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this is behind hill's optimism 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.

Regards
Quik.