Yahoo!, AT&T Issue Joint Release To Stop Speculation

Yahoo and AT&T issued the following release amid speculation today by the Wall Street Journal and others about the value of their partnership which impacted Yahoo as their stock price dropped over 5% today.

SAN ANTONIO, Texas, and SUNNYVALE, Calif., March 9, 2007 – AT&T Inc. (NYSE:T), the nation's leading broadband, wireless and voice services company, and Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet destination, today responded to speculation regarding their partnership.

As part of our ongoing business agreement, Yahoo! and AT&T are constantly discussing opportunities to expand our relationship and associated revenue streams. Current and future plans include:

· Earlier this year, the companies introduced advertising on the front page of the co-branded portal;

· Later this month, the companies are introducing advertising on their co-branded mail service;

· AT&T and Yahoo! are discussing ways to expand the partnership in the mobile arena, now that AT&T has 100% ownership of Cingular (after its acquisition of BellSouth); and

· Yahoo! services will be introduced into AT&T's IPTV experience later this year.

According to Randall L. Stephenson, AT&T Chief Operating Officer, “Great partnerships must continuously work together to adapt to changing market conditions and changing strategies. We consider our partnership with Yahoo! a great partnership and want to continue building on our complementary skills and expertise.”

Terry Semel, Chairman and Chief Executive Officer of Yahoo! said: “Our landmark, strategic partnership set the standard and has given Yahoo! and AT&T the opportunity to create truly innovative offerings for consumers and advertisers. AT&T and Yahoo! have already made adjustments over the years to reflect competitive conditions and the relative benefits each party brings to the relationship. As we continue our conversations, we have a common goal to increase the economic benefits for both parties.”

About the author

Frank Watson has been involved with the Web since it started. For the past five years, he headed SEM for FXCM -- at one time one of the top 25 spenders with AdWords. He has worked with most of the major analytics companies and pioneered the ability to tie online marketing with offline conversion.

He has now started his own marketing agency, Kangamurra Media. This new venture will keep him busy when he is not editing the Search Engine Watch forums, blogging at a number of authoritative sites, and developing some interesting online community sites.

He was one of the first 100 AdWords Professionals, a Yahoo and Overture Ambassador, and a member or mod of many of the industry forums. He is also on the Click Quality Council and has worked hard to diminish click fraud.