iWeb Annual Revenues Increase From $15M to $27M

For 2009 financial year end, the Canadian IT infrastructure provider sees its revenues increase by 74%

MONTREAL , Dec. 21 /CNW Telbec/ - iWeb (TSX-V : IWB), a global provider of Internet hosting services and IT infrastructure, today released its financial results for the year ended September 30, 2009 . The complete financial statements and management report of the Company are available on the websites www.sedar.com and http://investors.iweb.com.

    
    Financial Highlights:
    ---------------------

    - Revenues increase by 74% to $27.1M in 2009 compared to $15.6M for 2008
    - Adjusted EBITDA(1) at $6.6M for 2009; 24.3% of revenues
    - Operating income of $390,000 compared to a loss of $134,000 one year
      earlier, an improvement of $524,000
    - Cash flows generated from operations of $6.2M
    - Additional financing facility of $3M with its major Canadian banking
      partner
    

"Revenue growth has been a priority for iWeb in 2009" says Eric Chouinard , iWeb President and Chairman. "We are very proud of the 74% increase in revenues and the 71% increase of our Adjusted EBITDA, as well of our operating income. Our 5th consecutive year of high growth was also a very challenging year; we had to adapt our strategic plan to maintain growth despite the difficult economic situation of the last 12 months."

"By making a difference in our industry and for our clients, we also created additional value for our shareholders" says Martin Leclair , President, Products and Technologies. "The way businesses are consuming computing is evolving dramatically and iWeb is playing an important role in this technological shift by making it easy for businesses to migrate towards and adopt these new technologies. This represents an important opportunity, and we are actively working to be a part of it."

    
    Financial Review for 2009
    -------------------------
    

Revenues for the year ended September 30, 2009 were $27.1M , an increase of $11.5M or 74% compared to 2008 revenues of $15.6M .

Adjusted EBITDA were $6.6M (24.3% of revenues) compared to $3.9M (24.7% of revenues) for 2008.

Cash flows generated from operations increased to $6.2M in 2009, compared to $3.6M for 2008. In the last 12-month period, the company acquired tangible and intangible assets for an amount of $9.1M .

In addition, in order to finance expenses related to its future data center, the Company is working actively in setting an additional financing facility.

    
    Key Financial Data (in thousands of dollars, except per share amounts)
    ----------------------------------------------------------------------

                                            Financial year ended September 30
                                                      2009           2008
    Revenues                                       $27,146        $15,617
    Gross Profit                                   $12,614         $7,754
    Operating income (loss)                           $390          $(134)
    Net earnings (loss)                                 $4          $(701)
    Earnings (loss) per share - basic              $0,0001       $(0,0264)
    Adjusted EBITDA                                 $6,598         $3,853
    Total assets                                   $32,990        $29,145
    Shareholders' equity                            $6,365         $5,973
    Cash and cash deposits                          $2,215         $3,461
    Cash flows from operations                      $6,157         $3,555

    1- The Company defines Adjusted EBITDA as earnings before financial
    expenses, income taxes, amortization, stock-based compensation,
    unrealized exchange gain/loss and straight-line amortization of rental
    expense.


    About iWeb Group Inc.
    ---------------------
    

iWeb is a worldwide provider of Internet hosting services and IT Infrastructure, with three secured data centers in Montreal . Since 2004, the company's compounded annual growth rate has been above 75%, making it one of Canada's 100 fastest growing companies according to PROFIT Magazine.

Founded in 1996 in Montreal , iWeb now generates more than 60% of its revenues from abroad; and employs over 170 full-time employees providing Dedicated Server Hosting, Co-location and Web Hosting services to close to 20,000 customers in 145 countries. iWeb's shares are listed on the TSX Venture Exchange (TSX-V: IWB); for more information please consult the Company's website: http://investors.iweb.com

    
    Caution concerning forward-looking statements
    ---------------------------------------------
    

This news release contains certain forward-looking statements. These statements relate to future events or iWeb's future economic performance and reflect the current assumptions and expectations of management. Certain unknown factors may affect the events, economic performance and results of operations. iWeb undertakes no obligation, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

For further information: Philip Tousignant, Chief Financial Officer, iWeb Group Inc., [phone] ext.149, [email protected]; Bernard Dahl, Investor Relations / Media Relations, Presentis, [phone], [email protected]