Tuesday, November 23, 2004

Marchex Buys Name Development Ltd.

SEATTLE--(BUSINESS WIRE)--Nov. 23, 2004--Marchex, Inc. (Nasdaq:MCHX - News), a provider of technology-based merchant services that facilitate and drive growth in online transactions, today announced that it has signed a definitive agreement to acquire certain assets of Name Development Ltd., a corporation operating in the direct navigation market, for $164.2 million, including $155.2 million in cash and $9 million in stock

Direct navigation refers to one of the methods that online consumers use to search for information, products or services. Direct navigation is primarily characterized by online users directly accessing a Web site by typing descriptive keywords or keyword strings into the uniform resource locator (URL) address box of an Internet browser or by accessing bookmarked Web sites. It can also include navigating to a Web site through referring link traffic or partner traffic sources. As of August 2004, First Albany Capital estimated that the size of the 2004 global search market is approximately $4.5 billion, and will grow to $13.1 billion by 2008. Marchex estimates that the direct navigation market may represent 10% or more of this market.

Additionally, recent industry research highlights that in September 2004 more than 67% of daily global Internet users arrived at Web sites by "direct navigation", defined as typing a URL into a browser address bar or using a bookmark -- rather than through search engines and Web links, up from approximately 53% in February 2002 (Source: WebSideStory, Inc.'s StatMarket division).

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