LOK looksmart limited

msn agreement with looksmart to end january 15, 20

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    "LookSmart (LOOK) , a global leader in search, today announced that Microsoft will not renew its distribution and licensing agreement with LookSmart. LookSmart and Microsoft have agreed to extend the terms of the current agreement through January 15, 2004, after which the agreement will terminate.

    We are very disappointed with the outcome of efforts to renew our agreement with Microsoft," said Jason Kellerman, chief executive officer of LookSmart. "Despite losing a key partner, LookSmart will maintain its focus on the search business, leveraging the first integrated paid inclusion and pay-for-placement solution for advertisers, a next generation search technology, a broad network of distribution partners, more than 30,000 advertisers and a strong financial foundation with approximately $60 million in cash. We will continue to provide search results for MSN until the conclusion of our agreement while aggressively pursuing the opportunities before us."

    LookSmart's business and financial results will be materially and adversely affected following the end of the MSN relationship. Microsoft accounted for approximately 65% of listings revenues, and all of LookSmart's licensing revenue in the second quarter of 2003. At this time, LookSmart is not revising its revenue and earnings guidance for the full year 2003, given that the MSN agreement runs through January 15, 2004.

    Conference Call Information

    LookSmart will host a conference call to discuss today's announcement at 6:00 p.m. ET (8:00 a.m. Australian ET, October 7, 2003).

    To listen to the call from the U.S., dial 1-800-218-0204; from Australia, dial 1-800-730-220. A replay of the call will be available until Wednesday, October 8, 2003 at 5:00 p.m. PT. To access the replay from the U.S., dial 1-800-405-2236 and enter passcode 555439#; from outside the U.S., dial 1-303-590-3000 and enter passcode 555439#.

    The call will also be available live by webcast on LookSmart's Investor Relations Web site at http://www.shareholder.com/looksmart/ .

    Forward-Looking Statements

    This press release contains forward-looking statements, such as references to our projected revenues and earnings in 2003, levels of investment in product development, future rates of adoption by businesses of our products and services, dividends from our investment in WiseNut technology, industry projections or other characterizations of future events or circumstances. These statements, including their underlying assumptions, are subject to risks and uncertainties and are not guarantees of future performance. Results may differ due to various factors such as the possibility that we will not maintain profitability in future quarters; that we may fail to derive sufficient revenues from new and existing products to meet our financial goals; that additional customers or distribution partners may decide to modify or terminate their relationships with us; that we may fail to achieve our customer growth rate and paid click projections because of unexpected changes in customer or user behavior or changes in our distribution network; or that we may have an unexpected increase in costs and expenses. In addition, you should read the risk factors detailed in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.

    The statements presented in this press release speak only as of the date of the release. Please note that we undertake no obligation to revise or update publicly any forward-looking statements for any reason.

    About LookSmart

    LookSmart is a leading provider of Internet search solutions and is the global leader in paid search inclusion. Combining award-winning technology, editorial expertise, and community-based initiatives, LookSmart provides users worldwide with highly relevant search results, while delivering targeted sales leads to online businesses. LookSmart paid inclusion and auction-based keyword search results are distributed through top portals and ISPs including Microsoft's MSN, Lycos, About.com, Road Runner, InfoSpace, CNET, Cox Interactive Media and search services such as Inktomi. LookSmart is based in San Francisco, California, with offices in New York, Los Angeles, Detroit, Montreal, London, Tokyo, Melbourne and Sydney. For more information, visit www.LookSmart.com

    NOTE: "LookSmart" is a trademark of LookSmart, Ltd., and/or its subsidiaries in the U.S. and other countries. All other trademarks mentioned are the property of their respective owners.

    CONTACT: investors, Alex Wellins, [email protected], or Jennifer Jarman, [email protected], both of The Blueshirt Group, +1-415-217-7722, for LookSmart; or Michael Prichinello of RLM Public Relations, Inc., +1-212-741-5106 x14, or [email protected]

    SOURCE LookSmart, Ltd.
 
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