SOURCE: HouseValues Inc.

November 03, 2005 09:00 ET

HouseValues Acquires The Loan Page to Accelerate Growth in Its Mortgage Business

Strengths in Sales, Media Buying, and Lead Generation Position Company to Rapidly Scale Its Mortgage Business in 2006

KIRKLAND,WA -- (MARKET WIRE) -- November 3, 2005 -- HouseValues, Inc. (NASDAQ: SOLD), a leading marketing partner to real estate and mortgage professionals across North America, today announced its acquisition of The Loan Page, Inc. This acquisition is anticipated to allow HouseValues to further capitalize on the $21 billion dollar mortgage advertising market and accelerate its growing mortgage business.

The Loan Page, located in San Francisco, Calif., provides consumers with competitive offers from up to four lenders. The company markets these consumer requests to enterprise-level customers, including some of the nation's largest banking and lending institutions. The Loan Page's mortgage lead generation platform is expected to allow HouseValues to expand its mortgage offerings and meet a broad variety of mortgage industry needs by offering a comprehensive menu of online products.

"We believe the addition of The Loan Page's products to our already rapidly growing mortgage business positions us for strong growth as a partner of choice to mortgage companies nationwide," said Ian Morris, CEO of HouseValues. "As a result of combining our lead generation and small business sales expertise with The Loan Page's robust technology and enterprise-level relationships, we feel that HouseValues is poised to quickly grow our business with mortgage brokers, as well as large banks and lenders."

"We've had a very successful relationship with The Loan Page, and we're confident that HouseValues' acquisition of the company will directly benefit Aegis Lending," said Forrest Young, vice president of marketing for Aegis Lending, one of the top 40 mortgage lenders in the United States. "The combination of HouseValues' and The Loan Page's industry-leading technology and tools will help grow our business as we continue to support more consumers with their home financing needs."

According to Borrell Associates, the mortgage industry spent more than $2 billion advertising online in 2004 -- just 10 percent of the more than $21 billion spent annually on marketing overall. By 2009, Borrell expects online mortgage advertising will grow to $4.3 billion, more money than will be spent on direct mail, newspapers, or television.

As mortgage marketing dollars follow consumers and migrate from print, television, and other media to the Internet, HouseValues plans to leverage its:

    
--  Rapidly expanding mortgage broker customer base and small business
    sales focus as well as The Loan Pages' enterprise-level customer base of
    banking and lending institutions
--  Direct response media expertise and nationwide scale purchasing
    broadcast and online media
--  Growing network of real estate Web sites where consumers seeking
    mortgage information can be better served and monetized.
    
    
HouseValues announced its mortgage offering early this year and is emerging as a leader in the online mortgage business with more than 1000 mortgage broker customers purchasing leads from the company. Leveraging the company's proprietary hosted customer relationship management platform, mortgage professionals cultivate consumer relationships in conjunction with local real estate agents.

In its only prior acquisition, HouseValues purchased SOAR Technologies in late 2003 and quickly re-launched SOAR's technology platform as a core part of the JustListed service the company created in January 2004. "As with the SOAR acquisition, we were attracted to The Loan Page's technology platform and its strong customer relationships. We expect these assets coupled with our own rapidly growing mortgage business will help HouseValues build a leadership position in the online mortgage business," Morris said. The company expects its acquisition of The Loan Page to be accretive to earnings in 2006.

Forward-Looking Statements

This release contains forward-looking statements relating to the Company's anticipated plans, products, services, and financial performance. The words "believe," "expect," "anticipate," "intend" and similar expressions identify forward-looking statements, but their absence does not mean the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect the Company's actual results include its ability to retain and increase its customer base, to respond to competitive threats, to manage costs, and to expand into new lines of business. Please refer to the company's recent filings with the Securities and Exchange Commission on Form 10-Q and 10-K for a more detailed description of these and other risks that could materially affect actual results. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of today's date and the Company assumes no obligation to update any such statements to reflect events or circumstances after the date hereof.

About HouseValues Inc

Founded in 1999, HouseValues Inc. (NASDAQ: SOLD) provides consumers and real estate professionals with the information and tools they need for success throughout the home buying and selling process. The company's flagship consumer products include HomePages.com™, a lifestyle and neighborhood-centric home buying and selling service; HouseValues.com®, a service that provides home sellers with market valuations of their current home; and JustListed.com™, a service that alerts home buyers as soon as new homes hit the market that meet their criteria. Learn more at www.housevaluesinc.com.

SOLD: CORPORATE

Contact Information

  • For Additional Information:

    Media Only:
    Kristin Treat
    Public Relations Manager
    HouseValues, Inc.
    425-952-6691
    Email Contact

    Investors Only:
    Mark Lamb
    Director of Investor Relations
    HouseValues, Inc.
    425-952-5801
    Email Contact