Revenues increased 10% to $3.0 million for the three months ended September 30, 2005, when compared with revenues of $2.7 million for the same three-month period last year. The Company reported a net loss of $521,000, or $0.02 per basic and diluted share, which includes approximately $510,000 of one-time non-cash expenses arising from the conversion of debt to equity during the period. This compares with a net loss of $1.8 million, or $0.08 per basic and diluted share, during the three months ended September 30, 2004. The Company also reported EBITDA(1) of $800,000 for the three months ended September 30, 2005, an improvement of $1.7 million over the same three-month period last year.

Revenues increased 21% to $5.7 million for the six months ended September 30, 2005, when compared with revenues of $4.7 million for the six-month period last year. The Company reported a net loss of $1.4 million, or $0.06 per basic and diluted share, which compares with a net loss of $3.3 million, or $0.15 per basic and diluted share, during the six-month period last year.

"I am very pleased to report that we made significant progress in revenue growth, operating cost reduction, and earnings from operations improvement," commented James M. Powers, Jr., president and chief executive officer of iLinc Communications. "During the quarter, we continued to grow revenues with sales within our well-established and notable customer base while also adding 96 new audio and web conferencing customers. We successfully reduced our debt burden through the conversion of debt and reduced other liabilities improving our overall financial health."

James Dunn, Jr., senior vice president and chief financial officer of iLinc Communications, said, "iLinc has one of the finest software products and most flexible licensing arrangements, making us well positioned in the sustained growth web conferencing industry. With that opportunity in mind, we felt it important that we focus on operating profit improvement and balance sheet gains. We worked hard during the quarter to drive down costs while sustaining revenue growth."

Dr. Powers continued, "We expect to launch version 8.0 of our Web conferencing software in December that will enhance an already robust feature-rich software product. We remain uniquely positioned to take advantage of the rapid growth projected in the Web conferencing industry and, especially, in the software purchase segment of the industry. We are encouraged by our ability to win new customers from large competitors."

iLinc Communications, Inc. is a developer of Web conferencing software and audio (phone) conferencing services for highly secure and cost-effective web collaborative meetings, presentations, and training sessions. The Company enables customers to purchase and own iLinc Web conferencing software, which can be installed inside of a customer's network or hosted by iLinc. The company's products and services include iLinc Suite of Web Conferencing software (MeetingLinc, LearnLinc, ConferenceLinc, and SupportLinc); Audio Conferencing Services; On-Demand Conferencing; and EventPlus, a service for professionally managed online and audio conferencing events. More information about the Company may be found on the Web at http://www.ilinc.com.