Dolphin Issues Letter to infoUSA Shareholders Appears Futile to Rely on Board.

STAMFORD, Conn., July 31 /PRNewswire-FirstCall/ -- Dolphin Limited Partnership I, L.P., and Dolphin Financial Partners, L.L.C. which together hold 2.0 million shares of infoUSA Inc. issued the following letter to shareholders:

 
                                                               July 31, 2006 
 
  Dear Fellow infoUSA Shareholders: 
 
 

Dolphin Limited Partnership I, L.P., and Dolphin Financial Partners, L.L.C. hold 2.0 million shares of infoUSA Inc. .

On May 26, 2006, 90% of IUSA's unaffiliated shareholders sent a strong message to its Board:

 
  * Mr. Vinod Gupta should not be exempt from the shareholder rights plan; 
 
  * Mr. Vinod Gupta should not receive stock option or equity security 
    grants enabling him to execute what appears to be a creeping takeover; 
 
  * the full board should reconstitute the Special Committee, and the 
    Committee should complete the work it began before it was improperly 
    terminated; 
 
  * all related party transactions or direct payments for inappropriate 
    assets should be eliminated with full restitution made if appropriate; 
 
  * the Company's operating performance needs significant improvement; and 
 
  * Mr. Vinod Gupta, Dr. George Haddix and Dr. Vasant Raval should no longer 
    serve as directors. 
 
 

On July 21, 2006 the Company issued its second quarter results. Even after allowing for $5.4 million (pre-tax) of stated one-time items and incremental advertising expenses, IUSA's operating results, again, fell short of analyst expectations. This only adds to what have been several years of Company earnings misses and negative guidance revisions. At present, IUSA's shares (dividend adjusted) trade at approximately the same level it achieved over three years ago and continues to trade at a material discount to its publicly-traded peers. Although the Company stated $8 million in annual cost savings would be achieved from restructuring, IUSA's shares experienced a 12% price decline subsequent to its reported earnings miss, and 2006 EPS analyst consensus estimates are now below management guidance. We believe that investors are placing little confidence in ...