Lycos Europe N.V.

euro adhoc: Lycos Europe N.V.
quarterly or semiannual financial statement / First six months 2006: Continuous revenue increase accompanied by positive EBITDA result

@@start.t1@@--------------------------------------------------------------------------------   Disclosure announcement transmitted by euro adhoc.   The issuer is responsible for the content of this announcement. --------------------------------------------------------------------------------@@end@@


. LYCOS Europe's second quarter 2006 with positive EBITDA result of EUR 1.3

@@start.t2@@         million (+122 percent vs. Q2/2005), nearly balanced net loss of EUR (0.2)
         million (+97%) and a 9 percent increase in revenues to EUR 34.2 million
      . Total revenues in first half year improve by 4 percent and amount to EUR
         64.1 million / EBITDA increases by 107 percent to EUR 0.9 million / net
         loss diminished by 86 percent to EUR (2.3) million / gross margin remains
at high level of 52 percent
      . Set-up of strategic evaluation process for Swedish assets as a result of
         increasing buying interests from potential bidders@@end@@

Haarlem / Netherlands, July 25, 2006 - LYCOS Europe N.V., one of Europe's leading internet portals, today announced its results for the second quarter and first six months of 2006. An increase of 4 percent to EUR 64.1 million in total revenues in the first half year (vs. EUR 61.5 mln in the reference period 2005) mirrors the ongoing successful efforts to attract more users and to turn them into customers of paid-for products. The EBITDA result increased by 107 percent to EUR 0.9 million (vs. EUR (11.7) mln in the first half year 2005) and by this represents the best level in the first six months since going public in the year 2000. The ongoing increase in margin-high revenues streams along with subsequent cost measures are the reason for this development, which is also mirrored in the improvement of net loss by 86 percent to EUR (2.3) million (vs. EUR (16.5) mln in the reference period 2005). LYCOS Europe was able to maintain the gross margin on a high level of 52 percent.

With a 41 percent share (EUR 26.2 mln) of total revenues, paid services & shopping has been the strongest contributor to total revenues, followed by advertising revenues with a share of 30 percent (EUR 19.4 mln) and Interconnect with 29 percent (EUR 18.5 mln). The above average growth of paid services & shopping mirror LYCOS Europe's successful efforts to focus on this margin-high business unit over the past years. It was to a significant positive extent influenced by the very good market launch of the so-called .eu domain names in the second quarter of 2006. LYCOS Europe managed to convert around 60 percent of the applications and sold around 160,000 .eu domains already.

Whilst revenues from online advertising slightly increased by 1 percent compared with last year's reference period, interconnect revenues faced an 11 percent reduction which is mainly caused by the overall decreased usage of narrowband products and a price drop in the access markets. The interconnect revenues are mostly driven by LYCOS Europe's Swedish subsidiary "Spray" which is a Top5 broadband provider in Sweden and that accounts for around 70 percent of the company's overall access customers. As a result of increasing buying interests from potential bidders LYCOS Europe has now set-up a strategic evaluation process for the Swedish entity. This evaluation process is backed by exploratory talks with potential bidders. This will allow LYCOS Europe to decide on the best ownership structure for its assets in Sweden. "Spray" has around 240,000 customers (thereof around 75,000 broadband customers and about 70,000 telephony customers) in the access business.

In the second quarter of 2006, total revenues amounted to EUR 34.2 million, showing an increase of 9 percent compared to the same period last year (EUR 31.5 mln). EBITDA improved by a remarkable 122 percent to EUR 1.3 million (vs. EUR (6.1) mln in Q2/2005), mainly as an effect of a subsequent revenue growth in the paid services & shopping arena. For the same reason, net loss improved by 97 percent from EUR (8.4) million in Q2/2005 to EUR (242.000) in Q2/2006. Second quarter's gross margin increased to 55 percent in 2006 compared with 54 percent in 2005.

LYCOS Europe's cash, cash equivalents and deposits amounted to EUR 98.1 million on June 30, 2006, compared to EUR 105.1 million on December 31, 2005.

- ends -

@@start.t3@@|In mln EUR (ex. share data,  |Six months ended |Six months ended |Change         |
|change, gross margin)            |June 30, 2006      |June 30, 2005      |                  |
|Total revenues                        |64.1                    |61.5                    |4%                |
|Gross profit                          |33.5                    |32.1                    |5%                |
|Gross margin                          |52%                      |52%                      |0%                |
|Operating loss (EBIT)            |(3.5)                  |(17.2)                 |80%              |
|Net loss                                 |(2.3)                  |(16.5)                 |86%              |
|Net loss per share in Euro    |(0.01)                 |(0.05)                 |86%              |
|EBITDA                                    |0.9                      |(11.7)                 |107%            |
|Cash, cash equivalents,         |98.1                    |111.0                  |(12)%          |
|deposits                                 |                          |                          |                  |
|In mln EUR (ex. share data,  |Three months        |Three months        |Change         |
|change, gross margin)            |ended June 30,    |ended June 30,    |                  |
|                                              |2006                    |2005                    |                  |
|Total revenues                        |34.2                    |31.5                    |9%                |
|Gross profit                          |18.8                    |16.9                    |12%              |
|Gross margin                          |55%                      |54%                      |3%                |
|Operating loss (EBIT)            |(0.9)                  |(8.7)                  |90%              |
|Net loss                                 |(0.2)                  |(8.4)                  |97%              |
|Net loss per share in Euro    |0.00                    |(0.03)                 |97%              |
|EBITDA                                    |1.3                      |(6.1)                  |122%            |@@end@@

@@start.t4@@end of announcement                                                 euro adhoc 25.07.2006 07:38:19

ots Originaltext: Lycos Europe N.V.
Im Internet recherchierbar:

Further inquiry note:
Kay Oberbeck
Director PR & IR, Tel.: +49 (0)5241 8071055

Branche: Software
ISIN:      NL0000233195
WKN:        932728
Index:    Prime All Share, Technologie All Share
Börsen:  Frankfurter Wertpapierbörse / regulated dealing/prime
              Börse Berlin-Bremen / free trade
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              Baden-Württembergische Wertpapierbörse / free trade
              Börse Düsseldorf / free trade
              Niedersächsische Börse zu Hannover / free trade
              Bayerische Börse / free trade

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