IceWEB™, Inc. Reports Second Quarter Revenue of $5,877,457 and Quarterly Profit

Business Wire, April 26, 2007

Quarterly Results Build Confidence in Company's Revenue Growth Forecast of 270% to $17 Million

HERNDON, Va. -- IceWEB, Inc. (OTCBB:IWEB) reported significant operational and financial progress during its second fiscal quarter ended March 31, 2007, noting an increase in year-over-year revenue growth of 296%. Revenue for the six months ended March 31, 2007 were $8,459,234, versus $2,134,491 for the six months ended March 31, 2006.

Quarterly revenue increased as the Company built on the initiatives implemented during its first fiscal quarter ended December 31, 2006, and as the result of the Company's strategic focus on high-growth markets for hosted software services and network security.

Revenue for the quarter was $5.9 million, compared to $642,000 in the second quarter of fiscal 2006, representing an increase of 915%. Gross profit was $696,224, compared to gross profit of $94,031 in the second quarter of fiscal 2006 - an increase of 540%. Total operating expenses declined to $591,126, compared to operating expenses of $709,659 in the second quarter of fiscal 2006. EBITDA was $170,694 for the second fiscal quarter. Net income for the second fiscal quarter 2007 was $16,904, including a $14,733 gain from a sale of assets and $102,928 of interest expense, net. The income per share was $0.00 on 10,079,278 weighted-average common shares outstanding.

Second Quarter Fiscal 2007 Highlights

* Added over 1,000 Hosted IceMAIL[TM] Service subscription accounts

* Executed co-marketing partnership with Research In Motion , the makers of the BlackBerry product line of smart devices, to accelerate adoption of Hosted BlackBerry Enterprise services

* Initiated IceWEB Channel Partner Program to broaden distribution and sales reach for online hosted services

* Accelerated IceWEB Solutions Group federal sales with several large contract awards

* Established teaming agreements for major federal contracts including; Air Force NetCents, Army ITESS II, DHS First Source and NASA SEWP IV

IceWEB Chairman and CEO, John R. Signorello stated, "We are on track to meet our projected annual revenue goal of $17 million for 2007. We continue to add recurring revenue users daily onto our proprietary network of hosted products. The next two quarters will prove to be very exciting as we release our secure hosted messaging solution, IceSECURE[TM] and go live with our online training site, LearningStream[TM]. The IceWEB Hosted Services network provides a future looking, fully operational, highly robust and secure platform on which we will be able to deploy additional subscription based services with ease. Our automated e-commerce and auto-provisioning engines ensure scalability so that we can easily add users and cross pollinate new service offerings to our customers with minimum additional cost to the company. Additionally we have secured key wins in the Federal Government that we will continue to build on over the next several quarters."

About IceWEB, Inc.

IceWEB, Inc. (OTCBB:IWEB) utilizes a recurring revenue software services model that brings technologies normally reserved for large corporations to the small business customer. Small businesses can now have the benefits of these more advanced software systems for a low monthly subscription price instead of large up-front capital expenses. IceWEB also provides network infrastructure solutions services to our enterprise and Government customers with a specific focus on network security.

Founded in 2000, IceWEB is headquartered in Herndon, VA, and serves customers in the public and private sectors. For more information, please visit http://www.IceWEB.com or http://www.IceMAIL.com.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to business conditions and the amount of growth in the computer industry and general economy, competitive factors, and other risks detailed from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-K and its quarterly reports on Forms 10-Q. The Company does not undertake any obligation to update forward-looking statements.

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