yellowpages.com charles stubbs september 29, 2005

YellowPages.com

Charles StubbsSeptember 29, 2005

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Agenda

MarketMarket StrategyStrategy ExecutionExecution

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Online Advertising Market

U.S. Online Advertising Spending ($B)

Source: The Kelsey Group; Feb. 2005

$7.8

$10.1

$12.7

$15.8

$19.0

$22.8

2004

2005

2006

2007

2008

2009Explosive growth

◆24% per year growth through 2009

◆Online share of total advertising to double over the next 4 years

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2004

2005

2006

2007

2008

2009 $5.0

$3.7

$2.5

$1.6

$1.1

$0.7

Online Local Advertising

U.S. Internet Yellow Pages and Local Search Markets ($B)

Internet Yellow Pages

Local Internet Search

Source: The Kelsey Group; Feb. 2005

Forecasted growth almost 50% per year over the next several years

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IYP & Local Search

Usage Market Share (Searches)Q2 2005

Fragmented Usage

Traditional Yellow Pages Publishers and New Internet Businesses

Dynamic and Competitive Marketplace

source: comScore Media MetrixQ2 2005 Internet Yellow Pages Search Report

Other1.9%

BLS & SBC9.0%

Superpages Network21.5%

Google10.5%

Switchboard7.1%

AOL2.3%

Yahoo26.5%

Mapquest6.1%

Dex Online5.0%

YellowPages.com7.1%

Citysearch2.1%

Yellowbook1.1%

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Agenda

MarketMarket Strategy

Strategy ExecutionExecution

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Dual Aggregation Strategy

Print Yellow Pages

Indexed ContentIndexed Content

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Print Yellow Pages

Indexed ContentIndexed Content

Local Sale

s

Dual Aggregation Strategy

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Print Yellow Pages

Print &Distribut

eIndexed ContentIndexed Content

Dual Aggregation Strategy

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Print &Distribut

eIndexed ContentIndexed Content

End-to-end Solution Resulting in ~50% Operating Margins

End-to-end Solution Resulting in ~50% Operating Margins

Local Sale

s

Print Yellow Pages

Dual Aggregation Strategy

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Core Pieces◆ Technology◆ User Interface◆ Content◆ Advertising

Products◆ Business Model◆ Reporting◆ Cross-Platform

Indexed ContentIndexed Content

Dual Aggregation Strategy

Electronic Yellow Pages

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Maximize Revenue◆ Local Coverage◆ National Sales ◆ Business Model

◆Subscription◆PFP

◆ Prioritization

Local Sales

Dual Aggregation Strategy

Electronic Yellow Pages

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Direct◆ Organic Use◆ Advertising & Promotion◆ SEO

Syndication◆ AOL◆ Switchboard◆ Yahoo!◆ Search Products

Publish &

Distribute

Dual Aggregation Strategy

Electronic Yellow Pages

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Publish &Distribute

Indexed ContentIndexed Content

Local Sale

s

Dual Aggregation Strategy

Electronic Yellow Pages

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Dual Aggregation Strategy

Fixed Monthly

(Placement)

Fixed Monthly

(Placement)

CostPer

Click

CostPer

Click

CostPerCall

CostPerCall

Business Model Options

% ofTransactio

ns

% ofTransactio

ns

Yellow Pages

Search E-Commerce

Service / Broker

5000 Business Segments Across 500+ MSAs 5000 Business Segments Across 500+ MSAs

AA AA CC DDBB

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Agenda

MarketMarket StrategyStrategy Execution

Execution

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Areas of Focus to Win

Consumers Product Advertisers

Advertising & Promotion of YellowPages.com

Partners/ Syndication

Best-of-Breed Technology

Great User Interface

Robust Content Fast Results Right Product Mix Multiple

Platforms

Complete Coverage◆ Local◆ National

Right Business Model

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Common Vision

Joint Venture formed in November, 2004

Ownership apportioned between SBC (66%) and BellSouth (34%) with joint management control

JV Objectives Parent Objectives

Single Brand / URLCommon DistributionCommon Platform/

ProductsNational Sales Local Sales in

Whitespace

Local Sales in Territory

FulfillmentCustomer Care

BillingLocal Content

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Common National Brand

Goal Direct Consumer

Relationship Simple Intuitive URL Existing Usage Complement Print

Business Leverage Parents’ Assets

◆ 150M Books Published◆ DSL/IPTV◆ Cingular

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Common National Brand

Goal Direct Consumer

Relationship Simple Intuitive URL Existing Usage Complement Print

Business Leverage Parents’ Assets

◆ 150M Books Published◆ DSL/IPTV◆ Cingular

Execution Acquired

YellowPages.com 5.4% of IYP Market

share with no advertising or promotion

Incredible monthly growth

Stick to our roots Potential

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Common Distribution

Must partner to have greatest audienceMust partner to have greatest audience

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Consumer Reach

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Common Platform/Products

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Common Platform/Products

Flash Demo◆YellowPages.com

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Dual Product Strategy

IYP Search

Subscription Model Placement Broadest Reach Category Based

“Performance” Model

Clicks Broadest Reach Keyword Based

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Common Platform/Products

REAL SEARCH ENGINE SOLUTIONSConnecting Buyers and

Sellers◆85% of all Search Engine traffic◆Annual Performance Guarantees◆Monthly e-Mail Reports

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Combined Networks

Source: comScore Media Metrix, Q2 2005 Internet Yellow Pages Search Share report

Disaggregated Usage

National Aggregation

National Aggregation

Other1.9%

BLS & SBC9.0%

Superpages Network21.5%

Google10.5%

Switchboard7.1%

AOL2.3%

Yahoo26.5%

Mapquest6.1%

Dex Online5.0%

YellowPages.com7.1%

Citysearch2.1%

Yellowbook1.1%

Yahoo26.5%

Other16.1%

Google10.5%

Superpages Network21.5%

YPC Network25.4%

IYP & Local Search

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Content Strength

Combined Local Sales Force -

“Feet on the Ground” in 22 States: 4000+ sales reps

Print relationships provides unmatched depth of content

Enhanced Sales Capability Through National Account Teams and Familiar URL

SBC

BLSSBC

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Largest Audience

◆ Direct Consumer Franchise◆ Syndicate through

Partnerships◆ Deliver Advertiser ROI

Conclusion

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Largest Audience ◆ Direct Consumer Franchise◆ Syndicate through

Partnerships◆ Deliver Advertiser ROI

Standard and Rational Product Set

◆ Logical and Simple◆ Right Pricing/Business

Model

Conclusion

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Largest Audience ◆ Direct Consumer Franchise◆ Syndicate through

Partnerships◆ Deliver Advertiser ROI

Standard and Rational Product Set

◆ Logical and Simple◆ Right Pricing/Business Model

Robust National and Local Sales Force

◆ Monetize Usage◆ Geographically and

Category

Conclusion

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Conclusion

Largest Audience ◆ Direct Consumer Franchise◆ Syndicate through

Partnerships◆ Deliver Advertiser ROI

Standard and Rational Product Set

◆ Logical and Simple◆ Right Pricing/Business Model

Robust National and Local Sales Force

◆ Monetize Usage◆ Geographically and Category

Result: Long term Profitability

◆ Value enhancement for SBC & BLS publishers and shareholders

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Thank You!

Q & A