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infoUSA Sends Letter to Shareholders; Urges Shareholders to Vote FOR infoUSA Directors and AGAINST Shareholder Proposal Number 2.


OMAHA Omaha, city, United States
Omaha (ō`məhä, –hô), city (1990 pop. 335,795), seat of Douglas co., E Nebr., on the west bank of the Missouri River; inc. 1857.
, Neb. -- infoUSA The creator of this article, or someone who has substantially contributed to it, may have a conflict of interest regarding its subject matter.
It may require cleanup to comply with Wikipedia's content policies, particularly neutral point of view.
 (Nasdaq:IUSA IUSA Indiana University Student Association ) today sent the following letter to all infoUSA stockholders recommending that they vote FOR the Board's director nominees and AGAINST shareholder proposal number 2:
IMPORTANT REMINDER

  - The Upcoming infoUSA Annual Meeting is Critical to the Future of
                           your Investment -

   - Time Is Short. Please Sign, Date and Return the Enclosed White
                          Proxy Card Today -

          VOTE FOR infoUSA DIRECTORS AND AGAINST PROPOSAL #2


Dear infoUSA shareholder:

Your Company's May 26th Annual Meeting of Shareholders is rapidly
approaching and every vote counts. We strongly urge you to support the
re-election of our three highly qualified nominees - Vinod Gupta, Dr.
George Haddix and Dr. Vasant Raval - by signing, dating and returning
the Company's enclosed WHITE proxy card today. Your Board also urges
you to vote AGAINST shareholder proposal number 2.

     -  infoUSA's existing Board is highly qualified, independent
        minded and represents the interest of all shareholders. We
        believe that the dissident nominees represent only the
        dissident, not all infoUSA shareholders, and that the election
        of the dissident slate could negatively impact shareholder
        value.

     -  The interests of infoUSA's director nominees are directly
        aligned with the interests of all infoUSA shareholders. The
        full Board together with the senior management team
        beneficially own approximately 43% of the Company. The
        dissident nominees have no financial stake in the success of
        infoUSA.

     -  infoUSA's nominees have the right experience and knowledge to
        enhance value FOR ALL SHAREHOLDERS. The dissident nominees
        have no working knowledge of infoUSA, its business or the
        industry and no relevant industry experience.

     -  infoUSA's Board and management have a strategic growth plan to
        enhance value for all infoUSA shareholders. The dissident
        nominees do not.

     -  The infoUSA strategic growth plan is working and should not be
        derailed. infoUSA had a great first quarter of 2006 in which
        the Company generated 4.3% organic revenue growth and revised
        revenue guidance to the upper end of the range for the year.
        We believe that infoUSA has the customers, content and
        distribution to continue to grow organically and enhance
        shareholder value and that the election of the dissident slate
        could interrupt the implementation of the strategic plan.

In short, we believe that the infoUSA nominees -- unlike the dissident
nominees -- have the qualifications, experience, strategic plan and
proven track record to enhance value for all infoUSA shareholders.

               INDUSTRY EXPERT SUPPORTS infoUSA NOMINEES

A leading industry publication, Direct Magazine, recently published an
article by Ray Schultz, a well-respected journalist who has covered
our industry for more than 20 years. Mr. Schultz endorsed the infoUSA
nominees and agrees that electing the dissident slate could have a
negative impact on value creation (a copy of the article from
directmag.com is available at
http://directmag.com/opinions-columnists/directhit/direct-hit-win-with
-vin--51906/index.html).(1) (Due to its length, this URL may need to
be copied/pasted into your Internet browser's address field. Remove
the extra space if one exists.)

Take a look. Mr. Schultz wrote: "What we are saying is that he is the
best person to run infoUSA. And so we advise the fence-sitters in next
week's board election: Vote the Vin ticket."

      DON'T BE MISLED BY DOLPHIN'S EMPTY RHETORIC AND MISLEADING
                              STATEMENTS

       THE CURRENT infoUSA BOARD IS COMMITTED TO SOUND CORPORATE
                              GOVERNANCE

                DOLPHIN AND ITS DISSIDENT SLATE ARE NOT

Dolphin's most recent communication is simply an attempt to create a
smoke screen of empty rhetoric. Their carefully crafted, intentionally
inflammatory statements about related party transactions is just
another effort to divert your attention from the real question --
which candidates are best qualified to be directors of infoUSA and
stewards of your investment in the Company. Here are the real facts,
which they are trying to obscure:

        Your Board, with the active involvement of Dr. Vasant Raval
        (Chairman of the Audit Committee and current nominee),
        extensively reviewed infoUSA's related party transactions and
        arrangements and sought and received the advice of the
        Company's outside auditors and other advisers that such
        transactions and arrangements were appropriately documented,
        proper business expenses of the Company.

        The Company, at the direction of your Board, has acted to
        eliminate almost all related party transactions and
        relationships. These services are now being obtained from
        unrelated third parties.

        Dolphin was aware of these properly incurred and documented
        transactions, both when they made their initial investment
        last June, and as they increased their investment in infoUSA
        substantially since last August.

        Under the oversight of your Board, infoUSA has developed a
        strong internal audit function that reports directly to the
        Audit Committee, and has internal policies and procedures that
        were tested and received a clean Section 404 report from the
        Company's outside auditors for 2005.

Despite Dolphin's self-serving rhetoric to the contrary, this Board
has demonstrated accountability and has done the right thing by
proactively taking actions to strengthen its corporate governance.

A[micro]   But where is the commitment to accountability and good corporate
governance of Dolphin and its nominees? Their record belies their
empty rhetoric. Consider that Dolphin would have you elect, as
stewards of your investment, individuals whose experience as public
company directors was falsely and misleadingly reported in Dolphin's
proxy materials until we asked our shareholders to look at the public
record. Look at that public record and you will see that Dolphin's
slate of candidates is made up of individuals lacking knowledge of
infoUSA, its business and its industry and relevant industry
experience; who have a track record of being nominated for election by
those with the objective of obtaining control of other publicly held
companies; and whose public company board and audit committee service
coincides with a deteriorating record of ineffective disclosure
controls and procedures, repeatedly late SEC filings and delisting
from NASDAQ.

                        YOUR VOTE IS IMPORTANT

Regardless of the number of shares you hold, it is important that your
shares be represented and voted at the annual meeting on May 26, 2006.
Therefore, please sign, date and mail your proxy card as soon as
possible, whether or not you plan to attend the meeting, to ensure
that your shares are voted.

   WITH YOUR SUPPORT, infoUSA'S BOARD AND MANAGEMENT CAN CONTINUE TO
                   BUILD VALUE FOR ALL SHAREHOLDERS

Your Board asks that you support your Board and management team by
voting FOR infoUSA's incumbent directors and AGAINST proposal number 2
on the enclosed WHITE proxy card today. If you have any questions
about how to vote your shares please contact our proxy solicitor,
MacKenzie Partners, toll free at (800) 322-2885.

    VOTE FOR YOUR BOARD'S NOMINEES AND AGAINST PROPOSAL NUMBER 2 ON
                      THE WHITE PROXY CARD TODAY


Thank you for your continuing support.

Sincerely,

Vinod Gupta
Chairman & Chief Executive Officer
infoUSA Inc.


About infoUSA

infoUSA (www.infoUSA.com), founded in 1972, is the leading provider of business and consumer information products, database marketing services, data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a  services and sales and marketing solutions. Content is the essential ingredient
This article is about ingredients in general. There is also an American soul and R&B group called The Main Ingredient.


An ingredient is something that forms part of a mixture (in a general sense).
 in every marketing program, and infoUSA has the most comprehensive data in the industry, and is the only company to own a proprietary database of 250 million consumers and 14 million businesses under one roof. The infoUSA database powers the directory services of the top Internet Internet

Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the
 traffic-generating sites. Nearly 3 million customers use infoUSA's products and services to find new customers, grow their sales, and for other direct marketing, telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. , customer analysis and credit reference purposes. infoUSA headquarters are located at 5711 S. 86th Circle, Omaha, NE 68127 and can be contacted at (402) 593-4500. To know more about Sales Leads A sales lead is the identity of a person or entity potentially interested in purchasing a product or service, and represents the first stage of a sales process. The lead may have a corporation or business associated with the person(s). , click www.infousa.com. To get a 7-day free trial and 100 free sales leads, click www.salesgenie.com.

Statements in this announcement other than historical data and information constitute forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied Inferred from circumstances; known indirectly.

In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated.
 by such forward-looking statements forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
. The potential risks and uncertainties include, but are not limited to, recent changes in senior management, the successful integration of recent and future acquisitions, fluctuations in operating results, failure to successfully carry out our Internet strategy or to grow our Internet revenue, effects of leverage, changes in technology and increased competition. More information about potential factors that could affect the company's business and financial results is included in the company's filings with the Securities and Exchange Commission.

(1) Consent of the author and the publication to refer to this article and the statements contained therein has neither been sought nor obtained.
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:May 22, 2006
Words:1386
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