Companies ink a multi-year technology license and outsource development services Agreement

LONDON, UK, May 19, 2008 – Local Matters, Inc. and European Directories today announced the completion of a long-term agreement whereby Local Matters will develop and enhance the online white and yellow pages websites across European Directories’ 8-country publishing operations.

The new business relationship encompasses the license of Local Matters’ Local Mosaic platform, which powers leading Yellow Pages websites and local media properties. Local Matters will tailor the platform to the strategic plans of European Directories, and customize implementations for each unique market.

Cornel Riklin, Chief Executive Officer of European Directories commented, “This agreement provides the foundation for us to leverage the scale of our 8-country operations with a single best-in-class platform, while retaining important local market adaptability. It will also allow us to accelerate our time to market by leveraging the innovation of Local Matters’ advanced local search technology platform.”

European Directories is a pan-European directory publisher with primary operations in Netherlands, Austria, Denmark, Finland, Sweden, Poland, Czech Republic and Slovakia. Throughout 2008 and into early 2009, countries will transition to the new platform as Local Matters provides country-specific customization and integration.

“It is a honor to be chosen by one of the world’s leading directory publishers, added Perry Evans, Local Matters’ CEO. “We are excited by their bold vision and leadership position in each country market, and we look forward to a strong development partnership as the Local Search industry evolves.”