Internet Commerce Corporation Announces Financial Results for First Quarter Fiscal 2006

Norcross, Georgia - December 13, 2005 - Internet Commerce Corporation (ICC) (NasdaqSC: ICCA), a pioneer in the use of the Internet for business-to-business (B2B) e-commerce solutions, today announced financial results for its fiscal first quarter 2006.

"We are pleased with our first quarter results," said Thomas J. Stallings, Internet Commerce Corporation chief executive officer. "Our results were driven by year-over-year revenue growth and income in both the ICC.NET and Service Bureau segments, reflecting significant improvement in the financial health of our business."

Stallings continued, "Our team remains focused on solid execution within each segment, committed to serving the needs of customers and dedicated to our "Growth with Profitability" strategy. With the acquisition of The Kodiak Group, we have heightened our focus on providing a single source for strategic e-commerce initiatives. We are excited by the interest clients are expressing and expect to see continued revenue growth in the second quarter."

First Quarter Fiscal Year 2006 Results

First quarter revenue from continuing operations in fiscal 2006 was approximately $5.0 million, up 33.9% compared with our first quarter of fiscal 2005 revenues of approximately $3.7 million. Net income was $723,000 compared with a net loss of $402,000 a year ago. Basic and diluted earnings per common share from continuing operations increased to $0.03 compared with a basic and diluted loss of $0.03 per common share in the same period of fiscal 2005.

The Company’s Earnings Before Interest, Non-cash compensation, Taxes, Depreciation and Amortization (Adjusted "EBITDA") was up 621% over the first quarter of fiscal 2005. Adjusted EBITDA was approximately $1.3 million in the first quarter of fiscal 2006 as compared to an Adjusted EBITDA during the first quarter of fiscal 2005 of $187,000. Adjusted EBITDA is not a financial measure within generally accepted accounting principles (GAAP). The Company believes that this presentation of Adjusted EBITDA provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations. A reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure, operating cash flows, is attached in addition to a reconciliation to net income for all periods presented.

First quarter revenue growth of 33.9% from first quarter fiscal 2005 to first quarter fiscal 2006 was driven by both business segments. In the ICC.NETTM segment, first quarter revenues from continuing operations were approximately $3.03 million, up 7.4% from $2.83 million in the fiscal 2005 period. This revenue represented 60.5% of consolidated revenue in the first quarter compared to 75.4% of consolidated revenue in the fiscal 2005 period. Revenues from the Service Bureau segment were $1.98 million, an increase of 115.3% compared to $921,000 in the first quarter of fiscal 2005. This revenue represented 39.5% of consolidated revenue in the first quarter compared to 24.6% of consolidated revenue in the fiscal 2005 period.

The Company’s total gross profit margin from continuing operations remained at 62% in first quarter fiscal 2006 compared with the first quarter of last fiscal year, and total expenses from continuing operations increased 3% in first quarter fiscal 2006 from the prior-year period to $4.28 million from $4.15 million.

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.