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IceWEB(TM) Online Subscriptions Doubled in 3rd Quarter
iPhone Synchronization Service Lauded in Article

IceWEB, Inc., www.iceweb.com (OTC BB:IWEB) stated today that high levels of both Customer and Channel Partner satisfaction with the company’s software as a service (SaaS) offerings have resulted in a customer subscription renewal rate of greater than 99.5% for the first six months of 2007 and have contributed to the subscription base doubling in size in the 3rd Quarter. The company also mentioned that the IceWEB’s iPhone Synchronization service continues to add subscriptions and was mentioned again recently in a press article which can be viewed at the following link. http://www.intomobile.com/2007/07/30/microsoft-exchange-email-on-your- apple-iphone-with-icewebs-icemail.html (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

Gary Dunham, VP of Corporate Development for IceWEB Inc., said, “In the last quarter the number of subscriptions to our hosted service offerings doubled, continuing our Compounded Annual Growth Rate (CAGR) of 240%. At this pace we are forecasting 10,000 subscriptions by December 31st, 2007,” Dunham continued, “In the 4th Quarter we expect to announce commercial availability of our IceSECURE™ product suite. IceSECURE will allow us to the offer lucrative hosted email security services into the Federal Government market space, and should significantly increase the company’s revenue-per-subscription.”

IceWEB’s Clients and Partners describe their experiences:

"Initially, I was unsure about going with a hosted email solution - but I knew that I didn't want to manage my Exchange server in-house anymore! From my first phone call with Gary, to our initial server set-up I knew this was going to be a great solution for us. Everything went extremely smooth and fast. The best thing was that their support folks were always available via on-line chat or telephone when we were setting up our BlackBerry™ devices! The only downside is that I never get to talk to those nice people anymore because there are never any problems!!!!” Cyndi Roberts, Montrose Church

“From the moment I signed up with IceMAIL, I knew that it would not be a mistake. I’ve received personalized service from the get-go. In the rare event that we encounter technical issues, we can either call or go online and a representative will help us right away and work diligently until we get the problem solved.” Libby Laplante, Principal, Media-Corps.

“As an IT service provider, GTS relies on our technology business partners to field innovative product offerings backed by helpful and knowledgeable engineering and support talent. IceWEB’s SaaS offerings of Hosted Exchange and Hosted Sharepoint bring significant value to our SMB clients, and fit this bill. IceWEB makes the process of becoming a business partner as easy as they make starting clients up on their service.” Michael Lamb, President, GTS Advantage

“IceMAIL was just the solution we were looking for over a year ago when we stumbled upon it. Since then, we have made the decision to use IceMAIL exclusively for our entire company. IceMAIL gives us the large scale enterprise IT solution for our small business that we desire without having to spend the big bucks for a comparable solution. The affordability, reliability, service and ease of use are second to none.” Pramod Raheja, Managing Partner, The Intelligent Office

“As an emerging cutting-edge technology company looking to have a global reach, communications, both internally and with our partners and prospective clients is of tantamount importance. Butterfly Communications Global, Ltd. has been an IceMAIL client for nearly a year and we find their service scales along with our growth, while keeping our back-end technology infrastructure costs far lower than if we deployed Microsoft Exchange on our own. IceMAIL's technical support gets back to us within minutes and our employees can follow the easy-to-use support guidelines IceMAIL has provided. Utility computing at its best!” Rex Jackson, CTO, Butterfly Communications Global, Ltd.

“Although we’ve only been a partner for a short while, IceWEB has been very good to work with. They’ve been very responsive to our needs and the needs of our clients. Their staff is very knowledgeable of SharePoint and their hosting service has been very reliable. We look forward to a long relationship with IceWEB.” David Reynolds, Partner, LBMC Technologies

“Since moving to IceMAIL we've eliminated the expense of maintaining and backing up our own Exchange and Blackberry Enterprise servers which has saved us thousands of dollars and a lot of stress. The service has been trouble free and our users have had great support.” Sean Carmichael, Director of Technology, Ross School

“As a small business owner in the technology field I have found IceMAIL to be an invaluable business asset. Personally their affordable hosted email service has helped me stay continually connected to my clients. As an IceWEB Affiliate it has also been a great option at a great price point to share with companies seeking to implement hosted exchange services. IceMAIL is an all around win!” Eric Jaffe, President, Integrity Consulting Group

To be added to IceWEB’s investor relations email list please click on the following link: http://www.iceweb.com/home_investrelations.asp or call Investor Relations at 703-964-8000 ext 0961.

About IceWEB

IceWEB, Inc., (OTC BB:IWEB), utilizes a hosted software services model that brings technologies normally reserved for large corporations to the small business customer. By subscribing to IceWEB’s flagship products, IceMAIL and IcePORTAL small and medium sized businesses can now have the benefits of these more advanced software systems for a low ‘pay as you grow’ basis instead of being faced with large up-front capital expenses. IceWEB also provides network infrastructure solutions services to our enterprise and Government customers with a specific focus on network security. Founded in 2000, IceWEB is headquartered in Herndon, VA, and serves customers in the public and private sectors. For more information, please visit http://www.IceWEB.com or http://www.IceMAIL.com.

“Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to business conditions and the amount of growth in the computer industry and general economy, competitive factors, and other risks detailed from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-K and its quarterly reports on Forms 10-Q. The Company does not undertake any obligation to update forward-looking statements.

All trademarks and brand names are the property of their respective companies.


Allen & Caron
Rudy Barrio (investors)
Brian Kennedy (media)
212-691-8087
[e-mail]
[e-mail]
or
IceWEB, Inc.
Gary Dunham
703-964-8000
[e-mail]




Source: Business Wire (August 1, 2007 - 9:52 AM EST)

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