Ask Jeeves (ASKJ) 8-K Financial statements and exhibits

Exhibit 99.1

Investors:	Corporate Communications:
Derrick Nueman	Alexa Rudin
Ask Jeeves, Inc.	Ask Jeeves, Inc.
Ph: (510) 985-7485	Ph: (212) 807-9741 x129
dnueman@askjeeves.com	alexa@askjeeves.com

Ask Jeeves Reports First Quarter 2003 Results

-Ask Jeeves Posts First Quarter Revenues of $25.2 million, a 57% Year-Over-Year Increase-

-First Quarter Pro Forma Income of $0.07 per share-

-First Quarter GAAP Income of $0.16 per share-

Emeryville, CA—April 22, 2003— Ask Jeeves, Inc. (“the Company”) (Nasdaq: ASKJ) today reported results for the first quarter ended March 31, 2003.

Revenues for the first quarter ended March 31, 2003 were $25.2 million. The first quarter results represent 57 percent growth over revenues of $16.1 million for the comparable year-ago quarter.

Pro forma net income for the quarter was $3.2 million, or $0.07 per share, exceeding the Company’s first quarter guidance for a pro forma net income of $2.0 million, or $0.04 per share. For the comparable year-ago quarter, the pro forma net loss was $8.7 million, or $0.22 per share. The Company’s pro forma results for the quarter exclude restructuring costs, amortization of goodwill and other assets, stock-based compensation, impairment of long-lived assets, gain on acquisition of joint venture and deal costs. These pro forma results should be evaluated in light of the Company’s financial results prepared in accordance with generally accepted accounting principles (“GAAP”). A table reconciling the pro forma net income to GAAP net income (loss) is included in the condensed consolidated financial statements in this release. Under GAAP, the net income for the first quarter of 2003 was $7.7 million, or $0.16 per share. This compares to a net loss on a GAAP basis of $10.4 million, or $0.26 per share, for the comparable year-ago quarter. The GAAP results in the first quarter of 2003 included a one-time gain of $6.1 million from the acquisition of Ask Jeeves UK recognized this quarter due to expiration of certain contingencies in the purchase agreement.

“Search has become the front door to the Internet. Equally important, the advertising that has been developed to complement search has proven to be highly effective. We believe this creates a market that is in its infancy and has the potential to grow well beyond current industry projections of $7 billion in five years,” said Skip Battle, CEO of Ask Jeeves, Inc.

“This quarter we executed well. Our performance was driven by growth in users, frequency and the percent of traffic we monetized. With the important upgrade to Ask.com that we introduced this week, we’re well positioned to continue this trend. The site is now cleaner, 50 percent faster and includes new Smart Search features that bring an intuitive approach to search that is unlike anything else in the market.”

For the first quarter of 2003, the Company’s Web Properties division revenues grew to $21.6 million, up from $10.8 million for the comparable year-ago quarter. The increase in Web Properties revenue is primarily due to strong performance of paid listings, increased sales of the Company’s branded response advertising product and record revenues from Ask Jeeves UK.

Jeeves Solutions revenues were $3.6 million for the first quarter of 2003, compared to $5.3 million in the comparable year-ago quarter.

Unrestricted cash, cash equivalents and marketable securities totaled $39.1 million on March 31, 2003.

Business Outlook
The following business outlook contains forward-looking statements describing management’s current expectations for the future. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, some of which are listed in the cautionary note below. As a result of these uncertainties, the Company’s actual results in the future may differ materially from management’s expectations. The guidance provided in this press release is based on limited information available to the Company at this time, which is subject to change. In addition, the guidance is on a pro forma basis consistent with the pro forma results included in this release. Although management’s expectations may change after April 22, 2003, the Company undertakes no obligation to revise or update these statements.

Commenting on the Company’s business outlook, CFO Steve Sordello said, “This past quarter we executed very well, with increases in both page views and revenue per thousand page views compared with the year-ago quarter. This led to a year-over-year increase of 57 percent in revenues. We anticipate that both of these key metrics will continue to trend higher on a year-over-year basis.”

Second Quarter 2003 Business Outlook
The Company expects second quarter 2003 revenue to be approximately $24.5 million. Revenues should decline slightly compared to the first quarter due to seasonal factors. The revenue mix for its business units is expected to be approximately 88 percent for Web Properties and 12 percent for Jeeves Solutions.

The Company expects to report pro forma net income for the second quarter of 2003 of approximately $2.5 million, or approximately $0.05 per share. The Company is unable to provide guidance on a GAAP basis because information relating to possible one-time events is currently not accessible on a forward-looking basis and its probable significance is therefore not determinable. The Company’s GAAP net income per share is typically $0.01 per share per quarter less than pro forma net income per share due to non-cash amortization of intangibles associated with prior acquisitions and excluding one-time events. The Company expects diluted weighted average shares outstanding for the second quarter to be approximately 50 million shares.

Full Year 2003 Business Outlook
Ask Jeeves is raising its earnings guidance for 2003. The Company now anticipates pro forma net income of approximately $0.25 per share and revenues of approximately $102 million for 2003. Ask Jeeves had previously expected pro forma net income of $0.20 per share and revenues of $100 million.

Conference Call Scheduled for April 22
Ask Jeeves will hold a conference call to discuss its first quarter results and its business outlook for the second quarter and 2003 at 6:00 p.m. EDT on April 22, 2003. Investors can listen to the conference call on the Internet at www.ask.com/investor. To listen to the live call, go to the Web site at least fifteen minutes prior to the start time to download and install the necessary audio software. For those unable to listen to the live broadcast, a replay will be available beginning one hour after the conclusion of the call for a period of one year at www.ask.com/investor. The financial and statistical information that will be discussed during the conference call will be posted on the Company’s Web site at www.ask.com/investor and under the tab “Earnings” on that site.

Cautionary Note Regarding Forward-looking Statements

This press release contains forward-looking statements. All statements regarding the future are forward-looking statements, including those statements regarding continued growth of the search market, the Company’s potential for sustainable and profitable growth, expectations regarding page views and revenue per thousand page views, and all expectations regarding pro forma and GAAP net profits, revenue growth and pro forma and GAAP net income per share in the second quarter 2003 and/or for the year 2003. The matters discussed in those statements are subject to risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to: dependence on the Internet; risk associated with rapid technological change; slower spending environment for advertising sales; dependence on third parties for content, distribution or advertising delivery; lack of market acceptance of products; introduction of new products by competitors; failure to meet targets for JeevesOne product pricing and product reception in the market; declines in the average selling price of the Company’s products; and adverse economic conditions in any of the major countries or markets in which the Company does business. As a relatively short announcement, this press release cannot present a full discussion of such risks. Further information on risk factors that could affect the Company’s financial results is included in its most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. The Company encourages investors to read all of the disclosure in its SEC filings for a broader discussion of important factors that may be material to investors and may affect the Company’s business, financial condition and results of operations.

About Ask Jeeves, Inc.

Ask Jeeves, Inc. is a provider of Web-wide search technologies. These technologies are offered through two business units: Web Properties and Jeeves Solutions(r). Ask Jeeves Web Properties provides consumers with authoritative and fast ways to find relevant information to their everyday searches. Web Properties deploys its search technologies on Ask Jeeves (Ask.com and Ask.co.uk), Teoma.com, and Ask Jeeves for Kids (AJKids.com). In addition to its Web sites, Ask Jeeves Web Properties syndicates its monetized search technology and advertising units to a network of affiliate partners. Jeeves Solutions is a provider of enterprise search software that delivers essential customer intelligence to approximately forty corporate customers including British Telecom, Ford, Nestle, Nike and Visa, as well as government users including the State of Washington. Ask Jeeves is based in Emeryville, California, with offices in New York, Boston, New Jersey, Los Angeles and London. For more information, visit www.AskJeevesInc.com or call 510-985-7400.

NOTE: Ask Jeeves, ask.com, Jeeves Solutions, JeevesOne, Teoma and Ask Jeeves for Kids are trademarks or registered trademarks of Ask Jeeves, Inc.

###

ASK JEEVES, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

			Three Months Ended
			(unaudited)
			March 31, 2003					March 31, 2002
Revenues:
		Web Properties	$	21,584		85.8	%	$	10,804		67.2	%
		Jeeves Solutions (1)		3,578		14.2	%		5,273		32.8	%
Total revenues				25,162		100.0	%		16,077		100.0	%
Cost of revenues:
		Web Properties		4,681		21.7	%		3,306		30.6	%
		Jeeves Solutions		1,025		28.6	%		1,878		35.6	%
Total pro forma cost of revenues				5,706		22.7	%		5,184		32.2	%
Gross profit				19,456		77.3	%		10,893		67.8	%
Operating expenses:
		Product development		4,295		17.1	%		5,768		35.9	%
		Sales and marketing		8,169		32.5	%		10,015		62.3	%
		General and administrative		3,627		14.4	%		4,126		25.7	%
Total pro forma operating expenses				16,091		64.0	%		19,909		123.9	%
Pro forma operating income (loss)				3,365		13.3	%		(9,016	)	-56.1	%
Interest and other income, net				187		0.7	%		313		1.9	%
Pro forma net income (loss) before income tax provision				3,552		14.0	%		(8,703	)	-54.2	%
Income tax provision				335		1.3	%		—		0.0	%
Pro forma net income (loss)			$	3,217		12.7	%	$	(8,703	)	-54.2	%
Basic diluted pro forma net income (loss) per share			$	0.08		n.m.		$	(0.22	)	n.m.
Weighted average shares outstanding used in computing basic pro forma net income (loss) per share				42,197,514		n.m.			39,517,426		n.m.
Diluted pro forma net income (loss) per share			$	0.07		n.m.		$	(0.22	)	n.m.
Weighted average shares outstanding used in computing diluted pro forma net income (loss) per share				48,619,325		n.m.			39,517,426		n.m.
(1) Revenues from related parties			$	1,131				$	2,772
RECONCILIATION OF PRO FORMA NET INCOME (LOSS) TO GAAP NET INCOME (LOSS)
	Pro forma net income (loss)		$	3,217				$	(8,703	)
	Restructuring costs			(466	)				—
	Amortization of goodwill and other assets			(529	)				(563	)
	Stock-based compensation			(2	)				(41	)
	Other income (expense)			(7	)				125
	Impairment of long-lived assets			—					(2,231	)
	Gain on acquisition of joint venture			6,124					974
	Deal costs			(646	)				—
Net income (loss)			$	7,691				$	(10,439	)

ASK JEEVES, INC.
RECONCILIATION OF PRO FORMA NET INCOME (LOSS) TO PRO FORMA EBITDA AND GAAP NET INCOME (LOSS)

		Three Months Ended
		(unaudited)
		March 31, 2003						March 31, 2002
		Amount			Per Share			Amount			Per Share
Pro forma net income (loss)		$	3,217		$	0.07		$	(8,703	)	$	(0.22	)
Depreciation			2,023			0.04			2,418			0.06
Interest and other income, net			(187	)		—			(313	)		(0.01	)
Income tax provision			335			0.01			—			—
Pro forma EBITDA			5,388			0.12			(6,598	)		(0.17	)
Adjustments:
	Depreciation		(2,023	)		(0.04	)		(2,418	)		(0.06	)
	Interest and other income, net		187			—			313			0.01
	Income tax provision		(335	)		(0.01	)		—			—
	Restructuring costs		(466	)		(0.02	)		—			—
	Amortization of goodwill and other assets		(529	)		(0.01	)		(563	)		(0.01	)
	Stock-based compensation		(2	)		—			(41	)		—
	Other income (expense)		(7	)		—			125			0.01
	Impairment of long-lived assets		—			—			(2,231	)		(0.06	)
	Gain on acquisition of joint venture		6,124			0.13			974			0.02
	Deal costs		(646	)		(0.01	)		—			—
Net income (loss)		$	7,691					$	(10,439	)
Weighted average shares outstanding used in computing diluted net income (loss) per share			48,619,325		$	0.16			39,517,426		$	(0.26	)

Note:Pro forma EBITDA is defined as pro forma net loss excluding depreciation, interest and other income.

ASK JEEVES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

		Three Months Ended
		March 31,
		(unaudited)
		2003		2002
Revenues:
	Web Properties	$	21,584	$	10,804
	Jeeves Solutions (1)		3,578		5,273
Total revenues			25,162		16,077
Cost of revenues:
	Web Properties		5,038		3,696
	Jeeves Solutions		1,190		2,043
Total cost of revenues			6,228		5,739
Gross profit			18,934		10,338
Operating expenses:
	Product development		4,295		5,768
	Sales and marketing		8,169		10,015
	General and administrative		4,280		4,135
	Stock-based compensation		2		41
	Impairment of long-lived assets		—		2,231
	Restructuring costs		466		—
Total operating expenses			17,212		22,190
Operating income (loss)			1,722		(11,852	)
Gain on acquisition of joint venture			6,124		974
Interest and other income/expense, net			180		439
Net income (loss) before income tax provision			8,026		(10,439	)
Income tax provision			335		—
Net income (loss)		$	7,691	$	(10,439	)
Basic net income (loss) per share		$	0.18	$	(0.26	)
Weighted average shares outstanding used in computing basic net income (loss) per share			42,197,514		39,517,426
Diluted net income (loss) per share		$	0.16	$	(0.26	)
Weighted average shares outstanding used in computing diluted net income (loss) per share			48,619,325		39,517,426
(1) Revenues from related parties		$	1,131	$	2,772

ASK JEEVES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

				March 31,		December 31,
				2003		2002
				(unaudited)
ASSETS
Current assets:
	Cash and cash equivalents			$	31,848	$	27,613
	Marketable securities				7,289		5,762
	Restricted cash and marketable securities				11,065		11,065
		Total cash, cash equivalents and marketable securities (1)			50,202		44,440
	Accounts receivable, net				9,436		9,554
	Prepaid expenses and other current assets				2,679		2,634
			Total current assets		62,317		56,628
Property and equipment, net					10,127		11,306
Intangible assets, net					2,419		2,948
Other long-term assets					1,275		1,294
			Total assets	$	76,138	$	72,176
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
	Accounts payable and other accrued liabilities			$	10,326	$	8,487
	Accrued compensation and related expenses				3,772		4,163
	Accrued restructuring costs				2,060		1,907
	Deferred revenue				9,242		10,790
	Deferred gain on joint venture				—		6,226
	Borrowings under line of credit				11,000		11,000
			Total current liabilities		36,400		42,573
Other liabilities					326		326
			Total liabilities		36,726		42,899
Commitments and contingencies
Stockholders’ equity					39,412		29,277
			Total liabilities and stockholders’ equity	$	76,138	$	72,176
(1) Total cash, cash equivalents and marketable securities				$	50,202	$	44,440