There are several good email marketing management systems. Most have 100 or so free.
I just noticed that bravenet.com now has email distribution - this may be good!
http://bravenet.com/webtools/elist/http://www.MailChimp.com is used successfully by crafters
http://www.constantcontact.com is use by a lot of businesses for paid services but they will allow so many for free
http://www.enewslettersonline.com/ is another one but I don't have experience with this one
One thing that I advise is to be sure the people you send to have opted in to receiving communications from you regarding your business.
One way is to have an opt-in form -
http://bravenet.com has some and some web hosting offer them.
Another is the old fashioned way - just ask if they are local or if you talk to them.