ReachLocal Expands into Germany

ReachLocal, Inc. (Nasdaq:RLOC), a leader in local online marketing solutions for small- and medium-sized enterprises (SMEs), announced today that it has opened an office in Berlin, Germany, delivering its online advertising technology and network of local Internet Marketing Consultants (IMCs) to German businesses.

"In today’s digital market, the challenge of German SMEs is to simultaneously find where their customers are online, and then learn how to run and optimize a campaign to reach them – all while managing their business,” said Sascha Kronberg, Regional Sales Manager for ReachLocal in Berlin. "Through a technology platform and a face-to-face relationship with our Internet Marketing Consultants, ReachLocal can deliver an effective and efficient solution to help those businesses acquire, maintain and retain their customers.”

With over 650 IMCs serving nearly 17,000 SMEs in North America, Australia and the European Union, ReachLocal looks to offer Germany products and services that are developed specifically for the needs and budgets of local businesses, while optimizing and tracking the return on investment of each campaign. Designed to deliver calls rather than clicks, ReachSearch™ distributes local advertisers' marketing messages through ads across search engines including Google and Yahoo. ReachDisplay™ allows local businesses to reach customers through display advertising on numerous major online publishers, including Facebook. The Internet Marketing Consultants, backed by a team of ReachLocal Internet advertising experts, support businesses through every step of a campaign.

"Germany has one of the highest Internet usage rates and is the fifth largest market in the world based on total Internet searches,” said John Mazur, Managing Director, ReachLocal Europe. "Germany's Mittelstand, which represent more than three million SMEs that employ more than 70 percent of all employees in private business in Europe’s largest economy, are faced with how to intelligently transition their advertising budget from offline media to online media. ReachLocal is here to do just that, by providing our comprehensive suite of online marketing solutions to German SMEs as we continue our expansion throughout Europe."

ReachLocal’s Berlin office is managed by Kronberg, and located at Neues Kranzler Eck, Kurfürstendamm 22. For more information about ReachLocal, visit http://www.reachlocal.de or call +49 30 609 85000.

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™) and remarketing, online marketing analytics (TotalTrack®), and our out-of-the-box 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. Bizzy™, a personalized local business recommendation engine, and DealOn™, a local deals company, are wholly owned subsidiaries of ReachLocal. ReachLocal is headquartered in Woodland Hills, CA, with offices throughout North America and in Australia, the United Kingdom and Germany.

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 to compete successfully in a highly competitive and rapidly changing marketplace, (3) failure to retain key employees, and (4) 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.