InfoSpace Completes Sale of Mobile Services Business

InfoSpace, Inc. (NASDAQ:INSP) today announced that it has completed the sale of its mobile services business to Motricity, Inc. for $135 million in cash. As previously announced, the Company expects to utilize a portion of its net operating loss carryforwards to offset substantially all of the taxable gain resulting from the sale, increasing the cash potentially available for distribution to shareholders. This sale, in combination with the sale of InfoSpace’s directory business, completes the Company’s effort to unlock the value for its shareholders from these two businesses. Since May 2007, InfoSpace has returned over $500 million in cash distributions to shareholders. "The closing of this transaction is an important strategic milestone for our company. InfoSpace is now a focused, online search company that is well-positioned for growth and success,” said Jim Voelker, Chairman and CEO of InfoSpace. "InfoSpace’s unique metasearch technology, our strong cash flow and balance sheet, and our team of dedicated employees provide a strong foundation for our company. We look to the future with great confidence.” About InfoSpace, Inc. InfoSpace, Inc. is a leading developer of metasearch products to help people easily search and discover the web. InfoSpace uses its proprietary metasearch technology that combines the top results from the leading search engines to power a portfolio of branded Web sites, including Dogpile (www.dogpile.com) and WebFetch (www.webfetch.com). For the second consecutive year, Dogpile ranked highest in customer satisfaction among search engines, according to JD Power and Associates. More information can be found at www.infospaceinc.com. Forward-looking Statements This release contains forward-looking statements relating to InfoSpace, Inc.’s sale of its mobile services business that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe,” "expect,” "intend,” "anticipate,” variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Forward-looking statements include, without limitation, statements regarding the utilization of InfoSpace’s net operating loss carryforwards, the potential use of the proceeds from the sale of the mobile services business, and the prospects of InfoSpace’s online search business. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect InfoSpace’s actual results include the effect of taxes, indemnity obligations on InfoSpace’s total proceeds, general economic, industry and market sector conditions, the progress and costs of the development of our products and services, the timing and extent of market acceptance of those products and services, and our dependence on companies to distribute our products and services. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in InfoSpace’s most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q as filed from time to time, in the section entitled "Risk Factors.” Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. InfoSpace undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.