Companies to Create Internet Portal Service

Sunnyvale and Burbank, Calif.--(June 18, 1998)-- The Walt Disney Company (NYSE: DIS) has reached an agreement to acquire a 43% stake in Infoseek Corporation (Nasdaq: SEEK) in exchange for Disney's ownership position in Starwave plus $70 million in cash, it was announced today by Michael D. Eisner, chairman and CEO of The Walt Disney Company, Harry Motro, president and CEO of Infoseek, and Jake Winebaum, chairman of Disney's Buena Vista Internet Group.

The transaction forms an Internet entity that combines the resources of Infoseek, Starwave and Disney. The new entity will bring together the branded assets of ABCNEWS.com and ESPN.com--currently joint ventures between Starwave and Disney--with one of the Internet's most popular search and directory services. In addition, Disney will commit to provide, and Infoseek will agree to purchase, $165 million in promotional support for the new portal service.

Disney will receive 25.8 million shares of Infoseek and a minority position on the Infoseek board. Disney will also purchase warrants enabling it, under certain circumstances, to achieve a majority stake in Infoseek over time. Infoseek will also acquire the shares of Starwave not owned by Disney in exchange for Infoseek shares. The expanded company will continue to operate under the name Infoseek. The transaction is subject to customary closing conditions including shareholder approval and governmental regulatory approvals.

"This agreement stakes out an even more ambitious role for Disney in this promising medium and provides an ideal partnership for the creation of a new Internet portal service," said Eisner. "We have made great strides as a sports, news and entertainment programmer on the Internet over the past four years. Through our association with Infoseek, we are now well-positioned to take advantage of the Internet as it evolves into commercial maturity."

"We're thrilled to be partnering with the finest media company in the world and have its tremendous brands, creativity and promotional power behind us," added Motro. "We're also excited to incorporate the amazing talent and passion of Starwave's team."

"Harry Motro and his team have already transformed Infoseek into a powerful Internet company," said Winebaum. "The combined audience of our leading Web sites gives us a strong foundation for future growth."

"This deal is a testimony to the great team of engineers and producers, and the products they've built at Starwave," said Mike Slade, Starwave CEO and Buena Vista Internet Group president. "We are thrilled to have joined forces not just with Disney, but now with Infoseek as well."

Infoseek and Disney, which currently have 14 million and nine million users respectively, plan to launch an advanced portal service later this year that will provide the best of Infoseek's and Disney's existing services, enhanced by Starwave's expertise and technology. The portal service will feature, on a non-exclusive basis, ABC.com, ABCNEWS.com, Disney.com, Disney's Blast Online, ESPN.com, plus the official league sites of the NFL, NBA and NASCAR.

The transaction also will combine the strong management teams and cutting-edge technologies of Starwave and Infoseek. No major personnel changes are anticipated.

About Infoseek:
Based in Sunnyvale, Calif., Infoseek Corporation (Nasdaq: SEEK) is a connected media company and leading Internet navigation service that is designed to be everyone's first choice on the Internet. In addition to the Infoseek Internet service, Infoseek licenses its Ultraseek Server search and navigation software to companies for their own intranet, extranet and Internet sites.

By offering intelligent channels and one of the world's largest directories of Web sites organized by topic, Infoseek provides consumers with a familiar and meaningful search experience in addition to accurate, high-quality search results. Infoseek has commerce and/or content arrangements with entities that include Auto-By-Tel, Borders Group, Inc. (NYSE: BGP), CMP Media, Inc. (Nasdaq: CMPX), Datek Online, Inc., DLJ/Direct, Microsoft Corp. (Nasdaq: MSFT), PeopleLink, Inc., Bell Atlantic (BEL), UPS, and Reuters.

About Starwave:
Located in Bellevue, Wash., Starwave Corporation was founded in 1993 by Microsoft co-founder and technology investor Paul Allen, and has become one of the premiere Internet technology companies. In April of 1997, Starwave entered into two joint venture partnerships with Buena Vista Internet Group to form ABCNews Internet Ventures and ESPN Internet Ventures. These ventures produce original interactive programming providing sports, news and entertainment services to millions of consumers on the World Wide Web. The award-winning online services include ESPN.com, ABCNEWS.com, Mr. Showbiz, CelebSite, Wall of Sound, Outside Online and the official league sites of the NFL, NBA, NASCAR and the WNBA.

About Buena Vista Internet Group:
Formed in 1997, Disney's Buena Vista Internet Group operates Web sites that include ABC.com, the number one network Web site; Disney.com, the top-ranking kids, family and entertainment site; and Disney's Blast Online, the online service for kids. Buena Vista Internet Group is also the joint venture partner in ABCNEWS Internet Ventures and ESPN Internet Ventures.

Infoseek, Ultraseek, and the Infoseek logo are trademarks of Infoseek Corporation, which may be registered in certain jurisdictions. Other product and company names herein may be trademarks of their respective owners.