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For Immediate Release
 Local.com Reports First Quarter 2007 Financial Results
   Q1 Highlights:
 
    
    Revenues First quarter 2007 revenue of $4.9 million was $600,000 above our mid-range
guidance of $4.3 million. This represented growth of 55% over the first quarter 2006, and
growth of 35% over the fourth quarter 2006.
 
    
    Local Search Local search revenue was $4.1 million for the first quarter of
2007, up 258% over the first quarter of 2006 and up 53% over the fourth quarter
2006.
    
    National Search Our national search revenue was $800,000 for the first
quarter of 2007, which decreased from $1.0 million in the fourth quarter of 2006.
 
    
    Net Loss For the first quarter of 2007 our net loss of $3.1 million was
approximately $400,000, or 11%, better than the best end of our guidance of $3.5 million.
This represented an improvement of approximately $700,000 over the first quarter of 2006
and $100,000 over the fourth quarter of 2006. Basic and diluted net loss per share was
$0.33.The net loss includes $1.2 million, or $0.12 per share, of non-cash expenses consisting of
depreciation and amortization ($510,000); stock based compensation ($491,000); and interest
expense related to the convertible debenture financing ($160,000).
    
    Increased Visitors Local.com served 30 million monthly unique visitors in the first
quarter compared to 24 million in the first quarter of 2006 and 26 million in the fourth
quarter of 2006. The number of visits per user increased to 1.98, up from 1.9 in the
fourth quarter 2006 and 1.5 in first quarter 2006.




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
    
    Increased Monetization Revenue per thousand visitors (RKV) was $137, up 234% from
$41 in the first quarter of 2006 and up 49% from $92 RKV in the fourth quarter of 2006.
    
    Signed Distribution Agreement with Idearc Media Corporation  We signed a
distribution agreement that allows Idearc to place its Superpages.com® advertisers
content on Local.com.
    
    Signed Distribution Agreements We entered into agreements with two major search
companies related to the sale of our local ad products and monetization of our UK site.
Further announcements related to these deals will be made upon implementation.
    
    Launched Local Promote Basic We introduced a new free online listing service that
enables local businesses to quickly and easily target local consumers online.
    
    Launched Local.com Classifieds We integrated about 20 million classified listings
onto Local.com.
    
    Completed $8 Million Financing We completed an $8 million convertible debenture
financing and ended the first quarter with $10.4 million in cash and marketable
securities.
 Financial Guidance:
    Conference Call Information
 - http://ir.local.com
 About Local.com
 ®




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www.local.com
 Forward-Looking Statements
    Media Contacts:
 ctriebwasser@local.com
 dchm@madisonalexanderpr.com
 Investor Relations Contact:




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LOCAL.COM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
 March 31,
    
    
    December 31,2007
    
    
    2006(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    8,377
    
    
    $
    3,264Restricted cash
    
    
    70
    
    
    
    41Marketable securities
    
    
    1,979
    
    
    
    1,972Accounts receivable, net of allowances of $9
    
    
    3,196
    
    
    
    2,091Prepaid financing costs
    
    
    1,013
    
    
    
    Prepaid expenses and other current assets
    
    
    273
    
    
    
    302Total current assets
    
    
    14,908
    
    
    
    7,670Property and equipment, net
    
    
    1,855
    
    
    
    2,028Intangible assets, net
    
    
    2,577
    
    
    
    2,813Goodwill
    
    
    12,213
    
    
    
    12,213Long-term restricted cash
    
    
    96
    
    
    
    125Deposits
    
    
    42
    
    
    
    42Total assets
    
    $
    31,691
    
    
    $
    24,891LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    3,596
    
    
    $
    2,851Accrued compensation
    
    
    523
    
    
    
    328Deferred rent
    
    
    380
    
    
    
    432Other accrued liabilities
    
    
    327
    
    
    
    374Notes payable
    
    
    26
    
    
    
    63Deferred revenue
    
    
    230
    
    
    
    245Total current liabilities
    
    
    5,082
    
    
    
    4,293Long-term senior secured convertible notes, net of debt discount of $6,084
    
    
    1,916
    
    
    
    Total liabilities
    
    
    6,998
    
    
    
    4,293Commitments and contingencies
Stockholders equity:Convertible preferred stock, $0.00001 par value; 10,000,000 shares authorized;
none issued and outstanding for all periods presented
    
    
    
    
    
    
    Common stock, $0.00001 par value; 30,000,000 shares authorized;
9,299,918 and 9,297,502 issued and outstanding, respectively
    
    
    
    
    
    
    Additional paid-in capital
    
    
    58,833
    
    
    
    51,657Accumulated comprehensive loss
    
    
    (21
    )
    
    
    (27
    )Accumulated deficit
    
    
    (34,119
    )
    
    
    (31,032
    )Stockholders equity
    
    
    24,693
    
    
    
    20,598Total liabilities and stockholders equity
    
    $
    31,691
    
    
    $
    24,891




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LOCAL.COM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 Three months endedMarch 31,2007
    
    
    2006Revenue
    
    $
    4,881
    
    
    $
    3,151Operating expenses:Search serving
    
    
    807
    
    
    
    1,580Sales and marketing
    
    
    4,699
    
    
    
    2,467General and administrative
    
    
    1,333
    
    
    
    1,804Research and development
    
    
    699
    
    
    
    950Amortization of intangibles
    
    
    237
    
    
    
    237Total operating expenses
    
    
    7,775
    
    
    
    7,038Operating loss
    
    
    (2,894
    )
    
    
    (3,887
    )Interest and other income (expense)
    
    
    (192
    )
    
    
    105Loss before income taxes
    
    
    (3,086
    )
    
    
    (3,782
    )Provision for income taxes
    
    
    1
    
    
    
    1Net loss
    
    $
    (3,087
    )
    
    $
    (3,783
    )Per share data:Basic net loss per share
    
    $
    (0.33
    )
    
    $
    (0.41
    )Diluted net loss per share
    
    $
    (0.33
    )
    
    $
    (0.41
    )Basic weighted average shares outstanding
    
    
    9,298,281
    
    
    
    9,211,044Diluted weighted average shares outstanding
    
    
    9,298,281
    
    
    
    9,211,044
 Supplemental consolidated statements of operations information:
 Three months endedMarch 31,2007
    
    
    2006Non-cash stock based compensation expense:Sales and marketing
    
    $
    120
    
    
    $
    172General and administrative
    
    
    292
    
    
    
    670Research and development
    
    
    79
    
    
    
    73Total stock-based compensation expense
    
    $
    491
    
    
    $
    915Basic and diluted net compensation expense per share
    
    $
    0.05
    
    
    $
    0.10Interest and other income (expense):Interest income
    
    $
    71
    
    
    $
    108Interest expense
    
    
    (103
    )
    
    
    (2
    )Interest expense  non-cash
    
    
    (160
    )
    
    
    Gain on sale of fixed assets
    
    
    
    
    
    
    15Realized loss on sale of marketable securities
    
    
    
    
    
    
    (16
    )Total Interest and other income (expense)
    
    $
    (192
    )
    
    $
    105