Media Hotline
(408) 349-4040
Media-inquiries@yahoo-inc.com

Robinson Lerer & Montgomery for Yahoo! Inc.
Jim Badenhausen
(646) 805-2006
jbadenhausen@rlmnet.com

Adam Miller
The Abernathy MacGregor Group for Yahoo!
(212) 371-5999
alm@abmac.com

Investor Relations
(408) 349-3382
contact-ir@yahoo-inc.com

FAQ: Yahoo! Board of Directors Says Microsoft’s Proposal Substantially Undervalues Yahoo! (Updated February 11, 2008 at 7:00 AM PT)

Q. Why is Microsoft’s unsolicited proposal not in the best interest of Yahoo! and its stockholders?
Yahoo!’s Board of Directors has carefully reviewed Microsoft’s unsolicited proposal with Yahoo!’s management, financial and legal advisors has unanimously concluded that the proposal is not in the best interests of Yahoo! and our stockholders.

Q. Why has the Board decided that the unsolicited proposal is undervalued?
After careful evaluation, the Board believes that Microsoft's proposal substantially undervalues Yahoo! including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments.

Yahoo! starts from an unassailable position of strength:

• We have a massive user base of over 500 million users – we reach 1 out of every 2 Internet users in the world;
• We are # 1 in My Yahoo!, Yahoo! Mail, Yahoo! News, Yahoo! Shopping and Yahoo! Travel;
• We have more unique visitors worldwide from 15-24 years old than Facebook and YouTube combined; and
• The Yahoo! brand is one of the most recognizable and admired brands in the world.

FAQ: Yahoo! Board of Directors to Evaluate Unsolicited Proposal from Microsoft (Updated February 1, 2008 at 8:00 AM PT)

Q. How is Yahoo! responding to Microsoft’s proposal?
The Yahoo! Board is undertaking a deliberate review process. They’re going to take time to thoroughly evaluate the proposal in the context of Yahoo!'s strategic plans. This will include evaluating all of the Company’s strategic alternatives – including maintaining Yahoo! as an independent company. That process will take some time, but the Board will ultimately pursue the option that it believes can best maximize value for our shareholders.

Q. How long will the Board’s review process take?
A review process like this is fluid, and it can take quite a bit of time.

Q. Will the Board seek proposals from any other companies?
The Board is going to evaluate all of Yahoo!’s strategic alternatives and pursue the option that it believes can best maximize value for our shareholders.

Q. What would a deal like this mean for Yahoo!’s users, advertisers, publishers, partners and people?
Yahoo!’s Board is going to evaluate all aspects of this proposal carefully and promptly in the context of the company's strategic plans and alternatives. So it wouldn't be appropriate to speculate about the potential benefits or challenges of a deal. But the review process that's underway won't have any impact on our efforts to deliver value to all of our users, advertisers, publishers and partners – as well as new and exciting opportunities to our employees.