ReachLocal Enters New Zealand Market Through Strategic Alliance With SureFire Search

greement Will Bring ReachLocal's Online Advertising Products and Services to New Zealand's Small- to Medium-Sized Businesses

(WOODLAND HILLS, CA and AUCKLAND, NZ) – April 6, 2011 – ReachLocal, Inc. (NASDAQ:RLOC), a leader in local online marketing solutions for small- and medium-sized businesses (SMBs), announced today a strategic alliance with Auckland-based SureFire Search Ltd that will expand ReachLocal’s global reach by providing online advertising products and services to New Zealand’s SMBs through SureFire’s sales channel.

SureFire’s ReachLocal-trained, dedicated sales force will deliver products and services powered by ReachLocal’s proprietary technology that is tailored specifically to the needs and budgets of SMBs.ReachSearch™ delivers local advertisers’ marketing messages through pay per click (PPC) ads across many search engines including Google, Yahoo and Bing. ReachDisplay™ allows local businesses to reach customers through display advertising on numerous major online publishers, including Facebook.

 “Small businesses represent the backbone of New Zealand’s economy, and SureFire has shown solid leadership in the digital transformation of many of these businesses by shifting their marketing budgets from offline media to online,” said Zorik Gordon, ReachLocal co-founder and CEO. “These types of strategic alliances can be an effective alternative for entry into certain international markets, where we can find, as we have here, the right partner.”

According to a recent study by IAB New Zealand/PwC, the total online advertising spend in New Zealand showed over 19.5 percent growth from 2009 to 2010, reaching $257.46M. Online search and directories accounted for 36 percent of the total spend, while online display accounted for 31 percent. The New Zealand Ministry of Economic Development reported that SMBs employing 50 or fewer employees in 2009 accounted for 99 percent of total businesses in the country.

“There is significant market opportunity in New Zealand as businesses are looking for new and innovative ways to reach their customers through the Internet,” said Mark Sceats, managing director of SureFire Search. “ReachLocal’s technology automates online advertising campaigns in a way that frees up owner operators to concentrate on running their businesses, and allows us to focus on consulting businesses on best marketing practices.”

New Zealand marks the sixth country running online advertising campaigns through the ReachLocal platform. ReachLocal operates 50 direct sales offices in North America, the United Kingdom, Germany and Australia, including offices in Sydney, Melbourne, Brisbane and Perth.

New Zealand businesses can call SureFire Search at (09) 356 4624 or visit http://reachlocal.co.nz for more information.

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About ReachLocal

ReachLocal, Inc.'s (NASDAQ: RLOC) mission is to help small- and medium-sized businesses (SMBs) acquire, maintain and retain customers via the Internet. ReachLocal offers a comprehensive suite of online marketing solutions, including search engine marketing (ReachSearch™), Web presence (ReachCast™), display advertising (ReachDisplay™) and remarketing, online marketing analytics (TotalTrack®), and our out-of-the-box assisted chat service (TotalLiveChat™), each targeted to the SMB market. ReachLocal delivers this suite of services to SMBs through a combination of its proprietary technology platform and its direct, "feet-on-the-street" sales force of Internet Marketing Consultants and select third party agencies and resellers. Bizzy™, a personalized local business recommendation engine, and DealOn™, a deal commerce company, are wholly owned subsidiaries of ReachLocal. ReachLocal is headquartered in Woodland Hills, CA, with offices throughout North America and in Australia, the United Kingdom and Germany.

About Surefire Search

SureFire Search is a leading New Zealand search marketing agency that has been working with NZ businesses since 2002. SureFire has a skilled team of consultants with the experience to manage search and online display campaigns for a wide range of clients, including some with New Zealand's largest Google AdWords™ campaigns. SureFire's values are all about efficiency. The Company is focused on helping clients get the most out of their online marketing spends; streamlining search from interest through to conversion; converting the consumers who count (fishing where the fish are feeding); and ultimately the pursuit of Return on Investment (ROI). For more information about SureFire, visit www.surefiresearch.com or call +64 9 356 4623.  

Caution Concerning Forward-Looking Statements

This document includes certain forward-looking statements. These statements are based on the current expectations or beliefs of management of ReachLocal and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to (1) changes in economic, business, competitive, technological and/or regulatory factors, (2) failure to compete successfully in a highly competitive and rapidly changing marketplace, (3) failure to retain key employees, and (4) other factors affecting the business operation of ReachLocal. More detailed information about these and other factors that may affect current expectations may be found in filings by ReachLocal with the U.S. Securities and Exchange Commission. ReachLocal is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

For ReachLocal:

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

Investor Relations:

Alex Wellins

The Blueshirt Group

(415) 217-5861

alex@blueshirtgroup.com