Internet Commerce Corporation Reaffirms Prior Guidance for Fiscal Second Quarter

Norcross, GA March 1, 2005 – Today, in its annual meeting of stockholders, Internet Commerce Corporation (ICC) (NasdaqSC: ICCA), a leader in the use of the Internet for business-to-business e-commerce solutions, reaffirmed its original guidance to be adjusted EBITDA positive for the company’s fiscal second quarter 2005, ended January 31, 2005.

Thomas J. Stallings, chief executive officer of Internet Commerce Corporation, said, “In our press release for first quarter fiscal 2005, it stated that we anticipated being cash flow positive on an adjusted EBITDA basis for the second quarter of fiscal year 2005.  The final results of the quarter, which will be announced in mid-March, continue to demonstrate a dramatic improvement in Internet Commerce Corporation’s financial performance." 
"Our overall business continues to out perform last year’s results.  Compared to second quarter fiscal 2004, our growth in revenue is expected to be approximately 25%.  With continued reductions in operating costs, we expect adjusted EBITDA of approximately $225,000, a 20% increase from the first quarter of fiscal 2005.”

Internet Commerce Corporation’s first quarter of fiscal 2005 was highlighted with an adjusted EBITDA of $187,000, unprecedented levels of network traffic, a 200% increase in service bureau revenue as a result of the efficiently managed integration of the Electronic Commerce System acquisition, quarterly adjusted gross margins of over 70%, and 21% growth in revenues.  More specific information and guidance on the company’s financial performance will be provided with its second quarter fiscal 2005 earnings release.

Adjusted EBITDA is EBITDA plus non-cash compensation charges.

About Internet Commerce Corporation (ICC)
Internet Commerce Corporation (NasdaqCM: ICCA), headquartered in Norcross, Georgia, is a leader in providing business-to-business e-commerce solutions. Thousands of customers rely on ICC's comprehensive line of solutions, in-depth expertise, and unmatched customer service to help balance cost, fit, and function required to meet unique requirements for trading partner compliance, coordination, and collaboration.  With its software solutions, network services, hosted web applications, managed services, and consulting services, ICC is the trusted provider of e-commerce solutions for businesses, regardless of size and level of technical sophistication, to connect them with their trading communities.  For more information, visit www.icc.net.

Except for the historical information contained herein, this press release includes forward looking statements which are subject to a number of risks and uncertainties, including the risks and uncertainties associated with rapidly changing technologies such as the Internet, the risks of technology development and the risks of competition. Actual results could differ materially. For more information about these risks and uncertainties, see the SEC filings of Internet Commerce Corporation.