Relevant Services Turn Visitors into Subscribers

  Great products lead to deeper user involvement. Network Services plays a central role in increasing user engagement by offering some of Yahoo!'s most essential and popular services and destinations including the Home Page, My Yahoo!, Mail, Messenger and Companion. By providing consumers and small businesses with products that lead to greater value and deeper involvement with Yahoo!, Network Services has helped the Company attract a global user base of approximately 200 million users, including a loyal base of active registered users, which grew at a 37 percent rate in 2002 to over 100 million. Our integrated network of services attracts millions of users who encounter a seamless, innovative product experience on Yahoo!. Through this integration, we bring consumers more deeply into our network and therefore increase their level of engagement with Yahoo!.
 
Yahoo! Personals is a case in point. For example, Yahoo! Personals offers a dynamic dating scene where singles can search for ads and post a profile for free. If they choose to initiate a conversation with someone, they subscribe as a paying member. This year, Yahoo! Personals introduced a first-of-its-kind video and voice feature to its personals service, giving people the ability to extend their personalities through their ads. Such improvements helped Yahoo! leap to the No. 2 position in online personals in 2002. Riding on the momentum of its U.S. success, in 2003 Personals expects to deliver on Yahoo!'s international strategy by expanding into Europe and Asia.
 
Yahoo! Mail attracts subscribers. Another important gateway to greater engagement is Yahoo! Mail - a world-class, award-winning free e-mail service. Yahoo! Mail launched the industry's first premium service bundle for Web-based e-mail: Yahoo! Mail Plus. Through Yahoo! Mail Plus, consumers receive valuable features such as powerful spam-fighting tools, the ability to send larger e-mails with more attachments and message archiving.
 
There are premium choices for businesses too. For small-and medium-sized businesses, we introduced three new premium packages in 2002: Yahoo! Web Hosting Starter, Standard and Professional. These packages present increasing levels of functionality, industry-leading security and reliability, exclusive product features and easy-to-use tools and services. In a powerful one-stop shop, Yahoo! Small Business integrates one of the world's leading shared hosting solutions with business critical services that enable small businesses to get online, sell online and market and promote online.
 
Multiple engagement points build relationships. No matter what products and interests bring consumers to Yahoo!, Network Services provides an engaging and integrated experience which builds enduring, sustainable relationships with users.