SCHEDULE 14A INFORMATION
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<PAGE>
Slide Graphics
The Creation of a Global Leader in
Internet, New Media and
Communications
Terra
Lycos
Telefonica
Bertelsmann
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<PAGE>
Safe-Harbor Statement
This presentation 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 in this
release address the following subjects: expected date of closing the merger;
future financial and operating results; and timing and 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 the Terra's and Lycos's businesses will not be integrated successfully;
costs related to the merger; failure of the Terra or Lycos stockholders to
approve the merger; inability to further identify, develop and achieve success
for new products, services and technologies; increase competition and its
effect on pricing, spending, third-party relationships and revenues; inability
to establish and maintain relationships with commerce, advertising, marketing,
technology, and content providers.
For a detailed discussion of these and other cautionary statements, please
refer to Terra's filings with the Securities and Exchange Commission,
including the Risk Factors section of Terra's F-1 filing that became effective
in November 1999, and Lycos's filings with the Securities and Exchange
Commission, including the section titled "Factors Affecting the Company's
Business, Operating Results and Financial Condition" of the Management's
Discussion and Analysis in its From 10-K for the year ended July 31, 1999 and
the Risk Factors section of Lycos's S-3 filing that became effective in March,
2000.
Investors and security holders are urged to read the joint proxy
statement/prospectus regarding the business combination transaction referenced
in the foregoing information, when it becomes available, because it will
contain important information. The joint proxy statement/prospectus will be
filed with the Securities and Exchange Commission by Terra and Lycos.
Investors and security holders may obtain a free copy of the joint proxy
statement/prospectus (when it is available) and other documents filed by Terra
and Lycos with the Commission at the Commission's web site at www.sec.gov. The
joint proxy statement/prospectus and these other documents may also be
obtained for free from Terra.
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Mission Statement
To be the leading global provider of
Access
Content
and Commerce
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The Creation of a Global Leader in Internet,
New Media and Communications
Global presence 37 Countries
Scale: 175 Million page views per day
More than 40 Million unique visitors
$600 Million -- 2000E revenues
Growth in Major Areas Latin America 37%
Asia 31%
U.S. 23%
Europe 22%
Diversified Revenues Advertising 52%
ISP 26%
E-Commerce 22%
Strategic Alliances Telefonica
Bertelsmann
Broadband Access ADSL
Cable
Satellite
Wireless
* # of Internet users
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<PAGE>
Transaction Summary
Exchange Ratio: $97.55 dollars for every Lycos share
Collar: Symmetrical 20%
Structure: Tax free exchange of shares
Accounting: Purchase
Listing: Madrid, NASDAQ
Closing Conditions: Shareholder votes
Regulatory approval and other customary conditions
Expected Closing: Calendar 3Q '00
Telefonica will underwrite a $2 Billion Terra Bertelsmann commits to a
rights offering at today's closing price, to be broad world-wide alliance
commenced prior to the closing an enters $1 Billion,
5-year commerce agreement
Telefonica Mobile will form a joint venture with
Terra Lycos for a global wireless unit.
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<PAGE>
Terra Lycos Leadership
o Senior management
- Chairman: Juan Villalonga
- CEO: Bob Davis
- COO: Abel Linares
- CFO: Ted Philip
o Board of directors
- 14 Total, 7 Independents, 4 from
Telefonica/Terra and 3 from Lycos
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Terra Lycos Strategic Vision
Value for Consumers and Shareholders Will be Created by Leading
the Convergence of Media and Communications Globally
Fixed Telephony
Web TV/Media
Mobile Communication Cable Modems
Multiple-Access Portal
(MAP)
Wireless
PDAs
Web Phone
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The Global Convergence Race
The only company with...
Global Presence
Content
Fixed Telephony
Wireless
ADSL
Cable
Satellite
Multi Access Platform
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Terra Networks
The Leading Global
Spanish and Portuguese
Language Internet
Access and Content
Company
o 2 million subscribers
o 14 countries
o Multiple access offerings
o Rich/compelling content
o Network model
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Terra Networks: Leadership in Spain
and Latin America
"Think Global, Act Local"
United States
Argentina
Brazil Spain
Costa Rica
Chile
El Salvador
Guatemala
Honduras
Mexico
Nicaragua
Panama
Peru
Venezuela
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The Internet's Leading Multi-
Brand Network
o 46% U.S. reach
o 148 Million page views per day worldwide
o Four of the world's top 20 i nternet sites
o 29 countries
o Network model
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Lycos: Leadership in North America, Europe and Asia
Canada Europe Greater China Korea
Americas Asia, and the Japan
Pacific Rim
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The Leading Telecom Group
in Spain and Latin America
Telefonica
o #1 Telco in Spain and Latin America
o #6 Wireless service provider worldwide
o #1 TV broadcaster in Spain and Argentina (#2 Pay TV)
o More than 62 million customers
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Access
Terra Lycos: Multiple Access Through Strategic Alliance with Telefonica
Fixed Telephony
Cable
Wireless
Broadband
Telefonica Servicios
Telefonica Telefonica Media Moviles, S.A.
---------- ---------------- -------------
o 40 Mil.lines
2.3 Mil. Subscribers 20 Mil. Subscribers
o ADSL Cable Broadband Wireless Broadband
62.3 Mil. Total
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<PAGE>
Wireless Portal Joint Venture
o Access through
wireless platform
o Content distribution to
20 million customers
o Realtime E-Commerce
Telefonica Servicios Terra Lycos
Moviles, S.A.
o Anytime Anyplace
o Killer applications
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Endemol's Strong Presence in Key Markets
Endemol is the leading independent TV producer in the Netherlands, Spain,
Italy, Portugal, Poland & Scandinavia and in the top 3 in the remaining
countries where it operates
o GMG Endemol o Rene Stokvis Producties
o Groupe ASP Endemol o SBSnet.nl
o Endemol Portugal o Endemol Entertainment
o Gestmusic Endemol Productions
o Zeppelin o Non Fiction
o Telepolis.com o GAT
o Medicinatv.com o Flamingo Film
o Endemol South Africa o Meta
o Aran o Helkon
o John de Mol Producties o Endemol Neovision
o Joop van den Ende TV o Metronome
Producties o Endemol Belgium
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Media
Telefonica Content
Antena 3 TV Via Digital Pearson Onda Cero Hispasat
48.6% 47% 5% 100% 22.78%
Recoletos
95% Lolafilms 50%
Movierecord 100%
Unedisa
30%
Azul TV 50%
Audiovisual Sport
40%
TELEFE 100%
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Bertelsmann delivers leading content worldwide
as the premier content provider on Terra Lycos
Representative Brands
o Random House (#1 publishing house worldwide)
o Bertelsmann is the
o CLT-UFA/Pearson TV (#1 TV producer worldwide, # most international
1 TV distributor in Europe) media company in the
world and the leading
o Gruner + Jahr (#1 magazine publisher in Europe) media company
on the Internet
o BMG Entertainment (#4 music company in the world)
o BertelsmannSpringer
(#1 in professional information in Germany) o Bertelsmann occupies
leading market
o Bertelsmann Direct (#1 in clubs worldwide, positions worldwide
# 2 in media e-commerce worldwide) with over 600
companies in 54
o Bertelsmann Arvato (#1 Printing house in Europe, countries
# 1 in distribution/services)
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<PAGE>
The Creation of a Global Leader in Internet,
New Media and Communications
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Terra Lycos: Global Internet Leadership
o Global presence in 37 countries
o 175 Million page views per day
o Diversified revenues of 110 Million dollars
(March Quarter) spread between advertising
(52%), ISP (26%), e-commerce (22%)
o #3 Internet company in the world
o Alliances with Telefonica and Bertelsmann
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Terra Lycos Leads in
Growth Regions
1999-2003 CAGR (%)*
27 37 31 23 22
World Latin America Asia U.S. Europe
#3 # 1 # 1,#3 # 1,#4 #2
* Number of Internet users.
Source: International Data Corporation
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<PAGE>
The Terra Lycos Value Proposition
Providing Aggregating Offering Rich Monetizing
Access Audience Content Traffic
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<PAGE>
The Terra Lycos Value Proposition
Providing Aggregating Offering Rich Monetizing
Access Audience Content Traffic
Terra Libre
Lycos Free
Commundo
Terra Line
Terra Premium
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The Terra Lycos Value Proposition
Providing Aggregating Offering Rich Monetizing
Access Audience Content Traffic
Terra Libre Terra
Lycos Free Lycos
Commundo Hot Bot
Terra Line Angelfire
Terra Premium Tripod
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<PAGE>
The Terra Lycos Value Proposition
Providing Aggregating Offering Rich Monetizing
Access Audience Content Traffic
Terra Libre Terra Quote.com
Lycos Free Lycos Gamesville
Commundo Hot Bot Terra
Terra Line Angelfire Sonique
Terra Premium Tripod Invertia.com
Big Brother
Lycos Zone
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Terra Lycos: High Value-Added Content
Telefonica Media Bertlesmann
o #1 Broadcast TV in o World's 3rd Largest
Spain & Argentina Media Conglomerate
o #2 Pay TV in Spain & Present in 53 Countries
Argentinao o Active in:
o Radio - New Media
- Book publishing
- Music
- TV broadcasting
- Periodicals
Endemol
Leading independent
TV producer in the
Netherlands, Spain,
Italy, Portugal, Poland
& Scandinavia
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The Terra Lycos Value Proposition
Providing Aggregating Offering Rich Monetizing
Access Audience Content Traffic
Terra Libre Terra Quote.com LycoShop
Lycos Free Lycos Gamesville Wingspanbank.com
Commundo Hot Bot Terra Barnes & Noble
Terra Line Angel Fire Sonique BBva
Terra Premium Tripod Invertia.com De Remate.com
Big Brother Amadeus
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Advertising and E-Commerce
A "must buy" network for advertisers
and e-commerce partners
o Global coverage and content
o Multi-national advertising platform
o Only significant English and Spanish Internet company
o Improved content will yield increased stickiness
o Sales staff of 300+
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Advertising and E-Commerce
o A&E o Coca-Cola
o El Corte Jingles o Intel
o American Express o IBM
o Compaq o BBVA
o BMW o The Wall Street Journal
o Lycoshop o Amadeus
o Mexicana o Banco Zaragozano
o Fidelity Investments o AT&T
o E-Loan o Nintendo
o Wingspan Bank.com o Forbes Magazine
o Nobel o Via Plus Supertienda
o Procter & Gamble o Sony
o Barnes & Noble o Eddie Bauer
o De Remate.com o Kodak
o British Airways o Unibanco
o Gap o Marriott.com
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Terra Lycosm, Creation of
Shareholder Value
o Ideally positioned as the global leader
o Large scale, broad scope of diversified revenue streams
o Unparalleled depth and breadth of access platforms and technologies
o Valuable strategic partners -Telefonica and Bertelsmann
o The most complete and best prepared investment vehicle on the road
to convergence
o Opportunity to fully exploit premium assigned to first mover
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Terra Lycosm, A Global Leader in Key Internet Regions
Canada, #1 Western Europe, #2
U.S. Hispanic, #1
Japan, #2
Total U.S., #4
Korea, #1
Latin America, #1 Asia Pacific, #1
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