iWeb Communities: Blog

The Company increases its revenues and gross profit by 95%

MONTREAL, February 28, 2006 ? iWeb Group Inc. today announced the financial results of its first quarter ended December 31, 2005.

iWeb recorded consolidated revenue of $1 142 109, an increase of $556 271 or 95% over the same period last year when revenues were $585 838. This increase is due to marketing programs deployed by the Company stressing dedicated servers and co-location and is in no way connected to acquisitions of competitors.

Gross profit increased by $736,551 or 95% from $324 321 in 2004/2005 to $632 172 in 2005/2006. Gross margin held at 45%. Earnings before income taxes increased to $105 208 compared to $77 127 in 2004. Net earnings were $72 482 ($0.003 per share) compared to $ 77 127 ($0 003 per share) last year due to an income tax charge of $32 726 in 2005.

EBITDA was $233 858 ($135 776 in 2004). Adding the increase in deferred revenues of $245 671 to EBITDA, the funds generated by operations was $479 529 in the quarter ($216 812 in 2004)

As of December 31, 2005, Shareholders Equity was $ 778 698 and Cash and Cash Equivalent was $ 222 621.

«The addition of a second data center will support our strong growth» says Eric Chouinard, cofounder and CEO of iWeb Group Inc. referring to a previous announcement. «With two data centers totaling 25 000 square feet, our low operating costs and our very competitive bandwidth costs, we are consolidating our position as a leader in Web hosting in Canada »

About iWeb Group Inc.
Founded in 1996, iWeb offers a full line of advanced web hosting either through shared hosting, dedicated servers or collocation in its own data center featuring the latest technological equipments. Its services are rendered in English, French or Spanish to clients in more than 95 countries.

iWeb Group Inc. is listed on the TSX Venture Exchange under the IWB stock symbol. For more information, visit the Company’s website at investors.iweb.ca.

The financial information in this news release is taken from iWeb’s financial statements for the quarter ended December, 2005, which may be found on www.SEDAR.ca. iWeb’s MD&A will be filed in the time period provided for in the rules.

Readers are cautioned to refer to such financial statements for complete information, as the information in this release has been selectively drawn from the full documents and is not complete.

FINANCIAL INFORMATION

*At September 30, 2005

« The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. »