Yellow Pages Corp PPT

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					YP Corp
Investor Presentation
September 2006

Daniel L. Coury, Sr.
Chairman of the Board

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Disclaimer
During the course of this presentation we may discuss YP Corp’s business outlook, which contains forward-looking statements. These particular forward-looking statements AND all other statements that may be made during this presentation that are not historical facts, are subject to a number of risks and uncertainties, and actual results may differ materially. Please refer to our periodic filings on Forms 10-KSB and 10-QSB made with the SEC for more information on the risk factors that could cause actual results to differ.
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YP Corp.’s Mission Statement
YP Corp.’s mission is to be the preferred internet local Yellow Pages by offering our advertising customers a superior marketing platform to grow their businesses, and to provide them with a caliber of service unsurpassed in our industry.

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YP Corp.’s Principal Goals
To continue to grow its customer base in the Internet Yellow Page market To increase its market share of Internet Yellow Page Advertising Expenditures To improve financial performance in such key areas as revenue and EPS growth, margins and return on shareholders equity To continue to improve the performance and utility of YP website for its advertisers and users alike To expand its product line and marketing/billing channels to facilitate accelerated growth
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To obtain a fair market valuation of our common stock and a broader shareholder base

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What We Do
We publish basic business and individual listings on our website (www.yp.com) similar to print Yellow Page publishers Basic business listings contain business name, address and phone number for approximately 18 million US businesses. Similar to the print Yellow Pages, there is no charge for this basic listing We generate revenues from advertisers who desire increased exposure for their business over and above the basic listing Our advertisers pay us monthly fees similar to what they pay print Yellow Page providers for enhanced advertisements We offer several different listings to our advertising customers
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YP.Corp Products
Leading Product
Internet Advertising Package (IAP) includes: A 40 word Mini-Webpage with a business description detailed enough to allow buying decisions but concise enough to be displayed on hand held devices A high priority listing with bold graphics Door to door mapping services A free audio advertisement option A free phone call feature from the user to the advertiser Links to the advertiser’s email and web site Information made available to anyone in the world
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John Raven
Chief Operating Officer

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To the advertiser:

Competitive Advantages of Internet Yellow Pages Over Print

Lower cost for a given level of content Flexibility to change the content of the listing at any time including daily or weekly specials YP Corp.’s ability to track consumer activity on the advertiser’s listing Broadest range of features provided for the price Specifically designed to extend the reach of the subscriber business

To the user:
More current listing information Quick access to business listings across the nation from any location Fast and easy searching via desktop computer, laptop computer, PDA and cellular phone Access to features such as mapping, calling, voice information 15 E-mail and website at the click of a button

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Growth of the Print and Online Directory Advertising Market
The Kelsey Group market research firm projects advertising expenditures:
The Print Yellow Page market of $15 billion to grow slowly or remain flat through 2008 The Internet Yellow Page market segment of $0.5 billion to grow at 29% annually to $1.2 billion by 2008 Internet Market share of Total Yellow Page Market 3% in 2003 10% in 2008
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Summary of the Yellow Page Print & Online Directory Advertisement Market Growth
Advertising Revenue $ Billions
2003 Print Yellow Pages Internet Yellow Pages Total
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Market Share 97% 3% 100%

2008 $15.3 $1.6 $16.9

$15.0 $0.45 $15.45

% Growth per year .4% 29% 1.2%

Market Share 90% 10% 100%
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Source: Kelsey Group Estimates

Yellow Pages Searches Via the Internet Are Sharply Outpacing the Printed Book
2004 (Billions) Print Internet 14.6 1.5 2005 (Billions) 14.5 1.8 % Change

(1%) 30%

Source: Yellow Page Association
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YP Corp.’s Marketing & Customer Service Process
Marketing
Average of 1 million mailings per month to selected database of US businesses Average of 1.1 million telemarketing calls per month Mailing and telephone conversation details specifics of offer Confirmation card generally sent within 20 days Confirmation letter sent which specifies the method and timing of billing 120 day risk free offer

Customer Service and Satisfaction
Outbound calling confirms sale, verifies information and develops Mini- Webpage with advertiser Inbound calling provides customer service Quality Assurance monitors the process 5 Touch points to insure understanding between YP Corp & the customer

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YP Corp Competitive Advantages
The principal competitive advantages of YP Corp. are:
An effective but low cost marketing program through its use of direct mail to provide leads followed by telemarketing to close and confirm the sale An outstanding customer service program Marketing relationships with partners such as My Area Guide, Palm and E Pilot , which are generating over 150 million page views per month, more than triple the 51 million page views achieved in 2002
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Ability to track “hits” on the advertiser’s listing on 20 our website

Internet Competitive Monthly Pricing Comparison
Company YP Corp Switchboard (Info Space) DexOnline (Qwest) Yellow Pages (AT&T, Bell South) Super Pages (Verizon)
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Price $27.50 $50.00-$100.00 $9.95-$14.95 $50.00+

Features Score 9 3 3 7.5

$22.00

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YP Corp. Marketing/Billing Methods
Customer Acquisition Method Check Mailer Telemarketing 30 companies 300 Agents Intermediaries Originating Banks Billing Aggregators Payment One ILD Billing Concepts
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Primary Billing Method ACH debit of checking account Telephone Bill Bell South Pac Bell Verizon SW Bell
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YP Corp.’s Market Position and Growth Prospects (1)
A leading position with Yellow Page Internet paying advertising billed listings1 with: 134,264 paying advertisers at June 30, 2006 Paying customer growth 62% over one year Substantial additional growth potential with market penetration of: Less than one percent on a number of business listings basis Less than five percent on an Internet Yellow Page advertising dollar basis
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(1) Average of billed listings during each quarter

Telephone Industry Billing Structure
Four Regional Bell Operating Companies Have 75% of the Billing Market
Verizon SBC (AT&T) Qwest Bell South 25% 25% 15% 10%

Competitive Local Exchange Carriers
(e.g. Cox, Covad)
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25%
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New Initiatives Under Development
Markets / Channels:
Create YP telemarketing organization Use check mailer as lead for telemarketing Open up CLEC territories through wholesale partners

Products:
Intensify efforts to increase business’ exposure on several search engines Mail coupon leads generation engine (E-Clipper) Next generation of YP.Com website Vertical directories targeting lifestyle, geography, highest performing categories Powering of independent publishers phone directory – Direct XML 25 Wholesale: YP private label

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Gary L. Perschbacher
Chief Financial Officer

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Investment Incentives Sharply Improving Financial Performance ($ Millions)

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Turnaround in Financial Performance Began in Q1 of 2006

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Turnaround in Financial Performance Began in Q1 of 2006

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Summary of Past Four Quarters Financial Performance
Revenues increased 68% Operating Income increased to $1.9 million from a loss of $1.3 million Net Income improved to $1.2 million from a loss of $816,000 Improving Operating Income and Net Income Margins
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Summary of Key Financial Characteristics
Experiencing renewed growth in all key financial measures 40% Increase in Revenue 800% Increase in Operating Income 1200% Increase in Net Income A strong balance sheet $27 million in Equity $8.5 million in Cash Zero debt High level of working capital ($21.1 million) A cost structure that allows for rapid earning growth as revenues increase A high level of borrowing capacity if needed for expansion opportunities
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Daniel L. Coury, Sr.
Closing Summary

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Investment Incentives Attractive Business Characteristics
A leading position in the fast growing Internet Services Industry A recurring revenue stream A high growth, high margin, high ROI business model A strong balance sheet Increasing share in a large potential market A new management team that has provided a turnaround and is focused on increasing shareholder wealth
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Closing Statement
Future Strategy Increase emphasis on telemarketing Change nature of check mailer Broaden customer base to include wholesale and/or national accounts Broaden our internet offerings to related product lines Create an Internet presence for local print yellow pages using YP online directory technology Improve the visibility and usage of our website through strategic partnerships Potential complementary acquisitions Open for Q&A
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