euro adhoc: Lycos Europe N.V. / Financial Figures/Balance Sheet / LYCOS Europe closes first nine months of 2006 with net profit of EUR 6.9 million

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
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24.10.2006

. Net profit improves by 137 percent vs. EUR (18.5) in first nine
months 2005 / Total revenues in first nine months 2006 amount to
EUR 59.0 million (+ 1 percent vs. last year) / EBITDA improves by
71 percent to EUR (3.4) million vs. EUR (12.0) million in reporting
period 2005 / Gross margin reaches 64 percent . Third quarter 2006
with net profit of EUR 9.1 million, total revenues of EUR 17.4
million and EBITDA of EUR (3.4) million . Third quarter strongly
influenced both by successful sale of Swedish entity and
acquisition activities

Haarlem / Netherlands, October 24, 2006 - LYCOS Europe N.V., one
of Europe's leading internet portals and online advertisers, today
announced its results for the third quarter and first nine months
of 2006. LYCOS Europe reported a net profit of EUR 6.9 million
in the first nine months 2006 and by this outperformed last
year's figure by 137 percent (EUR (18.5) million in first nine
months 2005).

The main driver for this result was the successful sale of
LYCOS Europe's Swedish portal business Spray with a positive
one-time profit impact of EUR 14.8 mln. Since the Swedish access
business of Spray is also planned to be sold the financial
statements of the nine months report have been restated according to
International Financial Reporting Standards (IFRS) and therefore
adjusted by the Swedish businesses as discontinued operations.

Total revenues in the first nine months 2005 therefore amounted to
EUR 59.0 mln compared with EUR 58.3 mln in last year's reporting
period. The EBITDA result improved by 71 percent to EUR (3.4) mln
(vs. EUR (12.0) mln in 2005). LYCOS Europe was able to increase
the gross margin to 64 percent compared with 62 percent in the
first nine months of 2005.

With a 49 percent share (EUR 28.7 mln) of total revenues, the revenue
stream of paid services & shopping has been the strongest
contributor to total revenues, followed by advertising revenues
with a share of 44 percent (EUR 25.9 mln) and Interconnect with 7
percent (EUR 4.3 mln). Revenues from paid services & shopping
as the strongest pillar grew by 18 percent compared with last
year's first nine months. Revenues from online advertising
decreased by 7 percent compared with last year's reference period.
Interconnect revenues faced a 19 percent reduction which is
mainly caused by an ongoing price drop in the German access market.

In the third quarter of 2006, LYCOS Europe generated a net profit
of EUR 9.1 mln (vs. EUR (2.0) mln Q3/2005) which was mainly due
to the above mentioned successful sale of the Swedish portal
business. Total revenues amounted to EUR 17.4 mln, a decrease of 13
percent compared to last year's third quarter (EUR 20.0 mln)
caused by a disproportional weak summer and holiday season.
The EBITDA result in Q3/2006 amounted to EUR (3.4) mln, compared with
EUR 0.4 mln in the reference period of 2005. Third quarter's gross
margin remained at a high level of 63 percent (vs. 66 percent in
Q3/2005).

LYCOS Europe expects the acquisition of online shopping specialist
mentasys to be closed in the fourth quarter 2006. Especially in the
winter season which is the traditionally strongest period for
eCommerce the company expects increasing revenues within paid
services and shopping as well as in the advertising business.

LYCOS Europe's cash, cash equivalents and deposits amounted to EUR 110.6 mln on
September 30, 2006, compared to EUR 105.1 mln on December 31, 2005.
- ends -
|In mln EUR (ex. per share |Nine months ended|Nine months ended|Change |
|data, change, gross margin) |September 30, |September 30, | |
| |2006 |2005 | |
| | |restated | |
|Total revenues |59.0 |58.3 |1% |
|Gross profit |37.7 |36.4 |3% |
|Gross margin |64% |62% |3% |
|Loss from operations (EBIT) |(7.9) |(18.5) |57% |
|Net profit / (Net loss) |6.9 |(18.5) |137% |
|Net profit / (Net loss) per |0.02 |(0.06) |137% |
|share in Euro | | | |
|EBITDA |(3.4) |(12.0) |71% |
|Cash, cash equivalents and |110.6 |108.0 |2% |
|deposits | | | |
|In mln Euro (ex. per share |Three months |Three months |Change |
|data, change, gross margin) |ended September |ended September | |
| |30, 2006 |30, 2005 | |
| | |restated | |
|Total revenues |17.4 |20.0 |(13%) |
|Gross profit |10.9 |13.3 |(18%) |
|Gross margin |63% |66% |(5%) |
|Loss from operations (EBIT) |(4.9) |(1.5) |(219%) |
|Net profit / (Net loss) |9.1 |(2.0) |547% |
|Net profit / (Net loss) per |0.03 |(0.01) |547% |
|share in Euro | | | |
|EBITDA |(3.4) |0.4 |(924%) |

end of announcement euro adhoc 24.10.2006 07:51:31
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ots Originaltext: Lycos Europe
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Kay Oberbeck
Tel.: +49 (0)5241 8071055
E-Mail: kay.oberbeck@lycos-europe.com

Branche: Software
ISIN: NL0000233195
WKN: 932728
Index: Prime All Share, Technologie All Share
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