News

Pennsylvania papers love their auctions - to the tune of $9 million in sales

Keystone State leads U.S. markets with 47 auctions by 31 newspapers since 2003

VANCOUVER, British Columbia - June 11, 2007 - Newspapers in Pennsylvania have embraced online auctions with more enthusiasm and success than any other U.S. state. Keystone State newspapers have staged 47 auctions since 2003, selling more than 14,700 products valued at nearly $9 million, according to data compiled by CityXpress, the leading provider of online auctions and marketplaces to newspapers world-wide.

To date, 31 papers - from large-circulation dailies in Philadelphia, Pittsburgh and state capital Harrisburg to the 9,000-circulation Lock Haven Express - have staged online auctions with CityXpress. Together, these events have attracted over 4,800 advertisers - including more than 2,000 new and reactivated customers - to their host newspapers, along with 31,000 registered bidders.

Pennsylvania's busiest auction hosts include:

Pennsylvania boasts one of the country's largest concentrations of daily newspapers, with 81 papers serving a population of about 12.4 million.

Why have auctions proven so popular with Keystone State newspapers - and their readers and advertisers?

In a single promotion, an auction offers multiple benefits for all players: readers, advertisers, newspaper sales staff and the newspaper itself, said Kelly Gambini, publications manager of The Patriot-News.

"The newspaper can mass-market the event, give our readers an innovative way to interact with the advertisers and give the advertisers promotion, store traffic, an ad campaign and a customer lead list - all in one product. The online component offers a larger footprint geographically and demographically to our advertisers.

"From the sales perspective, it's the perfect vehicle to offer a new advertiser a 'trade opportunity' which other media have done for years. Consumer participation has increased with each of our auctions, sell-through has increased, and the bottom line has increased as a result of this program."

"Pennyslvania is the home of some of our best and most successful auction clients," said Phil Dubois, president and CEO of CityXpress. "Their consistent success and loyalty demonstrate that our auction program has lasting value and that as newspapers refine it to suit local conditions they can expect to see better results and better margins."

CityXpress has staged nearly 700 auctions since 2002, with over 375 newspapers and media companies in North America and internationally, earning in excess of $170 million in revenue for its clients. CityXpress expects to stage more than 180 auctions for clients in its fiscal year 2007.

About CityXpress Corp.
CityXpress Corp. (www.cityxpress.com) is a leading developer of revenue-generating marketplace products and programs for newspapers and the broadcast media. Founded in 1999, CityXpress works with clients across North and South America, Europe, Australasia and Africa to stage local event and continuous auctions, as well as develop online classified marketplaces. CityXpress provides its customers with hosted software, sales training programs, and customer support services. The company currently provides services to newspaper companies including Advance Publications, MediaNews Group, McClatchy, Gannett, Lee Enterprises, Scripps, the New York Times Company, the Tribune Company, Ottaway Newspapers, CanWest, the Northcliffe Newspapers Group and Fairfax. Headquartered in Vancouver, British Columbia, CityXpress also maintains an international office in London.

Media Contact:
Michael Togyi
CityXpress
mtogyi@cityxpress.com
604.638.3825

This press release and/or communication contains forward-looking statements regarding the Company's business strategy and future plans of operations. Forward-looking statements involve known and unknown risks and uncertainties, such as the Company's capital requirements and other liquidity concerns, fluctuations in demand for newspaper auctions and for the Company's other products, competition, technological developments, and other risks and factors. These and other important factors may cause actual results and performance to differ materially from the results expressed in or implied by such forward-looking statements. The forward-looking statements are based on information available to the Company and speak only as of the date hereof. The Company does not assume, and expressly disclaims any obligation or duty to update or revise any of the information presented herein.