AdForce to Transition GeoCities Ad Serving to Yahoo!

CUPERTINO, Calif.--(BUSINESS WIRE)--June 1, 1999--

Yahoo!, Inc., having completed the acquisition of GeoCities on May 28, 1999, informed AdForce (Nasdaq:ADFC) today that it will transition GeoCities' ad serving to Yahoo!'s internal system during the month of June. Yahoo! and AdForce also reached agreement on the terms under which AdForce will provide back up ad serving to Yahoo! during this transition. Additionally, AdForce and Yahoo! entered into a third party ad serving agreement, authorizing AdForce to serve ads on behalf of advertisers on Yahoo!'s global network of Web properties.

"While we are obviously surprised and disappointed with Yahoo!'s decision, we will work closely with Yahoo! and GeoCities throughout the transition and look forward to the opportunity to demonstrate AdForce's capabilities to Yahoo!," said Chuck Berger, chairman and CEO of AdForce.

GeoCities accounted for 17% of AdForce's revenues during the month of May 1999 as compared to 20% in the March 1999 quarter. "Because our business has grown so rapidly over the past year, GeoCities represents a much smaller percentage of our revenues than in the past. It is also important to note that while it is expected that we will experience some turnover in our accounts, we continue to add new accounts and existing customer accounts continue to experience significant growth," Berger said. "Despite losing GeoCities as a customer to the Yahoo! consolidation, we expect to show continued revenue growth this quarter, a clear indicator of the strength of our overall business."

"Yahoo! and GeoCities' management appreciate the partnership with AdForce over the past two years. Now that AdForce is an authorized third party ad serving company to Yahoo!, we look forward to working with them in the future," said Anil Singh, Yahoo!'s senior vice president of sales. "We appreciate AdForce's willingness to back us up throughout the transition to ensure that GeoCities' advertisiers experience a seamless transition."

"AdForce served nearly seven billion ads in May as a centralized ad server solution for leading on-line publishers, rep firms and Internet advertisers." Berger said. "We have clearly established our strategic role as one of the primary advertising infrastructure providers. As we increase our sales and marketing efforts, we expect to expand our role by offering value added services to our customers in the future."

About AdForce (www.adforce.com)

AdForce is "The Force in .com Marketing" and a leading provider of centralized advertising services, enabling online publishers, rep firms and Internet advertisers to leverage the unique advantage of the Internet as the first fully interactive medium. Deploying advanced scalable technology and backed by robust data centers, the AdForce service delivers billions of impressions monthly for the Internet's most prominent advertisers. AdForce provides a comprehensive suite of products which allow advertisers and publishers to target, deliver, measure and analyze Internet advertising programs for the best results. AdForce has strategic partnerships with America Online, Inc. and Experian (formerly Metromail). The company has offices in Cupertino, CA, Costa Mesa, CA, and New York, NY.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. These statements are subject to the "safe harbor" created by those sections and include, but are not limited to: AdForce's expectation of continued revenue growth, of continued growth in business from existing accounts and of expanding its value-added services. AdForce's actual results for future periods could differ materially from those predicted in these forward-looking statements. Factors that could cause actual events or results to differ include, but are not limited to AdForce's limited operating history, its dependence upon a limited number of customers for a large percentage of its revenue, its history of losses and expectation of future losses, its ability to maintain the performance and reliability of its systems, its need to continue scaling its systems successfully and to add new features and functionality to meet market demands, competitive pressures, continued consolidation in the industry affecting AdForce's customer or competitors, and other risks described in AdForce's Registration Statement on Form S-1, as amended, filed with the Securities and Exchange Commission. AdForce undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of such statements.