Yellow Pages Industry Monitor

| Fortnightly newsletter on the Yellow Pages industry | Issue No. 1, Published 18th April 2009 | Published by Heernet Ventures Limited (heernet.com) |

News

Publishers face potentially challenging capital restructurings

Yellow pages launched new search application

Idearc Media and Citysearch form local advertising partnership

Eniro and DeTeMedien reached a settlement agreement regarding German dispute

Indian yellow pages publisher receives Board approval for Rs 1 billion rights issue

Google complete local search enhancements in their search engine

Data

Share price performance

US Search engine market data (12 months to March 2009)

Advisory services
Heernet Ventures publishes this newsletter as part of its research coverage of the yellow pages industry. You
can access more research on the yellow pages industry from our research website at G2Mi.com.

If you are a media company or financial investor seeking market or company analysis on the yellow pages
industry, we can assist you. With dedicated research analysts based in both Europe and Asia, we are well
placed to provide ‘on the ground’ assistance and support in most countries.

Over the last five years, we have worked on a number of advisory assignments in the industry on areas such
as growth strategy, product benchmarking, competitor intelligence and acquisition search.

For an initial discussion, contact Harjinder Singh-Heer on +44 (0) 208 180 7223 or by email on
harjinder@heernet.com.

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News
Publishers face potentially challenging capital
restructurings
Date 7th April, 2009
A number of the leading directory publishers are already in
or are heading towards capital restructurings. In March, the
US publisher Idearc filed for bankruptcy protection and has
said that it plans to reduce its debt from US$9 billion to
US$3 billion. R H Donnelley has also not made an interest
payment due on its debt in mid-April; the group had US$9.4
billion in debt at end 2008 of which a substantial proportion
is due for repayment in 2010 and 2011.
In Europe, Seat Pagine Gialle is in the midst of a €200
million rights issue. In the recapitalisation, Seat PG was
selling 226 new shares for every five already held at a price
of €0.106 per share. There is also considerable speculation
that Yell may need to refinance its £4 billion debt; but the
company has denied this.
Yellow pages launches new mobile search
application
Date 7th April, 2009
The Canadian directories publishers, Yellow Pages Group
launched a new mobile search application BlackBerry
handsets and iPhones. The application includes advanced
features that make better use of handset capability, including
GPS-based proximity search and voice search.
Eniro and DeTeMedien reach a settlement
regarding their dispute in Germany
Date 14th April, 2009
The directory publishers Eniro and DeTeMedien GmbH
have reached a settlement in their dispute in Germany. The
dispute arose in respect of Eniro´s acquisition of Windhager
in December 2000 and the termination of partnership
agreements between Windhager and DeTeMedien. Eniro
exited the German market in 2007.
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Idearc Media and Citysearch form local advertising
partnership.
Date 16th April, 2009
Idearc Media has formed a local advertising partnership with
the local information website. As part of the agreement,
Citysearch will integrate Idearc Media's Superpages.com
performance-based advertisers into Citysearch's publisher
network. Superpages.com is now one of the two leading
yellow pages websites in the USA; it has built an extensive
network of third party website partners.
Indian yellow pages publisher receives Board
approval for Rs 1 billion rights issue
Date 16th April, 2009
One of India’s leading yellow pages publishers, Infomedia
India has received Board approval for a Rs 1 billion rights
issue. Other details of the capital raising are yet to be
confirmed. Infomedia is one of India leading yellow pages
publishers with a strong presence in most of the largest
cities. The group is majority owned by the diversified media
group, Network 18.
Google complete local search enhancements in
their search engine
Date 16th April, 2009
Google have completed an enhancement to their search
engine so it will display local search results even when a
user doesn’t type in a location. The search now determines
the user’s location based on their IP address, and displays
related businesses within that address’ geographic area. The
local search element primarily works off the data that
businesses have uploaded to Google’s Local Business
Centre.
Share price data

Company name Reuters Bloomberg Currency Current % Change

Code Code price
1 week 1 mth 6 mth 12 mth

Eniro ENIRO.ST ENRO.SS SEK 10.25 32.3% 48.6% -51.0% -76.9%

Pages Jaunes PAJ.PA PAJ.FP EUR 7.48 7.9% 18.9% -3.4% -37.8%
Seat Pagine Gialle PGIT.MI PG:IM EUR 0.65 -27.0% -83.5% -95.7% -97.7%
Telegate TGTE.DE TGT:GR EUR 8.83 5.4% 25.2% -1.5% -24.7%
Yell Group YELL.L YELL:LN GBP 26.25 19.3% 110.0% -67.9% -86.0%
Yellow Pages Income Fund YLO_u.TO YLO-U:CN CAD 5.92 -2.5% 4.0% -29.5% -45.9%
Yellow Pages (Singapore) YELP.SI YPG:SP SGD 0.25 36.1% 48.5% -16.9% -70.5%
th
Date updated: 16 April 2009

Eniro Telegate

PagesJaunes Yell Group

Seat Pagine Gialle Yellow Pages (Singapore)

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Data

US Search engine market data

Search query volumes for the 5 leading search engines have increased by 36.5% in the year to March 2009.
Google’s search volumes grew by 40% and it saw its share grow from 62.1% to 63.7%, mostly at the expense of Microsoft.

Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09

No. of search queries (millions)

Google 6,514 6,664 7,096 7,273 7,398 7,422 7,971 7,784 8,036 8497 8,293 9,125
Yahoo 2,159 2,221 2,416 2,405 2,300 2,386 2,589 2,506 2,593 2836 2,696 2,939
MSN 940 899 1,036 1,026 960 982 1,065 1,001 1,044 1146 1,073 1,191
AOL 453 453 439 503 479 451 500 464 453 520 536 547
Ask 430 456 467 468 472 480 447 440 455 497 507 529
Total 10,496 10,693 11,454 11,675 11,609 11,721 12,572 12,195 12,581 13496 13,104 14,331

% change
Google 21.6% 2.3% 6.5% 2.5% 1.7% 0.3% 7.4% -2.3% 3.2% 5.7% -2.4% 10.0%
Yahoo -3.1% 2.9% 8.8% -0.5% -4.4% 3.7% 8.5% -3.2% 3.5% 9.4% -4.9% 9.0%
MSN -3.0% -4.4% 15.2% -1.0% -6.4% 2.3% 8.5% -6.0% 4.3% 9.8% -6.4% 11.0%
AOL 11.9% 0.0% -3.1% 14.6% -4.8% -5.8% 10.9% -7.2% -2.4% 14.8% 3.1% 2.1%
Ask -3.2% 6.0% 2.4% 0.2% 0.9% 1.7% -6.9% -1.6% 3.4% 9.2% 2.0% 4.3%
Total 11.7% 1.9% 7.1% 1.9% -0.6% 1.0% 7.3% -3.0% 3.2% 7.3% -2.9% 9.4%

% share
Google 62.1% 62.3% 62.0% 62.3% 63.7% 63.3% 63.4% 63.8% 63.9% 63.0% 63.3% 63.7%
Yahoo 20.6% 20.8% 21.1% 20.6% 19.8% 20.4% 20.6% 20.5% 20.6% 21.0% 20.6% 20.5%
MSN 9.0% 8.4% 9.0% 8.8% 8.3% 8.4% 8.5% 8.2% 8.3% 8.5% 8.2% 8.3%
AOL 4.3% 4.2% 3.8% 4.3% 4.1% 3.8% 4.0% 3.8% 3.6% 3.9% 4.1% 3.8%
Ask 4.1% 4.3% 4.1% 4.0% 4.1% 4.1% 3.6% 3.6% 3.6% 3.7% 3.9% 3.7%

Source: ComScore. Based on the five major search engines for US market only (including partner searches and cross-channel searches). Searches for
mapping, local directory, and user-generated video sites that are not on the core domain of the five search engines are not included in the core search numbers.

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