Comp Updates

GOOG – market share update from B. Peck – comScore #s out earlier Tues showed GOOG once again posting solid domestic share gains (60bp in Feb) to reach total domestic share of 48.1%. Google grew search queries by 36% YoY in February 07. While this growth level is significantly ahead of the industry growth at 19% YoY, it marked a meaningful deceleration from 44% in January 07. However, we think the deceleration could be a reflection of normal seasonality for Google. GOOG’s share gains came mostly at the expense of MSN, AOL,
and Ask.

GOOG – B. Peck’s thoughts on GOOG’s pay-per-action beta test. We think this is was widely discussed and anticipated by the St and we think GOOG will ultimately integrate pay-per-action platform w/its Checkout application.

YHOO – comScore market share data from B. Peck - market share stayed flat at 28.1% in February. We note that February marked the first time since August 05 where Yahoo's YoY growth rate outpaced the industry. Yahoo continued to be the second fastest growing search site YoY among the top five with growth in February 07 of 22% YoY, down slightly from the 23% reported in January 2007.