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March 10, 2003


Research and Consulting Firm to Focus on Print and Electronic Yellow Pages and Local Media

Princeton, NJ (March 10, 2003) – The Kelsey Group (TKG) has sold its Pervasive Communications assets to the Zelos Group of San Francisco, California. The objective of the sale is to allow The Kelsey Group's analysts and advisers to focus on what has been its primary core competency since it began business in 1986 – the global Yellow Pages industry. Terms of the sale were not disclosed.

The Yellow Pages industry has changed dramatically over the past few years with consolidation, an increase in the number of directories competing in markets, and the impact of new technologies on the printed directory product. At the same time, TKG is the only major firm that provides a third-party perspective on the opportunities in this extremely important and highly profitable local advertising medium.

"More than ever, companies already involved in the Yellow Pages industry, and many who are considering entering this arena will be looking for a firm that can provide an objective view. To do this well, our management believed that we should have a deliberate focus," said John Kelsey, CEO of the company. "We have offered advisory services in local online commerce, directory assistance/enquiry (DA/DQ), voice and wireless commerce and mobile communications. These have given us invaluable experience, and we appreciate the opportunities in these markets. But we believe we can best serve the Yellow Pages community by focusing on the business, competitive and technological challenges our clients face."

This transaction with Zelos completes the repositioning of the business that began earlier this year when The Kelsey Group recast its voice and DA/DQ practices to form the three-part Pervasive Communications line of business covering mobile, speech and information markets. The team of analysts that has served The Kelsey Group's Pervasive Communications clients will expand to include Seamus McAteer, Zelos Group's founder and an authority on wireless communications, devices and emerging pervasive technologies. Mr. McAteer said, "The new setting for former Kelsey Group voice and wireless, DA/DQ and Pervasive clients enables our advisers to provide authoritative analysis focusing on a wide range of related services that includes tremendous interplay among our coverage areas."

Neal Polachek will continue to head up TKG's Yellow Pages business practice. Working closely with him will be The Kelsey Report® Program Director Charles Laughlin, Senior Analyst Bobbi Loy-Luster and nearly a dozen consultants/associates who are experts in every facet of the Yellow Pages business.

"Not only have we grown The Kelsey Report by 30 percent in 2002, but we provided our clients with increasing levels of service while carrying out more consulting assignments than any previous year. Our reputation and relationships in the broadly defined Yellow Pages industry have attracted a wide network of seasoned Yellow Pages professionals who are recognized experts with a deep understanding of the directory business," commented Mr. Polachek, senior vice president of the company.

"In 2002 alone, we handled more than 1,000 client inquiries and produced the most authoritative and comprehensive report on the global Yellow Pages industry - Global Yellow Pages™ 2002. Because of the huge demand for last year's 350-page document, this study is being expanded and enhanced for 2003," said Charles Laughlin, vice president and program director for The Kelsey Report®." We strive to meet with every client in person to find out their needs so we can help them grow."

About The Kelsey Group
The Kelsey Group is the leading provider of strategic research and analysis, data and competitive metrics on Yellow Pages, electronic directories, small-business advertising and local search. Beginning in 1986, the company has built a reputation as the leading analyst firm covering the directory publishing community, providing advisory (The Kelsey Report® and Interactive Local Media), publishing (Global Yellow Pages™ and Local Media Journal™), consulting (more than 300 individual assignments) and conference services (60 events).

For more information contact:

Eileen Pacheco
(781) 556-1026
[email protected]

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