Key Comments on China from Yahoo's Q4 2005 Conference Call (YHOO)

| About: Yahoo! Inc. (YHOO)

Terry S. Semel, Chairman and Chief Executive Officer

We ended the quarter with approximately 429 million unique users, which include users of Yahoo China, up 24% from approximately 345 million this quarter last year. Our active registered users now stand at approximately 201 million up 21% year-over-year from a 165 million. Starting in Q1 2006, we will report a user number that reflects Yahoo’s global reach including users of Yahoo China and Yahoo Japan, which is approaching 0.5 billion unique users as well as a user number that reflects our consolidated financials.

Susan Decker, Chief Financial Officer

Before we begin, with Q4 results let me start with the few housekeeping items. First, as previously announced, we closed the transaction with Alibaba in Q4. As a result of this, another investing activities in the quarter, we reported a net non-cash pre-tax gain of $310 million in other income. The gain on the Alibaba transaction is based on the difference between Yahoo China’s fair value and its cost basis, adjusted for our continuing ownership interest in the newly combined entity.

Headcount end of the quarter at around 9,820 up about a 160 from Q4 ’05 levels and up about 30% from a year ago. The change of about a 160 people from Q3 to Q4 with the net effect of the deconsolidation of China which had roughly 520 employees, the acquisition of about 50 new employees and the organic addition of about 630.

Let’s turn now to our business outlook for 2006. We’re introducing operating ranges for both Q1 and for the full year. Before getting into these numbers, let me walk you through 3 important factors that are impacting our outlook. First, the divestiture of Yahoo China that occurred late in October 2005, our Chinese operations contributed approximately $30 million of revenue for the first 10 months of ’05, before deconsolidation, and will no longer be included in operating results in 2006.

Comment: You can read the rest of Yahoo's conference call transcript here.