Semel Steps Down as CEO at Yahoo!

SUNNYVALE, June 19: Terry Semel has stepped down as the CEO
of Yahoo! amid shareholder dissatisfaction with the company’s performance; his
successor is the Internet giant’s co-founder, Jerry Yang.

Semel, who has been chairman and CEO, will assume the
position of non-executive chairman and serve as an advisor for the company's
senior management team, while also working closely with the Board. In related
news, Susan Decker, formerly executive VP and head of the Advertiser and
Publisher Group, is now president of the company. She will assume leadership of
Yahoo!'s business operations, which include the Advertiser and Publisher Group
along with the Yahoo! Network, Connected Life, and international operations.
The Technology Group as well as all Corporate Functions will report to Yang.
Co-founder David Filo will oversee the company's technology organization as
Yahoo! searches for a new chief technology officer.

In a statement, Semel said, "The Board and I have long
talked about the importance of ensuring a smooth succession in Yahoo!'s senior
leadership—and more recently, about the need for a leadership team
committed to carrying Yahoo! through its multi-year transformation. As we
discussed my future goals and plans, I was clear in telling the Board of my
desire to take a step back sooner rather than later. I believe Jerry and Sue,
with their superb talents and intense dedication to Yahoo! and its people, are
the perfect combination to carry us forward. This is the time for new executive
leadership, with different skills and strengths, to step in and drive the
company to realize its full potential—it is the right thing to do, and
the right time is now."

Director Ed Kozel, speaking on behalf of the Board, said,
"The entire Board appreciates the vital role Terry has played in making
Yahoo! the Internet leader it is today. After joining the company in 2001,
Terry helped refocus Yahoo! on key strategic priorities and execute clear plans
for growth, while building and acquiring world-class products and properties.
Under his leadership, we have delivered great value to Yahoo!'s users,
advertisers and shareholders—increasing our revenues nearly nine-fold
since 2001 to $6.4 billion for 2006, boosting our operating income from a loss
in 2001 to nearly $1 billion last year, and creating more than $30 billion in
shareholder value during his tenure. We've also built our industry-leading
audience from 170 million users in 2001 to more than 500 million this year, and
significantly expanded our strong and talented employee base from 3,500 to
12,000.”

Semel was named Yahoo!'s chairman and CEO in May 2001.
Previously, he spent 24 years at Warner Bros., most recently as chairman and
co-CEO.