PRESS RELEASE

SUNNYVALE, Calif., -- Yahoo! Inc. and a group of 12 leading U.S. newspaper companies today announced a definitive agreement that expands a growing partnership combining the newspapers' unmatched local news and advertising reach with the leading technologies and audience of Yahoo!, the leading global Internet brand and one of the most trafficked Internet destinations worldwide.

With the addition of The McClatchy Company and four other new members since November 2006, the newspaper group now stands at 12 newspaper publishing companies. This represents a critical mass of more than 264 newspapers across 44 states, along with multiple distribution channels that will benefit advertisers, readers and the participating companies.

The strategic partnership revolves around four key opportunities:

Enhancing newspaper online advertising revenue using Yahoo!'s graphical advertising technology. For more than a decade, Yahoo! has been a leader in online graphical advertising. Advertisers and newspapers will be using Yahoo!'s sophisticated ad-serving, targeting and inventory management capabilities.

Leveraging leading local and national online sales forces. This relationship creates an all-in-one buying opportunity for local advertisers, allowing newspaper sales representatives to offer the combined aggregated reach of local newspaper and local Yahoo! online audiences.

Integrating Yahoo!'s paid search technology across newspaper sites. Yahoo!'s search functionality will be deployed across hundreds of newspaper Web sites and exposed to more than 50 million users on a monthly basis. Additionally, users will benefit from having access to a customized Yahoo! toolbar which will be distributed on local newspaper Web sites, providing newspaper Web site users with easy access to the most comprehensive Internet search.

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