VerticalResponse Reports Record Results for 2005

Email Marketing Firm Concludes Best Year in Company History

San Francisco, CA – February 9th, 2006 – VerticalResponse, Inc. announced today financial results for 2005, reporting the highest revenue and earnings in the Company’s history.  VerticalResponse’s strong fourth quarter marked the 15th consecutive quarter the company bested results from the comparable period of the previous year and the 14th straight time it reported revenues higher than those of the preceding quarter.  The strong finish helped boost year-over-year sales growth by 80 percent, while increasing net profits by 490 percent – both the highest figures in VerticalResponse history.

During 2005 the overall size of VerticalResponse’s client base rose by 59 percent from the previous year.  The Company’s direct mail postcard product experienced a similar surge, as revenue from this product line increased by 67 percent year-over-year.  Officials attributed the strong performance to growth in the company’s self-service email marketing solution, increased adoption of its integrated direct mail offering and ready acceptance of its new salesforce.com integration.

“We’re thrilled to have concluded the best year in VerticalResponse history and to have laid the groundwork for continued rapid growth in 2006 and beyond,” said VerticalResponse CEO Janine Popick. “This impressive performance results directly from the hard work of our employees and the continual improvements we’re making to VerticalResponse’s email and direct mail solutions.”

Due to a number of hires, VerticalResponse doubled the size of its staff in 2005, a year that included ample recognition for the San Francisco-based firm.  The company was named the 26th fastest-growing private company in the Bay Area by the San Francisco Business Times and selected as a finalist for “Fastest-Growing Company” and “Best Marketing Campaign” at the 2005 Stevie Awards for Women Entrepreneurs, where CEO Janine Popick was also honored in the “Executive of the Year” category.

In 2005, VerticalResponse introduced “VerticalResponse for AppExchange” a seamlessly integrated tool that enables all salesforce.com users to easily launch email and direct mail campaigns – with no restrictions on list size – from within the award-winning CRM solution.  In addition, the Company maintained its place at the vanguard of compliance issues by introducing the VerticalResponse Registry Compliance Program.  The Registry Compliance Program ensures that VerticalResponse clients abide by “Do Not Email Registries” and are protected when sending email campaigns to residents of states with Child Protection Laws.  VerticalResponse also took measures to ensure that its customer service and deliverability remain at world-class levels, instituting Live Chat and becoming a reseller in the Return Path® Bonded Sender program, a premier email accreditation service that helps legitimate marketers achieve higher levels of deliverability for the email campaigns they send. 

About VerticalResponse

VerticalResponse, Inc. (http://www.verticalresponse.com) is a leading provider of self-service email and direct mail services empowering 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 and affordable Web-based direct marketing solution available. VerticalResponse is headquartered in San Francisco, California. For additional information, please visit www.verticalresponse.com.

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