Internet Becoming Primary Marketing Resource for Many Residential Contractors

GOLDEN, Colo. (March 29, 2005) – ServiceMagic®, Inc. (www.servicemagic.com), today reported that approximately 31,000 residential contractors and home service professionals are now marketing their services on the Internet through its online marketplace. The company has increased the number of member businesses in its national network of prescreened home service professionals by 30 percent over the past year and 11 percent over the quarter ending Dec. 31, 2004.

While traditionally consumers have turned to the Yellow Pages to find residential contractors, the use of print directories is projected to decrease by approximately 20 percent over the next four years according to The Kelsey Group, a Yellow Pages consulting and research firm. The Internet is quickly becoming a primary tool for consumers looking for residential contractors and home service professionals. A recent survey by The Kelsey Group and Bizrate.com reveals that 61 percent of consumers feel that the quality of online information is better than the quality of offline sources, including the print Yellow Pages. As a result, online marketing has become an effective marketing vehicle for residential contractors.

ServiceMagic specializes in bringing targeted customer leads to prescreened home service professionals based on their preferred geographic area and work type. The ServiceMagic marketplace platform moves information between customer and contractor to facilitate a good match and connection. ServiceMagic network member businesses are screened for applicable state licensing and insurance and pay only for the customer leads they receive.

In a recent survey, ServiceMagic member businesses that have been with the service for a year or more reported growing their business on average by 28 percent. “My business has grown 35 percent as a direct result of my ServiceMagic leads,” said Jim Wilczynski, owner of Home Services Group and a prescreened ServiceMagic member business. “Online marketing has proven to be my best and most cost-effective source of new business.”

“ServiceMagic has been helping residential contractors grow their businesses through the Internet for the last six years,” said Michael Beaudoin, co-CEO of ServiceMagic. “Our network continues to grow steadily because ServiceMagic has proven to be a cost-effective and targeted online marketing tool for residential contractors.”

To date, ServiceMagic has facilitated more than 3.7 million consumer requests for home services, representing an estimated $8.5 billion in consumer spending nationwide.

ABOUT SERVICEMAGIC®, INC.
ServiceMagic®, Inc., headquartered in Golden, Colo., is the nation's leading online marketplace
connecting homeowners with prescreened and customer-rated home service professionals. Using
proprietary technology to match consumer service requests with local service professionals in real time, the company addresses more than 500 different home service needs that range from simple home repairs and maintenance to complete home remodeling projects. In addition, its 30,000 home service professionals are prescreened to help ensure consumers are connected with licensed, insured, credible service professionals. ServiceMagic is part of IAC Local and Media Services, an operating business of IAC/InterActiveCorp (NASDAQ: IACI). For more information visit http://www.servicemagic.com.