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The Kelsey Report® Advisory

Dex Media Gets Priced; Cuts Deal with InfoSpace
Charles Laughlin,Neal Polachek , 6/30/2004

SUMMARY: Dex Media's pending initial public offering (IPO) was priced Monday at between US$23 and US$26 per share for the nearly 53 million shares that will be issued. The pricing range suggests an equity value of between US$3.3 billion and US$3.8 billion, and an enterprise value of between US$9.4 billion and US$9.9 billion. Assuming the market reacts favorably to the pricing, this would suggest a return of between 33 percent and 39 percent, and a multiple of between 10.4 and 10.8 times earnings before interest, taxes, depreciation and amortization.

Separately, Dex Media announced a deal with InfoSpace Inc. to provide Dex's advertisers with additional traffic by serving them up in InfoSpace's Switchboard.com site. This delivers Dex Media's advertisers additional traffic and value within Dex's 14-state region. The Kelsey Group (TKG) has said for some time now that Dex Media will be a bellwether company to watch in the Yellow Pages space, and these announcements support this view.

Copyright � 2005 The Kelsey Group. All Rights Reserved.
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