Overture Completes Acquisition of Web Search Unit of Fast Search & Transfer

PASADENA, Calif., Apr 21, 2003 (BUSINESS WIRE) -- Overture Services, Inc. (Nasdaq:OVER), a global leader in commercial search services on the Internet, today announced that it has completed the acquisition of the Web search unit of Fast Search & Transfer (OSE:FAST), a leading developer of enterprise search and real-time filtering technologies.

This acquisition, combined with Overture's previously announced plan to purchase the business of Web search pioneer AltaVista Company, will strengthen Overture's leadership in commercial search and position the company to build the most powerful and comprehensive search capability on the Internet. The acquisition of AltaVista is expected to close before the end of April.

In accordance with the terms of the acquisition agreement as announced on February 25, 2003, Overture acquired FAST's Web search unit for $70 million in cash. The transaction provides for a performance-based cash incentive payment of up to an additional $30 million over three years.

Through the combination of FAST's Web search unit and AltaVista, Overture expects to be at the forefront of the industry in offering a full suite of paid placement, paid inclusion and algorithmic Web search products and services for syndication to portals, ISPs and other search destination sites. Additionally, Overture's 80,000 advertisers will benefit through increased access to new products and sources of distribution to drive targeted leads.

"Overture pioneered Pay-For-Performance search and turned it into one of the Internet's most successful commercial ventures," said Ted Meisel, chief executive officer and president, Overture Services. "With the addition of FAST's Web search unit and our planned acquisition of AltaVista, we are focused on creating the next generation of Internet search and providing the most direct and effective connection between marketers' offerings and customers' needs."

As part of the agreement, Overture acquired AlltheWeb.com, FAST's search technology showcase Web site, which the company will use to test and experiment new approaches in search. The acquisition also will add to Overture's international presence through FAST's key distribution relationships and advanced linguistic capabilities in about 50 languages.

"This acquisition will provide the resources and innovative capabilities Overture needs to become the market leader in search relevance, index size and freshness of content," said FAST's vice president of Web search, Tim Mayer, who is joining Overture as part of the deal. "By leveraging FAST's technology, Overture will have a running start at bringing valuable search services to market quickly and efficiently, while offering increased value to businesses and consumers."

Founded in 1997, FAST is based in Oslo, Norway and has operations in the United States (Boston, San Francisco), Europe (Norway, France, Germany, Italy, UK), and Japan. The acquisition includes FAST Web Search algorithmic search, AlltheWeb.com, and FAST PartnerSite paid inclusion services. FAST retains the intellectual property relating to its enterprise search technologies. For further information on FAST, please visit www.fastsearch.com.

"The completion of Overture's acquisition of FAST's Web search unit presents a winning situation for both companies," said John M. Lervik, chief executive officer, FAST. "We look forward to working with Overture to develop the next generation of search."

About Overture

Overture is a global leader in commercial search services on the Internet, providing businesses with new and more powerful ways to connect with customers online. Through its core search product, the company operates a real-time marketplace where its base of 80,000 advertisers bid for placement in its search results after Overture's editorial team screens listings for relevance. These results are then distributed to Overture's thousands of partners including MSN, Yahoo! and CNN, reaching approximately 80 percent of active, U.S. Internet users. In 2002, Overture facilitated 2.2 billion paid introductions on a worldwide basis between consumers and its advertisers. Overture is based in Pasadena, California, with U.S. offices in New York and San Francisco. The headquarters for Overture's non-U.S. business is in Ireland, with offices in the United Kingdom, Germany, France, Italy, Japan and South Korea. For more information, visit www.overture.com.

This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding the following: the risk that Overture will not realize value from the acquisition of FAST's Web search unit, that Overture will not be able to integrate FAST's Web search unit in an efficient and timely manner, the proposed acquisition of AltaVista; the expected timing thereof; that Overture's search users, advertisers and affiliates will not benefit from the acquisitions; the growth of search and paid inclusion and Overture's ability to capitalize on those opportunities; and the acceptance and adoption of paid inclusion. Actual results may differ materially from these forward-looking statements due to risks such as: the risk that the AltaVista acquisition will not be completed on a timely basis or at all; the risk that Overture will not realize value from the acquisitions; the risk that it may take longer to achieve value than current management expectations; the risk that Overture will not be able to integrate the people, services, technology and product lines of FAST's Web search unit or AltaVista in an efficient and timely manner or at all; possible fluctuations in the demand for Overture's services (including on a combined basis with AltaVista and/or FAST); possible fluctuations in economic conditions affecting the markets for Overture's services (including on a combined basis with AltaVista and/or FAST); Overture's ability to compete with existing or new competitors; unforeseen difficulties in developing or offering new products and services; possible future price cutting or other actions by Overture's competitors; the risk that Overture's affiliates may not elect to purchase additional services from Overture as a result of the acquisitions; and the risk that Overture may not experience benefits through agreements with its affiliates or that affiliates may not continue or renew their agreements with Overture. For a discussion of other risks that could cause actual results or events to differ materially from such forward-looking statements, see the discussion of "Risks That Could Affect Our Financial Condition and Results of Operations" in Overture's 10-K filing with the SEC for the period ended December 31, 2002. Overture undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

Overture and Pay-For-Performance are servicemarks of Overture Services, Inc. Other product or service names mentioned herein are the trademarks of their respective owners.

Overture Services, Inc.
Al Duncan, 626-685-5714 (Media)
al@overture.com
Laurie Berman, 626-229-5368 (Investors)
laurie.berman@overture.com

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