have experienced great success with our past BMG promotions on Lycos Music and we are committed to extending our online relationship offline with exciting new joint marketing promotions."

"BMG is pleased to continue working with Lycos Music to bring our artists closer to music fans around the globe in compelling and innovative ways," said Joe DiMuro, senior vice president, strategic marketing, BMG North America. "Our relationship with Terra Lycos provides BMG with tremendous reach for our artists to millions of music enthusiasts both online and offline with this ambitious advertising campaign."

This cooperative effort is part of an ongoing series of joint marketing promotions between Lycos Music and BMG. Late last year, the two companies launched a similar joint advertising campaign and promotion to promote Arista artists Dido and Outkast, and RCA's Christina Aguilera, David Gray and Dave Matthews Band. The two companies also continue to work together to jointly promote both emerging artists and today's hottest stars including BMG artists Christina Aguilera, Alabama, Toni Braxton, Blu Cantrell, P Diddy, Alicia Keys, Lonestar, Monica and Angie Stone.

Terra Lycos and Bertelsmann have a broad, five-year commerce agreement that includes the development of platforms for the digital delivery of music, books and other entertainment content. In the last year, the two companies have worked together to launch several digital music initiatives, as well as integration and promotion of Barnes & Noble, Random House and Gruner + Jahr throughout Terra Lycos sites.

About BMG

BMG is the global music division of Bertelsmann AG, one of the world's leading media companies, with annual revenues of $18.45 billion. BMG owns more than 200 record labels in 44 countries including Arista Records, RCA Records, RCA Label Group - Nashville/RLG, and Ariola. In addition, BMG owns one of the industry's most highly regarded distribution companies and one of the world's largest music publishing companies.

About Terra Lycos

Terra Lycos is a global Internet network operating in 43 countries in 20 languages, reaching 109 million unique monthly visitors worldwide. Created by the combination of Terra Networks, S.A. and Lycos, Inc., in October 2000, Terra Lycos is one of the most popular Internet networks in the U.S., Canada, Europe, Asia and Latin America, and is the largest Internet access provider in Spain and Latin America. The Terra Lycos network of sites includes Lycos.com, Terra.com, Angelfire.com, ATuHora.com, Gamesville.com, HotBot.com, Invertia.com, Lycos Zone, Matchmaker.com, Quote.com, Rumbo.com, Sonique, Tripod.com, RagingBull.com and Wired News (Wired.com). The company's headquarters are in Barcelona and it has major offices in Boston, Buenos Aires, Madrid, Miami, Monterrey and Sao Paulo among others. It is listed on the Madrid stock exchange (TRR) and on the Nasdaq electronic market (TRLY). For more information, please visit our corporate Web site at http://www.terralycos.com.