euro adhoc: Lycos Europe N.V. / Joint Ventures/Cooperation/Collaboration / Lycos Europe in discussions with Lycos, Inc. about perpetual license agreements

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31.05.2006

Haarlem/The Netherlands, May 31, 2006. Lycos Europe announces that it
and Lycos, Inc. have resumed discussions regarding the scope of
certain perpetual license agreements, including but not limited to
the terms under which Lycos Europe has licensed the LYCOS brand and
certain technology from Lycos, Inc. In these discussions, Lycos
Europe will seek changes to the current license agreements that will
allow Lycos Europe more freedom to use the LYCOS brand.

Discussions between the parties on this subject first started in
2004. In that year, Spanish telecom operator Telefónica SA sold
Lycos, Inc. to Korean technology group Daum Communication Corp.
Immediately prior to that transaction, Lycos, Inc. transferred its
32% shareholding in Lycos Europe to Telefónica. Also, Lycos, Inc.'s
position under its shareholders' agreement with a group of
shareholders led by German publishing group Bertelsmann, jointly
possessing a shareholding of approximately 32% as well, was
transferred to Telefónica. In 2004, Lycos Europe and Lycos, Inc. did
reach agreement in principle on future use of the licensed
properties, but no final agreement was reached. Ever since, Lycos
Europe and Lycos, Inc. have continued to discuss license issues with
occasional intervals.

In the context of discussions which have been entered into now,
Lycos, Inc. has raised alleged breaches by Lycos Europe under the
relevant license agreements since the year 2000 and demanded
substantial monetary compensation. Lycos, Inc. has expressed that
failing a settlement, it is prepared to terminate the relevant
perpetual license agreements.

These allegations and demands came as a surprise to us. Lycos Europe
firmly denies that Lycos, Inc. has any right to terminate the
relevant perpetual license agreements based on the alleged breaches
at all. Also, Lycos Europe strongly believes that it is under no
obligation to pay any form of damages for past breaches, if any.
Lycos Europe is, however, willing to explore the possibilities and
benefits of extending the scope of the relevant licenses going
forward. Currently both parties are discussing the topic face to
face.

About Lycos Europe Lycos Europe (ISIN NL0000233195) is one of the
leading European internet destinations operating a pan-European
network of websites in eight languages. The company's combination of
search, communication services, content channels, Internet access,
homepage building and online communities addresses a wide range of
target groups. The Lycos Europe Network provides an attractive medium
not only for consumers but also for advertisers and e-commerce
partners throughout Europe. Every month about 28 million users visit
the Lycos sites in Europe. With a network of websites covering
Austria, Denmark, France, Germany, Great Britain, Italy, the
Netherlands, Spain, Sweden and Switzerland, Lycos Europe has a large
geographical reach in Europe.

end of announcement euro adhoc 31.05.2006 07:59:39
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ots Originaltext: Lycos Europe
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Kay Oberbeck, Director PR & IR Europe
Tel.: +49 (0)5241 8071055
E-Mail: kay.oberbeck@lycos-europe.com

Branche: Software
ISIN: NL0000233195
WKN: 932728
Index: Prime All Share, Technologie All Share
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