LookSmart Announces Receipt of Nasdaq Delisting Letter and Intention to Appeal

    SAN FRANCISCO, Oct. 17 /PRNewswire-FirstCall/ -- LookSmart, Ltd. (Nasdaq:  
 LOOK; ASX: LOK), an online media and technology company specializing in
 vertical search, today announced that on October 13, 2005 it received a letter
 from the Nasdaq staff stating that the Company has failed to comply with the
 $1.00 minimum bid price required for continued listing of its common stock on
 the Nasdaq National Market set forth in MarketPlace Rule 4450(a), and as a
 result the Company's common stock is subject to delisting.  The letter also
 stated that the Company may request a review of the staff determination to a
 Nasdaq Listing Qualifications Panel.
     Previously, on October 3, 2005, the Company filed proxy materials with the
 Securities and Exchange Commission relating to a special meeting of
 stockholders to be held on October 26, 2005, to seek approval of a proposed
 reverse stock split, which may be appropriate to maintain the listing of the
 Company's common stock on the Nasdaq National Market.
     The Company intends to appeal the October 13 staff determination by a
 Nasdaq Listing Qualifications Panel.  Although there can be no assurance that
 the Panel will grant the Company's request for continued listing, the appeal
 will stay the delisting of the Company's stock from the Nasdaq National Market
 pending the Panel's decision.
     "Maintaining our listing on the Nasdaq National Market is an element of
 our strategy to return this company to sustainable growth and increase
 stockholder value.  We are taking appropriate measures to maintain our listing
 through the request for review and the stockholder meeting on a proposed
 reverse split.  We look forward to providing an update on our operational
 progress on our next earnings call on October 27th," said David Hills,
 LookSmart's President and CEO.
     As of the September 21, 2005 record date, there were 113,855,108 shares of
 common stock outstanding.  Approval of the reverse stock split proposal will
 require the approval of holders of a majority of the total shares of stock
 outstanding as of the record date for the special meeting.
     About LookSmart
     LookSmart is an online media and technology company, which provides
 relevant content, advertising and technology solutions for consumers,
 advertisers and publishers. LookSmart's owned and operated vertical search
 sites are where customers look for what they need, and the sites and web tools
 offer essential search results with the ability to find, save and share
 content. In addition to owned and operated properties, LookSmart's
 distribution network includes syndicated publishers and search engine partners
 that maximize advertiser ROI. Distribution partners include Lycos, CNET,
 InfoSpace (Excite, MetaCrawler, Webcrawler), Cox Interactive, Apple's
 Sherlock, and U.C. Berkeley. LookSmart offers a customizable set of syndicated
 solutions for publishers to grow their advertiser relationships and audience.
 LookSmart is based in San Francisco, California. For more information on
 LookSmart, visit www.looksmart.com or call 415-348-7500.
     Except for the historical information contained herein, the matters
 discussed in this release are forward-looking statements that involve risks
 and uncertainties that could cause actual results to differ materially from
 those in such forward-looking statements.  These forward looking statements
 are made only as of the date of this press release, and LookSmart undertakes
 no obligation to update or revise the forward-looking statements, whether as a
 result of new information, future events or otherwise.  Accordingly, you
 should not place undue reliance on these forward-looking statements.
 Potential risks and uncertainties include, but are not limited to, the
 possible delisting of the Company's stock from the Nasdaq National Market as a
 result of the failure of the holders of a majority of the Company's stock to
 vote in favor of the reverse stock split and the Company's ability to
 successfully implement its operational plan.  These and other risk factors are
 described in detail in the Company's Quarterly Report on Form 10-Q for the
 quarter ended June 30, 2005, its Annual Report on Form 10-K for the year ended
 December 31, 2004 and in other documents filed with the SEC.
     NOTE:  "LookSmart" is a registered trademark of LookSmart, Ltd., and/or
 its subsidiaries in the U.S. and other countries. Any other trademarks
 mentioned are the property of their respective owners.
     Investor Contact:
       Alex Wellins
       The Blueshirt Group

SOURCE LookSmart

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