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October 25, 2005

ReachLocal Announces Dramatically Expanded Global Presence with Series of Major Alliances During Q3


Turnkey Advertising Platform Now Powers Local Search for Leading Yellow Pages Companies -- Including TMP, the World's Largest -- and Nationwide Franchise Organizations

Less than a year after launch, ReachLocal (www.reachlocal.com) has emerged as a potentially dominant player in local search -- forging strategic partnerships that have expanded its footprint to millions of local businesses worldwide. The Los Angeles-based company is not a traditional search marketing firm, yet has rapidly become a major force in online advertising through a patent-pending online marketing platform that is empowering local businesses around the globe.

During the just-concluded third quarter, ReachLocal (www.reachlocal.com) announced strategic partnerships with TMP Directional Marketing, the world's largest Yellow Pages advertising agency; Ambassador Yellow Pages, the fastest growing directory publisher in New York City; L.E.T. Group, Inc., leading provider of hotel Internet marketing services; and Efficient Frontier, a leading provider of search engine marketing solutions.

"We're enabling businesses of any size to exploit the most dynamic and effective advertising medium today -- local search," said Zorik Gordon, president and CEO, ReachLocal. "It's a huge vote of confidence in the power of local search in general, and in ReachLocal's turnkey solution in particular, to have major players like TMP and huge national franchise organizations choose our platform. They understand the importance of using local search to find customers online, and they know we make it easier and more cost-effective than anyone else."

"In teaming up with some of the biggest Yellow Pages companies and franchise organizations, we've enabled our partners to make ReachLocal's platform available to businesses worldwide -- with the accent on local businesses affiliated with organizations that have a national footprint," Gordon said. "Our goal is to put a powerful, scalable platform in the hands of these knowledgeable organizations and let them share in the enormous upside as local businesses get online."

Among ReachLocal's Q3 alliances:

-- TMP Directional Marketing is the world's largest Yellow Pages advertising agency and a major provider of local Internet marketing services. The company's clients include more than 600,000 local businesses under 1,700 national brands, including 90 Fortune 500 companies.

-- Efficient Frontier manages more than $150 million in annual search spend, counts 40 of the top 400 search advertisers as clients and manages over 10 million keywords.

-- L.E.T. Group currently provides hotel Internet marketing services to more than 35 top hotel management companies, with individual hotels and resorts worldwide.

-- Ambassador Yellow Pages (www.AmbassadorYellowPages.com) is the fastest-growing directory publisher in New York City.

ReachLocal's platform is part of an overall service that includes complete search engine campaign set-up and management, simplification of online media buying across multiple online publishers -- including Google, Yahoo!/Overture and Verizon SuperPages -- and robust campaign reporting with sophisticated phone call and web activity tracking.

ReachLocal addresses the most common challenges to online advertising for small- to mid-size local businesses -- managing the complex process of search engine keyword bidding, targeting by geographic region and providing detailed tracking to accurately measure ROI -- bringing Internet marketing within reach of every business.

The company provides its advertisers with prominent placement in search results with the most popular local search vehicles. Currently, ReachLocal is working with the Internet's leading pay-per-click search engine providers (Google, Yahoo Sponsored Search), paid inclusion providers (Yahoo Site Match Exchange) and geo-targeted banner networks (Advertising.com). With the "pay-per-click" model, advertisers pay only when users click on their ads to visit specific sites.

Contact:
David Glaubke,
Director of Corporate Communications
ReachLocal, Inc.
(818)936-9908
dglaubke@reachlocal.com