Web Host Internet America Reports 2nd Quarter 2005 Results

Internet America, Inc. today announced  results for its second fiscal quarter ending December 31, 2004.

Highlights of the second quarter include the first sequential quarterly revenue growth since the 3rd fiscal quarter 2001, the completion of three acquisitions of Internet services companies and the third consecutive quarter of positive EBITDA 1(earnings before interest, taxes, depreciation and amortization). EBITDA for the second quarter was $254,000.

"Our quarterly results were impacted at the beginning of the quarter by the integration of the acquisitions," said Billy Ladin, CEO of Internet America.

The company reported 2 nd quarter 2005 revenue of $2.8 million vs. $3.1 million in the 2 nd quarter 2004. Sequential 2 nd quarter revenue showed an increase of 10.8% vs. the 1 st quarter 2005.

The Company recorded net income of $84,000, or $0.01 per share, for the fiscal second quarter ending December 31, 2004 compared to net income of $440,000, or $0.04 per share, a year ago. Internet America's subscriber count was 57,915 December 31, 2004, compared to 57,493 as of June 30, 2004.

Internet America has scheduled a conference call that will be held on February 15, 2005 at 9:00 a.m. central (10:00 a.m. eastern) to discuss the Company's financial results for the second quarter ended December 31, 2004.

Internet America is an Internet service provider primarily serving the Texas market. Based in Dallas, Internet America offers businesses and individuals a wide array of Internet services including broadband Internet delivered wirelessly and over DSL, dedicated high-speed access, web hosting, and dial-up Internet access.