ATLANTA and SUNNYVALE, Calif. -- BellSouth (NYSE:BLS - News) and Yahoo! Inc. (Nasdaq:YHOO - News), a leading global Internet company, today announced a strategic alliance to provide co-branded broadband service to BellSouth® FastAccess® DSL subscribers throughout BellSouth's nine-state operating region.

Beginning in late 2006, this new co-branded service will be provided, at no additional charge, to all new BellSouth residential broadband subscribers on all tiers of service. BellSouth's existing base of subscribers will have the option to select the co-branded service. The companies have also agreed to market the new BellSouth Yahoo! service on the Yahoo! network and in BellSouth's advertising.

Consumers can enjoy a full range of Yahoo!'s leading tools and services through the co-branded offering including:

"BellSouth's alliance with Yahoo! is a key part of our ongoing effort to enhance our customers' online experience," said Keith Cowan - president of marketing and product management, BellSouth. "We are committed to offering a broadband service that exceeds customer expectations and are excited at the prospect of partnering with Yahoo! to provide this new co-branded service."

"Yahoo! is focused on delivering the best possible products to our users, and we are excited to partner with BellSouth to bring unique content, powerful security features and award-winning communications tools to consumers throughout BellSouth's region," said Dan Rosensweig, chief operating officer, Yahoo! Inc. "This new BellSouth relationship, in combination with our existing broadband alliances, gives Yahoo! the opportunity to distribute a high-quality broadband experience to consumers across the vast majority of the United States."

BellSouth Corp.

Yahoo Inc.