Table of Contents 

Wireline and Broadband 

Through our wireline and broadband business area, we develop and deliver Internet services that are designed for high speed broadband 

and dial up narrowband websites. We enable our customers that include destination Web sites, businesses 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 that include America Online, Microsoft's MSN, NBCi, Lycos and Verizon Online among others.  

InfoSpace's product offerings can help businesses attract customers, improve loyalty, create new revenue streams and monetize their 

customer base. Further, InfoSpace's services are private labeled and delivered with each customer's logo, color scheme and navigation design, 

strengthening the value of the customer's brand. This ensures that our customers own the value relationship with their customer.  

Merchant 

Our merchant business area develops and delivers applications and services that are designed to help merchants leverage Internet and 

wireless technologies to help attract customers, reduce costs, grow sales and conduct business, anywhere, anytime. These applications and 

services enable businesses to establish an online presence, promote their products and services, and conduct secure commerce using an Internet 

connected device. Our commerce services are privately branded for leading merchant banks and other merchant service providers who in turn 

offer these solutions to their business customers. InfoSpace's merchant services are available through a broad merchant reseller channel, 

including Verizon, one of the largest providers of products and services for small to medium sized businesses in the U.S., and major financial 

institutions such as American Express, Wells Fargo and Union Bank of California.  

Wireless 

Through our wireless business area, we develop, deliver and support solutions enabling our carrier partners to deliver wireless data 

services to their subscribers under their own brand over current and next generation networks. With our wireless platform, wireless carriers can 

effectively manage and seamlessly deliver (1) our private labeled applications and services, (2) third party applications and services and (3) 

their own content and applications, to create a unique mobile data experience for their subscribers. Through our InfoSpace Speech Solutions 

group, we offer a multi modal solution that leverages speech for input and query, combined with other display modes to optimize the wireless 

experience.  

InfoSpace provides its wireless solutions to leading companies worldwide, including wireless carriers such as Verizon Wireless, Cingular 

Wireless, AT&T Wireless, ALLTEL, Virgin Mobile and Deutsche Telekom's VoiceStream and consumer services companies such as Charles 

Schwab.  

Critical Accounting Policies and Estimates 

The  Management's Discussion and Analysis of Financial Condition and Results of Operations,  as well as disclosures included 

elsewhere in this Form 10 K, are based upon our consolidated financial statements, which have been prepared in accordance with accounting 

principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and 

judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingencies. On an ongoing 

basis, we evaluate the estimates used, including those related to impairment and useful lives of intangible assets, other than temporary 

impairment of investments, assumptions used to estimate fair values of warrants we hold to purchase equity securities of other companies, 

allowances for accounts receivable and notes receivable and fair values used to record revenue related to related party revenue transactions. We 

base our estimates on historical experience, current conditions and on various other assumptions that are believed to be reasonable under the 

circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily 

apparent from other sources as well as identifying and assessing our accounting  

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