ReachLocal Increases Global Presence with Expansion into Canada

Toronto's Small- to Medium-Sized Businesses and Multi-Local Corporations Gain a Powerful Internet Advertising Tool to Connect with Consumers Searching Online.

September 10, 2008

(TORONTO) ReachLocal Inc. (http://www.reachlocal.ca), a leading provider of local online marketing solutions for small- to medium-sized businesses, announced today the opening of sales offices in Toronto. As ReachLocal's first Canadian location, the offices will cater to local businesses in the Greater Toronto Area. Toronto's direct sales force is located in commercial offices at the new, mixed-use development - The Shops at Don Mills - 1090 Don Mills Road, Toronto, and operated by its Regional Sales Manager, Alyn Glazerman.

ReachLocal currently provides Internet advertising services through Google, Yahoo! and MSN and other search publishers, to over 10,000 local businesses in North America and Australia.

"Canada is an exciting market with a bourgeoning demand for Internet advertising solutions for small businesses," said Zorik Gordon, CEO of ReachLocal. "With small- to medium-sized businesses in Canada accounting for up to 98 percent of its national enterprise, we see a huge opportunity to help these companies market themselves online."

According to estimates by eMarketer, Internet advertising spend in Canada will surpass C$3.0 billion by 2011 (US$2.44 billion), or roughly triple 2006's online advertising spend. Research by the Internet Advertising Bureau of Canada also shows that paid search accounted for 38 percent of total online advertising spend in 2007, a 39 percent increase over 2006. Canada also has one of the highest broadband household penetration rates in the world, making it a particularly ripe environment for attracting consumers through Internet advertising.

Utilizing a proprietary network of locally-based Internet Marketing Consultants (IMCs), ReachLocal allows small- to medium-sized businesses to drive customer leads from major search engines to their telephone with a simple, scalable, automated and inexpensive Internet advertising solution. ReachLocal creates search campaigns through a single platform and one budget that links businesses' online advertising spend to their offline sales activities, providing true advertising ROI transparency.

"ReachLocal truly understands the unique needs of small businesses - which distinctly prefer phone calls over Web visits. Our technology will help Canadian businesses drive qualified leads from the Internet directly to their telephones," said Alyn Glazerman, ReachLocal's Toronto Regional Sales Manager. "ReachLocal connects local businesses with consumers efficiently and affordably."

Toronto businesses may contact ReachLocal at (416) 380-2900 x 101, or by visiting http://www.reachlocal.ca.