Type: 425
Sequence: 1
Description: Rule 425 Communications
Filed by Lycos, Inc.
Pursuant to Rule 425 under the Securities
Act of 1933 Commission File Number 0-27830
Subject Company: Terra Networks, S.A.
This announcement contains forward-looking statements within the meaning
of the "safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. These statements are based on management's current expectations
or beliefs and are subject to a number of factors and uncertainties that could
cause actual results to differ materially from those described in the
forward-looking statements. The forward-looking statements contained herein
address future financial and operating results and the benefits of the merger.
The following factors, among others, could cause actual results to differ
materially from those described in the forward-looking statements: the risk
that our businesses will not be integrated successfully; costs related to the
merger; increased competition and its effects on pricing, spending,
third-party relationships and revenues; inability to obtain, or meet
conditions imposed for, antitrust approvals related to the merger; inability
to further identify, develop and achieve commercial success for new products,
services and technologies; inability to establish and maintain relationships
with commerce, advertising, marketing, technology and content providers; and
failure to obtain necessary stockholder approvals for the merger. For a
detailed discussion of these and other cautionary statements, please refer to
Lycos' and Terra's filings with the Securities and Exchange Commission.
Investors and security holders are urged to read the proxy
statement/prospectus regarding the merger because it contains important
information. Investors and security holders may obtain a free copy of the
final proxy statement/prospectus and other documents filed by Lycos and Terra
with the SEC at the SEC's web site at www.sec.gov. The proxy
statement/prospectus and these other documents may also be obtained for free
from Lycos or Terra.
