At first blush, Villageware's business model appears completely old school.

Unlike many of the hot new Web 2.0 upstarts that are developing Web-based businesses, the Seattle local search startup plans to distribute free CDs of its interactive neighborhood maps through participating retailers. Alternatively, consumers will be able to download copies of the software from the Villageware Web site for $9.95.

A look at the LiveVillage interactive map, with open stores marked in green and closed stores marked in red.

Why go through the trouble of retail distribution?

Michael Safoutin, the 42-year-old chief developer of Villageware, said it is an intentional -- albeit unusual -- strategy.

"We want to get the businesses involved by having them give away a tangible product," said Safoutin, who hopes the businesses will in turn volunteer events, special deals, menus or other relevant information for the interactive maps.

In addition, Safoutin said that a software application provides more functionality than an online map -- most importantly faster download speeds and the ability to access the information without an Internet connection. (Users need to connect to the Internet in order to get map updates -- similar to the concept behind Bellevue-based Webaroo).

While new online tools such as Ajax are making it easier to create Web-based applications, Safoutin said those weren't readily available when he started on the mapping project 10 years ago as a Ph.D. student in mechanical engineering at the University of Washington. "This is way before Web 2.0," said Safoutin, with a laugh. "I have looked into Ajax and I don't think it can do everything our software is doing."

Still, he said there could be a time in the not too distant future that he shifts to an entirely Web-based model.

Villageware's new product, dubbed LiveVillage, is an offshoot of the Lost in Seattle online city guide that pinpoints thousands of businesses by name on a city map. Covering 100 square miles in Seattle, LiveVillage is described as combining "the serendipity of walking with the power of a search engine."

The Seattle version of LiveVillage is scheduled to debut Aug. 15, with versions for New York City and Ann Arbor, Mich. coming out in the next three months. If all goes as planned, Safoutin said he plans to create a mobile version of the software next year.