TERRA LYCOS
               consolidated statement of operations (unaudited)
                    (in millions of euros -- Spanish GAAP)
 
                            Oct-Dec Jul-Sept.   %   Jan-Dec  Jan-Dec   %
                              2002    2002   change  2002     2001   change
    Revenue:
      Media                   86.1     86.8   -0.8   359.4    448.1  -19.8
      Access and services     67.6     58.9  +14.8   262.4    245.4   +6.9
    Total revenue            153.7    145.8   +5.4   621.8    693.5  -10.3
    (*)  (euros constant
          from 3Q 02)        173.1(*)        +18.7
    (**) (euros FX rate 2001)                          692(**)        -0.2
 
    Cost of revenue          (67.2)   (68.3)  -1.6  (304.4)  (364.5) -16.5
    Gross Profit              86.5     77.5  +11.6   317.4    328.9   -3.5
    Operating Expenses:
       Research and
        Development          (18.3)   (26.9) -31.9  (101.5)  (127.6) -20.5
       Sales and Marketing   (65.6)   (54.0) +21.5  (229.5)  (305.1) -24.8
       General and
        Administrative       (23.2)   (23.0)  +0.9  (106.6)  (128.3) -16.9
 
    Total Operating
     Expenses               (107.1)  (103.9)  +3.1  (437.7)  (561.0) -21.9
 
 
    EBITDA ***               (20.6)   (26.5) -22.2  (120.3)  (232.0) -48.2
 
       EBITDA Margin          -13 %    -18 % +27.7    -19 %    -33 % -42.4
 
    Depreciation / Other     (37.0)   (38.9)        (164.1)  (185.6)
 
    Financial Income          14.2     15.6           63.5    126.2
    Share in gains
     (losses) by equity
      method                 (88.6)   (21.2)        (148.9)  (181.7)
 
 
    Amortization of          (61.5)   (62.2)        (252.6)  (383.5)
     Goodwill
 
    Extraordinaries       (1,047.2)     3.8        (1,046.3)  (74.8)
 
    Income (loss) before
     taxes and Minorities
     Interest             (1,240.8)  (129.3)       (1,668.7) (931.3)
    Corporate Income Tax    (435.4)    30.4         (342.6)   363.4
    Minority Interest         (0.6)     0.2            2.4      1.6
 
    Net income (loss)     (1,676.7)   (98.7)       (2,008.9) (566.3)
 
    (*)  Revenue from the fourth quarter of 2002, expressed in constant euros
of the third quarter of 2002, rose by 173.1 million euros. The
conversion into euros from foreign currencies in these financial
statements for consolidation represents a negative impact of
19 million euros on quarterly revenue. This impact is calculated by
the difference between accumulated revenues of the four quarters of
2002 (applying the average exchange rate between January-December
2002) and the revenues reported in previous quarters.
    (**) 2002 Revenue calculated at average FX Rate for 2001
    (***)EBITDA in both periods does not include operating leases in the US,
which are included under Depreciation.
 
 
                              OPERATING RESULTS
 
                                                       4Q      4Q
                           (Users in millions)        2002    2001   Var. %
 
 
    PAYING
    SUBSCRIBERS         Access
                                                       1.4     1.3    7.7 %
 
 
                        Communications and Portal
                        Services                       1.7     0.4  379.4 %
 
                        TOTAL PAYING SUBSCRIBERS       3.1     1.7   88.0 %
 
    FREE SUBSCRIBERS    Narrowband Access              2.7     3.0   -9.8 %
 
    TOTAL SUBSCRIBERS                                  5.9     4.7   24.7 %