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ZipRealty Reports Equity Issuances to New Chief Financial Officer

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^{Published in Business and Finance on Tuesday, December 16th 2008 at 14:15 GMT by Market Wire}  

EMERYVILLE, Calif.--([ BUSINESS WIRE ])--ZipRealty, Inc. (NASDAQ: ZIPR) today announced that in accordance with NASDAQ Marketplace Rule 4350, it has issued equity to the Company's new Chief Financial Officer, Charles C. (Lanny) Baker, as an inducement in connection with his hire.

On December 11, 2008, the Compensation Committee of the Board of Directors of the Company approved a grant to Mr. Baker of an option to purchase 325,000 shares of the Company's common stock. The stock option has an exercise price equal to $2.56 per share, which was the closing price of ZipRealty's common stock on the date the option was granted. The option has a ten-year term and will vest as follows: 25% of the shares will vest on the first anniversary date of commencement of Mr. Baker's employment, and the remaining 75% of the shares will vest in 36 equal monthly increments during the following three years, as long as Mr. Baker remains in service with the Company. In addition, the Compensation Committee approved a stock purchase agreement with Mr. Baker for his purchase of 80,000 shares of the Company's common stock held in treasury, also at a price of $2.56 per share. Both the stock option and the stock purchase agreement were granted outside of the Company's stock plans and without stockholder approval pursuant to NASDAQ Marketplace Rule 4350(i)(1)(A)(iv).

In addition, the Compensation Committee approved a restricted stock award agreement with Mr. Baker for 25,000 shares of the Company's common stock, with 6,250 of the shares to vest on June 4, 2009 and each six months thereafter until fully vested, provided Mr. Baker remains employed by or in a service relationship with the Company. The restricted stock award agreement was granted under the Company's 2004 Equity Incentive Plan.

About ZipRealty

ZipRealty is a full-service residential real estate brokerage firm. The Company utilizes its user-friendly website and employee real estate agents to provide homebuyers and sellers with high-quality service and value. ZipRealty's website provides users with access to comprehensive local Multiple Listing Services home listings data, as well as other relevant market and neighborhood information. The Company's proprietary business management system and technology platform help to reduce costs, allowing the Company to pass on significant savings to consumers. Founded in 1999, the company operates in 35 major markets in 20 states and the District of Columbia. For more information on ZipRealty, visit [ www.ziprealty.com ] or call 1-800-CALL-ZIP.