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To: Bill Harmond who wrote (9643)	11/14/2001 2:24:55 PM
From: Mark Fowler	Respond to of 57684

SAN FRANCISCO, Nov 14, 2001 (AFXAsia via COMTEX) Shares in Yahoo Inc were sharply higher as investors responded enthusiastically to news of the internet portal's new deal with SBC Communications Inc, under which the two companies will provide cobranded highspeed internet access to customers. Analysts largely welcomed the move, which they said could bolster Yahoo's sales at a time when its key advertising business is flagging amid the decline in the US economy. At 1.39 pm in New York trade, Yahoo was up 0.88 usd, or 6.30 pct at 14.85 while the Nasdaq Composite Index was down 11.17 points at 1,880.94. Under the terms of the deal, SBC will make monthly persubscriber payments to Yahoo, and will offer the internet portal exposure through its sales channels and customer service teams as well as the ability to offer bundled premium webbased services via the telecom company's billing infrastructure. In return, SBC will take a share of Yahoo nonsubscriber revenue on advertising, ecommerce and broadbandenabled features and services. The move will go some way in answering Yahoo's critics, who contend that the company is overreliant on advertising and has been slow in making the necessary investments to make its webbased services accessible through highspeed distribution channels via phone lines or cable. "We believe the stock will react positively to this news as it finally give Yahoo a muchneeded subscriber base," said US Bancorp Piper Jaffray's Safa Rashtchy in a note issued shortly before today's market open. And he added the deal was "positive as it finally gives Yahoo a recurring billing relationship with consumers." Even so, the deal has some shortcomings, the analyst cautioned. SBC provides local telecom services to only 13 of the US states, so the potential market for Yahoo's offerings remains comparatively small compared to its rivals, he said. "We would have liked Yahoo to get more return and target a wider market," he said.