VerticalResponse Boosts Revenue 87 Percent to Hit Record Q3

Email Service Provider also named 26th Fastest-Growing Private Company in Bay Area

SAN FRANCISCO - October 25, 2005 - VerticalResponse, Inc. (www.verticalresponse.com) announced today that the company posted record sales for the third quarter ended September 30, 2005, increasing revenues by 87 percent over results from the same period of 2004.  The robust sales numbers continued a trend of strong returns for the provider of email and direct mail marketing services.  This marks the 14th consecutive quarter the company bested results from the comparable period of the previous year and the 13th straight time it reported revenues higher than those of the preceding quarter.

Officials attributed the performance to impressive growth in the company’s core self-service email offering, enthusiasm over its mass email integration for salesforce.com’s new AppExchange release, and increasing receptiveness to its automated postcard creation and delivery business.

Those drivers helped the company attract 90 percent more new customers in the third quarter of 2005 than it acquired in last year’s third quarter.  Overall, the company boasts 68 percent more clients than at the same stage in 2004.

“This was another in a series of record-breaking quarters for VerticalResponse, one highlighted by our ranking as the 26th fastest-growing private company in the Bay Area,” said Janine Popick, founder and CEO of VerticalResponse.  “Yet, the future looks even brighter.  Our sales figures have increased dramatically with each passing quarter, a trend that shows no end in sight.”

Popick indicated that VerticalResponse intends to continue the aggressive expansion of recent months as well as its ambitious efforts to refine and enhance its industry-leading email and direct mail marketing solutions.

About VerticalResponse

VerticalResponse, Inc. (http://www.verticalresponse.com) is a leading provider of branded experience email and direct marketing services. The company’s self-service and customized marketing solutions empower businesses of all sizes to create, manage and assess their own direct marketing campaigns. VerticalResponse’s flagship product, which allows customers to deliver sophisticated yet easily deployed email campaigns, is the most intuitive Web-based direct marketing solution available.  VerticalResponse is headquartered in San Francisco, California. For additional information, please visit www.verticalresponse.com.