Entertainment Editors/Business Editors/High-Tech Writers

NORTH HOLLYWOOD, Calif. & MADRID, Spain--(BUSINESS WIRE)--Aug. 20, 2003--Walt Disney Internet Group's (WDIG) Disney Connection, which features a full collection of broadband content for families with children, has launched on Terra Lycos in Spain. Terra is the first ISP in Europe to launch Disney Connection. The service is now bundled with the high speed Internet service available to the residential ADSL subscribers of Terra in Spain and will rollout to Terra subscribers in Brazil, Mexico, Argentina, Chile and Peru later in the year.

Disney Connection is an interactive online content service, exclusively available through a broadband connection, through which children and their parents can experience a broad range of media-rich Disney entertainment and learning activities in a safe environment. Its programming, based on both classic and new Disney characters, will be split into four distinct sections -- Watch, Play, Learn and Listen -- each of which takes advantage of broadband capabilities to deliver quality online programming to the consumer. In addition to an extensive selection of programming provided to consumers as part of their broadband service, consumers will also have the option to subscribe for access to premium content.

"Broadband will allow us to truly realize the promise of online entertainment, and Disney has extensive online and offline assets that can be leveraged for broadband services," said Mark Handler, executive vice-president and managing director, International, Walt Disney Internet Group. "Disney Connection is our first broadband product to aggregate content from many of the different divisions of The Walt Disney Company and we're pleased to be working with Terra Networks on this new initiative."

"As broadband penetration continues to grow in Europe, providing engaging broadband content is critical in both driving more demand and increasing revenue per user. We have built a service that is custom-made to the medium," remarked Attila Gazdag, managing director, Europe, Walt Disney Internet Group.

"We are proud to be working with Walt Disney Internet Group in launching the Disney Connection, offering our customers the most exciting family-oriented content," said Javier Martinez, Terra's executive vice president for Spain and Latin America. "We are confident that Disney Connection will further enhance our ADSL broadband service."

Disney Connection's 'Watch' section contains a portfolio of animated shorts, interviews, sneak previews and behind-the-scenes footage from Disney films and TV shows. The 'Play' section is the games area of the service, containing a wide selection of online games for kids of all ages. 'Learn' focuses on educational games and activities, with a strong emphasis on younger kids, and 'Listen' acts as an online juke-box of Disney tunes and music videos. Content within all four sections is updated regularly to keep the product fresh, and an intuitive user interface presents it to the consumer in an engaging manner.

About Walt Disney Internet Group

Walt Disney Internet Group (WDIG) provides strategic leadership and operational management for The Walt Disney Company's (NYSE:DIS) Internet properties including category leaders Disney.com, ESPN.com and ABCNEWS.com. WDIG has led the way in developing new forms of interactive content, such as its Enhanced TV service which showcases the convergence of video and interactive programming, and is a market leader in developing and distributing entertainment and informational content to new platforms. Through relationships with some of the world's largest wireless carriers, WDIG distributes content and services to wireless users under the Disney, ESPN and ABC brands. Steve Wadsworth is president of WDIG is headquartered in North Hollywood and has operations in Seattle, New York, Orlando, Tokyo and London.

About Terra Lycos

Terra Lycos is the global Internet group with a presence in 42 countries and 19 languages. The group, which resulted from the Terra Networks, S.A. acquisition of Lycos, Inc. in October 2000, is one of the most popular websites in the United States, Europe, Asia and Latin America, and it is the foremost access provider in Spain and Latin America.

The Terra Lycos network of sites includes Terra in 17 countries, Lycos in 25 countries, Angelfire.com, Atrea.com, Azeler.es, Educaterra.com, Gamesville.com, HotBot.com, Ifigenia.com, Invertia.com, Lycos Zone, Maptel.com, Matchmaker.com, Quote.com, RagingBull.com, Rumbo.com, Tripod.com, Uno-e.com and Wired News (Wired.com), among others. Terra Lycos is headquartered in Barcelona and has operating centers in Madrid and Boston, among other locations. It is listed on the Madrid Stock Exchange (TRR) and the Nasdaq (TRLY).

    CONTACT: Walt Disney Internet Group 
             Kim Kerscher, 1- (North Hollywood, USA)
             
             or
             Darren Cockburn, London)
             
             or
             Terra
             Pablo Fuentes,