October 05, 2005 1:48 PM CDT

ServiceMagic Completes Acquisition of ImproveNet

By ServiceMagic, Inc.

ServiceMagic, Inc. announced the successful completion of its acquisition of the stock of ImproveNet, Inc., a leading online home services marketplace. ServiceMagic purchased all of the outstanding shares and in-the-money warrants and stock options of ImproveNet for approximately $6.7 million in cash or approximately $0.12 per share.

Effective upon the closing of the transaction, all residential contractors in the companies' respective networks will benefit from access to leads via the improvenet.com and servicemagic.com websites. In addition, the 1-800-Contractor phone number and 1800contractor.com website will continue to operate as a service of ImproveNet, Inc.

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About the Author

ServiceMagic is the nation’s leading website connecting consumers with screened and approved local service professionals. Additional information can be found at www.servicemagic.com.