ReachLocal Continues International Expansion with Additional Offices in Canada and Germany

ReachLocal, Inc. (NASDAQ:RLOC), a leader in local online marketing solutions for small- and medium-sized businesses (SMBs), has opened additional offices in Canada and Germany during 2012. The company has been conducting business in Canada since 2008, and in the second quarter opened new offices in Calgary, Ottawa and Edmonton. Similarly, ReachLocal, which in 2011 opened its first German office in Berlin along with Dusseldorf, has now expanded its presence into Munich and Frankfurt. ReachLocal now has five offices in Canada and four offices in Germany. The company serves more than 20,000 local businesses in eight countries with 64 sales offices in United States, Canada, Australia, the United Kingdom, Germany, the Netherlands, and Japan. The company, through strategic alliances, has also expanded into New Zealand and Eastern Europe.

"We are continuing to grow our international footprint and help more local businesses reach consumers online,” said Nathan Hanks, co-founder and President of ReachLocal. "Canada and Germany present attractive growth opportunities with healthy small business climates. We’re committed to helping local businesses in these markets to acquire, manage and retain customers online.” Hanks added, "We’re pleased that the first-of-its-kind global agreement that we completed with Google last year has enabled us to accelerate the delivery of Google’s AdWords™ advertising program to local businesses internationally.”

ReachLocal was named a Google AdWords™ Premier SMB Partner in 2011, by meeting Google’s highest standards of excellence based on its in-depth AdWords expertise, full-service campaign management capabilities, one-on-one customer support, and extensive Google product and account management training.

For more information about ReachLocal, visit http://www.reachlocal.com, follow us at http://www.reachlocal.com/social, or email info@reachlocal.com.

About ReachLocal, Inc.

ReachLocal, Inc.’s (NASDAQ: RLOC) mission is to help small- and medium-sized businesses (SMBs) acquire, maintain and retain customers via the Internet. ReachLocal offers a comprehensive suite of online marketing solutions, including search engine marketing (ReachSearch™), Web presence (ReachCast™), display advertising (ReachDisplay™), display retargeting advertising (ReachRetargeting™), online marketing analytics (TotalTrack®), and assisted chat service (TotalLiveChat™), each targeted to the SMB market. ReachLocal delivers this suite of services to SMBs through a combination of its proprietary technology platform and its direct, "feet-on-the-street” sales force of Internet Marketing Consultants and select third-party agencies and resellers. ReachLocal is headquartered in Woodland Hills, CA, with offices throughout North America and in Australia, the United Kingdom, Germany, the Netherlands and Japan. Subscribe to ReachLocal’s free newsletter to receive news, tips, and other online marketing insights.

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) changes in economic, business, competitive, technological and/or regulatory factors, (2) failure of the AdWords strategic relationship with Google to produce expected results; (3) failure to compete successfully in a highly competitive and rapidly changing marketplace, (4) failure to retain key employees, and (5) 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.