The American Internet firm Yahoo! is to locate its European headquarters in Dublin with the creation of almost 400 new jobs over the next five years.

Three-quarters of the new jobs will be for graduates with skills in information technology, financial services, customer support and website editorial.

The project will be backed by IDA Ireland. 

The Minister for Enterprise, Trade and Employment, Micheál Martin, said winning the Yahoo! project was a truly outstanding achievement for Ireland.

He said IDA Ireland had faced strong competition from other worldwide locations for the investment and the company's decision proved that Ireland is a serious contender for the world's largest Internet company.

Yahoo1 is the most visited family of websites globally and delivered 2.85 billion page views per day in December 2004.

The company's Senior Vice President International, John Marcom, said the decision to locate its European operations headquarters in Ireland was influenced by a number of factors.

He said these included the success of its existing operation in Dublin, which is known as Overture Services.

Mr Marcom also praised the calibre and volume of graduates available in Ireland, the up to date cost competitive telecommunications and data centre infrastructure, and the assistance of IDA Ireland.