Internet Commerce Corporation Announces Second Quarter Fiscal 2007 Results

Norcross, Georgia – March 15, 2007 - Internet Commerce Corporation (ICC) (NasdaqCM: ICCA), a leader in business-to-business e-commerce solutions, today announced financial results for its fiscal second quarter 2007.

Second Quarter Fiscal Year 2007 Results
Second quarter revenue from continuing operations in fiscal 2007 was approximately $5.3 million, up 6.0% compared with our second quarter of fiscal 2006 revenues of approximately $5.0 million. Net income was approximately $703,000 compared to a net income of approximately $372,000 for the same period in fiscal 2006, an increase of approximately 89%. Basic and diluted income per common share from continuing operations were $0.04 and $0.03, respectively, as compared with $0.01 per basic and diluted common share for the fiscal 2006 period.
 
In the EC Solutions segment, comprised of the ICC.NETTM Value Added Network, browser-based and hosted applications and desktop software, second quarter revenues from continuing operations were approximately $3.9 million, up 23% from approximately $3.2 million in the fiscal second quarter 2006 period. Revenues from the EC Services segment, comprised of the EC service center, managed services and professional services, were approximately $1.4 million, down 23% from approximately $1.9 million in the second quarter of fiscal 2006.

Total expenses from continuing operations remained flat in second quarter fiscal 2007 as compared to the second quarter 2006 at approximately $4.6 million.

“ICC is pleased to report a basic earnings per share increase of $0.03 and growth year-over-year with approximately $5.3 million in revenue and approximately $700 thousand in net income,” said Thomas J. Stallings, ICC’s chief executive officer. “Those results are a testament to the strength of our offerings in the EC Solutions segment. Customers continue to select and grow their business by relying on us for unmatched customer support and reliability. While the decline in services revenue was disappointing, it was not unexpected. We have planned for and continue to execute cost control measures to ensure solid financial results.”

Mr. Stallings added that the decline in the EC Services segment revenue resulted from anticipated attrition of customers obtained in acquisitions and that the declining revenue in this segment is expected to stabilize for the second half of fiscal year 2007. Mr. Stallings also noted that as a result of the cost control efforts, the gross margin for the EC Services segment increased 10% in the second quarter of fiscal 2007 as compared to second quarter of fiscal 2006.

Six Month Fiscal 2007 Results
For the six months ended January 31, 2007, revenues from continuing operations totaled approximately $11.1 million, up 11% compared with first half fiscal 2006 revenues of approximately $10.0 million. Net income was approximately $1.3 million compared to a net income of approximately $1.1 million for the same period in fiscal 2006, an increase of 17%. Basic and diluted income per common share from continuing operations were $0.06 and $0.05, respectively, as compared to $0.05 per basic and diluted common share for the six month period of fiscal 2006 period.

The Company ended the first six months of fiscal 2007 with approximately $6.1 million of cash on hand. The balance sheet remains strong with current assets ending at approximately $10.6 million and current liabilities at approximately $2.0 million. The Company believes it is well positioned to take advantage of acquisition and other investment opportunities.

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.