ZipLocal Obtains Additional Debt Financing

The Company is able to draw-down on the facility in $250,000 monthly installments commencing on October 15, 2008 at the Company's sole discretion. Interest is 12% (increasing to 20% upon default) per year and is payable monthly until maturity. The loan matures on May 19, 2009. It is secured against all of the personal property of the Company and supported by a secured guarantee from ZipLocal's subsidiary, Zip411 Enterprises Inc. JLA Ventures is entitled to receive a fee of $30,000 for each drawdown made by the Company. The Company intends to use the proceeds of the loan as working capital for operating activities.

The loan from JLA Ventures is a related party transaction under applicable securities laws. John L. Albright, a director and Chairman of the Board of ZipLocal, is the Managing Partner of the general partner of JLA Ventures. In addition, JLA Ventures holds approximately 21.1 million common shares of the Company (representing approximately 26.5% of the outstanding shares of ZipLocal) and is an insider of the Company. The loan is exempt from the formal valuation and shareholder approval requirements to which related party transactions are subject because it represents less than 25% of the Company's capitalization.

The loan is subject to TSX Venture Exchange acceptance.

In addition, ZipLocal has taken steps to significantly reduce expenses in response to the difficult economic environment. ZipLocal is reducing its workforce by approximately 45%, primarily in the areas of administration, sales and marketing. Stephen Matyasfalvi, Vice President of Operations, is among those departing the Company. The Company will have approximately 28 employees after giving effect to the restructuring. The Company believes that the restructuring will help it adapt to changing market conditions and with its progression to profitability.

"We would like to thank all of ZipLocal's employees, including those departing the Company, for their dedicated service," stated Elaine Kunda, President and CEO of ZipLocal.

ZipLocal expects the cost reductions to yield annualized savings of approximately $1.3 million. The cost of the restructuring is estimated to be approximately $100,000 and will be recorded in the second quarter of fiscal 2009. ZipLocal currently has 79,757,515 common shares issued and outstanding. -- www.cnxmarketlink.com