Computershare Investment Plan A Direct Stock Purchase Plan ...

Computershare Investment Plan

A Direct Stock Purchase Plan for

Yahoo! Common Stock

For investors in

This plan is sponsored and administered by Computershare Trust Company, N.A. Not by Yahoo! Inc. 1

Computershare CIPSM

Computershare CIPSM ("CIP") is a direct stock purchase plan that provides an alternative to traditional methods of buying, holding, and selling shares in Yahoo! Inc. ("Yahoo!").

CIP allows you to:

? Invest small amounts. Purchases are in dollar amounts, rather than a certain number of shares, so you can own fractional shares.

? Save money. CIP transaction fees are generally lower than commissions and fees charged by a stockbroker.

? Automatically build your investment over time. If you wish, you can buy additional stock with automatic monthly deductions from your bank account or by check.

How CIP works

Through CIP, you can purchase and sell Yahoo! shares directly, rather than dealing with a broker.

You can set up your CIP account so that you:

? Buy the same dollar amount of stock every month through automatic monthly deductions from your bank account.

? Purchase stock by authorizing a one-time online bank debit or by sending in a check and completed transaction form.

You can also combine these choices. For example, you may choose to purchase every month through automatic monthly deductions and supplement with occasional purchases by check.

CIP is designed for long-term investors who wish to invest and build their share ownership over time.

Eligibility

CIP is available to the general public, including Yahoo! employees and stockholders. Regulations in certain countries may, however, limit or prohibit participation in this type of plan. Persons residing outside the United States who wish to participate in CIP should first contact their financial or legal advisors to determine whether they are subject to any governmental regulations prohibiting their participation.

This brochure provides a general overview and summary of CIP. The detailed Terms and Conditions can be found starting on page 6. Please be sure you read and understand the Terms and Conditions before enrolling in CIP.

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Questions and Answers

How do I enroll in CIP?

If you are an existing registered stockholder of Yahoo!, to enroll you must complete and submit an enrollment form. If you are a new investor, you must complete and submit an enrollment form along with a check (in U.S. dollars) for your initial investment in Yahoo! Common Stock, $0.001 par value per share, ("Yahoo! Stock"). Or, you may authorize the necessary number of automatic monthly deductions from your bank account required to fund your initial investment. Minimum and maximum investment amounts, as well as any applicable fees, can be found on page 15. Computershare will purchase whole and fractional shares of Yahoo! stock to equal the dollar amount of your check, less any applicable fees.

Alternatively, you may enroll online at and request an automatic funds transfer from your bank account for your first purchase.

How do I purchase additional stock?

You may purchase additional stock for your CIP account in three ways: by regular monthly electronic deductions, by one-time online bank debit and by check.

- You may authorize automatic monthly deductions from your bank account by completing and returning an authorization form, or you may submit a request online at .

- You may authorize a one-time online bank debit from your U.S. bank account by going to .

- You may make optional cash investments by sending a check (in U.S. dollars) made payable to "Computershare" along with a completed transaction form which is attached to each statement you receive.

Computershare will purchase whole and fractional shares of Yahoo! stock to equal each amount you invest, less any applicable fees. Any fees, as well as minimum and maximum purchase amounts, can be found on page 15.

Keep in mind that the value of the stock can go down as well as up. The past performance of Yahoo! stock is not necessarily an indicator of future performance. There can be no guarantee that the stock you purchase through CIP will gain in value or retain its current value.

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When are shares purchased?

Shares will be purchased with cash investments at least weekly. The transaction will occur within five business days after your funds are received by Computershare, assuming the applicable market is open for trading.

May I contribute shares I already own into my CIP account?

Yes. If you hold paper stock certificates you may send them unsigned to the address shown on page 14 via overnight delivery or some other form of traceable mail, with return receipt requested, and properly insured. See page 15 for any applicable fee for deposit of certificates.

You may also contribute any book-entry shares. Please call Computershare at 877-946-6487 or 781-575-2879 for more information.

Computershare will credit your book-entry registered shares to your CIP account free of charge.

Can CIP shares be changed to registered shares?

You may request that your CIP shares be transferred to registration in your name. These shares will be held in book-entry form.

You may request shares be issued in certificate form in your name. To obtain a stock certificate for any or all of the whole shares in your CIP account, simply access your account online at , or call or write to Computershare (see page 14 for contact information). For more information about how certificates are issued, see the Terms and Conditions starting on page 6.

How do I transfer shares or give them as gifts?

You may transfer or gift shares from your CIP account by completing a Transfer of Ownership Form. A Transfer of Ownership Form is available to download and print at . Transfers may be made in book-entry form or in certificate form. There may be a fee for issuing a certificate, see page 15. To obtain instructions for transferring your shares, please download transfer instructions from the Computershare website. Or, you may call the telephone number listed on page 14, and request Computershare to send you transfer instructions and the Transfer of Ownership Form.

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How do I sell shares?

You may sell all or a portion of the whole shares of stock in your CIP account at any time, upon request. Just visit US/register and register as an Investor Centre member. Sales requests can also be submitted via telephone or mailed to the address on page 14 together with the transaction form included with your statement.

All sale instructions received by Computershare will be processed no later than five business days after the date on which the order is received (except where deferral is required under applicable federal or state laws or regulations), assuming the applicable market is open for trading.

All sale instructions are final when Computershare receives them. Your sale instructions cannot be cancelled or stopped. All sale requests having an anticipated market value of $25,000 or more are expected to be submitted in writing.

Sales processed on accounts lacking a valid Form W-9 certifying the accuracy of your taxpayer identification number for U.S. holders, or a Form W-8BEN for non-U.S. holders, will be subject to backup withholding tax at the then effective rate. By furnishing the appropriate form to Computershare before the sale takes place, you will avoid subjecting your sales proceeds to backup withholding tax. Forms are available at or by calling the telephone number listed on page 14.

For more information about the timing, processing and pricing of sale orders, see the Terms and Conditions starting on page 6.

If you prefer to sell your shares through a broker, you may request Computershare transfer shares electronically from your CIP account to your brokerage firm account.

Alternatively, you may request a certificate which you may deliver to your broker. See the Terms and Conditions for more information about certificate requests.

If you wish to sell shares you own as certificates, you may deposit the certificates into your CIP account and then sell the shares through CIP.

How do I keep track of my investments?

You will receive a CIP statement showing the details of purchase and sale transactions. On each statement, you will find information on how to buy or sell shares through CIP and where to call for additional information.

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