Customer Acquisition Network Announces First Quarter Results

Business Wire, May 20, 2008

Gross Margin Increases to 34.4% From 23% in 2007 Fourth Quarter

NEW YORK -- Customer Acquisition Network Holdings, Inc. (the "Company") (OTCBB: CACN), a fast growing Internet multi-channel network, announced today results for the first quarter ended March 31, 2008. First quarter revenue of $4,301,918, which includes the Interclick and Options Media operations, increased 190.9% compared to pro forma revenue for the first quarter ended March 31, 2007 of $1,478,627. The 2007 first quarter results include the pre-acquisition Interclick and Options Media revenue. Year-over-year Interclick revenue increased due to strong growth in cost per thousand (CPM) advertising campaigns. The first quarter is seasonally a slower period for the Internet advertising industry.

Gross profit for the three month period ended March 31, 2008 was $1,481,777 or 34.4% of revenue, an 11.4 percentage point increase as compared to the 2007 fourth quarter, in which the Company's gross margin was 23.0%. The Company recorded a 2008 first quarter operating loss of $(2,897,747), including $571,294 in non-cash stock-based compensation expense and $1,083,836 for other non-cash expenses. The 2008 operating loss includes $888,102 in investments the Company made in sales and marketing initiatives primarily related to the continued expansion of its sales force, and $277,038 in technology development and support costs.

"The investments the Company made in the 2007 fourth quarter and 2008 first quarter have positioned Customer Acquisition Network for a robust 2008," said Michael Mathews, CEO. "Already, this has begun to be reflected in significantly improved gross margins. We expect higher-margin CPM revenue to continue to grow as a percentage of our overall revenue base."

About interCLICK

interCLICK, a wholly-owned subsidiary of Customer Acquisition Network Holdings, Inc., operates the interCLICK Network, a highly targeted contextual marketing network designed to balance the interests of publishers, advertisers and users. The interCLICK Network combines advanced contextual awareness technology with a large base of top tier publisher sites to create a highly effective advertising platform. interCLICK's unique model delivers higher response rates than traditional ad networks, helping advertisers increase brand awareness, catalyze customer action and improve ROI on their advertising spend. The objective is to assist advertisers so that the consumer appreciates the targeted content, the advertiser obtains a significantly improved return on investment, and the publisher shows higher quality and better paying ads. For more information about the interCLICK Network, visit http://www.interclick.com.

About Customer Acquisition Network Holdings, Inc.

Customer Acquisition Network Holdings, Inc. was established to build an integrated, multi-channel network that provides advertisers the ability to drive high-volume, high-quality customer leads and acquisitions, and refocus ad dollars quickly based upon ROI. For more information about Customer Acquisition Network, visit www.customeracquisitionnetwork.com.

Forward-Looking Statements

Except for statements of historical fact, the matters discussed in this press release are forward looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, limited operating history, difficulty in developing, exploiting and protecting proprietary technologies, intense competition and additional risks factors as discussed in the Form 10KSB dated April 15, 2008 filed by the company with the Securities and Exchange Commission, which are available on its website at http://www.sec.gov.