Yellow Pages Group Launches Mediative: New Digital Marketing Company Will Deliver Unique Solutions to National Advertisers

Montreal (Quebec), October 26, 2010 – Strengthening its position as Canada’s leading performance media and marketing solutions company, Yellow Pages Group (YPG) announced today the launch of Mediative — a digital advertising and marketing solutions provider for national agencies and advertisers.

Mediative will cover national agencies and advertisers’ needs through its two divisions: YPG Ad Network and Mediative Performance.

YPG Ad Network will offer digital media advertising, capitalizing on YPG’s existing strong network of print and online properties including flagship destinations AutoTRADER.ca, RedFlagDeals.com and YellowPages.ca. Specifically, the YPG Ad Network will provide premium and performance display advertising and audience targeting on Canada's leading online and mobile ad networks, as well as vertical ad products and solutions in the automotive, real estate and retail categories.

Mediative Performance will offer a wide array of services, such as SEO, SEM, social media marketing, and location-based marketing.

“As Canada’s largest advertisers seek innovative ways to promote their products and services locally and nationally, their needs are evolving and therefore so are we. Through Mediative, we are well positioned to offer unique digital marketing solutions and expertise to national agencies and advertisers,” said Marc P. Tellier, President and Chief Executive Officer of Yellow Pages Group. “Mediative is the next step in YPG’s digital growth strategy. We now have the products and team to serve advertisers looking for robust and cost-effective digital marketing solutions.”

Patrick Lauzon, President of Mediative, said: “Yellow Pages Group’s network of leading digital properties combined with a strong online and mobile reach represent a unique opportunity for national agencies and advertisers to find powerful ways to connect with customers who are ready to make a purchase. Mediative offers a groundbreaking value proposition with its team of best-in-class digital media strategists and experts as well as performance online search products.”

Concurrent with the launch of Mediative, YPG announced a series of transactions. YPG acquired Enquiro, a leading search engine marketing company, Ad Splash Media, a national retail advertising leader, and UPTREND Media, Canada's leading independent online advertising representation firm. These companies will be combined under Mediative, a Yellow Pages Group Company. YPG has also entered into an exclusive licensing agreement with Acquisio enabling Mediative to provide to its customers access to Acquisio's leading search, social and display advertising platform in Canada. YPG holds a 24% ownership interest in Acquisio Inc. since April, 2009. The total purchase price for these acquisitions will be of up to $60 million. An amount of $35 million was paid in cash at closing and the balance will be paid over time subject to future performance.  These acquisitions will generate approximately $35 million of annualized revenues.

Mediative has over 150 employees across four Canadian offices: Montreal, Toronto, Kelowna and Vancouver.

For more information about Mediative, consult the company fact sheet or visit www.mediative.ca.

About Yellow Pages Group
Yellow Pages Group (YPG) is Canada’s leading performance media and marketing solutions company.  The Company brings consumers and businesses together locally through its network of print, digital and mobile properties. YPG enables consumers to make smarter decisions, helping people find what they need wherever and whenever. The Company partners with businesses to build successful marketing and lead generation programs, helping them grow their business.  YPG is held by Yellow Media Inc. which owns and operates some of Canada’s leading properties and publications including Yellow Pages™ directories, YellowPages.ca™, Canada411.ca™, AutoTrader.ca, LesPAC.com, and RedFlagDeals.com. For more information: corporate.yp.ca.

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Contacts:

Media
Annie Marsolais
Director, Corporate Communications
Tel.: (514) 934-4016
annie.marsolais@ypg.com

Investor Relations
Anne-Sophie Roy
Director - Corporate Finance and Investor Relations
Tel.: (514) 934-2828
anne-sophie.roy@ypg.com