ZipLocal Inc.

ZipLocal Inc.

June 14, 2007 09:29 ET

ZipLocal Announces $10 Million Special Warrant Private Placement

TORONTO, ONTARIO--(Marketwire - June 14, 2007) -


ZipLocal Inc. (TSX VENTURE:ZIP)(the "Corporation") announced today that it has engaged GMP Securities L.P. ("GMP") to act as lead agent in connection with a best efforts private placement offering of special warrants of the Corporation for gross proceeds of up to approximately $10,000,000. The offering price for each special warrant will be determined in the context of the market by negotiation between the Corporation and the syndicate to be led by GMP but subject to the rules of the TSX Venture Exchange. ZipLocal has agreed to grant to GMP an over-allotment option to sell up to an additional $1,500,000 of special warrants at the offering price to cover over-allotments, if any, and for market stabilization purposes. Each special warrant will be exercisable to acquire one common share of the Corporation at no additional cost.

The selling group includes Orion Securities Inc., Canaccord Securities Inc. and Cormark Securities Inc.

Members of the J.L. Albright Ventures group of funds have agreed to purchase 15% of the offered special warrants (to a maximum total purchase price of $1,500,000) provided at least $5,000,000 is raised under the offering.

The Corporation will use its best efforts to: (i) file a preliminary short form prospectus as soon as possible following the closing date in those Canadian provinces where purchasers of special warrants reside in order to qualify the issuance of the underlying common shares upon the exercise of the special warrants; and (ii) obtain a receipt for the final short form prospectus as soon as possible thereafter.

The sale of special warrants is subject to a number of terms and conditions, including the receipt of TSX Venture Exchange approval as well as the negotiation and entering into of certain documentation, including an agency agreement between the agents and the Corporation.

All special warrants issued pursuant to the offering and, subject to the Corporation obtaining a receipt for the final prospectus qualifying the issuance of the common shares issuable upon the exercise of the special warrants, any common shares issuable upon the exercise of the special warrants will be subject to the four month hold period prescribed under applicable securities laws and the policies of the TSX Venture Exchange.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About ZipLocal Inc.

ZipLocal Inc. ( VENTURE:ZIP) is a local business directory that connects buyers and sellers through an intuitive and user-defined interface. It collects and maintains a database of more than 1 million Canadian businesses and attracts an average of more than 1 million visitors per month.

Forward looking statement

This press release contains statements that are forward-looking in nature. Statements preceded by the words believe, expect, anticipate, plan, intend, continue, estimate, may, will, and similar expressions are forward-looking statements. Forward-looking statements are based on the Corporation's beliefs and assumptions based on information available at the time the assumption was made. Forward-looking statements relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, new services, market forces, commitments and technological developments, relating to the Corporation. By its nature, such forward-looking information is subject to various risks and uncertainties which could cause the Corporation's actual results and experience to differ materially from the anticipated results or other expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this document, and the Corporation undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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