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Yahoos Its time for Yahoo! to move forward, and fast.

. And as we do, I want every one of us to keep one thing top of mind: what we do is about our customers, not about u s. For Yahoo! to win in our core business, every one of us must put our customer s first. Specifically, we must focus all we do on the users who trust us to give them personalized content and communications, and the advertisers who want to c onnect with our users. To be very clear, our highest priority is winning in our core business and that will earn us the right to pursue new growth opportunities . To accomplish that were establishing a new leadership structure, organizing all o f our activities around Yahoo!s customers. Effective May 1, Yahoo! will operate i n three groups Consumer, Regions and Technology all supported by our established Corporate teams. Each of the three groups will be charged with delivering the b est customer experiences and have very clear accountability for getting results. Our new Consumer group will be all about creating great, engaging user experienc es. Our geographic Regions will serve our advertisers and agencies and be accoun table for all Yahoo! revenue. Our Technology teams will provide the advanced inf rastructure, technology and science to enable our Consumer group and the Regions to deliver our best products and experiences into market, at scale, and fast. Consumer Our success is determined by how well we engage consumers and give them fun and informative experiences that they feel were designed just for them, on all scree ns. Our Consumer group will include three units Media, Connections, and Commerce and each will provide users the uniquely relevant and personalized content and services they expect and deserve, leveraging Yahoo!s vast consumer interest data. We will redouble our focus on Yahoo!s competitive advantage our core, owned and operated (O&O) consumer properties. And importantly, we are bringing dedicated p roduct engineering resources into each unit, much closer to our users. Media Our online media presence has long been our companys clearest competitive a dvantage. Our Media group, led by Ross Levinsohn, will include all our media bus inesses globally with our marquee properties at the forefront: Homepage, News, F inance, Sports, and Entertainment. We will bring top design and engineering tale nt and differentiated technology like Yahoo!s Publishing Platform (YPP) into clos e partnership with content producers and editors. Ross and his team will continu e to drive real differentiation into our leading media experiences, including ev erything from our original coverage of breaking news events to tentpole events l ike the Royal Wedding and the upcoming Olympics and US Elections. Connections will be led by Shashi Seth, and include consumer businesses that con nect and inform our users including Search, Communications and Social properties such as Mail, Messenger, Flickr, Answers, and more. The highest priority for Sh ashi and his team will be to think well beyond how users search, communicate and share online today. The Connections team is charged with fundamentally re-imagi ning how we design and deliver the next generation of these foundational Yahoo! experiences. Commerce We will renew our focus on commerce, and I expect this newly created te am to play a critical role in Yahoo!s future growth. Our Commerce teams will buil d on Yahoo!s massive reach and strong consumer relationships, but their charter w ill go beyond traditional ecommerce. The focus of this team will be driving high er ROI for advertisers and agencies that reach users on Yahoo! by closing the lo op for them between user interests, advertiser spend, consumer intent, and purch ase behavior. The foundation of the new Commerce group will be Autos, Shopping, Travel, Jobs, Personals and Real Estate. We expect to name the leadership of thi

s business unit shortly. Regions Advertisers and agencies are the primary customers and focus for each of our thr ee regions. Our regional sales teams will be the advocate and voice for our adve rtising customers: listening to them and driving their needs into the products w e develop. Regional sales must bring urgency and tenacious sales execution to al l we do for advertisers. In addition, these teams will leverage our unique and v ast data resources to position Yahoo! as the place to connect with users and gen erate the best, measurable ROI on their ad spend. Americas will be led by Rich Riley, who led the team responsible for extraordina ry strides in EMEA in recent years putting the region on a path of consistent en gagement and revenue growth, as well as meaningful market share and profit gains . Rich will be moving from Europe to our New York office soon. APAC, which includes many of our fastest-growing countries and strongest consume r products, will continue under the exceptional leadership of Rose Tsou. EMEA will be led on an interim basis by Christophe Parcot, EMEAs regional sales leader, as we commence the search for a new leader for the region. Americas, EMEA, and APAC will be fully accountable for Yahoo!s revenue in their r espective regions. I expect our Regional leaders and teams to work in very close collaboration with Ross and our other Consumer group leaders to fully align the ir goals for revenue and engagement as well as their execution, keeping our user s and advertisers top of mind. Technology Our Consumer group and the Regions will continue to be supported by some of the most talented technology professionals in the industry, providing the advanced p latforms and technology that allow Yahoo! to deliver great customer products. Core Platforms, led by Mark Morrissey, will provide the foundational platforms, technology, and research to enable great customer products and leverage Yahoo!s v ast data stores to enable deep personalization and optimized monetization. Marks teams will lead Apt, RMX, User Data & Analytics, our content optimization releva nce engine (CORE), Yahoo! Labs and other key technology functions. Central Technology will continue to be led by David Dibble and include our data center and service engineering efforts, as well as our cloud infrastructure team s. Yahoo! has made real progress in building modern, scalable platforms and infrast ructure, but to move at the rapid pace our customers and our industry require we need more than scalable technology. This is among the most important changes wer e making: we must bring some of our best product designers and engineers much, m uch closer to consumer needs and demands. Many of our top engineers will continu e building on our foundation platforms and technology to continue to drive speed and scale. But to ensure we really know and can serve our customers, well also d eploy top design and engineering talent into our Consumer business units, direct ly supporting our users favorite Yahoo! products to ensure we move much faster an d meet customer needs with every product we deliver. Corporate Our major corporate functions will continue to support these new groups. Finance , Legal, and HR will remain under the strong leadership of CFO Tim Morse, Genera l Counsel Mike Callahan, and Chief HR Officer David Windley, respectively. As we

search for a Chief Marketing Officer, Penny Baldwin will serve as interim leade r for the Corporate Marketing and Communications teams. John Kremer will lead a newly-created Transformation team that will ensure full implementation of and ac countability for our restructuring and related organizational changes. Chief Product Officer Blake Irving has decided to leave Yahoo! and will work clo sely with the new leaders over the next several weeks to ensure a smooth transit ion. He has made a tremendous contribution to the advancement of Yahoo!s product strategy and execution over the last two years and I know you will join me in wi shing him all the best in the future. You will hear more from our business leaders about their plans to move each of t hese groups forward in the coming days and weeks. As we look to Yahoo!s future, a ll of us must remember to always keep our customers first in everything we do. U ltimately, only our customers will decide whether we win or lose in the market. I look forward to speaking with you at our All Hands Tuesday. If you have questi ons before we meet, please check Backyard for information and answers. If you do nt see the answers you need, please post questions on Backyard, or you may email questions directly to the leadership team. Scott