Lycos Reports 126% Increase in Revenues - Company Financial Information

Edge: Work-Group Computing Report, Nov 22, 1999

- Lycos and Epinions.com announced an agreement to provide professional and consumer product reviews on LYCOShop. The co-branded service provides a complete platform where shoppers can share advice, recommendations, and opinions on which products to buy.

Acquisitions/Investments - Lycos announced the acquisition of IMDI, makers of Sonique, one of the world's most popular MP3 audio players, for approximately $55 million. Sonique is currently one of the leading companies in desktop audio playback on the market.

- Lycos signed a definitive agreement to acquire Quote.com, one of the Web's most comprehensive financial information destinations for approximately $78 million. Quote.com is one of the Web's leading providers of streaming stock quotes, financial tools and investment information, enhancing Lycos' world-class product offerings.

- Lycos' strategic investment fund, Lycos Ventures, announced its first three investments in LifeMinders.com, Conducent and Fogdog Sports. Both LifeMinders.com and Fogdog Sports have recently filed with the Securities and Exchange Commission for initial public offerings.

New Products/Services - Lycos and Fast Search & Transfer ("FAST"), a leading Internet search technology provider, launched a new multimedia search, Lycos RichMedia Search. This unique service provides a targeted search for finding pictures, movies, streams and sounds on the Internet. With a current catalog of more than 17 million files, Lycos RichMedia search is one of the most comprehensive sources for finding any multimedia file type on the Web.

- The Company launched Lycos Zone, a smart destination for kids, parents and teachers that makes learning fun with comprehensive content, homework directories, educational games and Lycos SearchGuard for safe surfing.

- In cooperation with Netcentives the company deployed Lycos Rewards, a network-wide loyalty program designed to reward and retain Lycos users. Lycos users can earn "Lycos Points" through a variety of online and offline activities, including applying for and using the Club Lycos MasterCard and shopping at LYCOShop.

Other Financial Information - Revenues for the three months ended October 31, 1999 increased 126% to $56.0 million from $24.8 million in the comparable period of 1998.

- Pre-tax profit before amortization and one time expenses increased approximately 100% to approximately $1.2 million in the quarter ended October 31, 1999 from approximately $600,000 in the previous quarter ended July 31, 1999. The company has accounted for all of its acquisitions to date under the "Purchase Method of Accounting," which requires that assets acquired and liabilities assumed are recorded at fair value with any excess purchase price being allocated to intangible assets. These intangible assets are amortized by the company over a five year life resulting in non-cash charges. After adjustment for intangible assets amortization and one-time charges related to the company's acquisitions, net loss per share for the quarter ended October 31, 1999 was $0.29. Accounting rules precluded the company from accounting for its acquisitions under the "Pooling of Interests Method." The company became eligible for the "Pooling of Interests Method" on October 9, 1999.