R.H. Donnelley Broadens Local Online Search Marketing Capabilities With Acquisition of Leading Local Search Marketing Provider - LocalLaunch!
Agreement Adds Team of Highly Skilled Internet Marketing Professionals and Expands Company's Search Engine Marketing and Optimization Solutions
Cary, N.C., September 7, 2006 - In a move designed to significantly bolster its local online search marketing capabilities, R.H. Donnelley Corporation (NYSE: RHD) announced today that it has purchased LocalLaunch!, a Chicago-based company that specializes in providing Internet search products, platforms and fulfillment solutions to local advertising providers.
R.H. Donnelley's acquisition of LocalLaunch! adds approximately 40 Internet marketing professionals who are highly skilled in developing innovative search engine marketing and optimization products that help connect businesses with consumers who are searching for goods and services online.
LocalLaunch!'s products comprise one of the most comprehensive sets of marketing solutions in the local online search category. Their offerings target prospective local search advertisers through a unique approach to web publishing, distribution, paid search, organic-based advertising and tracking solutions.
By combining these core capabilities with RHD's existing print and local online search offerings, including the top-performing DexOnline.com site, the company is well-positioned to generate additional leads and deliver an expanded level of service to advertisers.
"This transaction accomplishes two objectives; it supports the expansion of our current local online search offerings which help businesses reach ready-to-buy consumers and it also gives us new, innovative solutions that we believe will appeal to an even broader range of businesses that might not currently employ our online and print yellow pages products," said David C. Swanson, R.H. Donnelley's chairman and CEO. "With the addition of LocalLaunch!'s Internet product development and search engine marketing expertise, we are immediately positioned as a recognized leader in this space and have the potential to drive the expansion of this segment over the longer term.
LocalLaunch! will operate as a wholly owned subsidiary of R.H. Donnelley Corporation and will be based in Chicago. Justin Sanger, founder and president of LocalLaunch!, will remain as its president, and the company will continue to power resellers worldwide with private-labeled platform solutions and local search marketing products.
"LocalLaunch! has built a reputation for innovation, performance and thought leadership," said Sanger. "Our core competencies are an ideal fit with RHD. Together, we expect to accelerate the expansion of our local online search offerings."
Local Launch! is a privately held company and terms of the transaction were not disclosed. R.H. Donnelley does not expect this acquisition to affect the current guidance for full-year 2006 revenue, EBITDA, free cash flow or debt at year-end.
About R.H. Donnelley
R.H. Donnelley (http://www.rhd.com) is the nation's third largest yellow pages publisher with significant online local search capabilities. The company has more than 4,000 employees operating in 28 states across the United States. Every day, consumers rely on the company's more than 625 directories, online city guides and local search Web sites to find businesses that provide the products and services they need. RHD's directories, which have a circulation of approximately 80 million, are marketed under three of the industry's most recognized brands: AT&T Yellow Pages (formerly SBC Yellow Pages) in Illinois and northwest Indiana; Dex(R) Yellow Pages and EMBARQ Yellow Pages ™ directories (formerly Sprint Yellow Pages ®). R.H. Donnelley's expanding presence on the Internet now includes the Best Red Yellow Pages ® brand at bestredyp.com ® in its EMBARQ Yellow Pages markets, in RHD's AT&T Yellow Pages markets at CHICAGOLANDYP.com and local search services through Dex at DexOnline.com ®.
Safe Harbor Provision
Certain statements contained in this press release regarding RHD's future operating results or performance or business plans or prospects and any other statements not constituting historical fact are "forward-looking statements" subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Where possible, the words "believe," "expect," "anticipate," "intend," "should," "will," "planned," "estimated," "potential," "goal," "outlook" and similar expressions, as they relate to RHD or its management, have been used to identify such forward-looking statements. All forward- looking statements reflect only RHD's current beliefs and assumptions with respect to future business plans, prospects, decisions and results of both the new Local Launch business as well as its other businesses, and are based on information currently available to RHD. Accordingly, the statements are subject to significant risks, uncertainties and contingencies, which could cause RHD's actual operating results, performance or business plans or prospects -- both the new Local Launch business as well as its other businesses -- to differ materially from those expressed in, or implied by, these statements.
The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: (1) execution of our search engine marketing solutions depends on our ability to acquire clicks at reasonable market rates, and failure to do so could jeopardize our ability to satisfy demand; (2) the risk that the legacy Dex and RHD businesses will not be integrated successfully; (3) the risk that the expected strategic advantages and cost savings from the Dex Media merger may not be fully realized or may take longer to realize than expected; (4) disruption from the Dex Media merger making it more difficult to maintain relationships with customers, employees or suppliers; and (5) general economic conditions and consumer sentiment in our markets. Additional factors that could cause RHD's results to differ materially from those described in the forward-looking statements are described in detail in the registration statement on Form S-4 that RHD filed with the Securities and Exchange Commission (the "SEC") (Registration No. 333-129539), which contains the joint proxy statement/prospectus relating to the transaction, RHD's Annual Report on Form 10-K for the fiscal year ended December 31, 2005 in Item 1A "Risk Factors," Dex Media's Annual Report on Form 10-K for the fiscal year ended December 31, 2005 in Item 1A "Risk Factors," as well as RHD's and Dex Media's other periodic filings with the SEC that are available on the SEC's website at www.sec.gov.
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| Company Contacts: | |||
|---|---|---|---|
| Investors: | Jenny L. Apker (800) 497-6329 jenny.apker@rhd.com |
Media: | Tyler D. Gronbach (919) 297-1541 tyler.gronbach@rhd.com |
"LocalLaunch! increased my revenue 200% in 4 months".
- Amazon.com