By TOM VAN RIPER, DAILY NEWS WRITER - 5/9/05

Habla Yellow Pages? Ambassador does, and the 6-year-old company is set to launch the first citywide all-Spanish directory next month.

Ambassador plans to distribute 200,000 Spanish directories in neighborhoods north of Central Park and in pockets around Hell's Kitchen and Tompkins Square Park.

"A lot of people would use it, we have so many up here who don't speak English," said Juan Figueroa, who works at a Washington Heights grocery store.

It's the latest effort by Ambassador, a Chelsea-based firm, to give Verizon and Yellow Book a run for their money in the city.

Ambassador has been adding books in each borough since its inception and now believes a Spanish-only book is the next step in its growth.

Ambassador, which has already distributed 3.8 million books that include an English-only book and a flip book that has both English and Spanish, is in 40% of city households. It has differentiated itself from its competitors by adding extras like wedding and parenting sections.

The company's business has been growing at a rapid clip, albeit off a small base. Sales are expected to hit $25 million this year, a 56% jump since 2003. Ambassador expects to have 90 employees by year-end, up from 70 in late 2004 and just a handful a few years ago.

While growing, Ambassador's sales are still considerably smaller than the $100 million analysts estimate Verizon collects from its directory business in New York.

Experts say a know-your customer neighborhood approach is vital for a small player taking aim at deep-pocketed competitors like Verizon and Yellow Book.

"If you're second or third into the market, you need to really get down to the grassroots level and show you're part of the community," said Charles Laughlin of the Kelsey Group, which analyzes the yellow pages industry.

With more than a million New Yorkers speaking Spanish as a first language and the increasing popularity of Spanish language radio and TV stations, execs at Ambassador - which debuted its flip book in the Bronx last year - decided there was a growing need for a Spanish-only directory.

"Our research shows that people in their first two years in the country prefer speaking and reading at home in their native language," said CEO Kathy Hipple, a Wall Street veteran who co-founded the company with a group of private investors. She added that the 25% of Manhattan households that speak Spanish are largely concentrated in specific neighborhoods.

The concept makes sense to local business owners.

"I've never really liked the yellow pages because you get too many calls from people who ultimately decide you're too far away," said Rosa Rosaria, owner of Express Beauty Supply at Broadway and 160th St. "But I'd consider an ad that's truly local."

The strategy comes with risks. For one, it costs more to woo speakers of two languages by printing separate books. Verizon, for its part, has no plans to change its "flip book" formula.

"A lot of households have members that speak only Spanish and others who are bilingual, and our strategy is to offer the most choice," spokeswoman Vanessa Banks said. Also, big telecoms like Verizon and SBC still have a wider reach on the Web.

Analysts said Ambassador may be heading in the right direction by choosing its own path.

"Ambassador is clearly hiring and growing, and they seem innovative," Laughlin said.

For More Information Contact:

Ara E. Chekmayan
Tactical Public Relations
+1-212-794-8757 ara@tacticalpr.com