INCX Interchange

Interchange Corporation (Nasdaq:INCX), owner of Local.com, a leading local search engine, today launched LocalConnect, a private label local search engine for regional web sites and publishers to provide local search on their web sites. Local sponsored search will grow far more quickly than online local advertising overall (Borrell Associates, Inc., Sept. 2005), and LocalConnect enables publishers to tap into this growth market while making their sites more relevant and useful for their local audiences. LocalConnect (www.local.com/localconnect) offers publishers a simple three-step process to customize and build a powerful local search engine for their site within days. LocalConnect also represents added revenue opportunities for web sites by allowing them to integrate and enhance their own advertiser listings with local and national sponsored listings from Interchange's large network of advertisers. Interchange has developed and hosted internal search engines for several small- to medium-sized businesses. According to Vickie Young, Vice President of Product Management at Interchange, "We saw demand from regional media for a better local search engine for their own sties. This led to the development of LocalConnect." LocalConnect uses Interchange's patent-pending Keyword DNA(TM) and web indexing local search technologies, which enables users to more easily search for local businesses, products and services. Keyword DNA utilizes business characteristics such as location, service area and business-specific keywords to automatically create a searchable keyword profile for each local business. The web indexing technologies crawl the web sites of local businesses to ensure that up-to-date content is available to consumers direct from the business source. "We have used Interchange's search interface platform for our online community. Since we've implemented the search functions, our online traffic has increased significantly," said Allan W. Kiezel, Chief Technology Officer for LIDaily.com. "It has also greatly impacted our online advertising sales. This search capability has definitely gained interest and recognition from our members and is helping us bring Long Island local businesses and consumers together." Peter Krasilovsky, publisher of The Local Onliner, a leading newsletter analyzing local media trends, states, "Small- and medium-sized businesses, such as newspapers, real estate agents, auto dealers and bookstores, are increasingly supporting broader local information needs for their customers. LocalConnect is ideally positioned to support these rising trends." About Interchange Interchange Corporation (Nasdaq:INCX) owns Local.com (www.local.com), a leading local-search engine that has grown to over 8 million visitors per month and is powered by the company's proprietary Keyword DNA(TM) and local-web indexing technologies. The company serves local and national Internet, wireless and operator assisted local-search markets in the United States and Europe. Interchange generates revenue principally from paid-search advertising. The company recently launched a 60,000 strong domain syndication network in the United States and has also announced plans to launch Local.com in Europe during 2006. The company is headquartered in Irvine, Calif., with European headquarters in Stockholm, Sweden. For more information on Interchange, please visit: www.interchangeusa.com. Forward-Looking Statements: All statements other than statements of historical fact included in this document regarding our anticipated financial position, business strategy and plans and objectives of our management for future operations, are forward-looking statements. When used in this report, words such as "anticipate," "believe," "estimate," "plans," "expect," "intend" and similar expressions, as they relate to Interchange or our management, identify forward-looking statements. Any forward-looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to our management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including, but not limited to, our ability to stabilize our national paid search advertising business, our ability to operate, grow and monetize our local search engine, Local.com, and incorporate our local-search technologies, market the Local.com domain as a destination for consumers seeking local-search results, grow our business by enhancing our local-search services, improve our filtering technologies expand our Advertiser and Distribution Networks, expand internationally, integrate the operations and effectively utilize the technology of Inspire, a Swedish Internet and wireless local-search technology company, which we recently acquired, integrate the operations and effectively utilize the technology of Inspire, develop our products and sales, marketing, finance and administrative functions and successfully integrate our expanded infrastructure, as well as our dependence on major advertisers, competitive factors and pricing pressures, changes in legal and regulatory requirements, and general economic conditions. Any forward-looking statements reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this paragraph. Our Annual Report on Form 10-KSB, subsequent Quarterly Reports on Form 10-QSB, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.