ReachLocal Announces Exercise of Overallotment Option in Common Stock Offering


WOODLAND HILLS, Calif., May 24, 2010 (GLOBE NEWSWIRE) -- ReachLocal, Inc. (Nasdaq:RLOC), a local online marketing company, today announced that, in connection with its previously announced underwritten public offering, the underwriters have exercised, in full, their option to purchase an additional 625,000 shares of common stock from the company to cover overallotments.

The full exercise of the overallotment option brings the total number of shares of common stock to be sold in the public offering to 4,791,667. Of the shares of common stock in the offering, ReachLocal offered 3,941,103 shares and selling stockholders offered 850,564 shares. The aggregate net proceeds received by the company are expected to be approximately $42.2 million, after the underwriting discount and estimated offering expenses payable by the company. The offering is expected to close on or about May 25, 2010, subject to customary closing conditions.

J.P. Morgan Securities Inc. and BofA Merrill Lynch acted as joint book-running managers for the offering. Citi acted as lead manager, and Piper Jaffray & Co., Needham & Company, LLC and Gleacher & Company acted as co-managers.

A registration statement relating to this offering was declared effective by the Securities and Exchange Commission on May 19, 2010. Any offer or sale will be made solely by means of a written prospectus forming part of the effective registration statement. Copies of the final prospectus relating to the offering may be obtained from: J.P. Morgan Securities Inc., Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, Telephone: (866) 803-9204; or BofA Merrill Lynch, 4 World Financial Center, New York, NY 10080, Attention: Preliminary Prospectus Department, Email: Prospectus.Requests@ml.com.

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 these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About ReachLocal, Inc.

ReachLocal, Inc.'s (Nasdaq:RLOC) mission is to help small- and medium-sized businesses acquire, maintain and retain customers via the Internet. ReachLocal offers a comprehensive suite of online marketing and reporting solutions, including search engine marketing, display advertising, remarketing and online marketing analytics, each targeted to the small- and medium-sized business market. ReachLocal delivers these solutions to small- and medium-sized businesses through a combination of its proprietary technology platform and its direct, "feet-on-the-street" sales force of Internet Marketing Consultants and select third party agencies and resellers. ReachLocal is headquartered in Woodland Hills, CA, with offices throughout North America and in Australia and the United Kingdom.

The ReachLocal, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7488



            

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