euro adhoc: Lycos Europe N.V.
Joint Ventures/Cooperation/Collaboration
Lycos
Europe in discussions with Lycos, Inc. about perpetual license agreements
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
31.05.2006
Haarlem/The Netherlands, May 31, 2006. Lycos Europe announces that it and Lycos, Inc. have resumed discussions regarding the scope of certain perpetual license agreements, including but not limited to the terms under which Lycos Europe has licensed the LYCOS brand and certain technology from Lycos, Inc. In these discussions, Lycos Europe will seek changes to the current license agreements that will allow Lycos Europe more freedom to use the LYCOS brand.
Discussions between the parties on this subject first started in 2004. In that year, Spanish telecom operator Telefónica SA sold Lycos, Inc. to Korean technology group Daum Communication Corp. Immediately prior to that transaction, Lycos, Inc. transferred its 32% shareholding in Lycos Europe to Telefónica. Also, Lycos, Inc.'s position under its shareholders' agreement with a group of shareholders led by German publishing group Bertelsmann, jointly possessing a shareholding of approximately 32% as well, was transferred to Telefónica. In 2004, Lycos Europe and Lycos, Inc. did reach agreement in principle on future use of the licensed properties, but no final agreement was reached. Ever since, Lycos Europe and Lycos, Inc. have continued to discuss license issues with occasional intervals.
In the context of discussions which have been entered into now, Lycos, Inc. has raised alleged breaches by Lycos Europe under the relevant license agreements since the year 2000 and demanded substantial monetary compensation. Lycos, Inc. has expressed that failing a settlement, it is prepared to terminate the relevant perpetual license agreements.
These allegations and demands came as a surprise to us. Lycos Europe firmly denies that Lycos, Inc. has any right to terminate the relevant perpetual license agreements based on the alleged breaches at all. Also, Lycos Europe strongly believes that it is under no obligation to pay any form of damages for past breaches, if any. Lycos Europe is, however, willing to explore the possibilities and benefits of extending the scope of the relevant licenses going forward. Currently both parties are discussing the topic face to face.
About Lycos Europe Lycos Europe (ISIN NL0000233195) is one of the leading European internet destinations operating a pan-European network of websites in eight languages. The company's combination of search, communication services, content channels, Internet access, homepage building and online communities addresses a wide range of target groups. The Lycos Europe Network provides an attractive medium not only for consumers but also for advertisers and e-commerce partners throughout Europe. Every month about 28 million users visit the Lycos sites in Europe. With a network of websites covering Austria, Denmark, France, Germany, Great Britain, Italy, the Netherlands, Spain, Sweden and Switzerland, Lycos Europe has a large geographical reach in Europe.
end of announcement euro adhoc 31.05.2006 07:59:39
Further inquiry note:
Kay Oberbeck, Director PR & IR Europe
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
Börsen: Frankfurter Wertpapierbörse / regulated dealing/prime
standard
Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Niedersächsische Börse zu Hannover / free trade
Bayerische Börse / free trade