Local.com Reports Preliminary Third Quarter 2009 Financial Results; Hosts First Analyst Day

http://www.businesswire.com/news/home/20091005005535/en

CEO, Heath Clarke to Ring NASDAQ Opening Bell
IRVINE, Calif.--(Business Wire)--
Local.com Corporation (NASDAQ:LOCM), a leading local search site and network,
today announced that based on unaudited preliminary results for the three months
ended September 30, 2009, the company expects revenue to be between $14.8 and
$15.1 million, exceeding the high end of its prior guidance of $14.6 million.

The company also said it expects Adjusted Net Income to be between $1.3 and $1.4
million or approximately $0.09 per diluted share, which meets or exceeds the
high end of its prior guidance of $1.3 million, or $0.09 per diluted share.

These unaudited preliminary revenue and earnings results are, in accordance with
normal procedures, subject to further review and completion by the company and
its auditors.

To celebrate the company`s 10th anniversary, the company`s chairman and CEO,
Heath Clarke, will be ringing The NASDAQ Stock Market Opening Bell on Thursday,
October 8, 2009 at 9:30 a.m. Eastern Time. The Opening Bell ceremony will take
place at the NASDAQ MarketSite broadcast studio in New York City`s Times Square.
A live webcast of Local.com`s NASDAQ Opening Bell ceremony will be available at:
http://www.nasdaq.com/reference/marketsite_about.stm.

Following the Opening Bell ceremony, Local.com will also be hosting its first
Analyst Day from 12:00 p.m. to 5:00 p.m. Eastern Time. For those interested in
attending the presentation to analysts, please contact the company at:
ctriebwasser@local.com.

The preliminary third quarter 2009 financial results are being disclosed in
connection with the Analyst Day. The company does not intend to release
preliminary financial results in future periods unless such results differ
materially from prior guidance.

The regularly scheduled conference call to discuss the company`s third quarter
2009 financial results will be announced at a later date.

Adjusted Net Income/Loss is defined as net income/loss excluding: provision for
income taxes; interest and other income (expense), net; depreciation;
amortization; stock based compensation charges and non-recurring items.

An explanation of the company`s use of non-GAAP financial measures, including
the limitations of such measures relative to GAAP measures is included below,
along with a table that reconciles expected Net Loss to expected Adjusted Net
Income for the company`s third quarter 2009 financial results.

For more information on the company please visit: http://corporate.local.com.

About Local.com®

Local.com (NASDAQ: LOCM) owns and operates a leading local search site and one
of the largest private label, local search networks in the United States. The
company uses patented technologies to provide over 20 million consumers each
month with highly relevant search results for local businesses, products and
services on Local.com and over 700 regional media sites. Businesses can target
ready-to-purchase consumers using a variety of advertising products. To
advertise, or for more information visit: www.local.com.

About NASDAQ OMX

The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers
trading, exchange technology and public company services across six continents,
with over 3,700 listed companies. NASDAQ OMX offers multiple capital raising
solutions to companies around the globe, including its U.S. listings market,
NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A
sector. The company offers trading across multiple asset classes including
equities, derivatives, debt, commodities, structured products and
exchange-traded funds. NASDAQ OMX technology supports the operations of over 70
exchanges, clearing organizations and central securities depositories in more
than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal
entities but describe the common offering from NASDAQ OMX exchanges in Helsinki,
Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information
about NASDAQ OMX, visit http://www.nasdaqomx.com. *Please follow NASDAQ OMX on
Facebook (http://www.facebook.com/pages/NASDAQ-OMX/108167527653) and Twitter
(http://www.twitter.com/nasdaqomx).

Forward Looking Statements

All statements other than statements of historical fact included in this
document regarding our anticipated financial results, financial position,
business strategy and plans and objectives of our management for future
operations, are forward-looking statements. When used in this report, words such
as 'anticipate,' 'believe,' 'estimate,' 'plans,' 'expect,' 'intend,' `projects`
and similar expressions and phrases, as they relate to Local.com or our
management, identify forward-looking statements, including, for example, the
forward-looking statements with respect to our preliminary estimates of our
revenue and earnings for the third quarter of fiscal 2009. These statements
involve known and unknown risks, uncertainties and other factors that may cause
actual results, to be materially different from any future results expressed or
implied by the forward-looking statements. In particular, our current
preliminary estimates of revenues and earnings for the third quarter of fiscal
2009 remain subject to review by our finance organization and independent
registered public accountants. Actual reported third quarter 2009 revenue and
earnings results could vary significantly from our current expectations based on
additional or revised information, subsequent events, completion of the
aforementioned reviews, and other factors. Any forward-looking statements are
based on the beliefs of our management as well as assumptions made by and
information currently available to our management. Actual results could differ
materially from those contemplated by the forward-looking statements as a result
of certain factors, including, but not limited to, our ability to monetize the
Local.com domain, incorporate our local-search technologies, market the
Local.com domain as a destination for consumers seeking local-search results,
grow our business by enhancing our local-search services, successfully expand
and implement our outsourced, direct subscription advertising sales efforts,
increase the number of businesses that purchase our subscription advertising
products, expand our advertiser and distribution networks, integrate and
effectively utilize our acquisitions` technologies, assets, and operations,
develop our products and sales, marketing, finance and administrative functions
and successfully integrate our expanded infrastructure, as well as our
dependence on major advertisers, competitive factors and pricing pressures,
changes in legal and regulatory requirements, and general economic conditions.
Any forward-looking statements reflect our current views with respect to future
events and are subject to these and other risks, uncertainties and assumptions
relating to our operations, results of operations, growth strategy and
liquidity. All subsequent written and oral forward-looking statements
attributable to us or persons acting on our behalf are expressly qualified in
their entirety by this paragraph. Unless otherwise stated, all site traffic and
usage statistics are from third-party service providers engaged by the company.

Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q,
recent Current Reports on Form 8-K, and other Securities and Exchange Commission
filings discuss the foregoing risks as well as other important risk factors that
could contribute to such differences or otherwise affect our business, results
of operations and financial condition. The forward-looking statements in this
release speak only as of the date they are made. We undertake no obligation to
revise or update publicly any forward-looking statement for any reason.

Non-GAAP Financial Measures

This press release includes the non-GAAP financial measure of "Adjusted Net
Income" which we define as net income/loss excluding: provision for income
taxes; interest and other income (expense), net; depreciation; amortization;
stock based compensation charges and non-recurring items. Adjusted Net Income,
as defined above, is not a measurement under GAAP. Adjusted Net Income is
reconciled to net loss and loss per share which we believe are the most
comparable GAAP measures.

Management believes that Adjusted Net Income provides useful information to
investors about the company`s performance because it eliminates the effects of
period-to-period changes in income from interest on the company`s cash and
marketable securities, expense from the company`s financing transactions and the
costs associated with income tax expense, capital investments, stock-based
compensation expense and non-recurring items which are not directly attributable
to the underlying performance of the company`s business operations. Management
uses Adjusted Net Income in evaluating the overall performance of the company`s
business operations.

A limitation of the non-GAAP financial measure of Adjusted Net Income is that it
excludes items that often have a material effect on the company`s net
income/loss and earnings/loss per common share calculated in accordance with
GAAP. Therefore, management compensates for this limitation by using Adjusted
Net Income/Loss in conjunction with GAAP net income/loss and earnings/loss per
share measures. The company believes that Adjusted Net Income provides investors
with an additional tool for evaluating the company`s core performance, which
management uses in its own evaluation of overall performance, and as a base-line
for assessing the future earnings potential of the company. While the GAAP
results are more complete, the company prefers to allow investors to have this
supplemental metric since, with reconciliation to GAAP, it may provide greater
insight into the company`s financial results. The non-GAAP measures should be
viewed as a supplement to, and not as a substitute for, or superior to, GAAP net
income/loss or earnings/loss per share.

LOCAL.COM CORPORATION
RECONCILIATION OF EXPECTED NET LOSS TO EXPECTED ADJUSTED NET INCOME
(in thousands, except per share amounts)
(Unaudited)

Three Months
Ended September 30,
2009 (1)
GAAP net loss ($200 - $100)

Plus depreciation and amortization 900
Plus stock compensation 600
Adjusted Net Income $1,300 - $1,400

GAAP net loss per share ($0.01)
Adjusted Net Income per share $0.09

Basic weighted average shares outstanding (GAAP net loss) 14,300
Diluted weighted average shares outstanding (Adjusted Net Income) 14,800

(1) All numbers in this column are estimated.

Local.com
Media and Investor Relations:
Cameron Triebwasser, 949-789-5223
ctriebwasser@local.com

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