iVOW, Inc. Reports Second Quarter Results

Business Wire, August 10, 2006

SAN DIEGO -- iVOW, Inc. (NASDAQ:IVOW), a provider of disease management services for the treatment of chronic and morbid obesity, today reported financial results for the second quarter ended June 30, 2006.

For the quarter ended June 30, 2006, the Company reported a net loss of $589,000, or ($0.21) per basic and diluted share on revenues of $746,000, compared with a net loss of $514,000, or ($0.46) per basic and diluted share, on revenues of $253,000 for the corresponding quarter of 2005. Included in the reported net loss was a gain from discontinued operations of $150,000, compared to a gain from discontinued operations of $129,000 for the second quarter in 2005. The Company noted that $340,000 of the increase in revenue came from its Sound Health Solutions (SHS) subsidiary, which the Company acquired in November 2005.

For the six months ended June 30, 2006, iVOW reported a net loss of $1,487,000, or ($0.57) per basic and diluted share on revenues of $1,350,000, compared with a net loss of $1,478,000 or ($1.34) per basic and diluted share, on revenues of $493,000 for the same period of 2005. SHS revenue for the six months ended June 30, 2006 was $665,000.

During the quarter, the Company completed a warrant exchange financing program, which generated net proceeds of $1,062,000. At the end of the quarter, the Company reported cash and cash equivalents of $1,617,000. The Company anticipates that it will need to raise additional capital sometime in the fourth quarter of 2006.

Dr. Michael Owens, President and CEO of iVOW, said "We have now had four consecutive quarters of increasing revenue. We are excited about the opportunities before us as our business continues to grow reflected by a 24% increase in revenue over the previous quarter. This is attributable to additional contributions from our lead-in consulting products as more hospitals have contacted us subsequent to the Centers for Medicare and Medicaid Services' (CMS) ruling in February providing coverage for bariatric surgery."

IVOW, Inc.
           Condensed Consolidated Statements of Operations



                 Three Months Ended June 30, Six Months Ended June 30,
                 -----------------------------------------------------
                      2006          2005        2006         2005
                 --------------------------- -------------------------


Revenues                $746,110   $252,916   $1,350,181     $492,597
Total cost and
 expenses              1,487,784    870,941    2,989,719    2,078,478
                 ---------------- ---------- ------------ ------------
Loss from
 operations             (741,674)  (618,025)  (1,639,538)  (1,585,881)

Other income, net          2,426      4,490        2,952       10,212
                 ---------------- ---------- ------------ ------------
Loss from
 continuing
 operations             (739,248)  (613,535)  (1,636,586)  (1,575,669)

Gain from
 discontinued
 operations              150,000    128,588      150,000      132,644
                 ---------------- ---------- ------------ ------------
Net loss                (589,248)  (484,947)  (1,486,586)  (1,443,025)

Accretion of
 preferred stock
 dividends                     -    (29,362)           -      (35,237)
                 ---------------- ---------- ------------ ------------
Net loss
 applicable to
 common
 stockholders          $(589,248) $(514,309) $(1,486,586) $(1,478,262)
                 ================ ========== ============ ============

Other
 comprehensive
 loss:
Net loss                (589,248)  (484,947)  (1,486,586)  (1,443,025)
Unrealized gain
 (loss) on
 available-for-
 sale securities               -   (330,800)           -     (479,660)
                 ---------------- ---------- ------------ ------------
Total
 comprehensive
 loss                  $(589,248) $(815,747) $(1,486,586) $(1,922,685)
                 ================ ========== ============ ============

Net loss per
 share basic and
 diluted:
Continuing
 operations               $(0.27)    $(0.58)      $(0.63)      $(1.46)
Discontinued
 operations                 0.06      $0.12         0.06         0.12
                 ---------------- ---------- ------------ ------------
   Basic and
    diluted loss
    per share             $(0.21)    $(0.46)      $(0.57)      $(1.34)
                 ================ ========== ============ ============


Shares used in
 computing basic
 and diluted loss
 per share             2,741,056  1,106,235    2,599,191    1,104,917
                 ================ ========== ============ ============




                              IVOW, Inc.
          Selected Condensed Consolidated Balance Sheet Data



                                 June 30             December 31
                                   2006                 2005
                           -------------------------------------------
Cash and cash equivalents      $1,616,797             $851,315

Total current assets            2,109,792            1,693,747

Property and equipment, net      250,073              252,880

Goodwill                        1,064,046             915,116

Intangible assets, net           158,983              193,051

Total assets                    4,284,191            3,747,808

Total current liabilities       1,118,405            1,216,096

Total stockholders' equity      3,110,840            2,479,320