Lycos Reports 166% Increase in Revenues

51% Sequential Growth in Quarterly Traffic

30% Increase in Revenues from Previous Quarter

Lycos Network Reach Grows to 44.5%

Lycos, Inc. (NASDAQ:LCOS), the second most popular hub on the Internet and largest online community, today announced financial results for its first quarter ended October 31, 1998. Revenues for the quarter were $24.8 million, representing an increase of 30% over the previous quarter ended July 31, 1998 and a 166% increase over the comparable period from the previous fiscal year. The Company reported a loss of $2.6 million or $0.06 per share for the quarter before amortization, one-time merger-related expenses and gain on sale of equity securities. This compares to a net loss of $1.6 million or $0.04 per share for the previous quarter ended July 31, 1998. Net loss per share for the quarter ended October 31, 1998 after amortization and one-time charges was $0.35.

"Once again Lycos far exceeded Wall Street's estimates of every key metric. This quarter's explosive growth in revenue, reach and traffic reaffirms the strength of the Lycos Network business model," said Edward M. Philip, Lycos' Chief Operating Officer and Chief Financial Officer. "Our strong operating results this quarter are evidence of our ability to quickly integrate acquisitions, monetize traffic and create operating efficiencies throughout the Lycos Network."

During this quarter, Lycos unveiled the Lycos Network, which fortifies our position as a premier media company. The Lycos Network combines diversity of programming with mass audience reach - a business model for continued expansive growth. Consumers get access to tailored programming while advertisers and commerce partners have access to a large audience with unparalleled market segmentation. The Lycos Network provides the Company cost efficiencies in infrastructure, operations and distribution. With its unduplicated reach of 44.5% of Web users or 27.8 million unique visitors in October (see separate release issued earlier today), the Lycos Network has strengthened its position as the Web's second most visited hub or portal. Usage of the Lycos Network grew 51% to 36 million page views per day in October, up from 24 million page views per day in July.

"We are extremely pleased with the progress we made this quarter toward our mission of becoming the world's most visited online destination," said Robert J. Davis, President and CEO of Lycos. "Through a combination of internal growth and a series of strategic acquisitions, we have created a network of properties that gives Internet users a wider choice of content, offers advertisers unprecedented targeting and reach and leverages the cost efficiencies of our infrastructure. Lycos has become the world's fastest growing Web network and with our tremendous momentum, we are excited about the opportunities that lie ahead."

Key accomplishments for the quarter:

Acquisitions

-- Lycos acquired WhoWhere?, which offers a complete line of

Web-based applications, including its leading directory services,

popular e-mail service and Angelfire, a leading Web community.

With Angelfire, Tripod and Guestworld, Lycos owns the Web's

largest community with over 5 million registered members.

-- Lycos signed a definitive agreement to acquire Wired Digital,

home of one of the strongest brands and innovative families of

products and services on the Web, including HotBot, HotWired,

Wired News, WebMonkey, Suck.com and Web 101.

E-commerce and Advertising

-- Lycos signed a $22.5 million agreement with Fleet Bank, which,

among other initiatives, allows consumers to apply for a

no-annual-fee credit card bearing the Lycos brand. This

partnership enables Lycos to extend its relationship with members

and consumers with a Lycos-branded credit card. Fleet Bank will

also promote Lycos services to Fleet's existing card members.

-- Lycos introduced AuctionConnect, a unique shopping service that

allows Internet shoppers to get the best deals by searching

multiple auction sites for a particular product. The DealWatch

feature of AuctionConnect allows users to receive automatic,

personal notifications when specific items are available for

auction. Lycos also has the exclusive right to use the Bidder's

Edge proprietary technology for the service.

-- During the quarter, Lycos also entered into agreements with

Boston.com, CareerPath.com, iVillage and Microsurf.

Product Enhancements

-- Each of the Lycos Network sites has been redesigned to allow for

easy navigation amongst Lycos Network properties and to provide

users easy access to a multitude of services and content.

-- Lycos launched the redesigned Lycos.com making it faster and

easier for users to navigate the Internet and find what they

need. Influenced by extensive market research, Lycos.com's

interface and navigation features are designed to give users the

most precise and relevant information at all times. As a direct

result of these enhancements, Lycos was recently ranked as the

second fastest website by Keynote Systems.

-- Tripod, a Lycos subsidiary and leading community site, launched a

redesign of the www.tripod.com site with improved navigation,

functionality, organization and a fresh new look. The new design,

based heavily on feedback from Tripod's over 2 million members,

fully integrates the Lycos search technology and divides the site

into sections centered around activities that members engage in

most: Build, Explore, Interact, and Buy/Sell.

Strategic Milestones

-- Through the combination of internal growth and strategic

acquisitions, Lycos leapfrogged several other sites to become the

second most popular hub on the Internet in terms of audience

reach and unique users.

-- Lycos announced the "Go Get It" national advertising campaign

aimed at getting new and experienced Internet users to visit the

Lycos Network. Lycos, Your Personal Internet Guide, is

represented in the campaign by "Lycos," a retriever who quickly

and easily locates information on the Web. This broad-reaching

campaign is national in scope with additional concentration in 11

high-indexing Internet markets.

-- In August, Lycos was issued a Notice of Allowance for a patent

application that was filed by WiseWire Corporation prior to

Lycos' acquisition of WiseWire in April. The WiseWire technology

gives Lycos highly effective directory-building and enhanced

search capabilities.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, without limitation to, the level of usage of the Internet and traffic to the Company's Internet site, continued acceptance of the Company's products, demand for Internet advertising, seasonal trends in advertising sales, the advertising budgeting cycles of individual advertisers, capital expenditures and other costs relating to the expansion of operations, the introduction of new products or services by the Company or its competitors, the mix of the services sold and the channels through which those services are sold, pricing changes, general economic conditions and specific economic conditions in the Internet industry and other risks detailed in the Company's filings with the Securities and Exchange Commission.

About Lycos, Inc. (http://www.lycos.com)

Founded in 1995, Lycos, Inc. (NASDAQ: LCOS) owns the Lycos Network, the second most popular 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.

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

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