E-Business Solutions Advance With Microsoft, Intel and Lycos

REDMOND, Wash., July 27, 2000 — Microsoft Corp., Intel Corp. and Lycos Inc. (Nasdaq
“LCOS” ) today announced that Microsoft and Intel have been selected to provide the primary technology platform for the Lycos Network. The Lycos Network is one of the leading Internet hubs, reaching nearly half of all U.S. Web users. The combination of Microsoft® software and Intel-based servers will deliver a significant performance upgrade, increased scalability, greater reliability and an expanded, rich user experience to the more than 32 million Lycos customers who monthly access the Lycos Network, including the http://www.lycos.com/ and http://my.lycos.com/ portals. In addition, the robust technology provided by Microsoft and Intel will help Lycos achieve aggressive new product implementations and realize rapid time-to-market objectives.

Microsoft and Intel additionally announced an e-business alliance, working together to deliver joint customers best-of-class, end-to-end e-business solutions as well as offering integration and service to e-businesses such as Lycos.

“Lycos selected Microsoft and Intel not only because they deliver a rich user experience and help us meet our aggressive goals with new-product implementation, but also because their e-business solution makes economic sense, both in terms of capital expense and operating expense,”
said Tim Wright, CIO at Lycos.
“We’re looking forward to continuing our relationship with Microsoft and Intel, utilizing their e-business solutions to help us deliver industry-leading services to our customers.”

The Microsoft and Intel technology-based implementation, already in progress, covers a majority of the Lycos Network sites, including the popular http://www.lycos.com/ portal. Lycos is utilizing the enterprise-ready platform featuring the Intel Pentium® III and Pentium III Xeon™ processors, and the Microsoft Windows® 2000 operating system, as well as the soon-to-be released Microsoft Application Center 2000, to meet the performance and availability demands of its expanding Internet communities and services. The Microsoft and Intel e-business solution for Lycos utilized development and deployment assistance by Microsoft Consulting Services (MCS) and ongoing support through Microsoft Premier Support Services (PSS) throughout the implementation cycle.

“We are excited to work with Intel to provide a solution that helps Lycos meet the increasing scalability and performance demands that its customers require in this next phase of the Internet,”
said Peter Boit, vice president of e-commerce solutions for Microsoft.
“Microsoft is delivering an e-business platform that helps businesses realize growth and profitability today, while preparing for the .NET software services of tomorrow.”

“The collaboration between Intel and Microsoft offers our customers a flexible e-business architecture to accelerate their time to deployment with new Internet services,”
said Mike Fister, vice president and general manager of the Enterprise Platform Group at Intel.
“Lycos is a great example of a company that has taken full advantage of the modular ‘scale-out’ methodology that makes Intel-based servers a scalable and reliable platform for today’s unpredictable Internet economy.”

By adopting the Windows 2000 platform for its next-generation Web services, Lycos is also enabling a rich XML environment in its Web solutions. The XML-based infrastructure, which forms the core of Windows 2000 and the .NET enterprise framework, will help Lycos integrate easy information exchange within its heterogeneous network as well as capitalize on .NET software and services opportunities as they become available.

Intel-based servers are increasingly powering the rapidly growing server infrastructure of the worldwide Internet economy, including some of the largest Web sites in the world. Intel has established a business group and designated more than $100 million for developing solution centers; design, certification and integration programs; industry initiatives; and e-business alliances to help drive Internet growth and evolution.

Intel Architecture delivers an open, high-performing and reliable e-business platform powered by both Intel Pentium III and Intel Pentium III Xeon processors, and the forthcoming Itanium™
processor. All processors include unique server design technology and a variety of frequency speeds, memory and cache levels that work with a choice of operating and application environments.

Intel Architecture affordably and reliably addresses the needs of e-businesses, which include quickly adding more Internet or Web servers to their server infrastructure (scaling out) and adding processors within a server for application and database or the back end of the datacenter (scaling up).

About Lycos Inc.

Founded in 1995, Lycos Inc. is a leading Web media company and owner of the Lycos Network, one of the most visited hubs on the Internet, reaching nearly one out of every two U.S. Web users. The Lycos Network is a unified set of Web sites, attracting a diverse audience by offering a variety of services, including leading Web search and navigation resources; Web community and communications services including free homepage building, free Web-based e-mail, clubs, chat and instant messaging; a personalized My Lycos start page; a comprehensive shopping center featuring more than 3,100 merchants; and an assortment of compelling content such as games, music, news, fun and educational information and activities for kids as well as information about investing, technology, entertainment, sports, small business, travel and more. The Lycos Network is composed of Lycos.com, Tripod, WhoWhere, Angelfire, MailCity, HotBot, HotWired, Wired News, Webmonkey, Sonique, Quote, Gamesville, Lycos Zone and Matchmaker. Headquartered near Boston in Waltham, Mass., Lycos Inc. is a global Internet leader with a major presence throughout the United States, Europe, Asia, Canada and Latin America.

On May 16, Lycos Inc. entered into a definitive agreement with Terra Networks S.A. (MC
; Nasdaq
), a global Internet company and the leading provider of Internet access and interactive content and services to the Spanish- and Portuguese-speaking world, under which Terra will acquire Lycos in a stock-for-stock transaction. Upon completion of the transaction, Lycos shareholders will own approximately 41.6 percent to 49.9 percent of the new company, Terra Lycos. The formation of Terra Lycos is subject to shareholder and regulatory approval.

About Intel

Intel, the world’s largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information is available at http://www.intel.com/pressroom/ .

About Microsoft

Founded in 1975, Microsoft (Nasdaq
) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software – any time, any place and on any device.

Microsoft and Windows are registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

2000 Lycos Inc. Lycos is a registered trademark of Carnegie Mellon University. All other trademarks or service marks mentioned herein are those of Lycos or their respective owners. All rights reserved.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass/ on Microsoft’s corporate information pages.

For complete benchmark information on Intel Pentium III Xeon processors, visit the Intel Web site at http://www.intel.com/ebusiness/server/resources/

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