From flips to clicks Jean-Pascal Lion Vice President, Marketing

Media Industry is changing rapidly Growth By Segment 15.0% 14.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Specialty TV 1.5% Conventional TV 6.0% 5.0% Outdoor 12.5% Internet 3.5% Directories 7.5% 5.0% Radio Community 3.0% Newspapers Daily 2.2% 2.0% Newspapers 3.5% 3.0% Magazines 2005E2006E Source: CIBCWM Equity Research

Media Mix in Canada Low Reach Directional Creative Source: Scotia Capital, TV Bureau and YPG Analysis. Print directories occupy a significant position within the Canadian media mix and proves an excellent vehicle for directional content for a wide audience High Reach Media Usage (as per user) Print Directories Classified Community Newspapers Daily Newspapers Direct Marketing Magazines Radio Specialty TV Conventional TV Outdoor Media in Canada (market size)

The Directory Category Is Growing 70% 24% 76% 14% 0% 25% 50% 75% 100% Print DirectoriesOnline DirectoriesPrint & Online Directories pt incremental increase due to online With the reach of print directories being stable, the addition of online directories allows us to reach more Canadians than ever before Source: 2005 Canadian Business Usage Study (n=3,012)

Important Online Growth Canadian Business Usage Study – TNS Canadian Facts: 2000 (n=10,174); 2001 (n=9,125) 2002 (n=9,199); 2003 (n=2,040); Ad Hoc Research 2005 (n=3,012) US Yellow Pages Industry Study – Knowledge Networks: 2002 (n=1,381); 2003 (n=1,761); 2005 (n=4,303)

Continued Strong ROI We continue to invest in our Value Equation On average, $26 return on every $1 invested*

New Opportunities to Expand the Directory Category in Print

Premium Products Website One inventory website to search product availability

Exclusive Products for National Advertisers Opportunity to build national campaigns

Vertical Guides Offer New Advertising Solutions Users have helpful information and access to relevant resources at their fingertips Advertisers have a new way to increase their visibility with a highly targeted advertising vehicle

Info Market Info Market tool will be populated with data from all of our markets

Info Market Directory usage data available at the national, provincial and directory level

Info Market Heading usage data available for top headings

We invest to help you prove value Media Impact data available for 120 headings Media Impact data available for top headings

85% 60% 73% 57% 0% 20% 40% 60% 80% 100% % Internet UsersSearch Penetration Canada US Internet/Search Usage Canadians are Active Online Searchers Canadian internet penetration is on par with the US, but Canadians search more Source: ComScore qSearch 2004

Source: IAB Canada 2005 Canadian Businesses are Active Online Advertisers In Canada, Internet advertising revenues have grown 43% between 2004 and 2005 Online Advertising Revenues (Millions CDN $) E

Our Mission To find the best seller for each buyer PROVE VALUE Maintain relevancy of YP.ca as an advertising solution New YP.ca BUILD USAGE Maintain relevancy of YP.ca as an online search platform in terms of reach & frequency GROW REVENUES Enable development of new competitive products

Online reach has skyrocketed since 2003 Source: ComScore Media Metrix Canada, YPG Network, number of unique visitors

Integration of Trader Corporation Web sites into the YPG Network 1.MSN-Microsoft Sites 19,610 2.Google Sites 17,774 3.Yahoo! Sites 15,378 4.eBay 11,125 5.Time Warner Network10,923 6.Yellow Pages Group 9,371 7.Amazon Sites 7,479 8.Ask Jeeves 6,932 9.Canoe Network 6, CNET Networks 6,260 Top 10 Web Sites 1 1 comScore Media Metrix, unduplicated number of unique visitors to YPG and Trader Corporation sites, March 2006 Online Reach 1 YPG’s web sites 35% Vertical web sites 17% Combined 46% Reaching 46% of online Canadians

Google, Yahoo! Have Redefined the Way we Search “If you build a great user-driven application, advertisers will come” Simple, lightweight, uncluttered interfaces Unstructured search Instant gratification Great relevancy Depth of content What can we learn from their success?

Dynamic Local Relevance Structured search Online directories Unstructured results Unstructured search Structured results

YellowPages.ca: the New Home Page Simple, lightweight, uncluttered interface Unstructured keyword search What (keyword) & Where (location) i.e. phone number, postal codes and landmarks

YellowPages.ca: the New Results Page No intermediary page Standardized listings and icons have been replaced with text links Relevant keywords are highlighted “Did you mean” function to help users with searches

Structured results After performing a search, users can further refine by: Brand Products / Services Hours of operation Payment options Cuisine type Proximity

YellowPages.ca: the New Merchant Page Repository of all merchant content Yellow Pages print ad Merchant profile Map & Driving directions Menus Online promotional offers URL Links Merchant pages have been search engine optimized Also accessible through WebNumber!

Where Do Keywords Come From? Display ads Menu Web site

YellowPages.ca Ad Products: the Same… Only Better Ranking structure will remain; results will continue to be presented in four groups: NPP/PPP LPP Directory Plus Basic free listings

National and Provincial Priority Placement Unlimited advertisers Rotation principle Linked to URL Free click to call feature Website is now keyword searchable!

Local Priority Placement Unlimited advertisers Rotation principle Linked to URL Free click to call feature Website is now keyword searchable!

Detailed merchant reports available for LPP, PPP, & NPP customers Merchant Reports

Directory Plus Replicates the content from the print directory Display Ads Informational ads Some Listing products Positioning is determined by type of ad

Free Basic Listings All remaining listings from the print directory will be displayed All Canadian merchants are allowed on free basic listings All Canadian merchants can add their URL for free

Ride With Your Customers Sponsored Maps For illustration purpose only Support your distribution network Advertise on the most clicked button on YellowPages.ca For businesses who sell “convenience” along the way A new opportunity for CMRs This opens up the door to untapped accounts – new clients National and Provincial packages will be available This will be sold on a limited inventory

Yellow Pages TM Pay Per Click An easy way to advertise on the world’s most popular search engines Our Value Story