Yahoo! to Acquire Kelkoo

Kelkoos comparison shopping service and lead referral model augments both Yahoo!s global commerce initiatives and the search-related online marketing services provided through its subsidiary, Overture Services, further expanding Yahoo!s position as the largest and most diverse online advertising platform in the world. Kelkoo is the largest e-commerce service originating in Europe. It has operations in nine countries reaching nearly 10 percent of all European Internet users. Kelkoo enables consumers to quickly and easily find products through its product search engine, then compare prices from more than 2,500 merchants with more than 3 million products across 25 categories, including books, films, music, games and consoles, mobile phones, travel, computing, consumer electronics, fashion and cars. Kelkoos merchants pay lead referral fees when consumers click through to merchant websites from its service. Kelkoo operates through its own network of branded sites, powers shopping platforms for other shopping networks through white label relationships, and maintains an affiliate distribution network. This acquisition expands upon Yahoo!s global commerce strategy and will boost Yahoo! into a leading position in online commerce in Europe by leveraging the technology and experience of the regions number one comparison shopping service. The combination will also provide strategic balance to Yahoo! Europes network, adding an additional pillar alongside its powerful brand advertising offerings, search, and communications and access services. Furthermore, it is anticipated that the combination will add significant strength and scale to Yahoo! Europes business, increasing its reach by introducing millions of new users to Yahoo! Europes network. Kelkoo and Yahoo! expect to take advantage of the rapid potential growth of online shopping and lead generation in Europe, by combining Kelkoos online shopping expertise and leading product search technology with Yahoo!s network and its Web search technology, as well as by capitalizing on Overtures commercial search capabilities. Within Europe, researching products has become the second most popular activity on the Internet, only second to sending e-mail . And, according to Forrester Research, the European online retail market is expected to grow from ?40 billion in 2004 to ?167 billion by 2009. Kelkoo was founded in France in November 1999, and has since merged with or acquired several companies in the UK, Spain, Norway and France. The company has been profitable since the fourth quarter of 2002 and achieved rapid year over year growth from 2002 to 2003. Kelkoo currently employs approximately 250 people across nine European countries. It is not anticipated that there will be a reduction in Kelkoos workforce as a result of the transaction. Kelkoo will become a subsidiary of Yahoo! following completion of the acquisition. Pierre Chappaz will continue to lead Kelkoos operations and will report to John Marcom. The transaction is subject to customary closing conditions, and is expected to be completed during the second quarter of 2004.