STAMFORD, Conn., Sept. 19 /PRNewswire/ -- Dolphin Limited Partnership-I, L.P., ("Dolphin"), which together with its affiliate holds 1.2 million shares or approximately 2.2% of infoUSA Inc. ("IUSA" or "the Company"), today announced that it is commencing a books and records search regarding certain activities of the Company, its officers and directors. In accordance with the Delaware General Corporation Law, IUSA has five business days to fully comply. Should the Company choose to not fully and promptly comply with this valid request, Dolphin expects to bring an action to compel the delivery of the requested records. On August 31, 2005, Dolphin sent a letter to each non-management director of IUSA, and copied some of the other largest listed unaffiliated shareholders with nearly 33% of the shares. In this letter, Dolphin cited what it believes are highly unusual related party transactions, numerous irregular public disclosures and events surrounding the aborted proposal for a going private transaction, as well as a general failure of the board to "administer any real oversight." As noted in the letter, Dolphin believes these circumstances have caused the Company's shares to trade at a meaningful discount from its peers. Dolphin further invited the board to correct any assertions set forth in its letter that the directors believed were erroneous. Dolphin received no corrections. Also in its letter, Dolphin called upon the board to initiate prompt corrective action, starting with, among other things, amending the existing stockholder rights plan to plug the exemption for the Company's CEO, Mr. Vinod Gupta, and to reverse all related party transactions. Dolphin believes the matters set forth in its letter should have been addressed solely by the non-conflicted members of the board, to the exclusion of the CEO. To its surprise, Dolphin was informed that its letter was forwarded to the entire board. On September 14, 2005, the Company filed a form 8-K with the SEC with respect to a letter that the board received from Mr. Gupta. The letter states that Mr. Gupta would not acquire any additional shares for six months from the letter's date (September 12, 2005), unless the Company announced that it had entered into an agreement with a third party contemplating a business combination transaction involving the Company or a change of control of the Company. Dolphin believes that this limited commitment, if indeed it is enforceable, is no substitute for an amendment to the rights plan. On the contrary, if as the Form 8-K implies, this letter has been accepted by the board, the letter continues a pattern in Dolphin's view of favored treatment for Mr. Gupta and his affiliates. Further, we expect this board will not take any action that will have the indirect effect of increasing Mr. Gupta's percentage interest in the Company. It is extremely unfortunate that neither Dolphin nor all of the shareholders have received any substantive reply to the Dolphin letter and additional questions regarding public disclosures that had been posed to an informed representative of the Company. Dolphin has been informed only that the matters raised in the letter "will be discussed at the next full board meeting" of the Company, expected to be held in mid-October. This apparently lackadaisical attitude of the board on issues of high concern to the Company's shareholders that goes directly to the value of the Company is in Dolphin's view inexcusable. Being unable thus far to rely on this board to address its legitimate concerns, Dolphin is issuing a books and records search to further explore for itself on behalf of all unaffiliated shareholders several key areas including: -- Transactions and payments between the Company and its CEO and his affiliates relating to use or acquisition of planes, boats, skyboxes, and other assets; -- Deliberations relating to the stockholder rights plan and acceptance of Mr. Gupta's letter to the board; -- Transactions relating to the CEO's affiliate, Everest Funds; -- Possible violations of the Company's Code of Conduct; -- The special committee formed to consider Mr. Gupta's proposal for a going private transaction and other strategic alternatives, which was abruptly dissolved after the Company announced that its work would continue; and Dolphin will report back to all shareholders on the outcome of this search as appropriate. A spokesperson for Dolphin commented, "In the 12 business days that have elapsed since Dolphin sent its letter highlighting matters of great importance to the non-management members of the board and all stakeholders, no substantive oral or written reply has been forthcoming. Yet, since the curious dissolution of the special committee on August 29, 2005, the Company has issued nine self-congratulatory press releases on mundane business matters and run-of-the-mill activities. This stark contrast speaks volumes about top management and board priorities." The spokesperson continued, "While we recognize that Mr. Gupta founded IUSA in 1972, there often comes a time in the life-cycle of a public company that requires new leadership that can fulfill all of the requirements of being a trustee of the public's money. In today's world of heightened director scrutiny and attention to corporate governance, the Company's purportedly disinterested board continues to be unusually passive. IUSA shareholders have been inordinately patient with this board, even as the Company's own public filings have been replete with highly unusual related party transactions and other matters. In the absence of prompt, comprehensive corrective action on the part of this board, it will be up to the unaffiliated shareholders to restore the appropriate checks and balances in what appears to be a dysfunctional corporate governance system." DATASOURCE: Dolphin Limited Partnership-I, L.P. CONTACT: L. Bolster, +1-203-358-8000, for Dolphin Limited Partnership-I, L.P.

Copyright