YELLOWPAGES.COM

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(New Results Page)

Where consumers go on the Web when they “need something” local…

Need something?sm

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Local Online Opportunity

◆ More and more consumers are searching online for local information– Over 63% of the US online population

conducted a “local search’ in July 2006– 83% of the sales impact of a local search

happens after the search takes place• Consumers research local purchases online

◦ Only 17% of local search results in a direct purchase◦ 20% of local search purchases happen during a

timeframe after the search is completed◦ 63% of local search purchases take place offline

– The majority of consumers conducting a local search are searching in their direct local market area

Sources: Local search webinar 10/06 comScore

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Online Advertising Market

U.S. Online Advertising Spending

Source: The Kelsey Group; Feb. 2006

$7.8 B

$10.1 B

$12.7 B

$15.8 B

$19.0 B

$22.8 B

$27.3 B

2004

2005

2006

2007

2008

2009

2010

$0.7 B

$1.0 B

$1.6 B

$2.4 B

$3.6 B

$5.0 B

$6.2 B

2004

2005

2006

2007

2008

2009

2010

U.S. Internet Yellow Pages and Local Search Market

Explosive Growth through 2010

U.S. Online Advertising projected to grow 22% per year

IYP & Local Search expected to grow 42% per year

Online share of ALL advertising to double over the next 4 years

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Industry Overview

Difference between Internet Yellow Pages and Local search engines– Uniquely different, yet very similar:– Going after many of same dollars (more local $ for us)– YELLOWPAGES.COM provides content for key online

players: Yahoo, AOL, Switchboard, etc.

IYP competitive advantages:◆ Deliver consumers “ready to buy” ◆ Provide faster, targeted search results◆ Strong local content, which drives usage◆ Sales force is differentiator◆ Offer & manage simple, convenient solutions

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IYP Value Story

• IYP’s offer a more efficient local search experience than Search Engines:

- While search engines take 7.6 clicks to find desired result, IYP’s take 4.6 clicks

• IYP searches are more likely to result in a purchase within 1 month when compared with local searches via search engines

• Users spend more online & offline with IYP’s than with local search engines:- Online: 15% higher on average

- Offline: 10% higher on average

• YELLOWPAGES.COM delivers “ready to buy” consumers

− 73% of users who visit YELLOWPAGES.COM contact a business

− 45% make a purchase

IYPs are Efficient Local Search Sites with Enhanced ROI

Sources: YPA IYP vs. Local Search Study 2005; MORPACE International 12/04

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YELLOWPAGES.COM Joint Venture

◆ 11/04/04 - SBC and BellSouth Announce Partnership and Acquisition of YELLOWPAGES.COM

◆ Ownership

– AT&T (66%)

– BellSouth (34%)

◆ Joint management control

JV Responsibilities

◆ Consumer Experience:Provide a leading search experience and destination site

◆ Organic Usage:Continue to invest in our brand to build organic usage

◆ Valuable Content:Acquire, organize & improve advertiser and consumer listing content

◆ Electronic Ad Products:Maximize ROI for our customers

◆ Distribution:Expand syndication through new interfaces & invest in consumer franchise

◆ Sales Execution:Increase our customer base and strengthen advertiser relationships

Organization

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Internet Yellow Pages

Search Engine Marketing

Web site solutions

YELLOWPAGES.COM Advertising Products

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YELLOWPAGES.COM Extended Distribution

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National Ad Campaign

Launched National Ad Campaign

Spill Parking Garage

Park

Driving Rug Airplane

Rooftop

Exercise

◆ Campaign objective is to become the market leader in the Internet Yellow Pages and local search space by:– Establishing brand

identity– Increasing brand

awareness – Increasing use of the

site◆ Positioning:

YELLOWPAGES.COM is where you go online when you “Need something” locally

◆ The Campaign utilizes a strong mix of media:– National Network– National Cable– Online Advertising

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YELLOWPAGES.COM Audience Growth

YELLOWPAGES.COM Nationwide Network audience has doubled over same period (comScore Aug06)

Over 1 billion annualized searches are projected through the YELLOWPAGES.COM Network in 2006

(Projection from Internal search stats from YELLOWPAGES.COM & Network partners)

YELLOWPAGES.COM site audience has nearly doubled since the launch of the new platform (comScore Aug06)

YELLOWPAGES.COM is the 84th largest site in the U.S.

(comScore Aug 06)

YELLOWPAGES.COM on Rapid Growth Pace

57,000,000

98,000,000 100,000,000

Jan 2005 March 2006 Sept. 2006

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Focus on User Experience (UX)

YELLOWPAGES.COM Site Strategy

◆ Be the consumer destination of choice for finding things locally on the Web

◆ Develop the design, content and functionality to support an unsurpassed user experience

◆ Leverage the traffic associated with the best user experience to provide maximum value to local and national advertisers

◆ Ensure advertiser solutions work in harmony with the consumer experience

Support an ever

increasing loyal

user-base and

traffic proposition,

which can be

effectively leveraged

by local & National

advertisers

User Personalization• Recent Activities• Saved Listings• Personal Notes

User Notes

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More User Experience (UX)

◆ Initial launch April 6◆ Three map views

– Road (Standard) – Aerial (Satellite and high-

flying plane photo images)– Bird’s Eye – (45 degree

photos) ◆ Smooth zoom, drag and

pan ◆ Nearly 100 new markets

planned for Bird’s Eye in 2006

◆ July 2006 – Launched feature to plot multiple local businesses

◆ Ongoing roadmap advances

Over 1/3

of Web users

visited a mapping

site in February

(Comscore)

New Next-Generation Mapping

Multi-point Mapping

Bird

’s E

ye P

hoto

s

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Cross Platform Accessibility

“Device-Neutral” Consumer Accessibility– Wireless platform

relaunch– Cingular relationship

• Enhanced promotion on the deck

• New enhanced WAP applications

• Deeper integration

– Future initiatives, e.g.• Wireless beyond WAP• IPTV• Leverage AT&T and BLS

Strategies

– Optimize the user experience for the application

– Deliver value to advertisers

IPTV Channel

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◆YELLOWPAGES.COM is the online directional advertising expert offering small- and medium-size businesses one-stop, complete solutions:–IYP (and future media, such as wireless and IPTV)

–Web site design/hosting–Search engine marketing–Extended distribution across key internet sites

We wrote the book on local search