Table of Contents 

ITEM 1.    Business 

This report contains forward looking statements that involve risks and uncertainties. The statements contained in this report that are not 

purely historical are forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E 

of the Securities Exchange Act of 1934, as amended. We use words such as  anticipates,   believes,   plans,   expects,   future,  

 intends,   may,   will,   should,   estimates,   predicts,   potential,   continue,  and similar expressions to identify such forward 

looking statements. Forward looking statements are subject to known and unknown risks, uncertainties and other factors that may cause our 

results, levels of activity, performance, achievements and prospects, and those of the wireless and Internet software and application services 

industry, to be materially different from those expressed or implied by such forward looking statements. These risks, uncertainties and other 

factors include, among others, those identified under  Factors Affecting Our Operating Results, Business Prospects and Market Price of 

Stock  and elsewhere in this report. 

Overview 

InfoSpace, Inc. is a provider of wireless and Internet software and application services. We have developed and deliver a wireless and 

Internet platform of software and application services that enable companies to offer network based services under their own brands. Our 

customers in turn, offer these products and application services to their customers as their solutions. We provide our services across multiple 

platforms simultaneously, including PCs and non PC devices.  

We develop and deliver our products and application services to a broad range of customers that span each of our business areas of 

wireline and broadband, merchant and wireless. In our wireline and broadband business, we deliver our services to Web portals such as 

America Online, destination sites such as Disney, and DSL providers such as Verizon Online. In our merchant business, we deliver our 

products to regional Bell operating companies such as Verizon, merchant banks such as Union Bank of California, and financial institutions 

such as American Express. In our wireless business, we deliver our products and application services to wireless carriers such as Verizon 

Wireless, AT&T Wireless and Cingular, and other consumer service companies such as Charles Schwab.  

Our services are predominately built on our core technology platform and use the same operational infrastructure. We do not currently 

allocate development or operating costs to any of these services. The following provides detail on each of our business areas.  

Wireline and Broadband 

Through our wireline and broadband business area, we develop and deliver Internet services for high speed broadband and dial up 

narrowband Web sites. We enable our customers such as destination Web sites and broadband service providers, including digital subscriber 

line (DSL) companies, to offer their customers an array of private labeled services. We deliver our services to Web sites including America 

Online, Microsoft's MSN, NBCi, Lycos and Verizon Online, among others.  

InfoSpace's product offerings are designed to help businesses attract customers, improve loyalty, create new revenue streams and 

monetize their customer base. Further, our services are private labeled and delivered with each customer's logo, color scheme and navigation 

design, to help strengthen the value of their brand. This ensures that our customers own the value relationship with their customer. Our wireline 

business unit is focused on delivering three main categories of products:  

Web search 

products are meta search engines in that they simultaneously search many engines at the same time, producing fast, 

extensive results. Rather than offering just a single search engine, our search solutions offer some of the best search engines on the 

Web. We integrate search engines including Alta Vista, Overture, About, Direct Hit and Looksmart, among others, into our meta 

search products. 

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