Business Services Industry

Court Approval Granted for Settlement Agreement Reached in Infospace Derivative Case, Section 16b Case, and Certain Related Cases Brought by the Jains

Business Wire, Feb 22, 2005

BELLEVUE, Wash. -- Infospace, Inc. (Nasdaq:INSP) today announced that a combined Settlement Agreement, described in its release dated December 23, 2004, and reprinted below, has been granted approval by the King County Superior Court (Washington) and the United States District Court for the Western District of Washington. If there are no appeals from these approvals, the Settlement Agreement provides that the Company will receive payment of the settlement proceeds pursuant to the terms of the Settlement Agreement. If either court's approval is appealed, however, then funding will not occur pending any appeal. There can be no assurance that the Company will receive any proceeds from the settlement until after the appeal deadline has expired without an appeal, or until all appeals, if any, are favorably concluded. There can be no assurance that the final settlement will be obtained.

About Infospace, Inc.

Infospace, Inc. (NASDAQ:INSP) is a diversified technology and services company that develops Internet and wireless solutions for a wide range of customers. Infospace Search & Directory provides Web search and online directory products that help users find the information they need while creating opportunities for merchants. Infospace Mobile provides content and applications that enable mobile operators and content providers to efficiently develop and deliver mobile data services across multiple devices. More information can be found at http://www.Infospaceinc.com/.> Forward-Looking Statements

This release contains forward-looking statements regarding the litigation matters described in the body of the release and the proposed settlement agreement that are subject to certain risks and uncertainties and actual results may differ materially from those in the forward-looking statements. Factors that could affect actual results include conditions to completion of the settlement, many of which are outside of Infospace's control, and the inherent uncertainty of proposed settlements, litigation and appeals. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. A more detailed description of certain factors that could affect Infospace's actual results include, but are not limited to, those discussed in Infospace's most recent Quarterly Report on Form 10-Q, in the section entitled "Factors Affecting Our Operating Results, Business Prospects and Market Price of Stock." Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Infospace undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

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REPRINT of Infospace, Inc. December 23, 2004 Press Release:

SETTLEMENT AGREEMENT REACHED IN INFOSPACE DERIVATIVE CASE, SECTION 16(b) CASE, AND CERTAIN RELATED CASES BROUGHT BY THE JAINS

BELLEVUE, Wash.--Dec. 23, 2004--Infospace, Inc. (Nasdaq:INSP) today announced that a combined Settlement Agreement has been reached in the Dreiling v. Jain, et al. derivative lawsuit pending in King County Superior Court (Washington), the Dreiling v. Jain, et. al. Section 16(b) case pending on appeal before the United States Court of Appeals for the Ninth Circuit, and certain other lawsuits involving the Company. The Settlement Agreement, if approved, contemplates (among other consideration) a cash payment to the Company, net of plaintiff's counsel's fee and certain costs, of approximately $83 million, including insurance proceeds. The Settlement Agreement, if approved, also contemplates dismissal of the derivative and Section 16(b) lawsuits with prejudice, except that dismissal of derivative claims against one non-officer or director defendant will be without prejudice.

The derivative lawsuit was brought against a number of current and former directors and officers of the Company and other defendants by a private party shareholder on behalf of Infospace. The Section 16(b) lawsuit was brought against a former officer and director of the Company and other defendants by the same private party shareholder on behalf of Infospace. As such, the derivative and Section 16(b) lawsuits did not seek monetary damages from, or the imposition of remedies on, the Company. Subject to final approval by the King County Superior Court and the United States District Court for the Western District of Washington for the derivative lawsuit and the Section 16(b) lawsuit, respectively, settlement proceeds, net of plaintiff's counsel's fee and certain costs, will be paid to the Company pursuant to the terms of the Settlement Agreement.

The Settlement Agreement also resolves certain claims in the consolidated lawsuit captioned Jain v. Clarendon America Insurance Company, et al. pending in King County Superior Court. All claims brought by the Jains against the Company and its directors' and officers' liability insurance carriers in the consolidated Jain v. Clarendon lawsuit, and all claims brought by the Jains against the Company in the Jain v. Infospace, Inc. lawsuit (which is part of the consolidated Jain v. Clarendon lawsuit) are resolved under the Settlement Agreement. Alleged indemnity obligations of the Company with respect to other parties in the consolidated Jain v. Clarendon lawsuit are also addressed by the Settlement Agreement. Finally, the Settlement Agreement also resolves the Infospace, Inc. v. Jain, Intelius, Inc., et al. lawsuit, currently pending before the Washington State Court of Appeals.