InfoSpace's First Quarter Revenues Grow 406% Year Over Year

Momentum builds as 37 new affiliates are signed; traffic surges to 465 million page views in March; unduplicated reach of distribution network increases to 84.5%

REDMOND, Wash.,--April 29, 1999--InfoSpace, Inc. (Nasdaq:INSP), a leading provider of private label solutions for content, community and commerce to Web sites and Internet appliances, today announced record financial results for the first quarter of 1999. Revenues for the quarter were $5.14 million, an increase of 406% from revenues of $1 million reported in the comparable quarter of 1998. Net loss for the quarter was $705,000 or a loss of $0.03 per share compared to a net loss of $12,000 or $0.00 per share for the same period in 1998.

"We executed flawlessly on our plan. Our performance this quarter is a clear demonstration of our undisputed position as a leader in providing Internet infrastructure services. Our traffic growth this quarter shows the strength of our distribution network that now reaches 84.5% of all Internet users," said Naveen Jain, chairman and CEO, InfoSpace. "During the quarter, we announced the launch of what we expect to be the most comprehensive integrated shopping solution validating the strength and scalability of our distributed technology platform that already supports many of the most trafficked sites on the Internet."

InfoSpace's Growing Affiliate Network

InfoSpace signed 37 new affiliate agreements during the quarter including companies such as US WEST, OnHealth, Snap and Sprint/RH Donnelley. In March, US WEST and InfoSpace announced a strategic alliance that now allows US WEST Dex to extend the reach of its local online advertisers through InfoSpace's affiliate network.

InfoSpace also added NBC's Snap as an affiliate, joining the ranks of ABC, CBS, Disney and Paxson. In addition to being available on the Snap site, our solutions will also be distributed to Snap's more than 60 leading Internet Service Providers and PC manufacturers.

Also during the quarter, InfoSpace announced an expanded relationship with Lycos. InfoSpace now provides the infrastructure for both shopping and classifieds to the Lycos network. Lycos is a global Internet leader, the third most visited hub on the Internet and the world's largest online community, reaching 51.8% of Web users.

"As more and more affiliates embrace our platform, we are able to use this market leadership to our advantage by offering new products and services that seamlessly integrate together. InfoSpace can then become the one stop shop for portals needing private label solutions," said Jain.

Growth in Advertising Sales

InfoSpace signed 35 new advertising agreements in the quarter with companies such as FTD, Virgin Atlantic, Citibank, Avis, Budget, and Intel, among others. This is attributable to the Company's ability to provide advertisers with an unduplicated reach of 84.5% of all Internet users and record traffic growth through its extensive affiliate network. InfoSpace is continuing to experience strong growth in its Internet advertising sales as large consumer and technology companies rush to take advantage of the Internet.

Increasing Market Share

InfoSpace continues to be ranked the number one directory site by a wide margin and the 19th most visited Web site, according to Media Metrix. Traffic on the InfoSpace affiliate network climbed to 465 million page views for the month of March 1999, up from the 318 million page views reported at the end of December 1998, according to Nielsen I/PRO. Additionally, at an average of 23 page views per visit for March, InfoSpace's page views per visit remain more than four times the industry average of 4 to 6.

"Our traffic rates are growing faster than the overall Internet as a result of the growth in our affiliate network and the launch of new and expanded services," said Jain.

New Products and Services

Commerce

InfoSpace will launch its new private label shopping solution, ActiveShopper™, in May which is earlier than originally planned due to positive feedback received from preview partners. ActiveShopper is designed to be the most comprehensive integrated e-commerce solution that will define the standard for the next generation of shopping solutions. ActiveShopper is a natural extension of the technology that drives the integrated private label solution for content, and we believe it will be adopted by some of the most trafficked Web sites and non-PC devices. ActiveShopper will launch with more than 2,500 merchants and catalogs offering several million products and services. In addition, the Company is just beginning to announce key alliances such as with Catalog City. InfoSpace will integrate Catalog City's hundreds of mail order catalogs into ActiveShopper.

"Our affiliates are telling us that users want to shop in context of what they are doing rather than going to a shopping channel or stand-alone product. For this reason, our integration technology is ideally suited to shopping because it enables us to seamlessly integrate content from multiple sources. In addition, our proprietary distributed technology allows us to scale our solution to meet the most demanding needs of our biggest affiliate sites. This is a powerful combination of technologies," said Jain.

InfoSpace also announced the availability of its e-commerce store that targets impulse buyers among Internet users through the Company's affiliate network reaching 51 million unique viewers. This online store offers users a convenient way to purchase items for someone they have found in the Company's private label white pages solution. Transactions from the store will provide InfoSpace with additional e-commerce revenues.

Community

InfoSpace continues to grow its business by launching new products and services that build upon the core infrastructure provided for content. InfoSpace is the first company to integrate content, community and commerce in a private label solution making it possible for its affiliates to allow their users to organize their lives all in one place. InfoSpace's platform now integrates community services such as chat, message boards and personal home pages into its content and commerce solutions.

"These integrated offerings are key to building the customer loyalty that Web sites desire today," said Jain.

Global Expansion

During the quarter, InfoSpace launched InfoSpaceCanada.com (www.infospacecanada.com). InfoSpaceCanada.com, a wholly owned subsidiary of InfoSpace, provides private label content and commerce solutions to Web sites and Internet appliances in Canada. InfoSpaceCanada.com's content services include a people and business finder, reverse lookup, email, neighborhood searches and other directory services.

Shortly after the launch, InfoSpaceCanada.com announced an affiliate agreement with canada.com, Canada's most comprehensive Web site and search engine. InfoSpaceCanada.com is now the exclusive provider for canada.com's new People Finder and Business Finder services that serve the entire Canadian online community. canada.com is a subsidiary of Hollinger International Inc., a leading publisher of English-language newspapers in the United States, the United Kingdom, Canada, and Israel.

In Other News:

• On March 31, InfoSpace announced a follow-on public offering by the Company and certain selling stockholders of 3,680,000 shares of common stock at $89.50 per share that closed in April.
  
• On April 6, InfoSpace announced that its board of directors approved a 2-for-1 stock split of its common stock for stockholders of record on April 19. The stock will begin trading at the split price on May 5.

About InfoSpace, Inc.

InfoSpace is a leading provider of private label solutions for content, community and commerce to Web sites and Internet appliances. InfoSpace's affiliate network consists of more than 1,500 Web sites. The Company's affiliates include AOL, Netscape, Microsoft, Lycos, go2net Inc.'s MetaCrawler, Dow Jones (The Wall Street Journal Interactive Edition), ABC LocalNet and CBS's affiliated TV stations. In addition, InfoSpace has agreements with a number of providers of Internet access devices including PCs by Acer America and The Pixel Company (for Packard Bell NEC), cellular phones by AT&T Wireless and UnWired Planet, pagers by WolfeTech (for Motorola), screen phones by InfoGear, Mitel, Mitsui and Lucent, television set-top boxes by American Interactive Media, @Home, Lucent, On Command, Planetweb and Source Media, online kiosks by King kiosk platform and Lexitech kiosk platform, and personal digital assistants by AT&T Wireless, InfoGear and Unwired Planet.

This release contains forward-looking statements relating to the development of the Company's products and services and future operating results, including statements regarding future market share, new products and services, growth in Internet advertising sales, growth of traffic rates, ActiveShopper and future community products and services, 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. 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 the Company's actual results include seasonality, relationships with affiliates, the rate of adoption by advertisers of the Internet as an advertising medium, market acceptance of our products and services, competition and rapid technological change. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in the Company's Annual Report on Form 10-K, in the section entitled "Factors Affecting InfoSpace's Operating Results, Business Prospects and Market Price of Stock." Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company 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.

InfoSpace, InfoSpace, ActiveShopper and the InfoSpace logo are trademarks of InfoSpace, Inc., which may be registered in certain jurisdictions. Other trademarks are the property of their respective owners.