ServiceMagic®, Inc. Launches One-to-One Online Marketing Service with Citysearch®

GOLDEN, Colo. (March 1, 2005) – ServiceMagic®, Inc. (www.servicemagic.com), the nation’s leading online marketplace connecting consumers with prescreened and customer-rated contractors and home service professionals, today announced the launch of its new one-to-one matching service in partnership with Citysearch®. Exact Matchsm delivers a one-to-one match for consumers searching online for local home service professionals. The partnership with Citysearch marks the beginning of ServiceMagic’s integration into IAC Local & Media Services following the acquisition of ServiceMagic by IAC/InterActiveCorp (NASDAQ: IACI) in September, 2004.

With Exact Match, ServiceMagic creates and hosts a member business’s web page (containing profile information on the service professional, including Customer Ratings). ServiceMagic optimizes the placement of the individual member web pages to appear within the search results of local search engines and online directories. These web pages are now available within Citysearch, enabling Citysearch to provide its consumers with a direct connection to prescreened and customer-rated home service professionals. Exact Match is viewable on all 141 cityguides in the Home & Garden category to which Citysearch provides content.

“Exact Match creates a one-to-one connection for both the consumer and our member businesses,” said Michael Beaudoin, co-CEO of ServiceMagic. “We have created a way for home service professionals to get broad Internet exposure without having to pay huge up-front fees, build and maintain a complex web site or become Internet marketing experts or search engine gurus. We do it for them and they benefit from an increase in targeted consumer demand.”

“The Citysearch and ServiceMagic partnership creates a unique experience for our users,” said Briggs Ferguson, CEO of Citysearch. “It allows for our users to get the precise services they require with the assurance that the vendors are of high quality.”

Exact Match takes pay-for-performance advertising a step further than existing competitive platforms by creating a searchable web page and delivering targeted leads only to an individual matching service professional – ensuring they only pay for the leads they want.

“Despite consumer trends toward Internet usage, small and medium-sized businesses have yet to widely adopt online marketing,” said Greg Sterling, an analyst with The Kelsey Group, a research and consulting firm. “We project local commercial searches will grow from approximately 10 percent of all search activity today to 25 percent by 2009. Therefore, online marketing will become increasingly important for small businesses as consumers turn more often to the Internet to find local information.”

HOW IT WORKS: When a consumer conducts an online search for local home service professionals and clicks to review the ServiceMagic member’s Exact Match web page, they can directly connect with the service professional by either submitting an online service request or calling a local phone number provided by ServiceMagic; both options route the consumer through a short interview to confirm the request matches the service professional’s work type and geographic area. Following confirmation, ServiceMagic connects the consumer directly to the service professional; service professionals are then charged for the consumer lead.


Today, ServiceMagic’s 28,000 member businesses use the company’s Market Matchsm service to generate targeted customer leads via the ServiceMagic web site. With Market Match, consumers submit a home service request with ServiceMagic and the company then matches them with up to four prescreened and customer-rated local businesses that compete for the consumer’s job. The Exact Match service complements Market Match by offering a new way for consumers to connect with specific service professionals and a new way for these businesses to market themselves directly to online consumers.



ABOUT SERVICEMAGIC®, INC.
ServiceMagic®, Inc., headquartered in Golden, Colo., is the nation's leading online marketplace
connecting homeowners with prescreened and customer-rated home service professionals. Using
proprietary technology to match consumer service requests with local service professionals in real time, the company addresses more than 500 different home service needs that range from simple home repairs and maintenance to complete home remodeling projects. In addition, its 28,000 home service professionals are prescreened to help ensure consumers are connected with licensed, insured, credible service professionals. ServiceMagic is part of IAC Local and Media Services, an operating business of IAC/InterActiveCorp (NASDAQ: IACI). For more information visit http://www.servicemagic.com.


ABOUT CITYSEARCH®
Citysearch is a leading local search service, providing the most up-to-date information on businesses, from restaurants and retail, to travel and professional services. Citysearch empowers users to make informed decisions about where to spend their time and money by delivering more than two million editorial and user reviews and ratings of local businesses. Through its unique Local Pay For Performance (PFP) service, Citysearch enables businesses to capture their most relevant customers online while paying only for the leads received. Citysearch is both the number one provider of in-depth restaurant information on the web, influencing more than a million people a month about where to eat, and the number three local directory, supplying information for every domestic zip code. Citysearch is an operating business of IAC/InterActiveCorp (NASDAQ: IACI).