BellSouth and Yahoo! Form Strategic Alliance

BellSouth (www.bellsouth.com) and Yahoo! Inc. (www.yahoo.com), a leading global Internet company, today announced a strategic alliance to provide co-branded broadband service to BellSouth® FastAccess® DSL subscribers throughout BellSouth's nine-state operating region.

Beginning in late 2006, this new co-branded service will be provided, at no additional charge, to all new BellSouth residential broadband subscribers on all tiers of service. BellSouth's existing base of subscribers will have the option to select the co-branded service.

The companies have also agreed to market the new BellSouth Yahoo! service on the Yahoo! network and in BellSouth's advertising.

Consumers can enjoy a full range of Yahoo!'s leading tools and services through the co-branded offering including:
• Powerful customized browsing environment
• Personalized broadband homepage with access to more than 750,000 content sources from across the Web
• Award-winning premium e-mail with industry-leading spam protection and 2 gigabytes of storage for primary accounts.
• A suite of digital photos features, including unlimited storage and access to high-resolution downloads
• A premium-level internet radio; access to the Web's largest catalogue of music videos, streaming at higher bit rates
• Compelling broadband content including popular news and entertainment segments

"BellSouth's alliance with Yahoo! is a key part of our ongoing effort to enhance our customers' online experience," said Keith Cowan – president of marketing and product management, BellSouth.

"Yahoo! is focused on delivering the best possible products to our users, and we are excited to partner with BellSouth to bring unique content, powerful security features and award-winning communications tools to consumers throughout BellSouth's region," said Dan Rosensweig, chief operating officer, Yahoo! Inc.

BellSouth's tiered-speed approach to broadband provides customers with a range of broadband services that allow them to choose the speed and price that best meets their needs, with prices starting as low as $24.95 per month and with speeds going up to 6 Mbps later this year.

BellSouth Corporation is a Fortune 100 communications company headquartered in Atlanta, Georgia. BellSouth has joint control and 40 percent ownership of Cingular Wireless, the nation's largest wireless voice and date provider with 51.6 million customers.

Backed by award winning customer service, BellSouth offers the most comprehensive and innovative package of voice and data services available in the market. Through BellSouth Answers®, residential and small business customers can bundle their local and long distance service with dial-up and high-speed DSL Internet access, satellite television and Cingular® Wireless service.

BellSouth believes that diversity and fostering an inclusive environment are critical in maintaining a competitive advantage in today's global marketplace.

Yahoo! Inc. is a leading provider of comprehensive online products and services to consumers and businesses worldwide. Yahoo! is the No. 1 Internet brand globally and the most trafficked Internet destination worldwide.