VerticalResponse Projects Largest Revenue Growth to Date for Q4 2007

Profitable since the beginning of 2005, the leading provider of on-demand email marketing and direct mail solutions for the small business market rides powerful momentum into end of year

San Francisco, CA, October 09, 2007 — VerticalResponse, Inc., the leading provider of on-demand email marketing and direct mail solutions, today projected its highest revenue quarter-to-date, on the tails of third quarter reporting. This year, the company has invested heavily in product development; won a series of prestigious awards and honors; and harnessed the power of social media with a broad array of offerings and outreach. The result is rapid growth, with more than 7,000 new customers signed on in the first three quarters of this year, bringing the total number of paying customers to 32,000. Revenue is likewise up, with nearly 36% increase over this time last year.

“Our continued growth is incredibly exciting, given the climate we launched into at the beginning, nearly 7 years ago. Because we didn’t raise a lot of capital initially, we’ve always had to be very smart about how we spend, and were forced to grow from our own profits and strong word of mouth marketing,” said Janine Popick, founder and CEO of VerticalResponse. “The result is a lean organization that’s able to quickly and nimbly respond to customer feedback and changes in communications strategies, which keeps us close to the pulse of the small businesses we serve at the core of our business.”

Product
Last week, VerticalResponse launched its biggest upgrade since inception with a List Segmentation tool that promises to greatly increase the efficacy of target marketing. In addition, the first three quarters brought VerticalResponse customers incredibly robust features, including:

• Google Analytics Integration, a new reporting solution to measure email campaign effectiveness.
• The Email Canvas, which provides a WYSIWYG Editor and several pre-built layouts into which customers can simply add text and images
• The Media Library, granting 25 MB of free hosting for images that can be easily uploaded, and then categorized in folders and subfolders
• VerticalResponse for AppExchange 3.0, which includes both new custom reporting objects, and reports and dashboards. The upgrade also allows customers to access salesforce.com mail templates
• The VerticalResponse Application Programming Interface (API), which allows award-winning self-service email marketing software to be extended and integrated into other platforms
• Interactive Marketing Calendar (IMC), to break down the tasks to be accomplished prior to an email campaign launch date, keeping business owners on task and helps them capitalize on opportunities presented by holidays and other key dates
• Quick List Creation feature, designed as a campaign follow-up tool, to let users quickly create lists of recipients who opened, clicked, converted, purchased or performed no action for a given campaign

Awards
VerticalResponse’s rapid growth, attention to development and commitment to customers and communication has led to a series of prestigious awards, including:

• San Francisco Business Times’ of “Top 100 Fastest-Growing Private Companies”
• Dreamforce Best-in-Show at salesforce.com’s 2nd Annual Appy Awards
• Best Overall Company at the American Business Awards and nominations as a finalist in five additional categories
• San Francisco Business Times’ list of Best Places to Work in the Bay Area
• Inc. 5000 List of Fastest Growing Companies
• Web Marketing Award for Outstanding Achievement in Website Development
• Janine Popick’s blog won Blog of the Year at the STEVIE’s for Women in Business

Social Networking and Media
Part of VerticalResponse’s continued success is due to its embrace of new media, and subsequent close contact with both existing customers and prospects. Among new initiatives launched this year, VerticalResponse:

• Created the VR Lounge, its own social networking site, allowing customers to connect with each other and with VerticalResponse partners and staff, in an open, customizable experience self-tailored to fit their needs
• Continued work with the award-winning Email Marketing Blog
• Launched a FaceBook group to solicit participation in live webinars, feedback on new and projected product updates and otherwise link to the small business community
• Released its second viral video around salesforce.com’s annual conference, spurring thousands of YouTube views and site visits

VerticalResponse launched after the dot.com bust with a business model focused on leveling the playing field for small and mid-sized business. A deep commitment to this customer base, quick product development, innovative communications and good customer service have proven the model and led to continued momentum.

About VerticalResponse
VerticalResponse, Inc. (http://www.verticalresponse.com) is a leading provider of self-service email marketing and direct mail services empowering small businesses and non profit organizations to create, manage and analyze 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.