iWeb Communities: Blog

After becoming a benchmark in the web hosting industry, the iWeb blog will now be published in three languages

Montreal, Canada – The iWeb Blog will now be available to the Hispanic web community, who can now join the English and French readership which relies on the blog to keep abreast of the trends and issues affecting the Internet hosting industry. The blog is available here.

“The iWeb blog has been our preferred communication tool for many years now,” confirmed Martin Leclair, who co-founded iWeb in 1996. “Communicating with customers has always been very important to us, and with the blog we can share everything; news and trends, as well as providing the status of iWeb systems at all times. The blog is our main communication tool in case of emergency. ” Adds Mr. Leclair, who learned Spanish while spending several months in Latin America.

With posts dating back to 2001, the iWeb blog is one of the first blogs dedicated to web hosting to be published on the internet.

Since its redesign in 2008, the iWeb blog is divided into three main sections; “iWeb”, “web development” and “web hosting”. Readers can subscribe to the profile that most ressembles their interests and their professional or technical profile.

Since 2005, spanish has become increasingly important in iWeb’s communications, both online and with the company’s employees. iWeb now offers a complete service for the Hispanic market, helping spanish-speaking clients with customer service, billing,technical support and sales consultation.

iWeb Group inc. announces that it has granted 120,000 stock options to members of its management team under its stock option plan, at an exercise price of $0.80 each. One quarter of the options will vest on each of the first, second, third and fourth anniversaries of the date of the grant. The options will expire on August 20, 2014.

About iWeb Group Inc.

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad; and employs over 170 full-time employees providing Dedicated Server Hosting, Co-location and Web Hosting services to more than

21,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V: IWB), for more information please consult the Company’s website: investors.iweb.com

For further information:

Philip Tousignant

iWeb Group Inc.

Chief Financial Officer

(514) 286-4242 ext. 149

ptousiqnant@iweb.com

Bernard Dahl

iWeb Group Inc.

Director, Communications and Public Relations

(514) 802-2801

bdahl@iweb.com

With 75% revenue growth, the Internet hosting provider has surpassed its  2008 earnings total after 3 quarters

MONTREAL, QUEBEC – August 20 2009 – iWeb (TSX-V : IWB), a global provider of Internet hosting services and IT infrastructure, today released its financial results for the quarter ended June 30, 2009. The complete interim financial statements and management report of the Company are available on the websites www.sedar.com and investors.iweb.com.

Third quarter highlights :

• 75 % revenue growth, totaling 7,2 M$ in the third quarter of 2009, from 4.1 M$ for the same period in 2008
• Operating income 11 times greater than same quarter in 2008; 231,000 $ compared to 21,000 $ 1 year earlier
• EBITDA (adjusted EBITDA) remains steady at 1,9 M$ for 2009; 26,4 % of revenues
• Net profit of 1,023,000 $, mostly attributable to the additional unrealized theoretical exchange gained on long-term debt in U.S. dollars

“Growth remains our priority, especially in the current economic climate” says Eric Chouinard, iWeb President and Chairman. He adds “having said that, our shareholders will be happy to see signs of profitability on both EBITDA and operating income”

“Clients are adopting new technologies at the same rate as they were twelve months ago” says Martin Leclair, President, Products and Technologies. “However, we are noticing a much more controlled approach to expense management from our clients, who are discontinuing certain services which they were not using extensively. Experimental projects are a little smaller, which is normal in the current economic context. We are working closely with our clients to optimize their infrastructure so that they can continue innovating.”

“Two important points to highlight are that revenues continue to grow and EBITDA is kept above 25% of revenue” adds Philip Tousignant, Chief Financial Officer. “Granted, this is the first time that iWeb’s net profit has passed the 1 M$ mark, but that figure is theoretical, just like the losses reported in the past two quarters were. Foreign exchange fluctuations affect the accounting value of a large portion of our long-term debt. Operating income, however, remains positive at over 230,000 $, providing a much better idea of the company’s performance, regardless of market conditions”

Third quarter Financial Review

Revenues for the third quarter ended June 30, 2009 increased by $3.1 million or 75%, compared to the same period of 2008, to reach almost $7.2 million.

Revenues for the third quarter of fiscal 2009 originated from iWeb’s three main service offerings as follows: Dedicated servers accounted for 85%, followed by 9% for co-location services and 6% for the shared web hosting. 78% of iWeb revenues for the quarter were generated in U.S. dollars, a significant advantage for the Company during the last quarter and since the beginning of the year. Compared with the same period 12 months ago, currency fluctuations between the Canadian dollar and the U.S. dollar have had a positive impact of $950 000 on revenues. Without taking into account this impact, revenues still would have increased by 52% compared to the quarter ended on June 30, 2008.

Gross profit was 47% of revenues for the third quarter of 2009, compared to 49% for the same period of the previous year. During the past quarter, the favourable impact of the variation of Canada/U.S. exchange rates on the gross profit margin was more than compensated by higher payroll expenses in order to support the sustained and rapid growth of the Company’s operations.

Operating expenses for the quarter went from 48.6% of revenues in 2008 to 43.3% in 2009.  This improvement is explained by lower costs for selling and administrative expenses compared to the revenues they generate, though compensated by a rise in interest expenses. Selling expenses decreased, from 16.5% in Q3 2008 to 15.5% of revenues for Q3 2009. Administrative expenses decreased from 24.2% to 17.7% of revenues for the quarter. Interest expenses increased significantly, from 7.1% to 9.6% of revenues for the third quarter. This is caused by the increase in long-term debt in order to support the important increase in the Company’s infrastructures, the greater part of which carry interests in U.S. currency.

iWeb’s operating income for the third quarter was $231,000, compared to $21,000 for the third quarter of 2008.

The other financial expenses represent elements which are the consequence of external market conditions. These expenses exceeded $1M for the quarter ended June 30, 2009. The most important element of these expenses is the unrealized exchange loss on the long-term debt of $10 million US. At the end of quarter ended June 30, 2009, the Canada/U.S. exchange rate was 1.16, compared to 1.26 for the beginning of quarter, which explains the unrealized gain of $977,000.

Taking into account the impact of the other financial expenses, the Company recorded a net profit of $1,023,000 for the third quarter of 2009, compared to a net income of $13,000 twelve months earlier, for the quarter ended June 30, 2008.

Key Financial Data (in thousands of Canadian dollars)

1- The Company defines Adjusted EBITDA as Earnings before financial expenses, income taxes, depreciation and amortization, and stock-based compensation.

About iWeb Group Inc.

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad; and employs over 170 full-time employees providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 21,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V : IWB); for more information please consult the Company’s website: http://about.iweb.com

Caution concerning forward-looking statements:

This news release contains certain forward-looking statements. These statements relate to future events or iWeb’s future economic performance and reflect the current assumptions and expectations of management. Certain unknown factors may affect the events, economic performance and results of operations. iWeb undertakes no obligation, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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For more information

Philip Tousignant
iWeb Group Inc.
Chief Financial Officer
514-286-4242 ext. 149
ptousignant@iweb.com

Bernard Dahl
iWeb Group Inc.
Director, Communications and Public Relations
514-802-2801 (direct)
bdahl@iweb.com

With 75% revenue growth, the Internet hosting provider has surpassed its  2008 earnings total after 3 quarters

Third quarter highlights :

• 75 % revenue growth, totaling 7,2 M$ in the third quarter of 2009, from 4.1 M$ for the same period in 2008
• Operating income 11 times greater than same quarter in 2008; 231,000 $ compared to 21,000 $ 1 year earlier
• EBITDA (adjusted EBITDA) remains steady at 1,9 M$ for 2009; 26,4 % of revenues
• Net profit of 1,023,000 $, mostly attributable to the additional unrealized theoretical exchange gained on long-term debt in U.S. dollars

“Growth remains our priority, especially in the current economic climate” says Eric Chouinard, iWeb President and Chairman. He adds “having said that, our shareholders will be happy to see signs of profitability on both EBITDA and operating income”

“Clients are adopting new technologies at the same rate as they were twelve months ago” says Martin Leclair, President, Products and Technologies. “However, we are noticing a much more controlled approach to expense management from our clients, who are discontinuing certain services which they were not using extensively. Experimental projects are a little smaller, which is normal in the current economic context. We are working closely with our clients to optimize their infrastructure so that they can continue innovating.”

“Two important points to highlight are that revenues continue to grow and EBITDA is kept above 25% of revenue” adds Philip Tousignant, Chief Financial Officer. “Granted, this is the first time that iWeb’s net profit has passed the 1 M$ mark, but that figure is theoretical, just like the losses reported in the past two quarters were. Foreign exchange fluctuations affect the accounting value of a large portion of our long-term debt. Operating income, however, remains positive at over 230,000 $, providing a much better idea of the company’s performance, regardless of market conditions”

Key Financial Data (in thousands of Canadian dollars)

1- The Company defines Adjusted EBITDA as Earnings before financial expenses, income taxes, depreciation and amortization, and stock-based compensation.

iWeb Group Inc. (TSX.V – IWB), a worldwide provider of Internet hosting services and IT Infrastructure has been invited to make one of the opening presentations on the final day of the Canaccord Adams 2009 Global Growth Conference on Thursday, August 13th 2009 at 8:00 A.M. eastern time.

Eric Chouinard, iWeb’s President and chairman will be presenting iWeb’s perspectives on the future state of Internet services to the investment community at the 29th edition of the conference, which is being held over three days at the InterContinental Hotel in Boston.

Conference Details:

- Canaccord Adams 29th Annual Global Growth Conference
- August 13, 2009
- InterContinental Hotel, Boston, MA
- More information can be found at: www.canaccordadams.com

About iWeb Group Inc. (iweb.com)

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the Company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine. iWeb has also been named one of the top movers and shakers among Canadian IT companies in the 2009 edition of the Branham300.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad and employs over 170 full-time employees. Providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 21,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V : IWB). For more information please consult the Company’s website: http://investors.iweb.com

For further information:

Bernard Dahl
Director, Communications and Public Relations
iWeb Group Inc.
(514) 802-2801
bdahl@iweb.com

Philip Tousignant
Chief Financial Officer
iWeb Group Inc.
(514) 286-4242 ext 149
ptousignant@iweb.com

MONTREAL, QUEBEC, July 20, 2009 iWeb Group Inc. (TSX-V: IWB) has just confirmed the completion of a $3 million financing with BMO Bank of Montreal, one of its major financial partners. The $3 million revolving credit facility is available in term loans, bearing interest of 4.75% as of today, (prime rate plus 2.5%), payable in monthly installments over 42 months.

iWeb intends to use this loan facility to fund servers in the largest of the Company’s three Montreal data centers. According to Philip Tousignant, iWeb’s CFO, this investment in IT infrastructure will continue expanding iWeb’s dedicated hosting service offering, which has passed the 10,000 server mark in March 2009. $1.37 million has been disbursed immediately for servers already in use.

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About iWeb Group Inc. (iweb.com)

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secure data centers in Montreal. Since 2004, the Company’s compounded annual growth rate has been above 75%, making it one of Canada’s 100 fastest growing companies according to PROFIT Magazine. iWeb has also been named one of the top movers and shakers among Canadian IT companies in the 2009 edition of the Branham300.

Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad and employs over 170 full-time employees. Providing Dedicated Server Hosting, Co-location and Web Hosting services to more than 21,000 customers in 150 countries. iWeb’s shares are listed on the TSX Venture Exchange (TSX-V : IWB). For more information please consult the Company’s website: http://investors.iweb.com

For further information:

Bernard Dahl
Director, Communications and Public Relations
iWeb Group Inc.
(514) 802-2801
bdahl@iweb.com

Philip Tousignant
Chief Financial Officer
iWeb Group Inc.
(514) 286-4242 ext 149
ptousignant@iweb.com

Caution concerning forward-looking statements
This news release contains certain forward-looking statements. These statements relate to future events or iWeb’s future economic performance and reflect the current assumptions and expectations of management. Certain unknown factors may affect the events, economic performance and results of operations. iWeb undertakes no obligation, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

iWeb has improved its ranking among Canada’s growth leaders, moving up to 85th position from 100th on the Profit100, the annual ranking of Canada’s fastest growing companies based on revenue growth over the past 5 years.

From 2003 to 2008, our revenues have gone from $ 1,384 million to $ 15,616 million as of October 1st 2008. Last year, our 5-year growth totaled 627%, just enough for us to make our way into the 100th position on the annual ranking.

Eric Chouinard said that ”In 2003, shortly before iWeb went public and bought its first data center, we knew everything would become digital. It’s amazing to see how quickly this transition is actually happening!.” He then added “This is a very proud achievement for iWeb. More than anything else, it is the result of teamwork and persistence.”

“Since 2003, we have grown from 15 employees to over 170 today!  The fact that many of those original 15 are still involved with iWeb today says a lot about our environment” commented Martin Leclair. “The biggest challenge has been to continue innovating while managing our growth” he adds.

iWeb’s growth, in numbers*:

*rounded figures

The PROFIT 100 is the annual ranking which rates the top 100 Canadian companies based on the percentage of their revenue growth over a 5-year span. Produced by the business magazine PROFIT, 2009 marks the 21st edition of the ranking. The complete list will be published in the June edition, as well as on the website: http://www.profit100.com