ZipRealty Names Austin as Next Market for Fast-Growing Brokerage

ZipRealty Names Austin as Next Market for Fast-Growing Brokerage

Austin to Serve as ZipRealty's Third Market in the Lone Star State

EMERYVILLE, Calif.ZipRealty (Nasdaq: ZIPR - News), a national full-service real estate brokerage, announced today that the Company plans to begin operations in Austin, Texas, during the third quarter of 2006. Joining Dallas-Ft. Worth and Houston, Austin will be the third market for ZipRealty (www.ziprealty.com) in the state.

ZipRealty has been serving home buyers and sellers with leading-edge, easy-to-use technology and employee-agents in Dallas-Ft. Worth since March 2000 and Houston since July 2005. In Austin, ZipRealty plans to operate in Travis and Williamson counties. Immediate next steps include hiring the Austin management team along with local, licensed agents.

"Moving into Austin furthers our presence in the Southwest and is an important step in our continued expansion across the country," said ZipRealty CEO Eric Danziger. "We're excited to bring our consumer-centric business model and local real estate expertise to the Lone Star State capital."

ZipRealty offers all of the services of a traditional residential real estate brokerage and, in addition, gives buyers 20 percent of its commission and sells homes for up to 25 percent less than the standard market commission. ZipRealty's business model provides enhanced customer service through the use of its proprietary Internet technology and the personal attention of local employee-agents.

About ZipRealty

ZipRealty is a full-service residential real estate brokerage firm. The Company uses the Internet, proprietary technology and efficient business processes to provide home buyers and sellers with high-quality service and value. Founded in 1999, the Company currently operates in 16 major metropolitan areas in eleven states and the District of Columbia. The Company's client-centric business strategy utilizes a sophisticated Web site, which enables home buyers and sellers to access comprehensive local Multiple Listing Services home listings data and other relevant information. The Company also utilizes a proprietary business management technology platform, which reduces costs and allows the Company to pass on significant financial savings to consumers. This Internet-enabled, technology-driven, employee-based model provides the Company with a distinct competitive advantage, allowing ZipRealty to consistently deliver outstanding service to clients. For more information on ZipRealty, visit www.ziprealty.com or call 1-800-CALL-ZIP (1-800-225-5947).

Cautionary Language
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the federal securities laws, including the Company's timeline for commencing operations in Austin, plans for national expansion, future sites of operations in the Austin market and launch preparations for Austin. The forward-looking statements are subject to risks and uncertainties that could cause actual events to differ materially from those projected, including the risk factors set forth in the Form 10-K filed with the SEC by the Company for its fiscal year ended December 31, 2005. ZipRealty assumes no obligation to update the forward-looking statements included in this release.

Liana Goh
415-277-4911
liana@allisonpr.com