SAN FRANCISCO – LookSmart, Ltd. (NASDAQ:LOOK), the search advertising network and management company, announced the launch of Optimal Pricing: a new initiative to deliver better performance to search advertisers by segmenting and pricing traffic according to that traffic’s value. Optimal Pricing offers advertisers a unique opportunity to reach and attract audiences outside of the major search engines, while managing to meet and exceed return-on-investment (ROI) goals.

“LookSmart is focused on delivering search advertisers the most effective advertiser networks and services for reaching customers outside of the big three search engines; building Optimal Pricing into the AdCenter platform is a major advancement to that end,” said Ted West, CEO and President of LookSmart. “Optimal Pricing is consistent with our longstanding track-record of innovation and improved search advertiser performance.”

Optimal Pricing aggregates keyword search traffic on the LookSmart Advertiser Network, and classifies performance data so that the full spectrum of that traffic is priced appropriately according to traffic type, quality, and volume. The model relies on information about advertiser campaign objectives and network structure to provide each advertiser a chance to bid on the most valuable traffic at all price points. As the customer case diagram illustrates, this approach, when compared to a simple “blended pricing” approach more common in the search advertising industry, allows advertisers to generate more paid clicks and conversions, and to realize conversions at a lower cost-per-conversion.

Built on over a decade of experience optimizing search traffic, LookSmart is able to leverage the scope and scale of its network and partnerships to the best advantage for its advertisers, offering access to incremental traffic at optimal value. The Optimal Pricing initiative was introduced to a small group of search advertisers, in beta release during the second quarter, and based on success in these cases, is now being rolled out to a broader cross-section of advertisers in the third quarter.

Eventually, LookSmart expects most advertisers with larger campaigns to adopt Optimal Pricing in their campaigns on the LookSmart Advertiser Network.

LookSmart continues to drive performance innovation in search advertising networks. The release of Optimal Pricing follows the full release during the second quarter of SmartRotation, an industry-first CPA-optimized ad rotation feature that serves the best-converting ad creative based on tracking pixel data. These two innovations helped the company gain recognition as a finalist for the 2009 Search Engine Watch “Best Search Ad Platform” award, which LookSmart took home last year.

SAN FRANCISCO – LookSmart, Ltd. (NASDAQ:LOOK), the search advertising network and management company, announced that LookSmart’s AdCenter platform has been named a finalist in the annual SEW Awards’ “Best Search Engine Ad Platform” category for the second year running. LookSmart took the SEW award home in 2008.

“LookSmart has been recognized for its innovation for two years in a row by a panel of industry experts and thought leaders in the search advertising community,” said Ted West, CEO at LookSmart. “We have pushed the scalability and performance of our ad serving and keyword auction platform in order to create better return for the advertisers and publishers who work with us.”

The award winners were announced at SES San Jose throughout the day on Tuesday and Wednesday, August 11th and 12th. The mission of the SEW Awards is to recognize excellence, as well as inspire innovation and encourage new ideas in search marketing. Now in its 11th year, SES San Jose is organized and programmed by the SES Advisory Board and SearchEngineWatch.com, the leading authority on Search Engine Marketing (SEM). LookSmart was showcased at booth #609 in the exhibition hall. For more information about SES 2009 San Jose, please visit: http://www.searchenginestrategies.com/sanjose/

For more information, please contact sales@looksmart.net or 888-403-5665. Follow LookSmart on Twitter @LookSmartSearch.

About LookSmart, Ltd.

LookSmart (NASDAQ:LOOK) is a premier search advertising network and management company. A trusted provider of quality search advertising products and services to advertisers, LookSmart offers targeted pay-per-click search and contextual advertising via its proven Search Advertising Network. Dedicated to the quality of PPC search advertising, LookSmart is one of the five founding members of the IAB Click Measurement Panel. For more information call 888-403-5665.

The conference call is scheduled to begin at 5:00 pm ET (2:00 pm PT), on May 4, 2009. To listen to the call from the US, dial 1-800-762-8779; from outside the US, dial 1-480-629-9031. A telephonic replay of the call will be available until Monday, May 18, 2009, 11:59 pm ET. To access the replay from the US, dial 1-800-406-7325 and enter passcode 4054897, from outside the US, dial 1-303-590-3030 and enter passcode 4054897. The call will also be available live by webcast on LookSmart’s Investor Relations website at http://www.shareholder.com/looksmart/.

About LookSmart, Ltd.

LookSmart is an online search advertising network solutions company that provides performance solutions for online search advertisers and online publishers. LookSmart offers advertisers targeted, pay-per-click (PPC) search advertising and contextual search advertising via its Advertiser Networks; and an Ad Center platform for customizable private-label advertiser solutions for online publishers. LookSmart is based in San Francisco, California. For more information, visit www.looksmart.com or call 415-348-7500.

Revenues for the fourth quarter of 2008 were $14.9 million, a 0.2% decrease from $15.0 million in the fourth quarter of 2007 and a 3% decrease from $15.4 million in the third quarter of 2008. Net loss for the fourth quarter of 2008 was $12.4 million, or ($0.73) per share based on approximately 17.0 million weighted average shares outstanding, which includes a $9.8 million goodwill impairment charge, a $1.0 million asset impairment charge related to the decision to wind down Furl and a $0.6 million legal settlement charge. This is compared to net income for the fourth quarter of 2007 of $13.2 million, or $0.58 per share based on approximately 22.9 million weighted average shares outstanding, which included a gain of approximately $14.5 million resulting from the sale of certain consumer assets. Net loss for the third quarter of 2008 was $1.7 million, or ($0.10) per share based on 17.1 million weighted average shares outstanding.

During the first quarter of 2008, the Company classified certain consumer assets as Assets Held for Sale on the Consolidated Balance Sheet. The continuing operating results for the current and prior periods exclude these consumer assets, including a $1.0 million asset impairment charge recorded in the fourth quarter of 2008 related to the decision to wind down Furl, which is accounted for in discontinued operations.

Loss from continuing operations for the fourth quarter of 2008 was $11.4 million, which includes a $9.8 million goodwill impairment charge. This is compared to a loss from continuing operations in the fourth quarter of 2007 of $0.7 million. Loss from continuing operations for the third quarter of 2008 was $1.7 million.

“2008 was a year of progress for LookSmart, starting strong in the first half, yet not without its challenges in the second half of the year. Our 2008 performance was characterized by solid year-over-year revenue growth in advertiser networks and publisher solutions of 26%, ongoing focus and rationalization of the organization, prudent expense management, and conservation of cash resources,” commented Ted West, President and Chief Executive Officer. “At the same time, LookSmart invested in building a stronger AdCenter technology platform focused on delivering increased scale and improved performance in search advertising networks. In 2008, we enhanced search query quality on our network, and we improved performance and return on investment for both search advertisers on our network and our private label clients such as IAC’s Ask Sponsored Listings. Despite the near-term economic challenges, we believe our commitments to improve our AdCenter technology platform and to enhance our network quality will strengthen LookSmart’s competitive position within the search advertising networks market as the economy and search advertising spending recover in the longer term.”

Mr. West continued, “We believe the actions we have taken in 2008, in combination with our solid financial resources, position LookSmart to emerge as a strong leader among search advertising networks.”

Revenues from the Company’s Advertiser Network were $13.5 million in the fourth quarter of 2008, an increase of 1% from $13.4 million in the fourth quarter of 2007. Revenues from the Company’s Publisher Solutions were $1.5 million in the fourth quarter of 2008, a decrease of 7% from $1.6 million in the fourth quarter of 2007. Revenues from the Company’s Advertising Network and Publisher Solutions were $13.9 million and $1.5 million in the third quarter of 2008, respectively.

Gross margins from continuing operations were 36% in the fourth quarter of 2008 versus 41% in the fourth quarter of 2007, primarily due to higher traffic acquisition costs (TAC). Gross margins from continuing operations for the third quarter of 2008 were 40%.

Total operating expenses in the fourth quarter of 2008 were $16.9 million, which includes $0.5 million of non-cash, share-based compensation charges, a $9.8 million goodwill impairment charge and a $0.6 million legal settlement charge. Operating expenses for the fourth quarter of 2007 were $7.5 million, which included $0.5 million of non-cash, share-based compensation charges. Operating expenses for the third quarter of 2008 were $8.1 million, which included $0.7 million of non-cash, share-based compensation charges.

On a non-GAAP basis, for the fourth quarter of 2008, non-GAAP net loss (net loss before discontinued operations and excluding stock based compensation and impairment charges) was $1.1 million compared to non-GAAP net loss of $0.2 million in the fourth quarter of 2007.

An explanation of LookSmart’s use of non-GAAP financial measures, including the limitations of such measures relative to GAAP measures and reconciliation between GAAP and non-GAAP measures where appropriate, is included later in this release.

Capital expenditures, including capitalization of internally developed software, in the fourth quarter of 2008 were $1.0 million, compared to $1.2 million in the prior quarter, and $1.0 million in the fourth quarter of 2007. During the fourth quarter of both 2008 and 2007, the Company purchased no intangible assets. Depreciation and amortization from continuing operations was $0.7 million in the fourth quarter of 2008 compared to $0.9 million in the fourth quarter of 2007. Depreciation and amortization from continuing operations was $0.8 million in the third quarter of 2008.

The Company ended the quarter with $32.6 million in cash, cash equivalents, and investments, an increase of approximately $2.6 million from approximately $30.0 million on September 30, 2008. The increase in cash was primarily due to timing of accounts receivable collection, partially offset by the loss from operations generated in the fourth quarter of 2008. On a per share basis the Company’s cash and investment balance was $1.91 as of December 31, 2008.

Q4 2008 Key Metrics Performance

* Total paid clicks increased to 201 million for the fourth quarter of 2008 compared to 117 million for the fourth quarter of 2007 and 184 million for the third quarter of 2008.
* Average Advertising Network revenue per click (RPC) for the fourth quarter of 2008 was $0.07, a decrease from $0.12 in the fourth quarter of 2007, and a decrease from $0.08 in the third quarter of 2008. The year-over-year and sequential decrease reflects a shift in the channels to reach search advertising network customers and the segment composition of search advertiser network customers.
* Traffic acquisition costs (TAC) of 66.9% for LookSmart’s Ad Network increased from the 63.3% rate in the fourth quarter of 2007, and increased from the 62.5% rate in the third quarter of 2008.

Expiration of Stock Repurchase Program

Pursuant to the terms of the stock repurchase program announced in February 2008, the program has expired. Under the program, LookSmart was authorized to repurchase up to $5 million of its outstanding common stock through December 31, 2008. Under the program, the Company repurchased 801,092 shares of its common stock at an average price of $3.51 per share, for a total expenditure of approximately $2.8 million

The number of shares of common stock outstanding at the end of the fourth quarter of 2008 was 17,075,043.

Goodwill Impairment Charge

During the fourth quarter, the Company conducted its annual impairment test of Goodwill. The resulting impairment charge totaled approximately $9.8 million and is reflected in the Company’s fourth quarter and full year 2008 results. While the impairment charge reduced reported results under U.S. Generally Accepted Accounting Principles (“GAAP”), such charges are non-cash in nature and do not affect LookSmart’s liquidity or future cash flows from operating activities.

Under U.S. GAAP, goodwill and other intangible assets with indefinite lives are not amortized, but rather are tested for impairment at least annually. Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets (“SFAS 142”) prescribes a two-step method for determining impairment of goodwill and certain other intangible assets. Factors considered in determining fair value for purposes of SFAS 142 include, among other things, the Company’s market capitalization as determined by quoted market prices for its common stock, market values of the Company’s reporting units based on common market multiples for comparable companies, and discount rates that appropriately reflect not only the Company’s businesses, but also the current overall macroeconomic environment. The extended decline in the Company’s share price and the uncertainties and deterioration in overall macroeconomic conditions through the current date have had a material impact on the impairment test for goodwill and other intangible assets with indefinite lives.

First Quarter 2009 Preliminary Revenue Results

Based on business trends experienced to-date in 2009 and the Company’s increased visibility into the first quarter of 2009, the Company expects to report total first quarter 2009 revenues of between $12.7 million and $13.1 million.

Conference Call

LookSmart will host a conference call today at 5:00 p.m. ET to discuss its fourth quarter and full year 2008 financial results. To listen to the call from the US, dial 1-800-762-9058 from outside the US, dial 1-480-629-9029. A telephonic replay of the call will be available until Monday, March 30, 2009, 11:59 pm ET. To access the replay from the US, dial 1-800-406-7325 and enter passcode 4030099, from outside the US, dial 1-303-590-3030 and enter passcode 4030099. The call will also be available live by webcast on LookSmart’s Investor Relations website at http://www.shareholder.com/looksmart/.

About LookSmart, Ltd.

LookSmart is an online search advertising network solutions company that provides performance solutions for online search advertisers and online publishers. LookSmart offers advertisers targeted, pay-per-click (PPC) search advertising and contextual search advertising via its Advertiser Networks; and an Ad Center platform for customizable private-label advertiser solutions for online publishers. LookSmart is based in San Francisco, California. For more information, visit www.looksmart.com or call 415-348-7500.

SAN FRANCISCO – LookSmart, Ltd. (NASDAQ:LOOK), a premier search advertising network and management company, today launched a new geo-conversion reporting tool that enables online advertisers to improve return on investment by focusing their budget on the geographic locations best responding to a campaign.

Unveiled today at the Search Engine Strategies conference in Chicago, these geo-conversion tracking reports can be as granular as needed, measuring results at the account, campaign, ad and keyword level, and returning conversion rates by country, designated market area (DMA), state, city and ZIP code. In addition, cost-per-action (CPA) can also be measured.

“We have worked with LookSmart for years. They are a cost-effective lead source for some of our customers, and have also provided cost-effective extended reach and distribution from local search engine marketing,” said Jeff Werner, communications director, WebVisible. “With LookSmart’s enhanced targeting capabilities it just keeps getting better every day and we look forward to continue working with them in the future.”

LookSmart continually enhances the AdCenter, its award-winning search advertising platform. During the past year, the search network veteran has made it easier for advertisers to target niche audiences, manage bid prices and control traffic quality via new features and services. At the same time, LookSmart has expanded its network of high-quality distribution partners and strengthened traffic quality by providing reporting tools and services that give greater insight into the network, enhancing its value to advertisers.

“Advertisers can trust that LookSmart works hard to meet all our customers’ needs; the addition of geo-conversion reporting is just the latest of many enhancements we’ve made this year,” said Ted West, chief executive officer and president, LookSmart. “Our continued quality improvements help advertisers target their campaigns toward the most effective audiences. Used well, the LookSmart platform can provide advertisers with a leg up on the competition.”

“While advertisers of all sizes are challenged by the economy, search advertising networks like LookSmart offer a clear benefit for smaller businesses, which often market to a specific city or region,” said Anita Campbell, editor-in-chief of Small Business Trends (www.smallbiztrends.com), an award-winning, comprehensive online publication for small business owners and entrepreneurs. “Small and local businesses can especially profit from search ad networks that not only help them target their desired audience but also enable them to fine-tune their campaigns to be the most effective.”

LookSmart will be exhibiting at SES Chicago in Booth 410 at the Hilton Chicago on Dec. 9 and 10. For more information about LookSmart at SES Chicago or to schedule a press briefing during the conference, please contact Raymond Deplazes at 415-694-6715 or email LookSmart@racepointgroup.com.

About LookSmart

LookSmart (NASDAQ:LOOK) is a premier search advertising network and management solutions company. A trusted provider of quality search advertising products and services to text advertisers, LookSmart offers targeted pay-per-click search and contextual advertising via its proven Search Advertising Network. For publishers seeking to create their own branded vertical advertising networks, LookSmart also licenses and manages search ad networks using its award-winning AdCenter platform. Dedicated to the quality of text advertising, LookSmart is one of the five founding members of the IAB Click Measurement Panel. For more information, visit www.LookSmart.com or call 415-348-7500.

SAN FRANCISCO – Advertising agencies and search engine marketers (SEMs) continue to achieve positive results for their clients with LookSmart, Ltd. (NASDAQ:LOOK), a premier search advertising network and management company. dBase Media (www.dbasemedia.com), a leading SEM firm specializing in managing brand and direct marketing campaigns for leading advertisers, leverages LookSmart to generate quality clicks for its clients in the travel and tourism, political issue and advocacy, entertainment, and non-profit industries.

“LookSmart understands marketing better than any other search advertising network out there; we know we can rely on the quality of the LookSmart network to generate the consistent visitor traffic that our clients have come to expect,” said Mitch Johnson, president of dBase Media. “LookSmart’s Managed Service staff has gone out of its way to offer help and accommodate our frequent optimization requests, making it a valuable complement to our clients’ search campaigns.”

“dBase Media customers have come to expect solid marketing campaigns that generate leads and elevate brand awareness,” said Ted West, chief executive officer and president of LookSmart. “Agencies like dBase trust LookSmart to help them drive positive ROI for customers on the LookSmart network, easily manage several campaigns at once, and demonstrate solid value to their clients. Our teams work closely with agencies and search engine marketers, delivering the customer service and results they need at an affordable price. Our goal is to be the marketer’s marketer and the smartest choice among search advertiser networks.”

About LookSmart

LookSmart (NASDAQ:LOOK) is a premier search advertising network and management solutions company. A trusted provider of quality search advertising products and services to text advertisers, LookSmart offers targeted pay-per-click search and contextual advertising via its proven Search Advertising Network. For publishers seeking to create their own branded vertical advertising networks, LookSmart also licenses and manages search ad networks using its award-winning AdCenter platform. Dedicated to the quality of text advertising, LookSmart is one of the five founding members of the IAB Click Measurement Panel. For more information, visit www.LookSmart.com or call 415-348-7500.

“We are very pleased to promote Jonathan Ewert to Senior Vice President and to promote Michael Schoen to general management responsibilities,” commented Ted West, President and Chief Executive Officer. “Jonathan has demonstrated a tremendous record of leadership of our Advertiser Networks, and I am confident that his industry background and business development skills will serve LookSmart well as we seek to grow our existing network and create additional vertical managed networks in partnership with leading publishers. Michael has successfully managed the company’s relationship and growth with IAC’s Ask Sponsored Listings. We are pleased to recognize this, and we expect that Michael will build on that success with other platform license customers.”

About LookSmart, Ltd.

LookSmart (NASDAQ:LOOK) is a premier search advertising network and management company. A trusted provider of quality search advertising products and services to text advertisers, LookSmart offers targeted pay-per-click search and contextual advertising via its proven Search Advertising Network. For publishers seeking to create their own vertical advertising networks, LookSmart also licenses and manages its award-winning AdCenter platform. Dedicated to the quality of text advertising, LookSmart is one of the five founding members of the IAB Click Measurement Panel. For more information call 415-348-7500.

SAN FRANCISCO – LookSmart, Ltd. (NASDAQ:LOOK), the search advertising network and management company, highlighted metrics that demonstrated the company’s delivery of superior value for search advertisers who seek broad and cost-effective reach for their keyword text advertising campaigns.

During this year’s second fiscal quarter, LookSmart’s network averaged nearly 500 million queries per day, providing search advertisers with a quality complement to their campaigns on the major search engines. According to a research paper from search engine marketing solutions provider Efficient Frontier, “Search Engine Performance Report Q2 2008,” Google, Microsoft Live and Yahoo delivered CPCs of approximately 71 cents, 59 cents and 51 cents, respectively. LookSmart’s average cost-per-click during the same period was 8 cents.

“In these tough economic times, search advertisers seek quality and value for their campaigns. As prices on proprietary search engines continue to rise without proportionate added value to search advertisers, search advertising networks such as LookSmart offer an attractive value proposition by presenting a large volume of quality clicks at a very reasonable cost,” said Ted West, chief executive officer and president of LookSmart. “The quality of our network is monitored to ensure value to our customers, and we work closely with our advertisers to manage their campaigns for strong return on investment. Our award-winning, proven platform scales to meet advertiser needs and efficiently targets search audiences on our growing network of non-proprietary search queries. LookSmart’s advertisers benefit from the quality and service offered.”

Kyle Koch, SEM Manager at RealtyTrac, the leading online provider of resources for home seekers, investors and real estate agents, said, “Working with LookSmart provides RealtyTrac with incremental business that we would not have realized otherwise. The LookSmart staff is very knowledgeable and helps to ease our workload with keyword expansion, bid management, and custom distribution for our campaigns. They provide clever insights and show us ways to better optimize our account for the best possible ROI.”

About LookSmart

LookSmart (NASDAQ:LOOK) is a premier search advertising network and management company. A trusted provider of quality search advertising products and services to text advertisers, LookSmart offers targeted pay-per-click search and contextual advertising via its proven Search Advertising Network. For publishers seeking to create their own vertical advertising networks, LookSmart also licenses and manages its award-winning AdCenter platform. Dedicated to the quality of text advertising, LookSmart is one of the five founding members of the IAB Click Measurement Panel. For more information, visit www.LookSmart.com or call 415-348-7500.

SAN FRANCISCO – LookSmart, Ltd. (NASDAQ:LOOK), a pay-per-click (PPC) search advertising network and technology solutions provider, today announced the launch of its Thought Leadership Series, a blog featuring online advertising industry visionaries such as John Battelle, Danny Sullivan, Charles Knight and Anita Campbell.

“We are proud to sponsor this educational series in the hopes that the insights provided will help advertisers make smarter choices in online advertising,” said Ted West, chief executive officer and president of LookSmart. “Providing value to advertisers is our top priority and doing that through great service and lower cost-per-click on a quality network isn’t enough – we need to provide them with the best insights in the business.”

The Thought Leadership Series will feature some of the most influential voices in the online advertising industry covering a diverse range of topics including search advertising, search engine optimization, alternative search engines, small business trends and the conversion of media and online communities. Among the contributors are:

- John Battelle, founder/chairman/CEO of Federated Media Publishing, Inc.
- Danny Sullivan, editor-in-chief of Search Engine Land
- Charles Knight, editor of AltSearchEngines
- Anita Campbell, editor-in-chief of Small Business Trends

You can follow LookSmart’s Thought Leadership Series at: http://blogs.looksmart.com/thought_leadership.

About LookSmart

LookSmart (NASDAQ:LOOK) is the premier search advertising network and management company. A trusted provider of quality search advertising products and services to text advertisers, LookSmart offers targeted pay-per-click search and contextual advertising via its proven Search Advertising Network. For publishers seeking to create their own vertical advertising networks, LookSmart licenses and manages its award-winning AdCenter platform to companies such as Ask.com. Dedicated to the quality of text advertising, LookSmart is one of the five founding members of the IAB click measurement panel. For more information, visit www.LookSmart.com or call 415-348-7500

SAN FRANCISCO – LookSmart, Ltd. (NASDAQ:LOOK), a pay-per-click (PPC) search advertising network and technology solutions provider, announced it is partnering with Click Forensics, the industry leader in scoring, auditing and improving traffic quality for the online advertising community, to receive third party PPC quality reports. LookSmart is leveraging Click Forensics’ FACTr reports to improve the speed and flow of feedback from advertisers on the value delivered through the LookSmart network.

“LookSmart is focused on maintaining and enhancing our network quality assurance processes, which are key to delivering the highest return on investment to our search advertisers,” said Ted West, chief executive officer and president of LookSmart. “The FACTr reports represent one more way we are delivering on our promise to advertisers to help them make smart, dependable choices that will make a real difference for their business.”

LookSmart is dedicated to continuous improvement and was a founding member of the IAB Click Measurement Panel. FACTr, or Fully Automated Click Tracking Reconciliation, is an important ingredient in continuing that improvement because it provides search advertisers an easy, automated method for electronically reporting unwanted traffic to search providers such as LookSmart. LookSmart will use these reports to strengthen the integrity of its targeted PPC advertising services.

“By using live campaign data and patent-pending analytics, FACTr makes it easier for targeted search providers such as LookSmart to ensure their clients are receiving quality clicks and the best value for their ad spend,” said Tom Cuthbert, president of Click Forensics. “FACTr is an easy way for search advertising networks to increase loyalty and trust with their clients.”

About LookSmart

LookSmart (NASDAQ:LOOK) is a premier search advertising network and management company. A trusted provider of quality search advertising products and services to text advertisers, LookSmart offers targeted pay-per-click search and contextual advertising via its proven Search Advertising Network. For publishers seeking to create their own vertical advertising networks, LookSmart also licenses and manages its award-winning AdCenter platform. Dedicated to the quality of text advertising, LookSmart is one of the five founding members of the IAB Click Measurement Panel. For more information, visit www.LookSmart.com or call 415-348-7500

SAN FRANCISCO – LookSmart, Ltd. (NASDAQ:LOOK), a pay-per-click (PPC) search advertising network and technology solutions provider, today announced the release of valuable enhancements to its award-winning text advertising platform that make it even easier for advertisers to target niche audiences, manage bid prices, and control traffic quality.

Enhancements to the LookSmart AdCenter platform include:

- Day Parting – advertisers can target the right message at the right time by scheduling campaigns to run at specific times of day and days of the week
- Easy Price Adjustments – advertisers can save time and effort by adjusting bid prices and reserve amounts on millions of keywords and thousands of campaigns at once
- Negative Keyword Management – advertisers can decrease campaign administration time by applying keywords at the campaign level

“We work hard to provide the very best search advertising platform and tools so advertisers can make smart choices and maximize ROI,” said Ted West, chief executive officer and president of LookSmart. “Our proven platform makes it easy for search advertisers to properly scale and manage campaigns to reach highly qualified audiences with the right message at the right time.”

LookSmart’s talented account managers also can tailor “custom distribution channels” on the LookSmart advertising network that provide finer control over where advertisements appear. Selecting from among LookSmart’s base of 500 million queries per day, account managers work closely with advertisers to create white-lists that specify the types of traffic they want, create black-lists to block unwanted traffic, and decide how much budget to spend on specific categories and feeds. These proven tools and techniques provide advertisers with traffic quality control on individual campaigns or hundreds of campaigns at once, using thousands or even millions of keywords. Search advertisers can further target their audience in the U.S., Canada, UK, Australia and New Zealand using the geo-targeting capability of the AdCenter, which enables them to more effectively connect with the targeted customers they seek.

About LookSmart

LookSmart (NASDAQ:LOOK) is a premier search advertising network and management company. A trusted provider of quality search advertising products and services to text advertisers, LookSmart offers targeted pay-per-click search and contextual advertising via its proven Search Advertising Network. For publishers seeking to create their own vertical advertising networks, LookSmart also licenses and manages its award-winning AdCenter platform. Dedicated to the quality of text advertising, LookSmart is committed to safeguarding against invalid clicks and is one of the five founding members of the IAB click measurement panel. For more information, visit www.LookSmart.com or call 415-348-7500

SAN FRANCISCO – LookSmart, Ltd. (NASDAQ:LOOK), a pay-per-click (PPC) search advertising network and technology solutions provider, announced its ad network has been bolstered by the addition of 30 high-quality distribution partners, some of which resulted from expanding internationally into the UK and Australia. High-quality traffic, which offers search advertisers improved click-through and conversion rates in categories such as travel, technology and retail, has doubled while low-quality traffic has been cut in half.

“As we add top-quality traffic, we work vigilantly to maintain unsurpassed excellence throughout the network – our goal is to deliver superior ROI and conversion rates for all our search advertisers,” said Ted West, chief executive officer and president of LookSmart. “Our LookSmart Network Management team weighs user conversion data and employs statistical models to gauge network quality and reporting in real time – ultimately delivering better value to our customers.”

LookSmart makes it easy to run successful ad campaigns. Search advertisers work directly with dedicated account managers, who are skilled at creating customized distribution channels across LookSmart’s optimized network. This service advantage allows search advertisers to attract highly targeted leads and maximize ROI, whether the campaign is global or targets a specific country or local market. Search advertisers also have the option to manage their campaigns easily through LookSmart’s self-service ad-serving interface.

About LookSmart

LookSmart (NASDAQ: LOOK) is a provider of trusted products and service solutions for pay-per-click (PPC) text advertising. The company offers search advertisers targeted PPC search and contextual advertising via its proven Search Advertising Network and award-winning AdCenter platform technology. It also licenses its Ad Center technology to top publishers and networks. Dedicated to the quality of its network, LookSmart is committed to safeguarding against advertiser fraud and is one of the five founding members of the IAB click measurement panel. For more information, visit www.LookSmart.com or call 415-348-7500.

SES presented the award at a keynote address during the first day of its 10th annual Search Engine Strategies San Jose conference. The mission of the SES Awards is to inspire innovation and encourage new ideas. The awards were judged by a panel of industry experts and the SES Awards editorial staff.

“This award belongs to our talented employees who have built a proven search advertising platform that advertisers trust to extend their PPC campaigns beyond major search engines,” said Ted West, chief executive officer and president of LookSmart. “We are honored that Search Engine Strategies has validated our company’s strategy as we continue to emerge as a leading independent Search Advertising Network.”

The Search Engine Strategies San Jose conference is the largest learning and networking opportunity of the year, with more than 70 sessions related to search. During the conference, attendees learn how to maximize their business’ search engine marketing opportunities such as search engine optimization and paid search advertising. LookSmart will be showcased at booth # 609 in the exhibition hall. For more information about SES 2008 San Jose, please visit: http://www.searchenginestrategies.com/sanjose/.

At the conference, LookSmart will sponsor the keynote panel taking place on August 19 at 1:30 p.m. titled, “Technical & Information Giants”. In addition, Jonathan Ewert, general manager of advertising networks at LookSmart, was a speaker on the “Everything but Google: Alternative Search Advertising Options” panel on the first day of the conference, August 18, 2008 at 2:45 p.m. During the panel, Ewert discussed topics including the evolution of Search Advertising Networks, redefining best business practices in search advertising and the benefits to search engine marketers of leveraging Search Advertising Networks to extend their campaign reach at competitive prices.

For more information about LookSmart at SES 2008 or to schedule a press briefing during the conference, please contact James David at 415-694-6712 or LookSmart@racepointgroup.com.

About LookSmart

LookSmart provides premium and performance advertising solutions for advertisers and publishers. LookSmart offers advertisers targeted pay-per-click (PPC) search and contextual search advertising via its Advertiser Networks; and licenses its white label AdCenter technology to top publishers and networks. LookSmart is based in San Francisco, California. For more information, visit www.LookSmart.com or call 415-348-7500.

SAN FRANCISCO, Aug 18, 2008 – LookSmart, Ltd. (NASDAQ:LOOK), a pay-per-click (PPC) Search Advertising Network and technology solutions provider, today unveiled its new corporate identity and redesigned Web site, LookSmart.com, at the 2008 Search Engine Strategies Conference in San Jose. The company is an exhibitor, as well as a sponsor and participant in a panel discussion entitled “Everything but Google: Alternative Search Advertising Options.” LookSmart worked with Boston-based, social media marketing agency Digital Influence Group on the project.

“LookSmart has a strong online marketing brand and a long operating history,” said Ted West, chief executive officer and president of LookSmart. “While we did not want to change our trade name, our new corporate identity reflects our commitment to quality search advertising products and services through the company’s proven AdCenter platform, and tenacious delivery of results for search advertisers and web publishers on our search advertising networks.”

The new branding embodies LookSmart’s energy and dedication to providing solutions to both search advertisers and Web site publishers and networks. The new look includes a redesigned logo and Web site, as well as revamped business collateral, for the 12-year-old company.

“LookSmart’s business transition, from a consumer web directory and search engine to a trusted, independent Search Advertising Network and technology solutions provider, was not yet fully addressed,” said Aaron Hughes, senior vice president and creative director of Digital Influence Group. “LookSmart has gone through a compelling evolution and needed a look that captures its leadership position today.”

The new logo and corporate identity are debuting at the Search Engine Strategies conference in San Jose, and the Security Research Associates Summer Technology Conference in San Francisco, today. The new LookSmart corporate identity can be seen in the SES Exhibit Hall at booth number 609.

“It is great to see LookSmart’s brand identity reflect the great work the company’s employees have been doing in growing our business in search advertising networks,” said West. “We have emerged as an essential complement to web publishers and search advertisers who seek to go beyond the major search engines to monetize their traffic and extend their advertising reach cost-effectively,” West added.

About LookSmart

LookSmart provides premium and performance advertising solutions for advertisers and publishers. LookSmart offers advertisers targeted pay-per-click (PPC) search and contextual advertising via its Advertiser Networks; and licenses its white label AdCenter technology to top publishers and networks. LookSmart is based in San Francisco, California. For more information, visit www.LookSmart.com or call 415-348-7500.

LookSmart’s investor presentation is scheduled for Monday, August 18th, 2008 at 9:00 a.m. PST.

The presentation will be webcast live and archived online on the Investor Relations section of the Company’s website at www.looksmart.com.

Conference attendees will include a select group of institutional portfolio managers and analysts, and will feature CEOs and CFOs from some of the fastest-growing companies in the technology sector. SRA has arranged for webcasting of company presentations during this event. To access the lobby page for the webcast of presenting companies please go to: http://www.wsw.com/webcast/sra7/.

About LookSmart

LookSmart is an online search advertising and technology solutions company that provides performance solutions for online advertisers and publishers. LookSmart offers advertisers targeted, pay-per-click (PPC) search advertising and contextual search advertising via its Advertiser Networks; and an Ad Center platform for customizable private-label advertiser solutions for online publishers. LookSmart is based in San Francisco, California. For more information, visit www.looksmart.com or call 415-348-7500.

About Security Research Associates, Inc.

Security Research Associates, Inc. (SRA) was founded in San Francisco in 1980 and, today, offers investment banking and M&A services as well as institutional brokerage services. A boutique firm by design, SRA works with a select group of portfolio managers from around the country and focuses on technology and life science companies in the micro and small cap arenas. For more information about SRA see our web site at www.sracap.com or call us at 415-925-0346.

SAN FRANCISCO, Aug 11, 2008 – LookSmart, Ltd. (NASDAQ:LOOK), a pay-per-click (PPC) Search Advertising Network and technology solutions provider, announced today that LookSmart’s AdCenter has been named a finalist for the first annual SES Awards in the category of “Best Search Engine Ad Platform”.

“We are honored that Search Engine Strategies has recognized the work of our talented employees who have built a proven search advertising platform that advertisers trust to extend their PPC campaigns beyond major search engines,” said Ted West, chief executive officer and president of LookSmart. “We congratulate all the finalists and look forward to connecting with them throughout the conference.”

The award winners will be announced at the beginning of each Keynote and Orion Panels over the course of the conference, scheduled for August 18 – 21 in San Jose, CA. The mission of the SES Awards is to inspire innovation and encourage new ideas. The awards will be judged by a panel of industry experts and the SES Awards editorial staff.

LookSmart will sponsor the keynote panel taking place on August 19 at 1:30 p.m. titled, “Technical & Information Giants”. In addition, Jonathan Ewert, general manager of advertising networks at LookSmart, will be a speaker on the “Everything but Google: Alternative Search Advertising Options” panel on the first day of the conference, August 18, 2008 at 2:45 p.m. During the panel, Ewert will discuss topics including the evolution of Search Advertising Networks, redefining best business practices in search advertising and the benefits to search engine marketers of leveraging Search Advertising Networks to extend their campaign reach at competitive prices.

“We believe text-based advertising is certainly going to remain a significant media segment for some time to come,” said Ewert. “Google has shown advertisers how effective it can be, and for that reason, advertisers are looking for ways to extend their buys beyond the major search engines. SES 2008 will arm attendees with ideas that will help marketers see what else is available as they enhance and extend their advertising campaigns.”

The 10th annual Search Engine Strategies conference is the largest learning and networking opportunity of the year, with more than 70 sessions related to search. Attendees will gain knowledge of maximizing their business’ search engine marketing opportunities such as search engine optimization and paid search advertising. LookSmart will be showcased at booth # 609 in the exhibition hall. For more information about SES 2008 San Jose, please visit: http://www.searchenginestrategies.com/sanjose/

For more information about LookSmart at SES 2008 or to schedule a press briefing, please contact James David at 415-694-6712 or LookSmart@racepointgroup.com.