iWeb Communities: Blog

MONTREAL, May 22, 2007 ? iWeb Group Inc. (iWeb8.com) (TSX-V : IWB) released today the financial results of its second quarter of the financial year 2006-07, ending March 31, 2007. For this second quarter, consolidated revenues increased by $912,752 or 66% against the same period in 2006. Revenues totalled $2,290,877 compared to $1,378,125 in 2006.

A special item reduced the income before income taxes for an amount of $95,779. In March 2007, the Company modified a bonus clause in a subordinated debt with the owner of the debt. That clause specified that an amount representing half of one percent of the Company?s market value was payable as March 26, 2011, the maturity date of the debt. Expecting that this bonus value could increase in the next four years, the Company decided to repurchase the bonus clause on March 16, 2007, for an amount equal to the fair value of the bonus clause, resulting in a charge of $95 779 against second quarter earnings.

With this special item, net earnings for the quarter ended March 31, 2007, was $21,710 compared to an amount of $189,057 for the same period in 2006. The decrease in net earnings is also due to an increase in publicity expenses incurred in order to have a greater visibility in the Company?s targeted markets, and by an increase in financial expenses.Management expects that these publicity and financial expenses recorded in 2007 will help the ongoing growth of the Company, and increase its future profitability.

Gross margins went from 53.4% of revenues in 2006 to 56.0% of revenues for this last quarter.

Earnings before interest, taxes and depreciation and amortization (EBITDA) improved again to reach $487,244 against $359,709 for the same period in 2006. This increase confirmed the Company?s ability to generate improving positive cash flows.

During the quarter ended March 31, 2007, the Company had proceeded to a major combination of its current debt, and negotiated new loans totalling $4.5M to finance its new data center.

About iWeb Group Inc.
Founded in 1996, iWeb offers a full line of advanced web hosting services either through shared hosting, dedicated servers or colocation in its own data centers featuring 25,000 square foot of floor space and the latest technological equipments. iWeb provides services in English, French and Spanish to clients in more than 140 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 http://iWeb8.com.

The financial information in this news release originates from iWeb?s financial statements for the quarter ended March 31, 2007.

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. iWeb?s MD&A will be filed in the time period provided for in the rules. Those documents can be found on the following web site: www.sedar.com.

FINANCIAL INFORMATION

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