ZipLocal Inc.

ZipLocal Inc.

July 12, 2007 14:02 ET

ZipLocal Announces Pricing of Special Warrant Private Placement

TORONTO, ONTARIO--(Marketwire - July 12, 2007) -


ZipLocal Inc. (TSX VENTURE:ZIP)(the "Corporation") announced today the pricing of the private placement that will enable it to continue to execute on its growth strategy. The offering price of the special warrants to be issued under its previously announced private placement has been fixed at $0.22 per special warrant and the gross proceeds of the offering will be approximately $6 million. Each special warrant will be exercisable to acquire one common share of the Corporation at no additional cost.

The Corporation has engaged GMP Securities L.P. ("GMP") to act as lead agent in connection with the best efforts private placement offering. The Corporation has agreed to grant to GMP an over-allotment option to sell up to an additional $900,000 (approximately) of special warrants at the offering price to cover over-allotments, if any, and for market stabilization purposes.

Orion Securities Inc., Canaccord Securities Inc. and Cormark Securities Inc. will act as members of the investment dealer syndicate.

Members of the J.L. Albright Ventures group of funds have agreed to purchase special warrants having a total purchase price of $1,500,000.

Completion of the private placement and the issue and sale of the 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 investment dealer syndicate and the Corporation. Closing of the private placement is expected to occur on July 26, 2007.

All special warrants issued pursuant to the private placement and, subject to the Corporation obtaining a receipt for a final prospectus qualifying the issuance of the common shares issuable upon the exercise of the special warrants, any common shares issued upon the exercise of the special warrants will be subject to the 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. ( (TSX 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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