Internet Capital Group Announces First Quarter Financial Results

Internet Capital Group, Inc. (Nasdaq: ICGE) today reported its results for the first quarter ended March 31, 2009.

Wayne, PA – May 7, 2009 – Internet Capital Group, Inc. (Nasdaq: ICGE) today reported its results for the first quarter ended March 31, 2009.

“Our core companies demonstrated significant aggregate EBITDA improvement coupled with solid aggregate revenue growth,” said Walter Buckley, ICG’s Chairman and Chief Executive Officer. “We are pleased to see that the cost management actions we took at our partner companies beginning in the third quarter of 2008 are bearing positive results.”

ICG Financial Results

ICG reported consolidated revenue of $21.7 million for the first quarter of 2009, versus $16.0 million for the comparable 2008 period. ICG reported a net loss of $(11.0) million, or $(0.30) per diluted share, for the first quarter of 2009, versus a net loss of $(6.6) million, or $(0.17) per diluted share, for the comparable 2008 period. Results for the first quarter of 2009 include $(3.4) million in net charges, versus $5.7 million in net gains in the comparable 2008 period. These charges and gains primarily related to our Blackboard hedges. Excluding these items, the 2009 net loss improved 38% over the comparable 2008 period.

As of March 31, 2009, ICG’s corporate cash balance was $65.6 million, and the value of its holdings in Blackboard (Nasdaq: BBBB) was $72.5 million, including $3.1 million in hedge positions. The value of ICG’s holdings in GoIndustry (LSE.AIM: GOI) at March 31, 2009 was $3.8 million.

Online versions of Q1 2009 (pdf):

    * Internet Capital Group - Consolidated Statements of Operations
    * Internet Capital Group - Condensed Consolidated Balance Sheets
    * Internet Capital Group - Q1 Core Partner Company Information
    * Internet Capital Group - Supplemental Information - Description of Terms


ICG Core Partner Company Information

Set forth below is aggregate information relating to the following eight core companies: Channel Intelligence, Freeborders, ICG Commerce, Investor Force, Metastorm, StarCite, Vcommerce and WhiteFence. This aggregate information represents the sum total of the individual GAAP results of each of these companies.

In the first quarter of 2009, aggregate revenue of the eight core companies grew 12% year-over-year, to $67.8 million from $60.7 million in the first quarter of 2008. Aggregate EBITDA (loss) for the core companies improved 70% to $(3.4) million in the first quarter of 2009, versus $(11.4) million in the first quarter of 2008. Excluding the impact of stock-based compensation and unusual items, aggregate EBITDA for the core companies was $(0.1) million in the first quarter of 2009, versus $(8.0) million in the first quarter of 2008. Please refer to the supplemental financial data at the end of this release for a reconciliation of the aggregate revenue and aggregate EBITDA information with the GAAP results.

ICG will host a webcast at 10:00 a.m. ET today to discuss its financial results. As part of the live webcast for this call, ICG will post a slide presentation to accompany the prepared remarks. To access the webcast, go to http://www.internetcapital.com/investorinfo-preswebcast.htm and click on the link for the first quarter conference call webcast. Please log on to the website approximately ten minutes prior to the call to register and download and install any necessary audio software. The conference call is also accessible through listen-only mode at 866-783-2144. The international dial-in number is 857-350-1603. The passcode is 72565370.

For those unable to participate in the conference call, a replay will be available from May 7, 2009 at 11:00 a.m. ET until May 14, 2009 at 11:59 p.m. ET. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international). The pass code is 38099960. The replay and slide presentation also can be accessed on the Internet Capital Group web site at http://www.internetcapital.com/investorinfo-preswebcast.htm.

About Internet Capital Group
Internet Capital Group (www.internetcapital.com) acquires and builds Internet software and services companies that drive business productivity and reduce transaction costs between firms. Founded in 1996, ICG devotes its expertise and capital to maximizing the success of these platform companies, which are delivering software and service applications to customers worldwide.

Safe Harbor Statement under Private Securities Litigation Reform Act of 1995
The statements contained in this press release that are not historical facts are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future performance of our partner companies, acquisitions or dispositions of interests in partner companies, the effect of economic conditions generally, capital spending by customers, the development of the e-commerce and information technology markets, and uncertainties detailed in the Company’s filings with the Securities and Exchange Commission. These and other factors may cause actual results to differ materially from those projected.

Contact:
Investor inquiries
Karen Greene
Internet Capital Group
610.727.6900
ir@internetcapital.com