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Goldman, Sachs & Co. and Hearst Corporation Lead $30M Series C Financing for Fast Growing Free Directory Assistance Provider Jingle Networks 1-800-FREE411 Service Processed 85 Million Calls in First 12 Months; Total Capitalization Exceeds $60M

Jingle Networks, operator of the 1-800-FREE411 directory assistance service, announced today it has raised $30 million of Series C financing led by Goldman, Sachs & Co. and Hearst Corporation. Also participating in the financing are previous investors Comcast Interactive Capital, First Round Capital, IDG Ventures Boston and Liberty Associated Partners. This follows a $26 million Series B round in April 2006 led by Liberty Associated Partners.

Just one year after its introduction, 1-800-FREE411 (800-373-3411) has altered the directory assistance (DA) market, estimated at between $5 billion-$7 billion, and has become the nation’s leading advertiser-supported 411 service. Jingle now processes almost three percent of DA calls in the U.S., accounting for more than 13 million inquiries from more than four million consumers each month. Instead of paying between $1 and $2 for each call, consumers may hear short marketing offers and are then given the opportunity to either respond or to continue with their lookup request. The service otherwise offers the same lookup services as paid directory assistance services.

“The 1-800-FREE411 service is meeting the needs of an increasingly disenchanted consumer who can now bypass the excessive fees being charged by traditional 411 providers and receive the same service quality they expect for free. The data shows consumers are making a clear choice that free is better than paid,” said George Garrick, president and CEO of Jingle Networks. “With this round of financing, our investment roster includes some of the world’s largest and most influential financial, cable and media institutions. We continue to capitalize the business as our call volume and advertising market momentum continue to grow.”

“Jingle Networks has quickly established itself as a major player in the directory assistance market, and has the potential to be an emerging contender in consumer advertising.” said Ken Bronfin, president, Hearst Interactive Media. “We believe that Jingle’s early market leadership and future growth and income potential represent a very strong investment opportunity.”

The 1-800-FREE411 service offers an interactive, one-to-one communication with targeted prospects at crucial moments in the marketing cycle, delivering lower-cost, no-risk customer acquisition compared to traditional media. Advertisers are quickly adopting the new medium; CBS recently reached millions of consumers in a campaign promoting its fall lineup with audio spots from the stars of its shows (see full press release). Other recent advertisers include 1-800-flowers.com, 1-800-Mattress, 1-800 CONTACTS, Discount Tire, ID Media, Ingenio, OMD, Roto Rooter, The South Beach Diet, Vonage and Zagat Survey.

According to a recent survey by market researcher comScore Networks, more than 70% of consumers strongly believe that 411 services should be provided free of charge. The study also found that 88% of consumers would definitely or probably use a free DA service more frequently than a paid service (see press release for more on the survey).