2002
ANNUAL REPORT
(INFOUSA LOGO)
Sales Solutions
When sales are slow...
and profits are down...
Who do you call? Call the "Recession Busters"
Call infoUSA(R)!
1-800-555-5335
(RECESSION BUSTERS LOGO)
(INFOUSA LETTERHEAD)
COMPANY PROFILE
INFOUSA(R) is the leading provider of sales and marketing support products and
services for businesses, from small Mom & Pop shops to large corporations. The
company compiles the world's finest databases of 14 million businesses and 220
million consumers under one roof in Omaha, Nebraska. The products derived from
these databases include sales leads, mailing lists, diskettes, 3x5 sales lead
cards, business directories, DVD products, mapping products, and also delivery
of data on the Internet.
infoUSA(R) helps 4 million small business owners and sales people. When sales
are slow due to recession, businesses look to infoUSA(R) for sales leads and new
customer acquisitions.
NEW BUSINESSES, NEW HOMEOWNERS & NEW MOVERS
NewLeadsUSA(R) is the only source for detailed information on NEW BUSINESSES,
NEW HOMEOWNERS and NEW MOVERS. Approximately 50,000 brand new businesses,
100,000 new homeowners and 300,000 new movers are added to this database weekly.
The NewLeadsUSA(R) database gives sales people and small business owners the
hottest prospects available anywhere.
Over four million customers, which include small businesses,
small-office/home-office operators, and salespeople, use our products and
services to find new customers, increase revenue, cut selling costs, and
increase their profits. The large corporations use our database for direct
marketing, database marketing, analyzing their customers and making their sales
and marketing department more productive and efficient.
infoUSA(R) was founded in 1972 by its current CEO. Today the company has nearly
2,000 employees and 37 offices across the U.S., Canada and London. Headquarters
are located in Omaha, Nebraska. The company also operates under various trade
names such as Donnelley Marketing(R), American Business Information(R), Walter
Karl(R), idEXEC(R), Polk City Directories(R), ListBazaar.com(R),
ClickAction(TM)/Yesmail(TM), Hill-Donnelly(R) and infoCanada(R).
"SAFE HARBOR" STATEMENT
The information in this Annual Report contains forward-looking statements within
the meaning of Section 21E of the Securities and Exchange Act of 1934 and
Section 27A of the Securities Act of 1933, which are subject to the "safe
harbor" created by those sections. Investors are cautioned that such statements
are only predictions and speak only as of the date of this Annual Report. Actual
results may differ materially due to risks and uncertainties including, but not
limited to, the successful integration of recent and future acquisitions,
fluctuation of operating results, failure to achieve anticipated growth in the
Internet and other businesses of the company, ability to finance the growth of
the Internet division, risk of product returns, changes in technology, continued
acceptance of the company's products and services in the marketplace, acceptance
of products and successful launch of this new business, and competitive factors.
infoUSA is a registered trademark of infoUSA Inc. All other trademarks are the
property of their respective owners.
FINANCIAL HIGHLIGHTS
FISCAL YEAR ENDED DECEMBER 31,
(in thousands, except per share amounts)
<Table>
<Caption>
2002 2001 2000
---------- ---------- ----------
Net sales $ 302,516 $ 288,738 $ 305,668
---------- ---------- ----------
EBITDA, as adjusted (1) 85,821 95,456 54,116
Depreciation and amortization of operating assets 14,773 17,873 20,005
Intangible asset amortization 13,310 30,254 32,190
Restructuring costs (2) 2,531 4,899 5,800
Other costs (3) 650 2,045 7,535
Operating income 54,557 40,385 (11,414)
---------- ---------- ----------
Net income 20,436 4,964 (31,633)
EPS - basic & fully diluted $ 0.40 $ 0.10 $ (0.63)
---------- ---------- ----------
Non-cash stock compensation expense 52 448 3,113
Litigation settlement charge 417 1,104 --
Acquisition costs 181 493 2,287
Impairment of assets -- -- 2,135
Interest expense 16,059 25,285 26,651
Total debt 190,428 225,670 258,652
Capital expenditures 4,880 8,258 20,708
---------- ---------- ----------
Number of basic shares outstanding 51,170 50,651 50,304
Number of diluted shares outstanding 51,193 50,651 50,304
---------- ---------- ----------
Accounts receivable (DSO) - without Walter Karl (4) 47 56 69
</Table>
(1) EBITDA, as adjusted is defined as operating income adjusted to exclude
depreciation, amortization, non-cash stock compensation expense,
restructuring costs, asset impairments, litigation settlement charges and
acquisition costs.
(2) Severance and other costs related to workforce reductions.
(3) Other costs consist of non-cash stock compensation, asset impairments,
litigation settlement charges and acquisition costs.
(4) Walter Karl is a list broker. Trade accounts receivable and trade accounts
payable are reflected at gross on the balance sheet.
NET SALES OPERATING INCOME
(BAR CHART) (BAR CHART)
1
DON'T LET THIS HAPPEN TO YOU...
(CARTOON PICTURES)
THE KEY TO GROWING YOUR BUSINESS
IS FINDING NEW CUSTOMERS!
2
LETTER TO OUR SHAREHOLDERS, CUSTOMERS & EMPLOYEES
(VINOD GUPTA PHOTO)
VINOD GUPTA
Chairman & Chief Executive Officer
When people get sick, they see a doctor. When businesses see a drop in sales,
they call infoUSA(R). We have been called the "Recession Doctor".
In the last 30 years, I have been through many economic cycles. When the economy
is strong, businesses tell me they have all the customers they can handle, so
they don't need our sales leads. When the economy is weak, infoUSA(R) is the
first call they make. Over 4 million businesses and salespeople have used
infoUSA(R)'s sales leads and databases to grow their customer base and their
sales. infoUSA(R) is committed to meeting this growing customer demand by
investing in our database, updating our technology and widening our distribution
channels. We are also expanding into new and growing markets such as email
marketing, mapping and offering direct mail, or "snail mail" via our website.
ACCOMPLISHMENTS DURING 2002
We had a great year during 2002 despite the recession. Net sales for 2002 were
$302.5 million, an increase of 5% from $288.7 million in 2001. The Company had
operating income of $54.6 million, or 18% of net sales for 2002, compared to
operating income of $40.4 million, or 14% of net sales in 2001. Other financial
data is shown on Page 1 and the details are presented in our 10-K. I will use
this letter to describe our products, services, potential opportunities and
future growth plan.
infoUSA(R)'s crown jewels are its database assets, and we're making them even
more valuable by enriching both our data and our information products. During
2002, infoUSA(R) introduced NewLeadsUSA(R), its first "new homeowner", "new
business" and "new mover" database to help businesses find more prospects. As a
result of this investment, infoUSA(R) is the only company in the industry to
provide this valuable data within days of each event. New homeowners, new movers
and new businesses are the most lucrative and motivated buyers of products and
services. When a person moves or a new business is started, they have money to
spend, and they are looking for new vendor relationships.
Each of these three databases is continuously updated within days of receiving
the information and promptly emailed to infoUSA(R) customers. This real-time
data takes advantage of new database technology and Internet convenience to
transmit data in a way that can immediately benefit our customers by giving them
a competitive edge via a first-to-market advantage. Each week, there are
approximately 100,000 "new homeowners", 300,000 "new movers" and 50,000 "new
businesses". The consumer data is then enriched with infoUSA(R)'s proprietary
demographic and other valuable information. The business data is enriched with
SIC codes, employment information, revenue and other information. In addition,
infoUSA(R)'s telephone
3
LETTER TO OUR SHAREHOLDERS, CUSTOMERS & EMPLOYEES
verification of each business listing ensures the superior accuracy of each data
element. We believe the sale of this valuable data will be one of the catalysts
for our future growth.
infoUSA(R) also introduced AutoListsUSA(R), a new automotive industry vertical
market solution that provides the first comprehensive prospects and sales leads
for the automotive industry. For example, an automotive parts wholesaler can get
a list of tire dealers, repair shops and service stations in any area. Or, a car
dealer can get a prospect list of prospective buyers of sports cars and luxury
cars.
New Car Prospect Builder(R), is driven by a proprietary modeled database with
prospects for luxury, sports and family cars predicated on individual consumer
profiles based on demographics and previous history in each buying segment. This
data is especially valuable as it complies with privacy legislation by
suppressing motor vehicle registration records.
CBS 60 Minutes II(R) recently visited our data compilation and updating
facility, because we are the biggest and the best in the industry. I hope you
watch the show if only to see the enormity of our facility. CBS may not always
praise our industry, but they do recognize the important role infoUSA(R) plays
in the direct marketing community.
In addition to offering more data products and sales solutions, we are growing
our distribution channels and giving our customers the maximum amount of data
delivery options. We announced an agreement with Microsoft's(R) dedicated small
business web site, "Microsoft bCentral(R)", to be the exclusive data provider
offering business and consumer sales leads. Microsoft(R) chose infoUSA(R) as its
exclusive provider because we have the highest quality, most comprehensive
consumer and business data, underscoring the tremendous value of our database
assets and delivery technology to small businesses. Microsoft(R) has millions of
small business users and this alliance will be very profitable for both parties.
We have also expanded our in-house Internet division, infoUSA.com(R), to offer
new services such as Snail Mail(TM), Customer Analyzer(TM), Prospect Builder(TM)
and mapping products. Our suite of online products contains everything a small
business needs to analyze existing customers and find new prospects, as well as
a turnkey solution for sending out first class direct mail, or Snail Mail(TM) to
these customers. We support these customers via phone, email and instant message
options that apply our unique consultative sales approach to online marketing.
Over 85% of our online customers choose one of these options, which enables
infoUSA(R) to upsell additional products and services, and to cement the
relationship. As they say, "the proof is in the pudding"; during 2002, our
Internet division revenues grew by 38%.
Over the year, relatively low market valuations presented us a with a few unique
opportunities to acquire attractive companies at favorable prices. We acquired
two established and reputable directory businesses, Hill-Donnelly(R) and City
Directory(R), contributing to infoUSA(R)'s leading portfolio of directory assets
by adding thousands of new customers and hundreds of new directory markets.
These companies have a combined customer base of over 100,000 customers, giving
infoUSA(R) a tremendous distribution channel to service the needs of small
businesses and salespeople. These directories are important tools for small
businesses to find new customers and to grow. infoUSA(R) added even greater
value to these customers by adding more technology, comprehensive business and
consumer information, and offering the information on a variety of formats -
printed directories, CD-Rom and also Internet access. The integration of these
two companies has been very successful under the leadership of Pat and Lee Hill,
and the company is taking advantage of several cross-selling opportunities by
providing not just directory information, but a full range of sales and
marketing solutions to this expanded customer base.
During 2002, infoUSA(R) announced its strategy to expand its email marketing
capabilities. We are convinced that email marketing is one of the fastest
4
LETTER TO OUR SHAREHOLDERS, CUSTOMERS & EMPLOYEES
growing channels for businesses and salespeople to conduct prospecting and
marketing. Last year, we acquired two companies in this industry; DoubleClick's
List Services Division and ClickAction(TM). We have also recently announced our
acquisition of Yesmail(R) in March 2003. The addition of these companies will
dramatically expand infoUSA(R)'s leadership in the growing e-mail marketing
industry. We will be able to combine our opt-in email file of 100 million
consumers and businesses along with the leading edge e-mail technology of
Yesmail(TM) and ClickAction(TM). Given infoUSA(R)'s premier position in
traditional direct marketing, this creates the largest and most comprehensive
offering of direct marketing tools and technology in the online and offline
worlds.
I started this letter by referring to infoUSA(R) as the "Recession Doctor".
We're certainly taking our own medicine, and I'm happy to report that it's
working. In 2002, when the U.S. experienced one of the worst business downturns
in history, infoUSA(R) achieved record operating income. We outperformed our
industry, as measured by revenue growth and profit growth. Our 2002 revenue grew
from $289 million to $303 million. Operating income grew 35%, and earnings per
share grew 300% from 10 cents per share to 40 cents per share. During 2002 we
paid down $24 million of our senior debt and repurchased $9 million of our
outstanding junk bonds. Cash flow from operations was strong, enabling us to
make the previously mentioned investment in our database, pay down debt and make
strategic acquisitions. Our proprietary database is by far the finest in the
industry, our product pipeline is robust, and we have expanded our distribution
channels and bolstered our sales force to position ourselves for future growth.
OUR MANAGEMENT TEAM
We have one of the finest management teams, including Monica Messer, Ed Mallin,
Fred Vakili, D.J. Thayer, Amy Rongisch, Amit Khanna, Tim Buechler, Rakesh Gupta,
Jim vanEttinger, Jeff Ferris, Doug Roesemann, Dan Gust and Al Ambrosino. We also
welcomed new managers to the infoUSA(R) family; Ray Butkus, Alan Kuritsky,
George Grant, Kentyn Reynolds and Pat and Lee Hill.
MY FUTURE PLANS
My Dad will be 86 years old and he still goes to work six days a week. When I
call him, he answers the phone with an upbeat tone of voice, and I pray that he
is able to work until he is 100 years old. I also love my job and its many
growth opportunities, which make me wake up early in the morning eager for the
workday to begin.
I still believe our potential market opportunity consists of over 3 million
small businesses and over $6 billion in revenue. I wish we could grow faster.
But, this immense opportunity keeps me and our team energized.
Sincerely,
/s/ Vinod Gupta
Vinod Gupta
Founder & Chief Executive Officer
5
4 MILLION CUSTOMERS
(MONICA MESSER PHOTO)
MONICA MESSER
Chief Operations Officer
(AMY RONGISH PHOTO)
AMY RONGISH
Senior Vice President
Database Products
(JIM VANENINGER PHOTO)
JIM VANENINGER
Chief Technology Officer
When people get sick, they see their doctor. When the economy slows, businesses
and sales people look to us to find new customers and increase their sales. We
are the recession busters!
You can't find new prospects unless you have accurate data. Accurate information
is the essential ingredient in every selling process, and infoUSA(R) has the
most comprehensive and accurate data of 14 million businesses 125 million
households. We are the only company to own a proprietary datatbase of business
and consumers compiled and updated under one roof.
(PHOTO)
Our 132,000 square-foot facility where the data is compiled and updated.
What Do We Offer? Who Are Our Customers?
Proprietary Database of
o 14 Million Businesses Large Business Customers
o 220 Million Consumers
o 13 Million Executives & Professionals Medium Size Business
o 50,000 New Businesses Per Week Small Businesses & Entrepreneurs
o 100,000 New Homeowners Per Week
o 300,000 New Movers Per Week Small Businesses
Data Processing & Entreprenuers,
Database Marketing Services Part-Time Business (SOHO)
6
THE FINEST DATABASE OF 14 MILLION BUSINESSES
The Finest Database of 14 Million U.S. and Canadian Businesses
We have been compiling this remarkable database for over 30 years, making it the
finest database in the marketplace today. We use thousands of public sources to
gather business data, and have the highest accuracy in the industry.
BUSINESS DATABASE CONTAINS:
o Company Name & Addresses
o Phone, Fax & Toll-Free Numbers
o E-mail Addresses
o Contact Names & Titles
o Credit Rating Codes
o Sales Volume
o Number of Employees
o High-Tech Business
o Headlines
o Corporate Linkage (Headquarter, Branch, Subsidiary Information)
o Public Trading Symbol & Stock Exchange
o Year Established
o Square Footage
o Lines of Business (SIC & NAICs Codes)
o Franchise, Brand & Specialty Codes
o Geo Codes - Latitude & Longitude
o Web Site Address
o Public Filings
o Size of Yellow Page Ad
o Number of PCs
o Work at Home Businesses
(PHOTO)
(PHOTO)
17 Million Phone Calls Every Year
There's simply no substitute for telephone-verification in providing top-quality
business information. infoUSA(R) is the only company to make this effort, a
continual process involving nearly 17 million long-distance calls per year. We
verify the accuracy of our information and capture additional information such
as Key Contact, Number of Employees, and Address. All of which is vital to your
marketing efforts. We really do call every business.
Buy Lists on the Internet @ www.infoUSA.com
7
220 MILLION CONSUMER DATABASE
Slice and Dice Any Way You Want
The strength of our consumer database comes from more than 85 years of Donnelley
Marketing's(R) experience in building consumer databases. Over 300 data
specialists including data compilers, data analysts, modelers, and database
engineers work together to bring meaning to approximately 2 billion input
records from thousands of sources! Getting the right demographic, psychographic,
and buyer behavior information on 220 million people in 115 million households
and keeping it up to date is our expertise.
CONSUMER DATABASE CONTAINS:
o Name & Address
o Phone Number
o Opt-in E-mail Address
o Income
o Age
o Occupation
o Marital Status
o Presence of Children
o Type of Residence
o Length of Residence
o Home Owner/Renter
o Home Value/Mortgage Amount
o Active Bank Cards
o Ethnicity
o Contributor
o Hobbies & Interests
o Religion
o Vehicle Data (Make, Model & Year)
(PHOTO)
(PHOTO)
THE BEST SOURCES OF INFORMATION
o More than 4,300 telephone directories from coast-to-coast
o Public record and real estate information
o Multi-verified proprietary sources
o Census data
o Self reported leisure time/lifestyle surveys
o Self reported buyer behavior/purchase intention surveys
SELECT YOUR PROSPECTS ACCORDING TO LIFESTYLE
o Investment Behavior
o Charitable and Political Contributors
o Charge Card Users
o Mail Order Buyers
o High-Tech Households
o Leisure Activities
o Special Interests and More
ATTENTION TO DETAIL
infoUSA(R) has always been recognized as the leader in data accuracy. With over
20 million households moving each year, and constant changes in zip codes and
area codes, infoUSA(R) is dedicated to maintaining the highest level of accuracy
and deliverability available. In addition to running all US Postal Service
products, infoUSA(R) dedicates considerable human resources to assure the
quality of our information.
Buy Lists on the Internet @ www.infoUSA.com
8
NEW BUSINESSES, NEW MOVERS & NEW HOMEOWNERS
(PHOTO)
50,000 New Businesses Per Week
THEY HAVE HOPES AND THEY ARE SPENDING MONEY!
Now you can reach New Businesses, as they are ready to open their doors.
Combining our unsurpassed business file of more than 14 million businesses with
new "Transactional Utility Data", you will receive the freshest data available.
New businesses are just waiting for your client's products and services. They
have great buying needs and are just waiting to be contacted. LIST CODE: 8888-10
(PHOTO)
300,000 New Movers Per Week
New Movers must buy goods and use business services. Most have not established
relationships with vendors so they are the perfect prospect. This file combines
the traditional DMCOA data with "Transactional Utility Data." You can't get
fresher information. LIST CODE: 8888-52
They Have Money to Spend!
Are You Ready for
Their Relationship?
(PHOTO)
"NEW HOMEOWNERS ARE MY HOT PROSPECTS!"
100,000 New Homeowners Per Week
New Homeowners are just getting settled in their new home and are in the market
to buy your products and services now! New Homeowners will buy more products and
services in the first six months than they will in the next five years. They
spend an average of $10,000 on non-move related items in the first 90 days.
infoUSA(R) offers weekly information on these potential new prospects who have a
significant buying potential - and the timing to reach them couldn't be better.
Reach consumers when they're settling into a new neighborhood and searching for
new product and service providers. Target higher-income households that are
upgrading their lifestyle - and looking to buy bigger and better furniture,
appliances, and services, to name a few. LIST CODE: 8888-64
Buy Lists on the Internet @ www.infoUSA.com
9
DOCTORS, LAWYERS, ACCOUNTANTS & PROFESSIONALS DATABASES
13 Million Executives & Professionals Database
infoUSA(R) has created a new database of 13 Million Executives and Professionals
for the entire United States that gives you the key ability to reach,
communicate and, more importantly, close the sale.
When you are dealing with the decision-maker, you know exactly where you stand
and you get your answers fast.
Look at this fantastic database of 13 Million Top Executives and Cream of the
Crop Professionals for you to target.
These types of executives and professionals have disposable income in their
hands. They have purchasing power. They are ready to spend money. They need a
great deal of products and services. They need your products and services too.
And they are the decision-maker!
(PHOTO)
Doctors have money to spend!
<Table>
<Caption>
LIST CODE EXECUTIVE TITLE COUNT
- --------- --------------- -----
8887-01 Owner 4,084,621
8887-03 Managers 2,479,549
8887-02 President 1,236,530
8887-27 Sales Executive 577,310
8887-23 Finance Executive 566,605
8887-24 Human Resources Executive 311,959
8887-08 Religious Leader 284,218
8887-04 Executive Director 258,811
8887-31 Purchasing Executive 113,062
8887-26 Marketing Executive 110,439
</Table>
<Table>
<Caption>
LIST CODE PROFESSIONALS COUNT
- --------- ------------- -----
8011-01 Physicians & Surgeons 669,259
8111-03 Attorneys 518,202
8021-01 Dentists 207,660
8721-01 Accountants 119,263
8711-06 Engineers 64,652
</Table>
Buy Lists on the Internet @ www.infoUSA.com
10
DATABASE LICENSE GROUP
Data is the heart and soul of any organization. Hundreds of companies rely on
our accurate, timely data to power their applications. We provide the valuable
raw materials to make their solutions successful.
(MARK SCHWARTZ PHOTO)
MARK SCHWARTZ
President
Database License Group
(CALLER ID ++ AD)
infoUSA's databases impact millions of people. Chances are you've used our data
from one of our partnerships. Examples of those partnerships include:
o CRM AND SALES AUTOMATION - infoUSA(R) is proud of our ever-expanding
partnership with Microsoft(R). Microsoft(R) integrates our data with
Microsoft's small business CRM offering. Currently, infoUSA(R) data is
providing Microsoft bCentral users vital business intelligence and targeted
prospects.
o RISK MANAGEMENT - First Data's collections and skip tracing solutions and
Choicepoint's employment verification and fraud prevention tools are both
powered by infoUSA(R) data.
o INTERNET SERVICES AND MOBILE COMMUNICATIONS - infoUSA(R) continues to power
the majority of web-based Yellow and White page directory providers. The
millions of users of AOL, Yahoo!, and Ticketmaster/Citysearch all view
infoUSA data when searching for business names or categories. Furthermore,
wireless directory providers such as Vindigo represent an up-and-coming
vertical of information use.
o MARKETING ANALYTICS - Claritas, Arbitron, and ESRI, among others, incorporate
infoUSA(R) data in their marketing and geographic information systems (GIS)
to help their customers make better decisions.
o ONLINE RESEARCH - infoUSA(R) data enables users of Lexis-Nexis, Dialog, and
WestLaw to research and define markets/industries, and gather competitive
information.
o VEHICULAR NAVIGATION SYSTEMS - infoUSA(R) gives the drivers of select GM,
Lexis, Mercedes, and Acura vehicles access to on-demand point-of-interest
(POI) information. The leaders of this market all rely on infoUSA(R) to
provide the highest quality POI and emergency services information.
11
DONNELLEY MARKETING(R)
Combines Data, Technology, and Applications to Solve The Customer's Needs.
Donnelley Marketing(R) is one of the nation's leading boutique direct marketing
and database marketing solution providers, targeting medium and large size firms
where quality data, applications and customer service count. Our mission is to
help businesses find new customers, grow their sales, reduce selling costs and
to become more profitable. Donnelley's(R) reputation has been built by
delivering consistent results to our clients for 85 years.
Donnelley Marketing(R) serves a variety of industries including traditional
direct marketers, packaged goods, retailers, financial institutions,
telecommunications, utilities, technology, fund raising, automotive and catalog
companies. Donnelley Marketing(R) maintains over 130 marketing databases,
processes over 50 billion records annually, creates 220 custom models each year
and delivers personalized customer care to more than 2,000 customers.
Our goal in 2002 was to increase client access to our databases and data
processing services while reducing turnaround time and lowering costs. We were
pleased to announce the introduction of infoConnect(TM) ONE PASS. This
revolutionary hygiene and data enhancement service provides clients 24/7 web
driven access to the best databases available in the industry. In a nutshell,
the customer's data is fresher, turnaround times are faster, and deliverability
increases. We are in the process of transitioning our clients to a recurring
revenue model through this automated system. This offering is attractive to
large, medium and small organizations.
(DONNELLEY MARKETING LOGO)
(RAY BULKUS PHOTO)
RAY BULKUS
President
Donnelley Marketing, Inc.(R)
(DAN GUST PHOTO)
DAN GUST
President
Catalog Vision(R)
(AL AMBROSINO PHOTO)
AL AMBROSINO
Exe. Vice President
Business Development &
Cross Sales
12
infoConnect(TM) ONE PASS
infoConnect is a service from Donnelley Marketing(R) that offers groundbreaking
artificial intelligence matching technology in order to provide data enhancement
and file cleansing. Combine that with ONE PASS, and our clients have the ability
to link multiple data hygiene and enhancement services, resulting in lower
costs, decreased turnaround time, and increased match rates. infoConnect(TM)
will match a clients' file to:
220 MILLION NATIONAL CONSUMER DATABASE:
The industry's largest and most comprehensive consumer database.
14 MILLION NATIONAL BUSINESS DATABASE:
The world's finest business content.
15 MILLION NATIONAL PRIVACY DATABASE:
Provides marketers with the ability to eliminate people who will not respond to
their offer
ALL MAJOR USPS DATA HYGIENE DATABASES:
Donnelley Marketing(R) licenses all five of the major United States Postal
Service data hygiene databases.
(PRIVACY PROTECTOR AD)
(PHOTO)
DONNELLEY MARKETING(R) MAKES CLIENT RELATIONSHIP MANAGEMENT (CRM) POSSIBLE
CRM does not happen by itself. The key ingredients are the database and the
application software to use the data. Donnelley Marketing(R) offers both. In
2002, our clients benefited from MarketZone DS. (It is a closed-loop,
internet-enabled, fully relational database tool. It is a complete system for
decision support, campaign management, and execution. In addition to managing
their customer relationships better, our clients benefited from MarketZone's
ability to identify prospects and reduce costs.)
2002 also proved to be a highly successful year for our client marketing
database unit. MarketZone DS., provided our clients the ability to identify new
prospects and reduce costs while managing their customer relationship.
We have very clear plans and initiatives for 2003 to grow our business. We will
continue to find ways to capitalize on our data handling expertise and develop
products that use technology to access our rich content that will provide our
customers with new sales prospects and money saving solutions.
13
WALTER KARL(R)
(ED MATLIN PHOTO)
ED MATLIN
President
Walter Karl(R)
List Brokerage, List Management & Consulting
Walter Karl(R) has achieved some lofty accomplishments over the past 12 months.
Here is a brief summary of some of those accomplishments:
REPUTATION OF WALTER KARL
Walter Karl(R), has been providing quality List Management and List Brokerage
services to the Direct Marketing Industry for over half a century and is now one
of the top 5 full service providers in the Industry. We have also dramatically
expanded our Email Marketing services to support the growing needs of our
customers. Additionally, our Strategic Information Management (SIM) Database
Consulting Division provides database consulting and data processing services to
mid and large size companies.
INCREASED THE SALES OF PROPRIETARY PRODUCTS AND SERVICES
We continue to increase sales of our proprietary business and consumer data in
our List Division, increased our List Fulfillment and Database Services sales
and expanded the sale of other data processing services such as NCOA,
Merge/Purge, Modeling and Enhancement Services. We are also effectively selling
our newest web based data hygiene and enhancement service - infoConnect One
Pass. We have created the Industry's premier National Business and Consumer New
Mover Database serving a broad range of industries with their direct mail and
telemarketing campaigns.
EXPANDED OUR PRESENCE IN THE INTERACTIVE ARENA
Walter Karl Interactive focuses on providing on-line companies and traditional
marketers with the products and services they need to create successful
multi-channel marketing programs. The recent acquisition of the List Management
and Brokerage Divisions of DoubleClick, and the purchase of ClickAction(TM), a
premier Internet service provider, has enabled Walter Karl(R) to become the
Industry leader in the Email Marketing arena. Some of our services include Email
List Management, Email List Brokerage, Email Modeling and On-Line Surveys.
(GRAPHIC)
(WALTER KARL LOGO)
14
YESMAIL(TM)/CLICKACTION(TM)
Yesmail(TM)/ClickAction(TM) is a leading provider of email marketing solutions.
Yesmail(TM)/ClickAction(TM) streamlines, centralizes and manages the complete
process of online database marketing with direct marketers' existing and
prospective customers.
Turn Your Customer E-mail Data Into Gold!
(GRAPHIC)
LET ME SHOW YOU HOW - GUARANTEED!
Like most direct marketers, you probably have a huge email database on your
customers and do nothing with it. You are sitting on top of a gold mine...and
don't even know it.
Yesmail(TM)/ClickAction(TM) wrote the book on mining gold out of customer email
databases.
HOW DOES IT WORK?
1. Targeted customer acquisition strategies.
2. Smart, personalized retention email campaigns.
3. Multi-channel email campaigns.
4. Data appends.
5. Customized ROI tracking and reporting.
(ED HENRICH PHOTO)
ED HENRICH
President
Yesmail(TM)/ClickAction(TM)
(GEORGE GRANT PHOTO)
GEORGE GRANT
Executive Vice President
of Business Development
Yesmail(TM)/ClickAction(TM)
Utilizing your customer email database works! Here's what some of our direct
marketing clients have to say:
"ClickAction(TM) has helped HERSHEY'S Gifts identify high traffic areas in order
to promote their email updates via ClickAction's Automated Data Transfer
service. This has been extremely helpful to HERSHEY'S Gifts as we are now
receiving qualified,interested customers wanting to receive email updates."
- HERSHEY'S Gifts
"Email marketing has allowed us to drive consistent, incremental sales while
increasing product knowledge across our customer base - all in a very economical
way."
- Brooks Brothers
"ClickAction(TM) has been a valuable partner in helping us create and implement
our online direct marketing campaigns. These campaigns with ClickAction(TM) have
been a great way to not only build customer relationships but they have also
become a significant source of revenue for the company."
- Murad
15
SMALL BUSINESS GROUP
(D.J. THAYER PHOTO)
D.J. THAYER
President
Small Business Group
Small business owners and entrepreneurs need prospect lists and other sales and
marketing solutions to find new customers, grow their sales, cut selling costs
and increase profits. We help these small business owners in understanding their
customers, finding the right prospects at a low cost.
(JEFF FERRIS PHOTO)
JEFF FERRIS
(DOUG ROSSEMANN)
DOUG ROSSEMANN
Sales Leads to Meet Small Business Owner's Needs
(PROSPECT LISTS PHOTO)
PROSPECT LISTS
Four-color, easy-to-read prospect lists with pictures, where available. Perfect
for sales planning, telemarketing or following up on inquires. Order your list
by city, county, zip code or walk sequence.
(MAILING LABELS PHOTO)
MAILING LABELS
Our accurate addresses and contact names provide the highest rate of
deliverability. Peel and stick or Cheshire labels are available. They can be
sent directly to a mail house or fulfillment center.
FTP OR E-MAIL
When a customer places an order - it can be ready to download within a few hours
off our FTP site or the records can be sent directly to customers via e-mail.
Customers can start using the list immediately.
(3 X 5 SALES LEAD CARDS PHOTO)
3 X 5 SALES LEAD CARDS
The ideal traveling tools. Cards can be perforated and shipped. Great for
splitting leads among a salesforce and for note taking and follow-up.
(DISKETTES AND TAPES PHOTO)
DISKETTES AND TAPES
The convenience of computer delivery. The information is easily loaded into
Excel, ACT and many other software programs. Disks or tapes can be sent directly
to our customers or to a mail house.
ON THE INTERNET
www.infoUSA.com offers customers the ability to slice and dice our databases
from anywhere at any time. Once downloaded you can do more than print labels. It
gives customers complete control.
16
Business-to-Business Sales & Marketing Directories
State and national directories with detailed information about every business or
household. Available in printed book, DVD, and online at directoriesUSA.com.
Titles include:
(GRAPHICS)
BUY SALES LEADS ON THE INTERNET... (GRAPHIC)
www.infoUSA.com
First online shopping mall for business lists, consumer lists, specialty lists
and e-mail lists. Instantly source, select and download any list of any size.
17
CONSUMER PRODUCTS GROUP
(BOB REEVES PHOTO)
BOB REEVES
President/General Manager
Retail Sales
Millions of consumers and small office/home office operators use our retail
products. These products are sold in over 5,000 retail stores in the U.S. and
Canada-including Staples(R), CompUSA(R), Office Depot(R), MicroCenter(R),
Fry's(R), Business Depot(R) and many others. These products give customers a
taste of our database at an affordable price. We convert many of these customers
into on-going subscription users and benefit from recurring revenue.
(GRAPHICS)
(CDUSA LOGO) (PHONEDISC(R) LOGO) (PROCD(R) LOGO)
18
(GRAPHICS)
POWERFINDER(R)
Powerful tool to find 115 million U.S. businesses and consumers. Select Phone
Pro(R) Marketing database with information on over 115 million businesses &
consumers.
HOMELAND SECURITY 101(TM)
Complete information on 120 million people.
BUSINESS SALES LEADS & MAILING LISTS(TM)
Complete information on 14 million U.S. business listings.
CONSUMER SALES LEADS & MAILING LISTS(TM)
Complete information on 200 million consumers.
BUSINESS CREDIT RATINGS PRO(TM)
Credit ratings on over 14 million U.S. businesses.
YELLOW PAGES USA DELUXE(R)
Locate information on every business in the U.S.
POWER BUSINESS(TM)
Populate and update your contact manager with info on 14 million U.S.
businesses.
BUSINESS MAPPING(TM)
Map your prospects.
19
BUSINESS CREDIT REPORTS & DIRECTORIES
(TROY PETERSON PHOTO)
TROY PETERSON
General Manager
WHY DO SMALL BUSINESSES NEED BUSINESS CREDIT REPORTS?
No other company offers credit reports for every single business, no matter how
small or how newly established. One of our customers, a bank president, told us,
"There's no other place to get basic information without spending at least $20."
Our credit reports are $5.
Businesses Use Our Credit Reports Daily to:
o Make low-risk, low-dollar credit decisions
o Verify business existence
o Confirm information on new accounts
o Learn more about customers
o Find sales leads
o Qualify prospects
o Skip tracing
(GRAPHIC)
Business Credit Reports On the Internet!
(GRAPHIC)
www.BusinessCreditUSA.com
20
METRO SALES OFFICES
Sales & Marketing Consultants to Small Businesses
Companies such as Pitney Bowes, IKON, and Paychex have realized tremendous
success and growth through the use of consultative selling by their sales force.
Using a similar business model, infoUSA(R) Metro Sales Offices are positioned to
become THE marketing consultants to small business.
HOW DO WE CREATE RELATIONSHIPS?
Our highly trained sales staff visits businesses face-to-face and personally
introduces infoUSA's wide range of products and services. Every business knows
there is a personal representative assigned to them. Our marketing consultants'
primary goal is to help their clients grow their sales.
(INFOUSA PHOTO)
Small business customers have told infoUSA(R) that they want more one-to-one
help. They want us to tell them how to be effective with their mail, give them
marketing ideas and supply the targeted lists. Small business owners have little
time and limited resources. We are in a unique position to capture this market
and secure high levels of repeat business because of our established reputation
as the highest quality data provider in our market, and a proven track record in
relationship selling.
(KEITH MACCABE PHOTO)
KEITH MACCABE
Regional Manager
Field Sales Offices
(BOB CORTELTE)
BOB CORTELTE
Sr. Vice President
Field Sales Offices
Sales Growth Package Plus PC:
New in 2002, the Sales Growth Package Plus PC represents a breakthrough in small
business marketing. Packaging the computer hardware with infoUSA's industry
leading products creates an unbeatable value proposition to our clients. For one
low price, this complete marketing solution includes all the tools needed to
help the business with ongoing sales and marketing - including personal
consulting:
o Up to 2,500 customized prospects on a printed list and electronic file
o Monthly updates with changes to the prospect list
o One set of mailing labels every month!
o State Business-to-Business Sales & Marketing Directory with unlimited viewing
of all the businesses in their state
o CD or DVD of all the households within their state
o State Credit Directory
o Unlimited Business Credit Reports
o FREE PC
(MAP)
infoUSA(R) Metro Sales Offices are located in Chicago, Clearwater (FL), Denver,
Kansas City, King of Prussia (PA), Las Vegas, Miami, Minneapolis, Omaha,
Portland, Seattle, Sunnyvale (CA). More offices are on the horizon.
21
STATE BUSINESS DIRECTORIES
(STEVE CONDIT PHOTO)
Steve Condit
General Manager
State Directories
(GRAPHIC)
A MUST HAVE PRODUCT FOR:
o Finding New Sales Leads
o Pre-Qualifying Prospective Customers
o Marketing Research and Business Strategy
o Sales Territory Development & Assignments
o Helping Make Credit Decisions
o Verifying Business Information on New Accounts
o Researching Competition or Expansion Plans
o Finding Fax, Telephone, & Address Data
o Locating Suppliers
DATABASE INCLUDES:
o Company Name & Address Data
o Lines of Business with SIC Codes
o Business Owners & President Names
o Key Decision Maker Names & Titles
o Estimated Sales Volume
o Number of Employees
o Phone & Fax Numbers
o Credit Rating Codes
THE ULTIMATE SALES & Marketing Directory...
....that you'll find to be indispensable for your business. It's arranged as
follows:
SECTION 1 Businesses by City
Companies are listed alphabetically by name within each city. This section
includes the most information about each business:
SECTION 2 Businesses by Yellow Page Category
Listings are arranged by familiar yellow page categories, so you can focus on a
particular industry or type of business.
(GRAPHIC)
22
....AVAILABLE FOR ALL 50 STATES!
SECTION 3 Big Businesses
(sample not shown)
This section lists all companies with 100 or more employees along with all
publicly-traded companies. Listings are alphabetical by city, and include the
name of the owner or manager.
SECTION 4 Manufacturers
(sample not shown)
All Manufacturing firms are listed by city and product. Each listing includes
the name of the owner or manager, estimated sales volume and number of
employees.
AN EASY-TO-USE CD-ROM/DVD AT NO EXTRA CHARGE!
Now you can have access to all businesses in all 50 states in a CD-ROM database
for your PC! This amazing technology lets you "slice and dice" the information
any way you choose, to help you pinpoint your best prospects. The search
software is lightning-fast, and it's very easy to use.
In just a few minutes you'll be performing searches, researching markets,
finding new prospects or suppliers, or simply looking up businesses anywhere in
the state.
HOW CAN YOU SEARCH?
o Company Name
o City
o ZIP Code
o County
o Credit Rating Code
o Employee Size
o Estimated Sales Volume
o SIC Code
o Yellow Page Category
o Contact Title
o Public Company...and more!
HOW IS THE DATABASE COMPILED?
With a lot of care and a lot of investment! We start with the best sources
available:
o Yellow Pages and Business White Pages
o Annual Reports and SEC Documents
o Government Data and Public Filings...and more.
But that's not good enough-we then telephone-verify every listing, and collect
information such as the name of the owner or manager, number of employees,
primary line of business, and much more. This telephone verification process is
what sets us apart from our competition, in creating the most accurate business
database available! In a nutshell, you can use our database to find new
customers and grow your sales and profits! You'll have every business in the
state at your fingertips, for a host of applications:
o Finding leads for your sales force or dealers
o Locating suppliers
o Researching potential markets
o Helping make trade credit decisions...and more!
o For direct mail or telemarketing campaigns
HOW CAN YOU USE IT?
The printed directory is a handy reference for your home or office, or keep it
in your car or briefcase. The CD-ROM/ DVD is a phenomenal tool that lets you
"slice and dice" the database to find the perfect prospects in any market area!
23
POLK CITY DIRECTORIES(R)
(JOHN LAW PHOTO)
John Law
President
Polk City Directories
Since 1870, the name Polk has been synonymous with quality and integrity in
the directory publishing industry. From our first "hand built" directory that
was personally enumerated and followed railroad lines--to today's on-line "real
time" marketing solutions, Polk City Directories(R) has proved to be your
trusted partner for over 130 years.
Polk City Directories(R) are simply the most comprehensive sources available for
complete business and consumer information in a specific community. These
easy-to-use hardbound directories, infoTYME(R) CD-ROMs and internet access
bundles are available for over 930 cities across the country. When you need the
very best in local business and consumer information-- see why the only choice
is Polk City Directories(R).
(POLK CITY DIRECTORIES LOGO)
Now More than Just a Printed City Directory
NEW BUNDLE INCLUDES:
o infoTYME(R) 500 CD-ROM/DVD
o Nationwide Internet Access @ CityDirectory.com
o Hard-bound City Directory
HUNDREDS OF USES -- ONLY LIMITED BY YOUR IMAGINATION!
o Great Reference Tool
o Plan Sales Calls
o Identify Neighbors
o Expand Sales Territories
o Find New Customers
o And Much More!
(GRAPHIC)
Find us on the internet at:
www.CityDirectory.com
24
MORE THAN JUST A PRINTED CITY DIRECTORY!
POLK CITY DIRECTORY - Seven Directories in One
These easy-to-use hardbound directories are arranged in seven handy sections and
are the industry standard in printed reference directories.
INFOTYME(R) CD-ROM - The User-Friendly Desktop City Directory
This electronic directory on CD-ROM lets you target your markets effectively.
Slice and dice the information any way you want and then search, select and
download using multiple search criteria.
INTERNET ACCESS @ www.CityDirectory.com
Now you have nationwide internet access at www.CityDirectory.com. Access your
directory subscription, view neighboring state products and BUY customized
business and consumer sales leads and mailing lists anytime on the web.
SECTION 1 MORE DATA!
Alphabetical Section
Names, phone numbers, addresses, home owners, new movers and more for residents
and businesses.
(GRAPHIC)
SECTION 2 BIGGER!
Business Section
Company name, address, phone number, number of employees, owner/contact names,
and more!
(GRAPHIC)
SECTION 3 NEW!
"Movers & Shakers"
Shows the top 25% in the community based on professional achievement and
personal income.
(GRAPHIC)
SECTION 4
Street Guide
All Consumers and Businesses are arranged by street address in convenient
"walk-sequence". This is the perfect tool for Skip Tracing or identifying
prospects and neighbors on any block. Also includes phone and Zip code.
(GRAPHIC)
SECTION 5
Map Section
This detailed, easy-to-read section gives a visual reference of a community.
(MAP)
SECTION 6
Telephone Key
Every Residence and Business is listed in telephone number sequence. Also
includes the complete name and address for each listing.
SECTION 7
Demographic Summary
Demographics (such as income, age, and home value) for each carrier route and
ZIP code are included in this section.
25
HILL-DONNELLY(R) DIRECTORIES
(LEE HILL PHOTO)
Lee Hill
President
Hill-Donnelly
Helping Businesses Work Smarter Since 1917
Founded in 1917, and based in Tampa FL since the 1930s we are the original
publisher of Cross Reference Consumer and Business Directories in the United
States.
THE MOST COMPREHENSIVE AND ACCURATE SALES AND REFERENCE GUIDE OF AREA RESIDENTS
AND BUSINESSES
THESE UNIQUE DIRECTORIES COMBINE DETAILED INFORMATION FROM THE LOCAL TELEPHONE
COMPANY TO HELP BUSINESSES:
o Boost their sales
o Reduce their marketing costs
o Simplify tracing and locating
o Improve their service
o Save their time
(GRAPHIC)
26
THE HILL-DONNELLEY(R) CROSS REFERENCE DIRECTORY FEATURES SIX DISTINCT SECTIONS:
o MARKET PLANNING-A wealth of information is presented to help you pinpoint
areas having high concentrations of your best prospects.
o LOCATION SECTION STREET INDEX-Locate any street and distinguish between
streets of the same or similar name.
o LOCATION SECTION ZIP CODE INDEX-Find the streets that are located in your
prime target Zip code(s).
o LOCATION SECTION CENSUS TRACT INDEX-Find the streets that are located in
your prime target Census Tract(s).
o LOCATION SECTION-This section gives you a guided tour through the
community street-by-street.
o NUMERIC SECTION-This section is ideal for targeting telemarketing efforts
by telephone prefix.
To serve our customers even better, in September 2002 we acquired the City
Publishing Company. Founded in 1948, City Publishing produces Cross-Reference
Directories for nearly 100 metropolitan markets. In the first quarter 2003, we
completed the consolidation of City Publishing's sales, customer service and
production facilities into our new facility in Tampa, FL, which will result in
significant cost savings.
Together, our print editions are now available in over 300 markets totaling more
than 40 million listings and Cross+Search Plus, our CD-ROM product, will be
available nationwide in 2003.
In addition to our Cross Reference Directories (print editions and CD-ROM) we
also provide targeted consumer and business sales leads and data enhancement
services to help our clients take the guesswork out of their marketing and focus
on prospects that are most likely to respond to their offer.
Over the last decade we've helped over 150,000 companies improve their results.
Our clients range in size from some of the nations largest corporations and
governmental agencies to small, local enterprises.
Perhaps, our satisfied customers say it best...
(GRAPHIC)
"I use the Hill-Donnelly(R) CD-ROM in conjunction with both live and automated
telemarketing for my investment and real estate businesses. Because of the
quality of the information and the ease of use of your product, I am able to
talk with no less than 80 people per hour. I am getting 5 new prospects for my
business every hour. This is the best investment I have made- your technical
support is outstanding!"
- T. Anderson, PhD (Investors Security Corp)
(HILL-DONNELLY LOGO)
27
BUY SALES LEADS ON THE INTERNET
(RAKESH GUPTA PHOTO)
RAKESH GUPTA
President
Online Delivery
(AMIT KHANNA PHOTO)
AMIT KHANNA
Senior Vice President
Product Software
An Internet-based complete sales and marketing tool for small business owners
and marketing professionals. infoUSA.com combines all of the following sales and
marketing tools on one easy-to-use website:
o U.S. & Canadian Business Lists
o U.S. Consumer Lists
o Data Processing Services
o Business Credit Reports
o Business-to-Business Sales & Marketing Directories
o Customer Analyzer & Prospect Builder(TM)
infoUSA.COM OFFERS CUSTOMERS:
o Download business & consumer lists at real-time
o Cherry-pick names
o Pay only for the names you want
o No minimums
o Free registration
o Free counts
o Free price quotes
o Customer service via phone, email or instant messaging
o Choice of other list formats-mailing labels, prospect lists & 3x5 sales
lead cards
o Free white & yellow page information
(infoUSA.COM LOGO)
(GRAPHIC)
CUSTOMER ANALYZER AND PROSPECT BUILDER(TM)
Most small business owners don't know what their current customers are like, and
how to find prospects just like their customers. This proprietary software
developed by infoUSA(R) takes the guesswork out of finding new prospects.
Customer Analyzer and Prospect Builder(TM) analyzes the customer base and
delivers prospects that have similar characteristics. The analysis is free. The
business pays for only the prospect names it chooses.
Due to the fact that infoUSA(R) is the only company with a combined database of
220 million consumers and 14 million businesses, we are the only company who can
offer this type of application to our customers.
Business customers are analyzed by SIC code, number of employees, sales volume,
credit rating, years in business and other criteria. The consumer customers are
analyzed by such factors as age, income, household value and other
characteristics.
The next step will be to send personalized letters, brochures... everything
right from the web. infoUSA(R) is in discussions to find the right partners for
this mailing service. This is available 24/7 by going to www.infoUSA.com.
28
CORPORATE INFORMATION
BOARD OF DIRECTORS
VINOD GUPTA
Chairman & Chief Executive Officer
infoUSA Inc.
Harold W. Andersen
Retired Publisher
Omaha World-Herald
Omaha, NE
Richard Borda
Retired Vice Chairman
National Life Insurance Company
George F. Haddix
Former CEO
CSG Systems, Inc.
Omaha, NE
Elliot S. Kaplan
Senior Partner
Robins, Kaplan, Miller & Ciresi L.L.P.
Minneapolis, MN
Vasant Raval
Professor and Chair
Department of Accounting
College of Business Administration
Creighton University
Omaha, NE
Dennis P. Walker
President & CEO
Jet Linx Aviation
Omaha, NE
Executive Officers
Vinod Gupta, Founder, Chairman & Chief Executive Officer
Monica Messer, Chief Operations Officer Stormy Dean, Chief Financial Officer
Fred Vakili, Chief Administration Officer & Corporate Secretary
Al Ambrosino, Exec. Vice President, Business Development & Cross Sales
Scott Roberts, Corporate Controller
Ray Butkus, President, Donnelley Marketing
D.J. Thayer, President, Small Business Group
Ed Mallin, President, Walter Karl
Jeff Ferris, President, List Reseller Group
Lorne Groe, Vice President, Finance
Rakesh Gupta, President, Online Delivery
OFFICERS
Tim Buechler Sterling Hunt
Jim Cahill Amit Khanna
Bob Cortale John Low
Loren Donaldson Peter Malamas
Dan German Sandra Robinson
George Grant Doug Roesemann
Dan Gust Amy Rongisch
Ed Henrich Mark Schwartz
Lee Hill Kathy Sullivan
Bill Hippen Jim vanEttinger
Tim Hoffman Jack Waite
ANNUAL MEETING
The annual meeting of shareholders will be held at 5:00 p.m. on Monday, April
21, 2003 at the Jaipur, 10999 Elm Street, Omaha, Nebraska 68144.
INFORMATION FOR INVESTORS
The Annual Report and the Company's Form 10-K Report filed with the Securities
and Exchange Commission are available free of charge by writing to Laurel
Gottesman, Director of Investor Relations, infoUSA Inc., 5711 South 86th Circle,
Omaha, NE 68127.
COMMON STOCK
The Company's Common Stock, $0.0025 par value, is traded on the NASDAQ National
Market System under the symbol IUSA.
The following table sets forth the high and low closing prices for the Company's
Common Stock during each quarter of 2002 and 2001:
<Table>
<Caption>
high low
----- -----
2002
First Quarter $8.60 $6.55
Second Quarter $8.20 $5.47
Third Quarter $5.96 $3.92
Fourth Quarter $5.14 $2.86
2001
First Quarter $5.12 $2.25
Second Quarter $6.00 $3.95
Third Quarter $6.75 $3.84
Fourth Quarter $6.94 $4.00
</Table>
As of March 5, 2003, there were 144 stockholders of record of the Common Stock,
and an estimated additional 3,500 stockholders who held beneficial interests in
shares of common stock registered in nominee names of banks and brokerage
houses.
ACCOUNTANTS
KPMG LLP
Two Central Park Plaza
Suite 1501
Omaha, NE 68102
TRANSFER AGENT
Wells Fargo Bank Minnesota, N.A.
161 North Concord Exchange
P.O. Box 738
South St. Paul, MN 55075
CORPORATE COUNSEL
Robins, Kaplan, Miller & Ciresi L.L.P.
2800 LaSalle Plaza
Minneapolis, MN 55402
(INFOUSA LETTERHEAD) (POSTAGE STAMP)
When sales are slow...
and profits are down...
Who do you call? Call the "Recession Busters"
Call infoUSA(R)!
1-800-555-5335
(RECESSION BUSTERS LOGO)
OUR FAMILY OF COMPANIES & THEIR POPULAR LOGOS:
<Table>
(INFOUSA LOGO) (DONNELLEY LOGO) (INFOUSA.COM LOGO) (BUSINESSCREDITUSA.COM LOGO)
(ILLEGIBLE LOGO) (CLICKACTION(TM) LOGO) (WALTER KARL LOGO) (LISTBAZAAR.COM LOGO)
(AMERICAN BUSINESS INFORMATION(R) LOGO) (AMERICAN BUSINESS DIRECTORIES(R) LOGO) (AMERICAN CHURCH LISTS(R) LOGO)
(AMERICAN MEDICAL INFORMATION LOGO) (POLK CITY DIRECTORIES LOGO) (YESMAIL(TM) LOGO)
(INFOCANADA LOGO) (CDUSA LOGO) (PHONEDISC LOGO) (PROCD LOGO) (HILL-DONNELLEY LOGO) (ID LOGO)
</Table>