This is a broad overview of ShopLocal, its core SmartCircular product, its suite of digital distribution options via SmartDelivery and the newest product called the Shopper Planner Center that is all about unifying and promoting the complete set of store based information, sales, promotions, deals, etc

1. Life beyond a print circular

2. We’re ShopLocal ShopLocal uses innovative digital marketing techniques to connect shoppers with local retailers. Key Points: Pioneered the Use of Online Circulars Developed first of its kind technology platform for digitizing and versioning, local DMA print circular data 375+ Million Visits with 5+ Billion Page Views Annually to SmartCircular sites Founded in 1999 and headquartered in Chicago, IL Owned by Gannett Company, and partnered with PointRoll

3. ShopLocal is Institutionalized in Retail

4. THREE KEY TRENDS

6. Internet usage has increased 80 percent over the past decade and is continuing to trend upward2

7. Against traditional media, the Internet possesses 42 percentof the available audience during primetime (7-10pm)31 Source: Newspaper Association of America2 Internet Usage and World Population Statistics are for March 31, 2009. 3 Source: National People Meter, comScore Media Metrix 2007 9.2.07

9. Driven by two primary shopping needs: efficiency and convenience1 BIGresearch, Simultaneous Media Usage Survey, 12/06 2 Forrester Research “The State of Retailing Online 2008: Marketing Report, May 2008

10. Digital Media is Fragmentedand Now a Website Alone is Not Enough Average number of hours/month per user 29 hours Amount of Time (hours) 2.1 hours 17 minutes Source: ComScore Media Metrics, April 2008

11. Leveraging Legacy Content Cross Channel Marketing Customer Centricity In-Store Pickup Messaging By Segment Differentiation From Competitors Shopper Personalization In-Store Conversion Best Buy Viper Forum Leveraging Legacy Content Cross Channel Marketing Customer Centricity Messaging By Segment Global Branding Building Shopper Personalization In-Store Conversion New Brand Manifesto

12. SHOPLOCALSHOPPER PLANNING CENTER

13. ONLINE CIRCULAR (TODAY)

15. Virtual, Versioned circulars for local control for merchandisers

16. Inclusion of content like Clearance and Closeouts, Store Events etc.PLANNING CENTER (FUTURE)

17. Planning Center Home Page

18. Planning Center Home Page

19. Category Subpage

20. Product Detail Page

21. Product Availability Page

22. SHOPLOCALDIGITAL MARKETING SUITE

24. THE RIGHT TIME(when they're searching)

28. Behavioral

29. ContextualSmartDelivery Platform Connects with Shoppers at Key Touch Points, And Drives Them to Local Stores. SmartCircular Versioned, Local In-Store Promotions

30. Wisdom of the Crowds Example 1 2 3 All browsing activities are captured producing popularity rankings A PaperBoy banner ad is shown to a shopper on Monday with crowd based rankings Shoppers browse the circular ads on Sunday on a SmartCircular site 4 5 As time passes intra-week, the optimization rankings continue to update to improve ad unit targeting and performance All interactions within the ad are captured and used to further optimize the ad

31. PaperBoy: Circular Banner Ads PaperBoy: dynamic, rich-media banner ads that display circular content. Includes enhanced features: Wisdom of Crowds based Optimization Easy-to-use banner interface Dynamic refresh of content Mapping and Shopping Lists Printable Coupons Extensive distribution network including Yahoo, MSN, AOL, Newspaper.com, and many more. Consistent Category Tree Behavioral, Demographic, Contextual Targeting Established Distribution Business Models

32. Targeted Ad Serving

33. SmartAd User Experience Tom Bankstonof Los Angeles uses Yahoo to research home improvement products, and tools in particular Later throughout the Y! network, he sees… 23 6.28.07

34. Search & Display Combination = Lift & Reach Search is more effective than display Display (banner) ads have greater reach than search Combined search and display have the greatest impact

35. Local Search: Targeted Text Ads Current Future JCPenney Women's Apparel Buy Women's Clothing For Work & Play Affordably At JCPenney Online JCPenney.com JCPenney Women’s Apparel 36 Specials Starting at $7.99, Thru Jan 17 in Indianapolis JCPenney.Weeklyad.com Ad Copy Landing Page

37. Attracts customers who are actively shopping and increases sales conversions.

38. Includes enhanced features:

39. Cohesive Brand Experience

40. Easy-to-use navigation

41. Searchable Content

42. Dynamic refresh of content

43. Targeted and Personalized

44. Multiple Languages

45. Shopping Lists

47. Pushes weekly ad promotionsto a targeted audience of shoppers.

48. Includes enhanced features:

49. Cohesive Brand Experience

50. Searchable Content

51. Dynamic refresh of content

52. Targeted and Personalized

53. Multiple Languages

54. Shopping Lists

57. Self-selecting audience watches your channel on cable TV.

58. Includes enhanced features:

59. Cohesive Brand Experience

60. Available on TV 24/7/365

61. Customizable navigation

62. Dynamic refresh of content

64. Circular Central can be co-branded and connected with www.Publisher.com website.

65. Includes enhanced features:

66. Publisher Co-Branded

67. Cohesive Retailer Brand Experience

68. Searchable Content

69. Dynamic refresh of content

70. Shopping Lists

72. APPENDIX

73. Personalization Engine Geographic & Language: Item Level + CMS Content Related Items: Similar Item Attribute Based PLANNING CENTER (FUTURE) New vs. Returning Users: Able to Trigger Messaging, Features, Site Help Wisdom of the Crowds: Crowd Sourced Popularity Rankings Recommended Items: User Centric Recommendations via ClickStream