ReachLocal Announces Its Intent to Create a New Venture for ClubLocal

ReachLocal Announces Its Intent to Create a New Venture for ClubLocal

Company Has Entered Into a Letter of Intent That Includes a Go-Shop Period

WOODLAND HILLS, Calif., Dec. 3, 2013 (GLOBE NEWSWIRE) -- ReachLocal, Inc.
(Nasdaq:RLOC), a leader in powering local online marketing and commerce
solutions for small-to-medium sized businesses (SMBs), today announced that,
following a strategic review, the company will maintain its focus on a
business-to-business (B2B) product vision and distribution organization.
Consistent with this vision, ReachLocal has decided to seek strategic
alternatives for its consumer-facing ClubLocal business that is currently in
beta in two markets. To that end, ReachLocal has entered into a non-binding
letter of intent for the transfer of the ClubLocal businessto a new venture,
whichincludes a go-shop period running through December 24, 2013.

"While we are seeing continued consumer interest in ClubLocal, as a consumer
and publisher play it is not consistent with our strategic focus on our core
digital marketing and marketing automation business. As a result, we are
seeking to optimize our investment in ClubLocal and have entered into a letter
of intent to form a new venture for the business," said David Carlick, Interim
Chief Executive Officer. "We will, however, continue to develop our suite of
B2B commerce products, including our ReachEdge marketing automation system, to
help our clients close the loop with their customers."

Pursuant to the letter of intent, the ClubLocal operations would be
contributed to a new entity in exchange for a minority equity interest. The
other equity owners of the new entity would include a strategic investor with
deep roots in the consumer space and a group of financial and operating
investors including Zorik Gordon, a founder and former Chief Executive Officer
of ReachLocal, and Michael Kline, an officer who, as previously announced,
will be leaving ReachLocal at the end of 2013. The letter of intent includes a
go-shop period running through December 24, 2013 during which ReachLocal can
solicit and entertain other proposals related to the ClubLocal business.
Interested parties should contact Jason Whitt, Senior Vice President of
Corporate and Business Development, who can be reached at

Caution Concerning Forward-Looking Statements

This document includes certain forward-looking statements. These statements
are based on the current expectations or beliefs of management of ReachLocal
and are subject to uncertainty and changes in circumstances. Actual results
may vary materially from those expressed or implied by the statements herein
due to (1) the uncertainty of the consummation of a transaction relating to
the ClubLocal business, (2) changes in economic, business, competitive,
technological and/or regulatory factors, (3) difficulties launching new
products, such as delays or achieving desired functionality and integration
with our existing technology, (4) failure to compete successfully in a highly
competitive and rapidly changing marketplace, (5) failure to retain key
employees, and (6) other factors affecting the business operation of
ReachLocal. More detailed information about these and other factors that may
affect current expectations may be found in filings by ReachLocal with the
U.S. Securities and Exchange Commission. ReachLocal is under no obligation to,
and expressly disclaims any such obligation to, update or alter its
forward-looking statements, whether as a result of new information, future
events, or otherwise.

About ReachLocal, Inc.

ReachLocal, Inc. (Nasdaq:RLOC) develops online marketing and commerce
solutions that power local commerce for SMBs, from lead generation and lead
conversion to booking and buying. Our global distribution network includes
local Internet marketing consultants and service professionals, along with
select third-party agencies and resellers throughout the United States,
Canada, Australia, Austria, Brazil, Belgium, Czech Republic, Germany, Japan,
the Netherlands, New Zealand, Poland, Russia, Singapore, Slovakia, and the
United Kingdom. ReachLocal is headquartered in Woodland Hills, Calif.
Subscribe to ReachLocal's free newsletter to receive news, tips, and other
online marketing insights.

CONTACT: Investor Relations:
         Alex Wellins
         The Blueshirt Group
         (415) 217-5861
         Media Contact:
         Dana Harris
         Vice President, Corporate Communications
         ReachLocal, Inc.
         (818) 936-9904
Press spacebar to pause and continue. Press esc to stop.