Try it, a search on plumbers or bowling or lawyers and so on all may return a fourth line to the search ads at Yahoo Search. The fourth line might show a geo-location. Here are some pictures:
If the advertiser is geo-targeting the location of where you are searching for, then the fourth line may show the location. As I explained at Search Engine Land, I was tipped off by BrandVerity Blog on this. This seems to be a new behavior from Yahoo, but yes, Google has been doing this for a while.
Google has been doing this at least since July 2004 and has even tried showing your exact address under the ad, on occassion – which is neat.
Here are Google ads for plumbers:
Forum discussion at Sphinn.
Update: Yahoo has sent me a statement: