1. Western Product Integration – Phase 1 Product Integration Western Region British Columbia and Alberta Directories Pubco. 612 and 671 December 2006 National CMR Sales Channel Phase 1

2. p. Western Product Integration – Phase 1 2 Implementation This phase of the integration will be implemented on a directory-by-directory basis beginning with Calgary, AB, and Vancouver, BC, 2007 and continuing forward for every subsequent directory thereafter. Initiative Overview Standardization of display, trade and premium products will include: Discontinuation of Products Revision of products to YPG standards (e.g. Fonts, Rates) Introduction of new Products

3. p. Western Product Integration – Phase 1 3 Impacted Products Impacted products There are three primary categories of products that are impacted with this initial product integration: Discontinued products Revised products New / Launched products

4. p. Western Product Integration – Phase 1 4 Colour Legend Colour of item DefinitionAction to take RedItem is discontinuedIf the client’s advertising needs are status quo, migrate to the recommended item based on the Migration Table. OrangeRevised productMake the appropriate changes BlueNew / launched productSell it! To help you quickly visualise the changes various colors will be used throughout the document. To help you understand their respective meaning, here is a legend:

5. p. Western Product Integration – Phase 1 5 Discontinued Products Discontinued products Main Objective To be able to identify which products are being discontinued in which market/directory format within the YLO product portfolio in order to migrate the client towards the recommended product. At all times… CMRs are responsible for communicating product deletions/revisions to the client CMRs must rework the item(s) on the National order and provide new artwork when necessary CMRs are responsible for communicating product deletions/revisions to the client CMRs must rework the item(s) on the National order and provide new artwork when necessary

6. p. Western Product Integration – Phase 1 6 Discontinued Products – Display Ads - TQP

7. p. Western Product Integration – Phase 1 7 Discontinued Products – Trademark – TMB, TMR, TMG

8. p. Western Product Integration – Phase 1 8 Discontinued Products – Custom Trademark – CTMB, CTMR, CTMG

9. p. Western Product Integration – Phase 1 9 Discontinued Products – Trade Listing - TRL

10. p. Western Product Integration – Phase 1 10 Discontinued Products – Trade Listing - TBEL TBEL

11. p. Western Product Integration – Phase 1 11 Revised Products – Trade Name Revised products – Main Objective To be able to identify which products are being revised in which market/directory format within the YLO product portfolio. Revised Trade Name

12. p. Western Product Integration – Phase 1 12 New Products New Products - Main Objective To be able to identify which products are being launched in which market/directory format within the YLO product portfolio.

13. p. Western Product Integration – Phase 1 13 New Products – Display Ads – 1x3 New Display Ad 1X3

14. p. Western Product Integration – Phase 1 14 New Products – Display Ads cont’d – 2UD New Display Ad 2UD

15. p. Western Product Integration – Phase 1 15 New Products – Display Ads cont’d - OQC New Display Ad OQC Three examples of how an OQC would look like on a page (slightly longer than a 1x3):

16. p. Western Product Integration – Phase 1 16 New Products – Display Ads cont’d - HC New Display Ad HC

17. p. Western Product Integration – Phase 1 17 New Products – Display Ads cont’d – 4UD New Display Ad 4UD

18. p. Western Product Integration – Phase 1 18 New Products – Display Ads cont’d - DTQ New Display Ad DTQ

19. p. Western Product Integration – Phase 1 19 New Products – Display Ads – Migration of TQPs to FPs Pagination for migrating TQPs to FPs:  TQPs will keep their existing position in relation to each other  Will go to the end of the existing FPs Example: Vancouver directory has 3 TQPs under Lawyers. If all 3 TQPs migrate to an FP, they will keep their existing order in relation to each other – even if TQP #2 signs before TQP #1. If a new FP ad is sold into that heading, it will go after the TQPs that have migrated over.

20. p. Western Product Integration – Phase 1 20 New Products – Trademark Ad - TMH New Trade Ad TMH

21. p. Western Product Integration – Phase 1 21 New Products – Trade Items – TSL and TMRL New Trade Ads TSL TMRL

22. p. Western Product Integration – Phase 1 22 New Products – Trade Items cont’d – TSL and TMRL TSL and TMRL Example #1 1 car dealership in Calgary with 5 locations  Primary listing/location is a TSL  Subsequent listings/locations are TMRLs  TSL can be replaced by a TBN, etc. Remaining listings will still be TMRLs Example #2 5 BMW dealerships in Calgary  Each dealership is a TSL

23. p. Western Product Integration – Phase 1 23 New Products – Unit Trade Mark New Trademark Ads TM00 TSL00 NATIONAL ONLY! TM00 (ignore TMY) TSL00 (ignore TSLY)

24. p. Western Product Integration – Phase 1 24 New Products – Premium Products – Inside Covers New Premium Products IFCU IFCL IBCU IBCL MOCK UP IFCU IFCL IFCU IFCL IBCU IBCL IBCU IBCL

25. p. Western Product Integration – Phase 1 25 Tools Please refer to Appendices in the Transition Guide for the following: 1) A list of IMPACTED DIRECTORIES (sorted by month of issue) 2) MIGRATION TABLES 3) DISPLAY AD CHARTS 4) NEW OFFERS

26. p. Western Product Integration – Phase 1 26 Offer Plan Yellow Pages Group™ has developed an Offer Plan to support the Product Integration initiative for clients whose existing ad size has been cancelled. The Offer Plan consists of 3 categories: Ad Size Cancellation: An offer used as a means to transition clients whose ad size has been cancelled. Renewal: Method for renewing clients who were on a discount in the previous issue. Existing offers: A method for applying existing offers to clients who have experienced an ad size cancellation. In all cases, verify that NI is greater than PI

27. p. Western Product Integration – Phase 1 27 Ad Size Cancellation Offer Clients with products that have been discontinued from the previous issue will be encouraged to migrate to a ‘Recommended Product’ (as outlined in the Product Integration Guide). Clients migrating to the Recommended Product will be eligible to use the Ad Size Cancellation offer. The size of the price difference will determine the offer to be used:  Ad Size Cancellation 20%: Used if NI > PI after discount has been applied. The code for the Ad Size Cancellation 20% offer is: $ADX20 Year 1 = 20%; Year 2 = 10%; Year 3 = Full Rate  Ad Size Cancellation 10%: Used if NI < PI when 20% discount is applied. The code for the Ad Size Cancellation 10% offer is: $ADX10. Year 1 = 10%; Year 2 = Full Rate

28. p. Western Product Integration – Phase 1 28 $ADX20 Example 1 – for Ad Size Cancellation Offer 2X35 is discontinued. Migration table recommends a 4UD (rates are fictitious). A 2X35 (cancelled ) 2006 rate is $77.50 Migrate to a 4UD which 2007 rate is$98.45 Apply Ad Size cancellation 20% offer$98.45 – 20% = $78.76 $78.76 > $77.50 NI > PI = Apply $ADX20 offer !

29. p. Western Product Integration – Phase 1 29 $ADX20 Example 2 3X10 is discontinued. Migration table recommends a FP (rates are fictitious). A 3X10 (cancelled ) 2006 rate is$322.00 Migrate to a FP 2007 rate is$414.06 Apply Ad Size cancellation 20% offer$414.06 – 20% = $321.60 $321.60 < $322.00 NI < PI = Do not Apply $ADX20 offer* * If $ADX20 does not apply, your client may still be eligible for an offer…

30. p. Western Product Integration – Phase 1 30 Ad Size Cancellation - 10% option $ADX10 Ad Size Cancellation 10%: Used if NI < PI when 20% discount is applied. The code for the Ad Size Cancellation 10% offer is: $ADX10.  Year 1 = 10%; Year 2 = Full Rate In all cases, verify that NI is greater than PI

31. p. Western Product Integration – Phase 1 31 $ADX10 Example Example 3 3X10 is discontinued. Migration table recommends a FP (rates are fictitious). A 3X10 (cancelled ) 2006 rate is$322.00 Migrate to a FP 2007 rate is$414.06 Apply Ad Size cancellation 10% offer$414.06 – 10% = $372.65 $372.65 > $322.00 NI > PI = Apply $ADX10 offer !

32. p. Western Product Integration – Phase 1 32 Offer Renewal Clients who take advantage of the Ad Size Cancellation offer will also be permitted to take advantage of the offer renewal program. Discounts on the Recommended Product are rolled as though the client continued to purchase the Discontinued Product. Example: In 2006, a Vancouver client increased from a DQC to a 2X35 and received a 20% Size Upgrade offer. In 2007, the 2X35 ad size is cancelled, so the client uses the Ad Size Cancellation 20% offer to increase to a 4UD. The client is also eligible for a 10% discount on the 4UD for Year 2 of the Size Upgrade offer that was in place for the former 2X35. Note: Since multiple discounts cannot be processed on a single ad item, the following table must be used in order to apply the correct single discount. In all cases, verify that NI is greater than PI.

33. p. Western Product Integration – Phase 1 33 Offers – Renewals and Ad Size Cancellation YLO West (BC + AB)

34. p. Western Product Integration – Phase 1 34 Offer Renewal Example 4 2X35 is discontinued. Migration table recommends a 4UD. Client has a 2X35 in previous issueReceived 20% Size Upgrade offer last year Next issue’s recommended product to migrate client to is a 4UD Client chooses to migrate to a 4UD  Client is eligible for the Ad Size Cancellation - 20% or 10% depending on NI - (may need to calculate using the 10% due to the impact on the NI of Year 2 of the Size Upgrade offer – see next bullet)  Client is also eligible for a 10% discount on the 4UD for Year 2 of the Size Upgrade offer.

35. p. Western Product Integration – Phase 1 35 New Discount vs Previous Discount Clients who take advantage of a new discount for an item forego renewal of discounts provided in the previous issue. Example 5: In 2006, a Calgary client had a 2X35 with a 20% discount. The 2X35 is being discontinued and the Recommended Product is a 4UD. In 2007, if the client chooses to migrate to a DHC instead of the Recommended Product, the client is eligible for the Size Upgrade offer. However, the client is ineligible for the Ad Size Cancellation offer.

36. p. Western Product Integration – Phase 1 36 New Discount vs Previous Discount Client has a 2X35 in previous issueReceived a 20% discount last year Next issue’s recommended product to migrate client to is a 4UD Client chooses to migrate to a DHC instead of a 4UD  Client is eligible for the Size Upgrade offer  Client is ineligible for the Ad Size Cancellation offer Note: Clients who take advantage of a new discount for an item forego renewal of discounts provided in the previous issue. In all cases, verify that NI is greater than PI

37. p. Western Product Integration – Phase 1 37 Offer Plan – TRL to TSL “Migration” Offer TSL Offer We saw earlier that the TRL (Trade Regular Listing) will be discontinued. The Recommended Product for migration is a TSL (Trade Semi-bold Listing). Clients migrating from a TRL to a TSL will experience a 78% net difference in price (+ rate-up). To ease the transition of the large “price increase”, clients will be eligible for the following offers: 1)Ad Size Cancellation 20% 2)Volume Discount

38. p. Western Product Integration – Phase 1 38 Offer Plan - TRL to TSL “Migration” Offer - Example Examples TSL Offer discount Client purchases 4 TSLs, so he is eligible for a 10% discount on top of Ad Size Cancellation. He also purchases 1 TMRL. Results: Previous Issue: 5 TRLs x $116.40 = $582.00 Price for new program before discount: $967.20 4 TSLs: 4 x $211.20 = $844.80 + 1 TMRL: 1 x $122.40 = $122.40 Ad Size Cancellation 20% Offer (TSL): (4 x 211.20 x 20%) = $168.96 Discount Cannot apply either $ADx Cancellation Offer to TMRL as NI < PI TSL Volume Discount Offer: (4 x 211.20 x 10%) = $84.48 Discount New NI: $967.20 – $253.44 ($168.96 + $84.48) = $713.76 NI > PI ($713.76 > $582.00) Please use offer chart shown earlier for percentage discounts and codes

39. p. Western Product Integration – Phase 1 39 CMRs’ Responsibilities The CMR is responsible for communicating discontinued/revised products to the client CMRs must rework the item on the National Order and provide new artwork

40. p. Western Product Integration – Phase 1 40 Appendices – Example of Migration Table for BC TM00 TSL00

41. p. Western Product Integration – Phase 1 41 Appendices – Example of Migration Table for AB TM00 TSL00

42. p. Western Product Integration – Phase 1 42 Appendices – Example (others are available in the Transition Guide) Ads available post-integration 9x11 directories (see Transition Guide for other examples)