iWeb Communities: Blog

MONTREAL, QUEBEC ? August 28, 2007 ? iWeb Group Inc. (TSX-V: IWB) (?the Company? or ?iWeb?), a worldwide Internet hosting infrastructure provider, announced its results today for the third quarter, which ended on June 30, 2007. The Company?s financial statements and MD&A can be accessed at www.iweb8.com and www.sedar.com.

Highlights of the third quarter:

- A 70% increase in revenues over the same period in 2006
- Net earnings up 42% over the same period in 2006
- Appointment of three new Vice Presidents and a corporate Controller, to ensure effective management of the Company?s rapid growth and maintain its current service levels
- Official TSX Venture Exchange Tier-1 Issuer Status obtained

?As shown by our results, the Company is operating in a sector that is experiencing high growth and demand for our service offering remains on the rise,? observed Eric Chouinard, President and Chief Executive Officer of iWeb. ?During the third quarter, we built up our management team, implemented various cost control systems and continued investing in our infrastructure. The exceptional results posted are proof of our ability to manage this growth and effectively position ourselves to become a leader in the dedicated server hosting sector.?

At the close of the third quarter 2007, the company?s consolidated revenues totaled $2.6M ? an increase of $1.1M or 70% over the same period in 2006. This revenue growth can be attributed primarily to a rise in dedicated server demand.

Gross margins for the quarter equaled 59.1% of total sales, compared to 54.1% of sales posted in the same period in 2006. This improvement was mostly due to an increase in sales volume and tight cost controls.

Overhead costs rose from 41% of revenues in the third quarter of 2006 to 47% for the same period this year. This increase was due to a higher level of business activity related to the Company?s growth, particularly a rise in expenses for advertising that targeted the dedicated server market and carrying charges for securing additional credit facilities.

Net earnings for the three-month period ended June 30, 2007 stood at $200,848, compared to $141,936 for the same period in 2006. This increase can be attributed primarily to the improvement in gross margins.

Earnings before interest, taxes and depreciation and amortization and share-based compensation (adjusted EBITDA) continued upward, reaching $714,369 versus $422,607 for the same period in 2006 ? a result that attests to the Company?s ability to generate increasing and positive cash flows.

Selected Financial Information

About iWeb Group
Founded in 1996, iWeb offers a full line of advanced IP hosting services either through shared hosting, dedicated servers or colocation in its own datacenters featuring 30,000 square feet of floor space and the latest technological equipment. iWeb provides services in English, French and Spanish to clients in more than 140 countries. For more information, please visit www.sedar.com or the Company?s website at http://iWeb8.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 release.

For more information

Marc Guindon
iWeb Group Inc.
Chief Financial Officer
(514) 286-4242
http://iweb8.com/investors

Danielle Ste-Marie
The Equicom Group Inc.
(514) 844-6064
dste-marie@equicomgroup.com