Fourth Quarter 2008 Consolidated Financial Results

* Revenue was $34.8 million for the fourth quarter of 2008, compared to $37.0 million for the same period of 2007.
* GAAP net loss applicable to common stockholders was $128.7 million for the fourth quarter of 2008 or $3.67 per diluted share, which includes the effect of an estimated pre-tax $176.7 million non-cash goodwill and intangible asset impairment charge based on the preliminary results of the company’s annual goodwill and intangible assets impairment tests. This compares to a GAAP net loss applicable to common stockholders of $774,000 or $0.02 per diluted share for the same period of 2007. The fourth quarter 2008 results included non-cash stock-based compensation expense recorded under the fair value method of $2.4 million, compared to non-cash stock-based compensation expense of $2.1 million for the same period in 2007.

* We provide a reconciliation of GAAP diluted EPS to Adjusted Non-GAAP EPS in the financial tables attached to this press release and encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures. Adjusted non-GAAP EPS for the fourth quarter of 2008 was $0.09, compared to $0.08 for the same period of 2007. Some Wall Street analysts use non-GAAP measures to analyze our operating results, which may include adjusted non-GAAP EPS, adjusted operating income before amortization and adjusted EBITDA. We present GAAP measures with equal or greater prominence than non-GAAP measures and such non-GAAP measures should not be considered a substitute for, or superior to, GAAP results.
* Adjusted operating income before amortization was $5.5 million for the fourth quarter of 2008, compared to $5.3 million for the same period of 2007. A reconciliation of non-GAAP adjusted operating income before amortization to GAAP operating income and GAAP net income is included in the financial tables attached to this release.
* Adjusted EBITDA was $7.5 million in the fourth quarter of 2008, compared to $7.9 million for the same period of 2007. A reconciliation of operating income before taxes, depreciation, amortization, gain/loss on sales of intangible assets and impairment of goodwill and intangible assets to GAAP net cash provided by operating activities is included in the financial tables attached to this release.

Full Year 2008 Results

* Revenue for the year ended December 31, 2008 was $146.4 million, compared to $139.4 million for 2007.
* GAAP net loss applicable to common stockholders was $128.1 million or $3.52 per diluted share for 2008 which includes the effect of an estimated pre-tax $176.7 million non-cash goodwill and intangible asset impairment charge based on the preliminary results of the company’s annual goodwill and intangible assets impairment tests. This compares to a GAAP net loss applicable to common stockholders of $1.4 million or $0.04 per diluted share for the same period of 2007.
* As discussed in the summary of the fourth quarter 2008 consolidated financial results, we provide a reconciliation of GAAP diluted EPS to Adjusted Non-GAAP EPS in the financial tables attached to this press release and encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures. Adjusted non-GAAP EPS for 2008 was $0.37, compared to $0.36 in 2007.
* Adjusted operating income before amortization was $22.6 million for 2008, compared to $24.0 million in 2007. A reconciliation of non-GAAP adjusted operating income before amortization to GAAP operating income and GAAP net income is included in the financial tables attached to this release.
* Adjusted EBITDA was $32.1 million for 2008, compared to $33.3 million for 2007. A reconciliation of operating income before taxes, depreciation, amortization, gain/loss on sales of intangible assets and impairment of goodwill and intangible assets to GAAP net cash provided by operating activities is included in the financial tables attached to this release.

“Despite the challenging economic conditions, in the fourth quarter we continued to add customers at a solid rate as local advertisers continued to shift their dollars to the types of performance-based advertising products that Marchex offers,” said Russell C. Horowitz, Marchex Chairman and CEO. “We are continuing to innovate on our products, provide world-class service to our customers, and create greater efficiencies in our business. As a result, we believe Marchex is well-positioned at the forefront of the local market, which is universally recognized as one of the online advertising industry’s biggest opportunities over the next three to five years.”

Operating Highlights

Local Advertising Services: For the fourth quarter of 2008, revenue from Local Advertising Services was $16.7 million. Following the migration of a legacy Voice Services customer during the fourth quarter, consistent with the commentary provided by the company in the third quarter, Marchex ended the fourth quarter with more than 70,000 advertisers using its products and services. Pro forma for this Voice Services account migration, Marchex added to the total of advertisers using its products and services on a net basis in the fourth quarter. While it is more difficult to predict advertiser growth rates in the current economy, Marchex expects to add thousands of new advertisers in 2009.

Publishing (proprietary traffic sources, formerly referred to as Marchex’s Local Search Network): For the fourth quarter of 2008, revenue from Publishing was $18.1 million. Additionally, Marchex attracted more than 27 million unique visitors for the month of December 2008 and delivered more than 170 million revenue-generating events and referrals in the fourth quarter. Unique visitor statistics are based on internal traffic logs, which calculate unique IP (Internet protocol) addresses on an unduplicated basis during a given month.

Impairment of Goodwill and Intangible Assets: The Company is in the process of completing its goodwill and intangible asset impairment test and this preliminary impairment charge estimate, and the related tax impact, may change. Accordingly, fourth quarter 2008 and full year 2008 GAAP operating results included in this press release are preliminary and subject to change. Final GAAP operating results will be included in the Company’s annual report on Form 10-K.

Non-Operating Highlights

During the fourth quarter of 2008, Marchex increased its stock repurchase plan by 1.0 million shares to 7.0 million shares. Additionally, the company purchased 1.4 million shares of its outstanding Class B common stock and the remaining outstanding preferred shares for a total price of $7.9 million, bringing its total shares repurchased under its stock repurchase program to 6.0 million shares, or 16% of its outstanding common stock.

Marchex Financial Guidance

“Due to current economic conditions, some of our customers are experiencing challenges with their businesses and balance sheets. As it is difficult to predict the impact this will have on our business in the near term, we believe it is prudent to refrain from issuing 2009 guidance at this time. However, we remain confident that Marchex is well-positioned to win market share in local online advertising in 2009 and beyond,” said Horowitz. “Marchex has a strong balance sheet, no debt, and the company is generating cash every quarter, which we anticipate continuing to do throughout this year.”

Conference Call and Webcast Information

Management will hold a conference call, starting at 5:00 p.m. EST on Thursday, February 19, 2009 to discuss its fourth quarter and year ended December 31, 2008 financial results and other company updates. To access the call by live Webcast, please log into the Investor Relations section of the Marchex Web site (www.marchex.com/investors). An archived version of the Webcast will also be available, beginning two hours after completion of the call, at the same location.

About Marchex

Marchex, Inc. (www.marchex.com) is a leading local search and performance advertising company. Marchex’s innovative advertising platform delivers search- and call-based marketing products and services for local and national advertisers. Marchex’s local search network, one of the largest online, helps consumers make better, more informed local decisions through its content-rich Web sites that reach tens of millions of unique visitors each month.

* 5th Annual Jefferies Internet and Media Conference
Wednesday, February 25, 2009
Time: 10:40 a.m. Pacific Time
The Mandarin Oriental, New York, NY

The live audio Webcast and archived version of the Marchex presentation will be available by visiting Events in the Investor Relations section of the Marchex Web site (http://www.marchex.com/investors/events.html).

About Marchex

Marchex, Inc. (www.marchex.com) is a leading local search and performance advertising company. Marchex’s innovative advertising platform delivers search- and call-based marketing products and services for local and national advertisers. Marchex’s local search network, one of the largest online, helps consumers make better, more informed local decisions through its content-rich Web sites that reach tens of millions of unique visitors each month.

SEATTLE – Marchex, Inc. (NASDAQ:MCHX), a leading local search and performance advertising company, announced that it has extended its advertisers’ reach to mobile consumers through its Business Profile Pages that are now fully optimized for mobile devices.

Marchex’s Business Profile Pages deliver click- and call-based local leads to national and local advertisers from paid and organic search results, directories, vertical Web sites, and with today’s announcement, smart phones and other mobile devices.

“There are already millions of users on the mobile Internet who utilize mobile search today,” said Greg Sterling, Principal, Sterling Market Intelligence and analyst at Local Mobile Search. “Those numbers will only continue to grow, which is why it’s critical for marketers, whether large or small, to have an online presence that’s optimized for mobile.”

Marchex’s Business Profile Pages provide advertisers with performance data that enables them to measure their marketing results and return on investment, including click-throughs on the page, and the number of calls generated and forms submitted. Marchex offers its Business Profile Pages through Marchex Connect, its full-service local advertising solution that delivers local leads to businesses through online and offline marketing campaigns. Marchex Connect is available on a direct basis to national advertisers and on a private-label basis to small-to-medium-sized advertisers through Marchex’s partnerships with companies selling local advertising.

“Mobile search, at its core, is local search. By extending Marchex’s Business Profile Pages to mobile devices, we provide advertisers with a turn-key way to reach mobile consumers, while providing consumers with the local information they increasingly want on their mobile devices,” said Ed O’Keefe, Vice President of Product Development at Marchex. “We seamlessly optimize our advertisers’ online business information and deploy it across the most popular mobile devices, including the iPhone, BlackBerry, and other smart phones.”

To see an example of a Marchex Business Profile Page on a mobile device, please go to http://m.emeraldcitylawncare.com on the browser on your iPhone or other smart phone.

About Marchex

Marchex, Inc. (www.marchex.com) is a leading local search and performance advertising company. Marchex’s innovative advertising platform delivers search- and call-based marketing products and services for local and national advertisers. Marchex’s local search network, one of the largest online, helps consumers make better, more informed local decisions through its content-rich Web sites that reach tens of millions of unique visitors each month.

Following the release, management will hold a conference call, starting at 5:00 p.m. ET on February 19 to discuss the results and outlook for the company. A live Webcast will be available on the Earnings Releases area of the Investor Relations section of the Marchex Web site (www.marchex.com/investors/events.html), where an archived version of the Webcast will be also available, beginning two hours after completion of the call.

About Marchex, Inc.

Marchex, Inc. (www.marchex.com) is a local search and performance advertising company. Marchex’s innovative advertising platform delivers search- and call-based marketing products and services for local and national advertisers. Marchex’s local search network, one of the largest online, helps consumers make better, more informed local decisions through its content-rich Web sites that reach tens of millions of unique visitors each month.

Forward-looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenues, acquisitions, projected costs, prospects, plans and objectives of management are forward-looking statements. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. There are a number of important factors that could cause Marchex’s actual results to differ materially from those indicated by such forward-looking statements which are described in the “Risk Factors” section of our most recent periodic report and registration statement filed with the SEC. All of the information provided in this release is as of January 29, 2009, and Marchex undertakes no duty to update the information provided herein.

John Keister will continue as Marchex’s President, while focusing on building and expanding the company’s existing major strategic relationships. Mr. Keister, a co-founder of Marchex, will continue reporting to Russell Horowitz, Marchex Chairman and Chief Executive Officer.

Peter Christothoulou will assume the role of Chief Operating Officer overseeing all operational and product functions, including sales, business development, customer and partner management, publishing (local search) and product engineering. Mr. Christothoulou, also a co-founder of Marchex, previously served as the company’s Chief Strategy Officer, in addition to a number of operational responsibilities. Mr. Christothoulou will continue reporting to Mr. Horowitz.

Matthew Berk will assume the role of Executive Vice President of Product Engineering, overseeing the development of all of Marchex’s local search and performance advertising products. Mr. Berk previously served as Marchex’s Lead Search Architect. Prior to Marchex, Mr. Berk was the founder and Chief Technology Officer for Openlist, which Marchex acquired in May 2006. Mr. Berk will continue reporting to Mr. Christothoulou.

“Today’s reorganization will position Marchex to better serve our customers by more closely aligning our product and sales operations and resources, and providing additional executive focus on securing key strategic partnerships,” said Horowitz. “Marchex continues to focus on redefining local search and delivering market-leading consumer and performance advertising products. With this reorganization, we believe we have the right organizational framework in place to win additional market share, further our product innovation, deepen our customer relationships, and fully realize our potential as a leader in the local market.”

With today’s reorganization, Marchex completes its process to unite all of its operations under the Marchex brand. Previously, a number of its sales and product operations were in separate business areas or entities acquired by the company over the past few years. As a result of this unification, the company is eliminating 15 full-time positions, or about 4% of staff, in areas where there were redundancies, while continuing to actively add positions where additional skills and resources are needed.

About Marchex

Marchex, Inc. (www.marchex.com) is a leading local search and performance advertising company. Marchex’s innovative advertising platform delivers search- and call-based marketing products and services for local and national advertisers. Marchex’s local search network, one of the largest online, helps consumers make better, more informed local decisions through its content-rich Web sites that reach tens of millions of unique visitors each month.

Forward-looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenues, acquisitions, projected costs, prospects, plans and objectives of management are forward-looking statements. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. There are a number of important factors that could cause Marchex’s actual results to differ materially from those indicated by such forward-looking statements which are described in the “Risk Factors” section of our most recent periodic report and registration statement filed with the SEC. All of the information provided in this release is as of January 30, 2009, and Marchex undertakes no duty to update the information provided herein.

- Marchex Announces Regular Quarterly Dividend for Common Stock
Marchex, Inc. (NASDAQ: MCHX), a local search and advertising company, announced that the company’s Board of Directors has declared a regular quarterly dividend in the amount of $0.02 per share on its common stock. Marchex will pay these dividends on February 17, 2009 to the holders of record as of the close of business on February 6, 2009. As of January 15, 2009, 10,959,216 shares of Class A common stock and 26,093,851 shares of Class B common stock are outstanding.

-  Jupitermedia Announces Hiring of Linda Barrabee to Further Bolster Its Push into Mobile Content and Marketing Coverage
Jupitermedia Corporation (Nasdaq: JUPM) announced that Linda Barrabee has joined the company to blog on the topics of mobile content and marketing. In addition, Ms. Barrabee will become part of a soon to be announced mobile consulting and research unit that is being formed under the leadership of Michael Gartenberg.

- ValueClick to Present at Upcoming Investor Conferences
Wednesday, November 12 at 10:00 a.m. PT at the Piper Jaffray Global Internet Summit;
Thursday, November 20 at 10:15 a.m. ET at the UBS Global Technology and Services Conference; and
Tuesday, December 2 at 11:00 a.m. MT at the 2008 Credit Suisse Annual Technology Conference.
Presentation materials and webcast links to the presentations will be available on the Investor Relations section of www.valueclick.com.

- Marchex to Participate in the Piper Jaffray Global Internet Summit 2008 and Thomas Weisel Partners 2008 Small/Mid-Cap One-on-One Conference
Marchex, Inc. (NASDAQ:MCHX), a local search and advertising company, today announced that members of its senior management team will participate at the following investor conferences:
Piper Jaffray Global Internet Summit 2008, Wednesday, November 12, 2008, Montage Resort, Laguna Beach, CA
Thomas Weisel Partners 2008 Small/Mid-Cap One-on-One Conference, Tuesday, November 18, 2008, Four Seasons Hotel, Chicago, IL

SEATTLE – Marchex, Inc. (NASDAQ:MCHX), a local search and advertising company, announced that its Marchex Adhere for Publishers has added 23 new premium Web sites, bringing its roster to more than 200 premium publishers using Marchex Adhere to more effectively monetize their Web sites. The new Web sites include Inc.com, UPI.com, WirelessWeek.com, and NationalReview.com. In addition, Marchex renewed its agreements with The Motley Fool and The Globe and Mail, Canada’s number one newspaper Web site.

Marchex Adhere for Publishers is a private label advertising platform that provides premium publishers with their own branded performance-based advertising marketplace. Unlike traditional ad networks, Marchex Adhere gives publishers greater control over their own inventory, which they can sell directly, have Marchex sell, or a combination where both parties deliver advertisers into the marketplace. In all cases, publishers can set the minimum price for their inventory, decide which advertisers appear on their sites, determine the look and feel of the advertising units, and be supported by their own reporting center.

“We’ve spoken with scores of publishers and they all tell us they want more control over advertisers, pricing, quality, and results,” said Scott Greenberg, Senior Vice President of Advertising Services at Marchex. “With most outsourced advertising providers, the publisher is at the mercy of the ad network and as a result, almost any kind of ad can show up on their sites and their ability to maximize the value of their inventory is diminished, especially for a premium publisher who can typically command very high rates. Marchex Adhere is the ‘anti-network’ providing premium publishers the control they want over their inventory and advertiser relationships; and advertisers the ability to advertise on specific premium Web sites versus a blind network.”

The Marchex Adhere platform serves the most relevant text ads to maximize each site’s revenue while maintaining its editorial integrity using a ranking system based on relevance, performance, and price-per-click.

Marchex Adhere for Advertisers provides advertisers with the opportunity to target their advertisements to a specific Web site (i.e. Fool.com), a specific Web page within a site (i.e. Fool.com/retirement), or to a category (i.e. Finance). This gives advertisers a high level of transparency knowing where their ads will appear and the ability to measure their return on investment, in addition to direct access to top premium publishers in key verticals.

“We’ve had a successful track record employing the Marchex Adhere platform for our sites over the past several years,” said Martha Connors, Vice President/Group GM, IDG. “Marchex Adhere for Publishers provides us with the control we need to maximize the value of our pay-per-click inventory across our category leading properties including CIO.com, Computerworld.com and Infoworld.com.”

Marchex Adhere for Publishers includes more than 200 premium publishers, including leading business and finance sites such as BusinessWeek.com, Kiplinger.com, Bankrate.com and Investors.com; leading IT sites such as IDG’s PCWorld.com and NetworkWorld.com or Ziff Davis Enterprise’s eWeek.com and CIOInsight.com; and top real estate sites such as HomesandLand.com and RealtyTrac.com. In addition, Marchex recently added the following premium publishers to its roster:

1105 Government Information Group – The leading provider of integrated information and media for the government information technology market and publishes Defense Systems, Federal Computer Week, Government Computer News, Government Health IT, and Washington Technology.

Advantage Business Media – An integrated business media company with a diversified portfolio of highly focused print publications, including: ECNmag.com, Scientific Computing, and Wireless Week.

Inc.com – The Web site for Inc. magazine delivers advice, tools, and services to help business owners and CEOs start, run, and grow their businesses more successfully.

National Review Online – America’s most influential Web site for Republican/conservative news, commentary and opinion.

Nation’s Restaurant News – NRN supplies more news than any other foodservice publication today and averages well over 2 million page views per month.

PBP Media – The PBP Media network spans HR, Finance, Legal, Healthcare, Sales and Marketing and education with Web sites such as: HRMorning.com, HRBenefitsAlert.com, HRTechNews.com, HRRecruitingAlert.com, HRLegalNews.com and HRBlunders.com.

UPI.com – United Press International is a leading content provider of critical information to media outlets, businesses, governments and researchers worldwide and through UPI.com reaches more than 1.8 million unique visitors per month.

For more information about Marchex Adhere for Publishers, visit www.marchex.com/publishers.

About Marchex

Marchex, Inc. (www.marchex.com) is a local search and advertising company. Marchex’s innovative advertising platform delivers search- and call-based marketing products and services for local and national advertisers. Marchex’s local search network, one of the largest online, helps consumers make better, more informed local decisions through its content-rich Web sites that reach tens of millions of unique visitors each month.

- U.S. Small Businesses Boost Marketing Efforts in Response to Economic Uncertainty
With the critical holiday buying season on the horizon, it’s no surprise that small businesses are concerned about the uncertain state of the economy. Rather than accept the dire predictions of lower sales, most small businesses will bolster their holiday sales efforts with aggressive marketing plans, according to Constant Contact’s 4th Annual Small Business Holiday Outlook. Of those businesses surveyed, 76 percent are planning holiday promotions and last minute shopping offers, up from 62 percent in 2007, and more than half (53 percent) will begin marketing earlier this year.
The majority of responders (63 percent) have already begun their holiday marketing campaigns in a bid to entice customers to shop early and avoid the rush, and most will focus on a combination of promotional and last minute shopping offers.

- Slowdown in RSS Uptake Good for Advertisers?
Aaron from Sazbean Consulting runs a very interesting article on this topic, based on data from Forrester Research: “It seems that adoption of this federated method of content consumption has begun to level off, putting into question assumptions about how most people really do want to ‘consume’ web content. [...] usage of RSS is only 11% and that only 17% of the 89% still not using it are even interested.” Read it all from Sazbean.com .

- Everyday Health Network Enters Content Alliance with Yahoo!
The new #1 in online health, The Everyday Health Network, which is operated by Waterfront Media and recently merged with Steve Case’s Revolution Health Network, has entered a content partnership with Yahoo! Health. As part of the deal, Waterfront Media will provide Yahoo! Health with content from its Everyday Health portfolio of health sites, such as WhatToExpect.com, from the bestselling series of What To Expect pregnancy and parenting books, JillianMichaels.com of NBC’s The Biggest Loser, SouthBeachDiet.com from the best selling diet book of all time, and RevolutionHealth.com. The agreement is Waterfront Media’s first content agreement with a major health portal.

The lead packages, which will be fulfilled by Marchex through online advertising campaigns on leading search, vertical and local Web sites, will be sold by Barrington’s advertising sales reps in addition to its traditional broadcast media inventory. Barrington advertisers can also purchase custom, branded Business Profile Pages, created by Marchex, that increase their online lead generation opportunities and are optimized to drive click- and call-based local leads from both paid and organic search results. The Business Profile Pages also include call tracking, which enables the advertiser to measure calls to their business that are generated through online channels, and provides comprehensive analytics to measure results from their advertising campaigns (see a demo Business Profile Page here).

“Our advertisers run the gamut from small business owners to large advertisers, and through Marchex we are able to provide them all with custom, best-in-class, online advertising solutions that deliver targeted local leads,” said David Buonfiglio, Senior Vice President of Barrington Interactive. “Marchex not only delivers the scalable platform and fast implementation we required, but also the strategic consulting and sales training to help us hit the ground running and maximize the revenue opportunity.”
How it Works:

Barrington’s sales representatives will sell local online lead packages to their direct advertising customers under the product name BTV Search. Marchex will then leverage its award-winning local advertising platform, Marchex Connect, to create, target and manage the online advertising campaigns to fulfill the lead packages. Barrington advertisers can also purchase dedicated Business Profile Pages – either in addition to their existing Web site or in lieu of one.

The online lead packages will be fulfilled on a budget basis, meaning Marchex will manage each Barrington advertiser’s budget across major search engines, including Google and Yahoo!, and vertical and local sources, including Marchex Adhere, which includes Marchex’s local search network, OpenList®, and more than 200 premium vertical publishers including BusinessWeek Online, RealtyTrac and Banks.com.

Additionally, through its Digital Platform Group, Marchex is providing Barrington with strategic consulting on product packaging and pricing as well as comprehensive training for its sales representatives, giving them the expertise and tools needed to effectively sell online lead packages to local advertisers.

“We believe that in the next two to three years, we will see a large number of traditional offline and online media companies – including directory, cable, TV, radio and mobile companies, and online vertical publishers – begin to sell online lead packages to their local advertisers,” said Chad Schott, Marchex Vice President of Business Development. “Local advertisers want to advertise online, but often don’t have the expertise, time or resources needed to manage a diversified online marketing campaign. By packaging their online and offline advertising, Barrington is delivering a unique online advertising solution that provides tremendous value and drives qualified customers to their advertisers.”

For more information on the Marchex Digital Platform Group and Marchex Connect platform, visit www.marchex.com.
About Barrington

Barrington (www.barringtontv.com) was formed in 2003 to acquire and operate television stations in smaller markets across the United States. Barrington currently owns, operates, or supports the operations of twenty three network affiliated television stations. Barrington is owned and controlled by Pilot Group, with management as its partner. Pilot Group is a non-traditional private investment firm founded in 2003 by a group of operating executives who actively help its management partners achieve their goals.
About Marchex, Inc.

Marchex (www.marchex.com) is a local search and advertising company. Marchex’s innovative advertising platform delivers search- and call-based marketing products and services for local and national advertisers. Marchex’s local search network, one of the largest online, helps consumers make better, more informed local decisions through its content-rich Web sites that reach tens of millions of unique visitors each month.
Forward Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenues, acquisitions, projected costs, prospects, plans and objectives of management are forward-looking statements. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. There are a number of important factors that could cause Marchex’s actual results to differ materially from those indicated by such forward-looking statements which are described in the “Risk Factors” section of our most recent periodic report and registration statement filed with the SEC. All of the information provided in this release is as of September 10, 2008 and Marchex undertakes no duty to update the information provided herein.

For further information, contact:

Marchex Press:
P. Kevin Horn
Telephone: 206.331.3474
Email: khorn(at)marchex.com

Marchex Investor Relations:
Trevor Caldwell
Telephone: 206.331.3600
Email: ir(at)marchex.com

The new, revamped plaform is called Marchex Connect 2.0 and integrates three products:

- online advertising;
- call-based advertising;
- business profile pages.

Marchex only serves US-based advertisers, and we know nothing if they plan on expanding anywhere else. The full press release of the platform launch can be read below.

SEATTLE, WA – July 30, 2008 – Marchex, Inc. (NASDAQ: MCHX, MCHXP) a local search and advertising company, today announced that it has launched Marchex Connect 2.0, its next-generation local advertising platform. Marchex Connect 2.0 integrates three important advertising products: online advertising, call-based advertising and Business Profile Pages, which are fully trackable branded Web pages that give advertisers an immediate local online presence.

Marchex Connect serves national advertisers who want to target locally and large businesses, such as Yellow Pages and media companies, who want to sell local advertising under their own brand to their customers. In addition, the company has formed the Marchex Digital Platform Group, uniting Marchex’s voice services, interactive marketing and platform development teams to better provide integrated local advertising products, services and analytics for its customers.

“We have invested heavily to build a performance-based, local-centric advertising platform for local resellers and advertisers that integrates online and call-based advertising products and services at scale, all supported by sophisticated reporting and analytics,” said John Keister, Marchex President and COO. “Our goal at Marchex is to accelerate the adoption of local online advertising and to deliver the highest volume of quality local leads to our advertisers at the most reasonable cost in the marketplace.”
Next-Generation Local Advertising Platform

Marchex Connect – which supports more than 65,000 local advertisers – offers a range of performance-based advertising products that can be used either as a fully-integrated product suite or on an individual basis, including:

* Business Profile Pages
Provides advertisers with an immediate branded local online presence that is fully optimized to drive click- and call-based local leads from both paid and organic search results. The optimized Web pages track and provide comprehensive reporting on all actions taken on the page, including: click-throughs, calls generated, emails sent, forms filled out, coupon, and map print outs, all of which provide the advertiser full data on their online marketing performance and return on investment (ROI).
* Integrated Online Performance-Based Lead Generation
Marchex Connect brings together its proven online lead generation and call-based advertising capabilities to deliver performance-based click and call lead packages that are tracked and reported. The lead packages can be on a guaranteed basis, which provides advertisers with a set number of leads, or on a budget basis, where Marchex manages the advertiser’s budget across multiple search engines and vertical and local Web sites.
* Comprehensive Call-Based Advertising Products and Services
Marchex Connect delivers comprehensive call-based advertising products and analytics, including call tracking for online and offline campaigns, pay-per-phone-call, form-to-phone, and reverse proxy, which enables all phone calls generated by an advertiser’s Web site to be tracked and reported.
* Diversified Advertising Distribution
Distribution is built according to the advertiser or partner needs and is available via all major search engines, leading local Web sites and premium vertical Web sites.
* Proof of ROI
Custom reporting and detailed analytics that prove performance and ROI for both the partner and the local advertiser.

By providing an immediate online presence integrated with call-based lead generation and numerous other trackable user actions, Marchex Connect addresses a number of the primary needs for local advertisers. It is estimated that only 1 million – out of an estimated 15 million – SMBs in the United States are currently advertising online¹ and of the 42% of SMBs that have Web sites, the majority are rudimentary at best.² In addition, according to The Kelsey Group®, 71% of SMBs would rather pay for phone calls to their business than solely clicks to their Web site.³

“The Internet is primarily a consumer research and marketing platform that drives offline transactions,” said Greg Sterling, principal, Sterling Market Intelligence. “However, tracking that offline sales impact has been very challenging. The range of tools that Marchex’s new platform provides will help make the relationship between online leads and offline sales much more transparent.”
Marchex Digital Platform Group

With today’s launch, Marchex subsidiaries VoiceStar and Traffic Leader have been unified under the Marchex Digital Platform Group to leverage the Marchex Connect platform and provide integrated, locally-focused advertising services including:

* Full Advertising Campaign Management – All campaigns are managed by a dedicated team of online marketing and call-based advertising experts.
* Strategic Consulting for Resellers – Leveraging Marchex’s unique intellectual property regarding pricing and product strategies to appropriately balance and expand the total offline and online spends of an advertiser, and to maximize ROI goals.
* Sales Channel Training – Custom in-field and Web-based training programs to equip Marchex partners’ local sales forces with the knowledge and sales materials they need to successfully migrate their local advertisers’ spend online.

For more information on Marchex Connect and the Marchex Digital Platform Group, visit www.marchex.com.
About Marchex, Inc.

Marchex (www.marchex.com) is a local search and advertising company. Marchex’s innovative advertising platform delivers search- and call-based marketing products and services for local and national advertisers. Marchex’s local search network, one of the largest online, helps consumers make better, more informed local decisions through its content-rich Web sites that reach tens of millions of unique visitors each month.
Forward Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenues, acquisitions, projected costs, prospects, plans and objectives of management are forward-looking statements. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. There are a number of important factors that could cause Marchex’s actual results to differ materially from those indicated by such forward-looking statements which are described in the “Risk Factors” section of our most recent periodic report and registration statement filed with the SEC. All of the information provided in this release is as of July 30, 2008 and Marchex undertakes no duty to update the information provided herein.