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.

Revenues for the third quarter of 2008 were $15.4 million, a 37% increase from $11.3 million in the third quarter of 2007 and a 10% decrease from $17.1 million in the second quarter of 2008. Net loss for the third quarter of 2008 was $1.6 million, or ($0.10) per share based on approximately 17.1 million weighted average shares outstanding, which includes $211 thousand of severance expense. This is compared to a net loss of $4.3 million, or ($0.19) per share based on approximately 22.9 million weighted average shares outstanding in the third quarter of 2007 which included $2.3 million of restructuring, severance and asset impairment charges. Net loss for the second quarter of 2008 was $176 thousand, or ($0.01) per share based on 17.0 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 results for the current and prior periods exclude these certain consumer assets which are accounted for in discontinued operations.

Loss from continuing operations for the third quarter of 2008 was $1.6 million compared to a loss from continuing operations in the third quarter of 2007 of $2.9 million. Loss from continuing operations for the second quarter of 2008 was $40 thousand.

“We are satisfied to have delivered third quarter revenue growth of approximately 37% compared to the prior year period,” commented Ted West, President and Chief Executive Officer. “We remain confident in LookSmart’s value proposition and competitive positioning within the search advertising networks marketplace, particularly in light of the challenging economic and consumer environment. We believe search advertising will prove increasingly relevant, and particularly cost-effective, as advertisers seek performance-based advertising leads and consumers search more aggressively for value on the web. During the third quarter, LookSmart took actions aimed at further streamlining and focusing the organization on search advertising networks, with a keen focus on network quality enhancement, while making several strategic investments in our brand, product offerings, and network infrastructure to position LookSmart for future growth. While the investments made during the third quarter affected our profitability, we are confident that, through the actions taken, we are creating a stronger business platform built for economic recovery and longevity.”

Revenues from the Company’s Advertiser Network were $13.9 million in the third quarter of 2008, an increase of 39% from $10.0 million in the third quarter of 2007. Revenues from the Company’s Publisher Solutions were $1.5 million in the third quarter of 2008, an increase of 15% from $1.3 million in the third quarter of 2007.

Gross margins from continuing operations were 40% in the third quarter of 2008 versus 44% in the third quarter of 2007 primarily due to higher traffic acquisition costs (TAC). During the third quarter of 2008, the Company continued to manage TAC slightly higher in order to enhance network search query quality and to drive higher advertising revenues and profit contribution in the Advertiser Network. Gross margins from continuing operations for the second quarter of 2008 were 40%.

Total operating expenses in the third quarter of 2008 were $8.1 million, which included $0.7 million of non-cash, share-based compensation charges and $0.2 million of severance expense. In addition, the Company incurred costs related to the development of a new corporate brand and the vertical managed network strategy. Operating expenses for the third quarter of 2007 were $8.4 million, which included $0.6 million of non-cash, share-based compensation charges, $0.2 million of restructuring costs related to a reduction in workforce, and $0.5 million of severance expense. Operating expenses for the second quarter of 2008 were $7.1 million, which included $0.6 million of non-cash, share-based compensation charges.

On a non-GAAP basis, for the third quarter of 2008, Adjusted EBITDA (net loss before interest income, net, taxes, depreciation and amortization excluding stock based compensation charges and loss from discontinued operations) was a loss of $444 thousand compared to an Adjusted EBITDA loss of $2.3 million in the third 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 third quarter of 2008 remained constant from the prior quarter at $1.2 million, and increased $0.7 million from $0.5 million in the third quarter of 2007. During the third quarter of both 2008 and 2007, the Company purchased no intangible assets. Depreciation and amortization from continuing operations was $0.8 million in the third quarter of 2008 compared to $1.2 million in the third quarter of 2007.

The Company ended the quarter with approximately $30.0 million in cash, cash equivalents, and investments, a decrease of approximately $4.4 million from approximately $34.4 million on June 30, 2008. The decrease in cash was primarily due to the loss from operations generated in the third quarter of 2008, and to the timing of accounts receivable collection. On a per share basis the Company’s cash and investment balance was $1.76 as of September 30, 2008.

Q3 2008 Key Metrics Performance

* Total paid clicks increased to approximately 184 million for the third quarter of 2008 compared to approximately 83 million for the third quarter of 2007 and 195 million for the second quarter of 2008.
* Average revenue per click (RPC) for the third quarter of 2008 was approximately $0.08, a decrease from approximately $0.12 in the third quarter of 2007, and consistent with the second quarter of 2008 at approximately $0.08. The change reflects a shift in the segment composition of and channels to reach search advertising network customers.
* Traffic acquisition costs (TAC) of 62.5% for LookSmart’s Ad Network increased from the 59.0% rate in the third quarter of 2007, and increased from the 61.9% rate in the second quarter of 2008.

Persuant to the Company’s stock repurchase program, the Company did not repurchase any additional shares of its common stock during the second and third quarters of 2008. As such, the Company currently has $2.2 million authorized for share repurchase through the open market at the prevailing market price or in privately negotiated transactions.

The number of shares of common stock outstanding at the end of the third quarter of 2008 was 17,040,259.

About LookSmart, Ltd.

LookSmart is an online search advertising network 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.

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.

“LookSmart’s AdCenter platform allows us to create custom distribution channels for our customers, and our expanding global network provides the scale that our customers need,” said Jonathan Ewert, General Manager of LookSmart’s Advertising Networks. “Our expansion beyond North America allows us to provide even more value to our advertisers and network partners.”

LookSmart offers advertisers the ability to reach Internet users in the United States and Canada as well as Australia and the United Kingdom through the enhanced geo-targeting features built into its AdCenter technology platform.

Advertisers can manage their own campaigns through LookSmart’s easy-to-use, intuitive self-service ad serving interface or work directly with hands-on campaign managers skilled at optimizing campaign performance and maximizing ROI. Geo-targeting features have also been added to LookSmart’s widely-adopted open API, enabling bid management companies and advertising agencies to connect with more buyers in a highly targeted way.

The same technology and tools that create custom distribution channels on LookSmart’s advertising network are available to publishers who license the white label AdCenter platform. “Publishers make significant investments in building qualified audiences that are attractive to advertisers. LookSmart helps publishers segment their audiences to attract advertising campaigns that are highly relevant and will accelerate revenue,” Ewert added.

Working with LookSmart and other leading search providers, Excite Corporation connects advertisers to over 20 million monthly searches in the Australian and New Zealand market.

“Excite is thrilled with the success of our network’s expansion into the US and UK markets with LookSmart and we welcome their presence in Australia.” said Evan Balafas, Managing Director of Excite Corporation. “Revenue has been driven by the exceptional account management and customer service and we look forward to being one of their largest partners in the coming weeks.”

About LookSmart

LookSmart provides premium and performance advertising solutions for advertisers and publishers. LookSmart offers advertisers targeted pay-per-click (PPC) search advertising, contextual search advertising, and display banner advertising via its Advertiser Networks; and licenses its white label AdCenter technology to top publishers, search engines, media companies, social networking sites, retail sites, directories, ISPs and portals to manage advertiser relationships and third-party feeds within an auction platform. LookSmart is based in San Francisco, California. For more information, visit www.looksmart.com or call 415-348-7500.

The company attributes strong growth in paid clicks and market share in 1Q2008 to competitive advertiser ROI, based on day-to-day account management and campaign optimization, and a quality-monitored network with cost-effective PPCs.

“LookSmart’s long-standing commitment to traffic quality and account service to the search advertiser has driven continuous innovation on our AdCenter platform,” said Jonathan Ewert, General Manager of LookSmart Advertising Networks. “Using the platform, our Network Management team improves results for our distribution partners, while our Account Management team creates custom distribution channels to exceed the goals of our advertisers,” Ewert added.

LookSmart’s attention to service and campaign optimization is already winning over search advertisers:

“We experienced increased conversions on LookSmart’s network in 1Q2008, showing dramatic increases for our business,” said Ashleigh Bilodeaux of ServiceMagic. “LookSmart’s marketing professionals made great suggestions on how to optimize our campaigns and the results show it: LookSmart has done a great job of going the extra mile to ensure we see positive performance. For us, LookSmart performance is now on par with our campaigns running on major search engines such as Google, MSN, and Yahoo!,” added Bilodeaux.

A case study on ServiceMagic is available for download from LookSmart’s at: http://www.looksmart.com/pdfs/Advertiser_Solutions/Servicemagic_ casestudy.pdf (Due to its length, this URL may need to be copied/pasted into your Internet browser’s address field. Remove the extra space if one exists.)

About LookSmart

LookSmart provides premium and performance advertising solutions for search advertisers and publishers. LookSmart offers search advertisers targeted pay-per-click (PPC) search advertising, contextual search advertising, and display banner advertising via its Advertiser Networks; and licenses its white label AdCenter technology to top publishers, search engines, media companies, social networking sites, retail sites, directories, ISPs and portals to manage advertiser relationships and third-party feeds all within an auction platform. LookSmart is based in San Francisco, California. For more information, visit www.looksmart.com or call 415-348-7500.

About ServiceMagic

ServiceMagic is the premier online destination in the United States and parts of Canada for homeowners seeking service professionals. Since 1998, they have connected millions of people with local, prescreened home service providers in over 500 areas of expertise, from remodeling to house cleaning.