YP Launches Today as North America's Leading Local Search, Media and Advertising Company

Former AT&T Advertising Solutions and AT&T Interactive units combine industry-leading assets to form standalone unit under YP Holdings
Cerberus Capital Management acquires controlling interest

TUCKER, GA, May 9, 2012 -– YP Holdings LLC (“YP”), which combines the assets of AT&T Advertising Solutions and AT&T Interactive into North America’s largest local search, media and advertising company, launched today with the closing of the acquisition of a controlling interest in YP by an affiliate of Cerberus Capital Management, L.P. (“Cerberus”). As a standalone company, YP had $3.3 billion in revenues in 2011. Approximately 30%, or nearly $1 billion, of YP’s 2011 revenues derived from its digital and mobile platforms, making YP the ninth-largest digital media company of any type in the U.S. YP local search products such as YP.com, YPmobile and the YP Real Yellow Pages enable consumers to find, connect and transact with merchants across the U.S. YP’s thousands of sales and service professionals in local U.S. markets provide unmatched, longstanding relationships with 700,000 local advertisers throughout the country.

AT&T Advertising Solutions is best known as the publisher of the iconic Yellow Pages, the largest print directory publisher in the world. AT&T Interactive operates YP.com and the top-rated YPmobile app, which together have over 38 million monthly unique visitors. The YP Local Ad Network generates additional value by providing local business advertisers with an opportunity to tap into more than 70 million monthly unique visitors in its extended network of over 300 affiliated online and mobile publishers. YP is the number-one ranked traditional media company in North America by percentage of digital revenues.

YP’s unmatched multi-media product portfolio plays a key role in local commerce as it connects buyers and sellers across the web, mobile and print platforms and helps drive over $150 billion per year in transactions. In 2011, searches on YPmobile apps grew over 200 percent. Today, YP generates two calls each second on average to businesses found via the app. YP’s Real Yellow Pages directories are also used more than five million times daily by consumers to seek out local businesses.

“We are pleased to be investing in North America’s preeminent local search, media and advertising company,” said Steven F. Mayer, Senior Managing Director and co-head of global private equity at Cerberus. “YP is one of the most cost-effective ways for local businesses to connect with their customers. Their unsurpassed range of advertising and lead generation solutions provides a powerful boost to commerce in America. We look forward to working with YP’s talented associates and leadership team and to supporting YP as it innovates to meet the needs of its 700,000 business customers.”

Strong and Experienced Leadership Team
David Krantz, former CEO and president of AT&T Interactive, has been named CEO of YP Holdings. Krantz will lead YP’s overall strategy and operations. The new leadership team includes executives from AT&T Advertising Solutions, AT&T Interactive, and Cerberus Operations, as well as executives recruited from outside of AT&T. The company will be headquartered in Tucker, Georgia. AT&T has a 47 percent equity interest in YP Holdings.

“We have a great future in front us,” said Krantz. “We also have an extensive customer base, the largest local sales organization, an unmatched product portfolio, industry-leading platforms across the web, mobile and print ecosystems, and a great brand. We are ready to invest in this business, innovate, and provide excellent service to our customers.”

“Go-to-Partner” for Small Businesses
YP sales professionals serve as media consultants for their customers and create relationships built upon trust with a goal of helping advertisers grow their business. Through customized campaigns designed by expert advisors, YP is able to provide small and medium sized businesses with one of the most cost-effective sources for consumer leads. YP’s newly-developed reporting tools make it simple for small business owners to monitor, track and evaluate the effectiveness of their advertising investment. In addition to its direct sales force, YP products are also made available to small businesses through certified agents and resellers across the country.

Unrivaled Suite of Advertising and Lead Generation Solutions
YP’s wide range of print and digital advertising and lead generation products is designed to address the evolving local search needs of consumers and help advertisers grow their businesses. Product elements span both search and display solutions that can be deployed on a subscription or pay-for-performance basis. Complements to YP’s foundational solutions include search engine marketing capabilities, video advertising, direct mail initiatives and website development.

About YP Holdings
YP is one of the largest local search, media and advertising companies in North America. The company creates local search and advertising products that encourage consumers to discover and engage with local businesses across online, print and mobile platforms. YP’s suite of local offerings include its flagship products YP.com, YP Local Ad Network, the popular YPmobile app and The YP Real Yellow Pages®, the largest print directory in the world by advertising revenue. YP.com, which attracts over 30 million monthly online unique visitors, is also accessed by millions of users each month via the mobile web.

The YPSM Local Ad Network helps advertisers grow their business and distributes ads to a distinguished list of top publishers. YP’s wide range of local ad products such as premium listings, performance-based advertising, direct mail and search engine marketing provides advertisers an opportunity to increase their presence among consumers who are looking for a local business. YP’s advertising products address the diverse needs of nearly a million local businesses and help drive tens of billions of dollars in local commerce annually.

YP products are backed by one of the industry’s largest local advertising sales force made up of several thousand media consultants and other resellers.

Keep tabs on YPSM products by liking “YP” on Facebook: www.facebook.com/YP or following @YP on Twitter.

About Cerberus Capital Management, L.P.
Established in 1992, Cerberus Capital Management, L.P., together with its affiliates, is one of the world’s leading private investment firms, with approximately $20 billion in capital under management. Through its team of investment and operations professionals, Cerberus specializes in providing both financial resources and operational expertise to help transform undervalued and underperforming companies into industry leaders for long-term success and value creation. Cerberus holds controlling or significant minority interests in companies around the world.

Contacts:

Deann Mayeda
YP
(415) 248-4226
[email protected]

Peter Duda or John Dillard
(212) 445-8213 or (212) 445-8052

Cerberus Media Line
(212) 891-1558