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Tuesday October 6, 5:56 am Eastern Time

Company Press Release

Lycos Acquires Wired Digital

The Lycos Network Now Reaches More Than 40 Percent of Internet Users

WALTHAM, Mass.--(BUSINESS WIRE)--Oct. 6, 1998-- Lycos, Inc. (NASDAQ:LCOS - news), "Your Personal Internet Guide,' today announced that it has signed a definitive agreement to acquire Wired Digital, Inc., making great strides toward its goal of becoming the Web's most visited online destination and further strengthening its existing position as the second most visited hub on the Web. Wired Digital, home to one of the most innovative and sophisticated families of products and services on the Web, including HotBot, attracts nearly five million unique visitors a month, according to Relevant Knowledge. With this acquisition, the Lycos Network's unduplicated reach grows to more than 40 percent(a) of the Web audience.

In the acquisition, which is scheduled to close by the end of the calendar year and is subject to Wired shareholder approval, Lycos will acquire Wired's outstanding capital stock for approximately $83 million in Lycos stock, plus an additional amount of Lycos stock equal to any Wired cash outstanding on the closing date. Lycos will also assume Wired Digital's stock option plan.

"The acquisition of the industry-defining Wired Digital further fortifies our position as a premier media company,' said Bob Davis, president and CEO of Lycos, Inc. "In addition to gaining quality products and an incredibly talented group of people, the pioneering spirit of Wired Digital, its high-profile brands and added reach elevate the Lycos multi-brand network strategy to a new level.'

"Joining forces with Lycos gives our products an incredible opportunity to play on an even larger stage,' said Beth Vanderslice, president of Wired Digital. "By moving Wired Digital into the Lycos Network, we'll be reaching a larger audience with an expanded array of quality content and services. And together, this positions us to move into the number one spot on the Web.'

By bringing the Wired Digital and HotBot brands under the Lycos Network umbrella, the company reaches the broadest Web audience by offering an array of high-quality properties and services for all types of users. For example, HotBot attracts a tech-savvy Web veteran while Lycos.com serves a broad-based audience. According to Media Metrix, Lycos.com and HotBot.com attract distinct audiences, with only 20 percent overlap between the two. The Lycos Network (announced separately today) has grown from 14 percent to more than 40 percent in audience reach since the inception of the Lycos Network strategy, marked by Lycos' acquisition of Tripod in February 1998, making the Lycos Network the fastest growing destination on the Web.

The Lycos Network combines the best aspect of the network television model - its incredible reach - and the best aspects of the cable television model - its terrific audience segmentation - and puts those assets into the far more trackable, more accountable framework for the Web. Every Lycos Network property offers distinct features and targets a specific Web audience through separate programming and branding, and each is poised for continued audience growth. Each of these leading properties also selectively integrates other key Lycos services and technologies to best meet the needs of its constituency. The benefit of the Lycos Network model for advertising and e-commerce partners is the ability to target the most diverse and fastest growing audience on the Web today. In addition, the Lycos Network offers practical business advantages for all its properties, including sharing of resources and infrastructure.

The Lycos Network and Wired Digital have already taken steps to make each other's services available on their properties:

--Lycos' Angelfire homepages and MailCity e-mail applications are now being offered to all HotBot and Wired Digital users. --Wired News is available on the headline page of Lycos.com. --Wired Digital's Webmonkey tutorials and resources for Web site builders will be available to Tripod and Lycos.com homepage communities. --Lycos search offers links to HotBot and Wired Digital properties through top keyword searches.

Wired Digital provides a number of distinct Web-based products and services, including HotBot, HotWired, Wired News, Webmonkey and Suck.com:

--HotBot--This powerful search engine has been recognized for its sophisticated search features and its easy-to-use interface by a number of leading technology and consumer publications, including PC Magazine, PC World, PC Computing and Smart Money. HotBot currently allows users to search one of the largest and freshest databases currently available on the Web and hosts more than 30 utilities specifically designed to help consumers articulate their search questions and get relevant results faster. HotBot currently attracts approximately four million users per month.

--HotWired--The first site to pioneer technology-oriented journalism and chronicle the explosion of Web technology and culture, HotWired continues to thrive as one of the Web's most influential content sites. Its groundbreaking series of firsts include: first site to model its business around advertising and sponsorship--it invented the Web ad banner in 1994; first site to integrate community-building chat activities; and the first to recognize the value of membership systems. HotWired currently hosts over 650,000 active members and attracts more than one million unique visitors each month.

--Wired News--Launched just two years ago under the same guiding editorial vision that spawned HotWired, Wired News has quickly risen to become the essential source for daily news and analysis of the technologies, companies and people driving the information age. The site currently has more than 500,000 daily e-mail subscribers, and, according to Relevant Knowledge, currently attracts more monthly readers than the Wall Street Journal Interactive or News.com.

--Webmonkey--One of the first sites written by Web developers for Web developers, Webmonkey is the comprehensive source of information for professional and amateur Web enthusiasts, offering daily articles and technical updates, as well as an archive of more than 200 features and tutorials.

--Suck.com--One of the Web's longest running daily columns, Suck.com offers humorous, biting commentary on media and culture. Suck.com continues to attract and grow one of the most dedicated audiences on the Web today.

Strengthening Lycos' West Coast presence, Wired Digital will continue to operate from its San Francisco, Calif., office as a business unit of Lycos. Vanderslice, president of Wired Digital, will report to Lycos, Inc. CEO Bob Davis. Lycos now employs more than 250 people in its West Coast facilities.

About Wired Digital

Wired Digital offers a range of online products that help people put emerging technologies to use in their personal professional lives. Wired Digital properties include HotWired (www.hotwired.com), the award-winning site about Web technology and culture; Wired News (www.wired.com), the premier service for news of the digital world; and HotBot (www.hotbot.com), one of the Web's largest and best-rated search engines. Wired Digital is headquartered in San Francisco with satellite offices in New York, Chicago and Los Angeles.

About Lycos, Inc.

Founded in 1995, Lycos, Inc. (NASDAQ:LCOS - news) owns the Lycos Network, the second most visited hub on the Internet, combining all aspects of community, leading Web navigation resources and cutting-edge business and consumer e-commerce solutions. The Lycos Network, a unified set of properties that delivers mass reach and diversity of audience and programming, is composed of best-of-breed services: Lycos.com, Tripod, WhoWhere, Angelfire, MailCity, Guestworld, HotBot, HotWired, Wired News, Webmonkey and Suck.com. Located at http://www.lycos.com, Lycos.com --"Your Personal Internet Guide'--is dedicated to helping each individual user locate, retrieve and manage information tailored to his or her personal interests. Headquartered near Boston in Waltham, Mass., Lycos, Inc. maintains U.S. offices in New York City, Pittsburgh, Dallas, Chicago, Los Angeles, San Francisco, Mountain View, Calif. and Williamstown, Mass. International offices are located in Germany, Italy, France, Japan, the UK, Spain and The Netherlands.

Note to media: There will be a conference call with Bob Davis and Beth Vanderslice at 11:30 a.m. EDT today, October 6, 1998. Contact Ross Levanto at Schwartz Communications, 781-684-0770 x6518, for more information.

(c)1998 Lycos, Inc. - Lycos (R) is a registered trademark of Carnegie Mellon University. All other product or service marks mentioned herein are those of Lycos or their respective owners. All rights reserved.

(a)- Based on Media Metrix, Sept. 1998 report: Lycos Network 37.5 percent and Wired Digital 8.2 percent audience reach.

Contact:

Lycos, Inc. Kirsten Rankin, 781/370-2691 krankin@lycos.com or Wired Digital Andrew de Vries, 415/276-8542 andrewd@wired.com or Schwartz Communications Ross Levanto, 781/684-0770 x6518 rlevanto@schwartz-pr.com


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