InfoSpace Announces First Quarter 2008 Results

Business Wire, April 30, 2008

BELLEVUE, Wash. -- InfoSpace, Inc. (NASDAQ:INSP) today announced financial results for the three months ended March 31, 2008.

"We are extremely pleased with our first quarter results. Revenue, EBITDA and income from operations all performed well above our expectations," said Jim Voelker, chairman and chief executive officer of InfoSpace, Inc.

Revenues for the first quarter of 2008 were $42.2 million, reflecting a $6.3 million or 18% increase over the first quarter of 2007 and an

increase of $3.1 million or 8% sequentially.

Adjusted EBITDA from continuing operations was $7.1 million in the first quarter of 2008, compared to Adjusted EBITDA from continuing operations of $7.1 million in the first quarter of 2007.

Net loss for the first quarter of 2008 was $2.8 million or $0.08 per share versus net loss of $0.5 million or $0.02 per diluted share in the first quarter of 2007. Net loss in the first quarter of 2008 includes an impairment charge of $6.7 million on the Company's investments in auction rate securities.

Cash, cash equivalents, and marketable securities as of March 31, 2008 totaled $220.7 million, which includes an investment of $29.7 million in auction rate securities. At the end of the quarter, the Company had no debt obligations.

First Quarter Highlights and Recent Developments

InfoSpace:

* Unveiled key upgrades to Dogpile.com, including an improved search algorithm, new visual design and the addition of a SearchSpy social networking widget;

* Announced a partnership with Kosmix to provide comprehensive health information for Dogpile.com users;

* Entered into agreements with five new search distribution partners; and

* Strengthened its management team with the promotion of Michael Glover to vice president, business development. Glover is responsible for all aspects of InfoSpace's strategic partner strategy and will continue to develop our strong relationships with current partners and new opportunities to grow the business.

Second Quarter Outlook

For the second quarter of 2008, the Company expects revenue to be between $34 million and $36 million. Additionally, the Company expects Adjusted EBITDA to be between $2.5 million and $4.0 million and net loss to be between $1.9 million and $0.4 million, or $0.06 and $0.01 per share.

A conference call will be held today at 2 p.m. Pacific/ 5 p.m. Eastern. The live Webcast can be accessed in the Investor Relations section of the InfoSpace corporate Web site, at http://www.infospaceinc.com. A replay of the call will be available approximately one hour after the call through May 7, 2008 at 9:00 p.m. Pacific/ 10:30 p.m. Eastern.

Non-GAAP Financial Measures

InfoSpace's Adjusted EBITDA from continuing operations is calculated by adjusting GAAP income (loss) from continuing operations to exclude the effects of income taxes, depreciation, stock-based compensation expense, loss on investments, net, and other income, net (including such items as interest income, foreign currency gains or losses, and gains or losses from the disposal of assets), as detailed in the accompanying table to the preliminary condensed consolidated financial statements.

InfoSpace's management believes that this non-GAAP financial measure provides meaningful supplemental information regarding our performance by excluding certain expenses and gains that are not indicative of our core business operating results. InfoSpace believes that management and the investors benefit from referring to this non-GAAP financial measure in assessing InfoSpace's performance. Adjusted EBITDA should be evaluated in light of the Company's financial results prepared in accordance with GAAP. A table reconciling the Company's Adjusted EBITDA to income (loss) from continuing operations in accordance with GAAP accompanies the preliminary condensed consolidated financial statements in this release.

About InfoSpace, Inc.

InfoSpace, Inc. is a leading developer of metasearch products to help people easily search and discover the web. InfoSpace uses its proprietary metasearch technology that combines the top results from the leading search engines to power a portfolio of branded Web sites, including Dogpile (www.dogpile.com) and WebFetch (www.webfetch.com.) For the second consecutive year, Dogpile ranked highest in customer satisfaction among search engines, according to JD Power and Associates. More information can be found at www.infospaceinc.com.

This release contains forward-looking statements relating to InfoSpace, Inc.'s operating results that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward looking. Forward-looking statements include without limitation statements regarding our expectations with respect to our relationships with our current partners and the development of new opportunities for the growth of our business, and our expectations regarding our financial performance for the second quarter of 2008. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect InfoSpace's actual results include general economic, industry and market sector conditions, the progress and costs of the development of our products and services, the timing and extent of market acceptance of those products and services, our dependence on companies to distribute our products and services, the ability to successfully integrate acquired businesses and the successful execution of the Company's strategic initiatives and restructuring plans. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in InfoSpace's most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q as filed from time to time, in the section entitled "Risk Factors." 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.