Houston, Texas – (Website Hosting Directory) – February 29, 2008 – Houston-based provider of Internet access services, Internet America, Inc. has reported its fiscal second quarter results
with wireless broadband Internet subscriber base increases of 105% to 7,800, and revenue increases of 48%, from 28%.

Total revenues for the second quarter increased by 13.4% to approximately $2.3 million compared to total revenues of approximately $2.0 million in the second quarter of 2006. Wireless broadband Internet revenue increased by $478,000, or 85.6% to $1,036,000 in the second quarter of 2007, and the Company’s wireless broadband Internet subscriber count increased by 105.3% to 7,800 as of December 31, 2007, compared to 3,800 as of December 31, 2006. For the second quarter, wireless broadband Internet revenue of $1.0 million represented 48.1% of Internet services revenue of $2.2 million compared to 27.8% of Internet services revenue of $2.0 million as of December 31, 2006. The increase in wireless broadband Internet revenue and subscriber count was due to a combination of organic growth and growth attributable to four acquisitions completed by the Company over the last twelve months. Internet America’s total subscriber count decreased to 33,200 on December 31, 2007 compared to 37,000 subscribers at the end of the same period last year. The decrease in total subscriber count was due to the anticipated decline of dial-up Internet service customers from Internet America’s legacy dial-up Internet operations.

In addition. the Executive Vice President of Operations, Mark Ocker, has retired from the Company, having held the post since July 29, 2007.
Mr. Ocker is also the former President of TeleShare Communications Services, Inc. (TeleShare) which was acquired by Internet America.

William E. (Billy) Ladin, Chairman and Chief Executive Officer of Internet America noted, ”I’m very pleased to have had Mark’s assistance in the integration of TeleShare. Mark will remain a good friend and shareholder.”

Mr. Ocker commented, ”There are a lot of opportunities for organic growth and further acquisitions for Internet America. The Company has a seasoned integration team, an experienced staff, great customer support, and a carrier grade infrastructure to take advantage of growth opportunities. I will continue to be a part of the team as a shareholder.”

Internet America is an Internet service provider serving the Texas market. Based in Houston, 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. Internet America provides customers a wide range of related value-added services, including Fax2email, online backup and storage solutions, parental control software, and global roaming solutions.

To learn more, please visit: www.internetamerica.com.

San Diego, California – (The Hosting News) – October 18, 2006 -
Web host and web access solutions provider, Internet America, Inc., has released its fiscal year results, including revenue of $9.9 million, compared to $10.6 million a year ago. EBITDA (earnings before interest, taxes, depreciation and amortization) for the fiscal year was $256,000, with a net loss of $636,000 for the fiscal year.

The Company recorded net loss of $636,000, or $0.05 per share, for the fiscal year ended June 30, 2006 compared to net income of $19,000, or $0.00 per share, a year ago. Internet America’s subscriber count was approximately 37,400 at June 30, 2006.

Billy Ladin, Chairman and Chief Executive Officer of Internet America explained, ”This fiscal year has been challenging, as we have repositioned Internet America, Inc. as a company providing wireless Internet access services to under-served and non-served markets in suburban and rural areas of Texas. Internet America’s base of dial-up subscribers continued to decline, particularly in major metropolitan areas where fierce competition from broadband access service providers continues. However, the Company believes that the attrition in its dial-up subscriber base can be offset by growth in the rural markets where broadband services, delivered over wireless networks, are not subject to the same levels of competition. Our annual results reflect continuing declines in revenue of our non-wireless Internet service products, and increases in General and Administrative Expenses. We incurred severance costs and significant costs for redundant payroll and other moving expense during the relocation of our corporate headquarters from Dallas to Houston, Texas. We believe that most of these non recurring expenses are now behind us. In addition to making three acquisitions in the suburban and rural markets near San Antonio and Houston, we deployed new infrastructure to enable additional growth within markets we presently serve. We believe that we are poised for additional growth as we have targeted areas where competition is less intense and demand for Internet connectivity may be under- served.”

Glen Blackmon, President and Chief Operating Officer added, ”We have streamlined operations and resulting expenses through our reduction in staffing and telecommunications costs. Our optimization of network capacity and entering into more favorable agreements with telecommunications service providers is important for our future. The Company has experienced a decrease of $630,000 in connectivity costs in fiscal 2006. Additionally, our reduction-in-force carried out in January 2006 has resulted in an approximate 13% decrease in total salaries and wages, excluding the severance costs of approximately $83,000. We continue to evaluate overall profitability and focus on changes that will help to achieve our goals.”

Internet America is an Internet service provider serving the Texas market. Based in Houston, 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. Internet America provides customers a wide range of related value-added services, including Fax2email, online backup and storage solutions, parental control software, and global roaming solutions.

To learn more, please visit: www.internetamerica.com.

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