IVIL Ivillage (MM)

NEW YORK, May 10 /PRNewswire-FirstCall/ -- iVillage Inc. (NASDAQ:IVIL), The Internet For Women(TM), a leading women's media company and the number one source for women's content and community online, today announced financial results for the first quarter ended March 31, 2006. First quarter 2006 revenue totaled $21.6 million, a 25% increase when compared to revenues of $17.3 million for the same period one year ago. Net loss for the first quarter of 2006 was $3.0 million, or $(0.04) per share, which includes $1.9 million in costs associated with iVillage's acquisition by NBC Universal, Inc., as well as $0.8 million in stock-based compensation costs due to a new accounting standard. This compares to a net loss of $1.3 million, or $(0.02) per share, for the first quarter of 2005. As of March 31, 2006, iVillage had $57.0 million in cash and cash equivalents on its balance sheet. The Company continues to carry no debt. Metrics * According to comScore Media Metrix, iVillage delivered approximately 16.0 million unique monthly visitors and the iVillage Network was the 39th most visited Web site in the U.S. in April 2006. According to the same report, iVillage reaches more than 9% of the total U.S. online population and more than 11% of U.S. women 18+ online monthly. * Also according to the comScore Media Metrix April 2006 report, iVillage is the #1 women's community site and the #3 community site overall. * iVillage delivered approximately 408 million average monthly page views for the first quarter of 2006. About iVillage Inc. iVillage is "the Internet for women" and consists of several online and offline media-based properties that seek to enrich the lives of women, teenage girls and parents through the offering of unique content, community applications, tools and interactive features. iVillage Inc. (NASDAQ:IVIL) was established in 1995 and is headquartered in New York City. Average monthly page views for iVillage.com and its affiliate Web sites ("The iVillage Network") totaled 408 million for the quarter ended March 31, 2006. In April 2006, according to comScore Media Metrix, The iVillage Network ranked 39th among the top 100 Web and Digital Media properties with approximately 16.0 million unique visitors in the United States and had an average reach of more than 9% of the total online population and more than 11% of women 18+ online. Also, according to the same report, The iVillage Network was the #1 "women's community site" and the #3 "community site" overall on the Web. For more information about iVillage, visit http://www.ivillage.com/. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: iVillage Inc. has included in this press release certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning iVillage's business, operations and financial condition. The words or phrases "can be," "expects," "may affect," "anticipates," "may depend," "believes," "estimates," "plans," "projects" and similar words and phrases are intended to identify such forward-looking statements. These forward-looking statements are subject to various known and unknown risks and uncertainties and iVillage cautions you that any forward-looking information provided by or on behalf of iVillage is not a guarantee of future results, performance or achievements. Actual results could differ materially from those anticipated in these forward-looking statements due to a number of factors, some of which are beyond iVillage's control. In addition to those risks discussed in iVillage's other press releases, public filings and statements by iVillage's management, factors that may cause iVillage's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied in such forward looking statements include: (i) the volatile and competitive nature of the Internet industry and the media industry, (ii) changes in domestic and foreign economic, political and market conditions, (iii) the effect of federal, state and foreign regulation on iVillage's business, (iv) the impact of recent and future acquisitions and joint ventures on iVillage's business and financial condition, (v) iVillage's ability to establish and maintain relationships with advertisers, sponsors, and other third-party providers and partners, (vi) iVillage's ability to maintain or increase user traffic levels, (vii) the loss of one or more of iVillage's major customers, (viii) the effect of seasonal fluctuations in traditional online advertising purchasing patterns on iVillage's results of operations and (ix) the impact of pending litigation on iVillage's business, results of operations and financial condition. All such forward-looking statements are current only as of the date on which such statements were made. iVillage does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events. iVillage Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) Three months ended March 31, 2006 2005 Revenues $21,550 $17,274 Operating expenses: Editorial, product development and technology 8,596 8,239 Sales and marketing 7,838 5,936 General and administrative 6,284 2,989 Depreciation and amortization 2,371 1,804 Total operating expenses 25,089 18,968 Income from operations (3,539) (1,694) Interest income, net 494 352 Other income, net 3 - Gain on sale of joint venture interest - 76 Net loss $(3,042) $(1,266) Per share data: Basic and diluted net loss per share $(0.04) $(0.02) Weighted-average shares of common stock outstanding used in computing basic and diluted net loss per share 72,765 71,928 iVillage Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) (unaudited) March 31, December 31, 2006 2005 ASSETS: Current assets: Cash and cash equivalents $56,992 $55,881 Accounts receivable, net 17,042 20,820 Prepaid rent 318 318 Other current assets 6,646 5,374 Total current assets 80,998 82,393 Fixed assets, net 13,211 12,272 Goodwill and intangible assets, net 57,932 59,495 Prepaid rent, net of current portion 3,014 3,051 Other assets 103 104 Total assets $155,258 $157,315 LIABILITIES and STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable and accrued expenses $11,296 $11,735 Deferred revenue 4,759 4,157 Other liabilities 144 144 Total current liabilities 16,199 16,036 Deferred rent, net of current portion 1,160 1,196 Total liabilities 17,359 17,232 Commitments and contingencies Stockholders' equity 137,899 140,083 Total liabilities and stockholders' equity $155,258 $157,315 iVillage Inc. and Subsidiaries Quarterly Income Statement ($ in million except for per share amounts) (unaudited) Mar-05 Jun-05 Sep-05 Dec-05 FY 05 Mar-06 Revenue $17.274 $21.080 $22.596 $30.111 $91.061 $21.550 Growth q-q -5% 22% 7% 33% -28% Growth Y/y 11% 28% 35% 65% 36% 25% Editorial, product development & technology 8.239 8.921 8.285 8.257 33.702 8.596 % of Revenues 48% 42% 37% 27% 37% 40% Sales and marketing 5.936 7.001 6.604 7.324 26.865 7.838 % of Revenues 34% 33% 29% 24% 30% 36% General and administrative 2.989 3.572 3.535 3.439 13.535 6.284 % of Revenues 17% 17% 16% 11% 15% 29% Depreciation and amortization 1.804 2.311 2.398 2.393 8.906 2.371 % of Revenues 10% 11% 11% 8% 10% 11% Total operating expenses 18.968 21.805 20.822 21.413 83.008 25.089 % of Revenues 110% 103% 92% 71% 91% 116% (Loss) income from operations (1.694) (0.725) 1.774 8.698 8.053 (3.539) Interest income, net 0.352 0.358 0.399 0.452 1.561 0.494 Other income, net - 0.016 0.052 0.028 0.096 0.003 Gain on sale of joint venture interest 0.076 0.025 - - 0.101 - Provision for income taxes - - - (0.355) (0.355) - (Loss) income from continuing operations (1.266) (0.326) 2.225 8.823 9.456 (3.042) Discontinued operations - - - 0.025 0.025 - Net (loss) income $(1.266) $(0.326) $2.225 $8.848 $9.481 $(3.042) Basic (per share data): (Loss) income from continuing operations $(0.02) $(0.00) $0.03 $0.12 $0.13 $(0.04) Income from discontinued operations - - - 0.00 0.00 - Net (loss) income $(0.02) $(0.00) $0.03 $0.12 $0.13 $(0.04) Diluted (per share data): (Loss) income from continuing operations $(0.02) $(0.00) $0.03 $0.11 $0.12 $(0.04) Income from discontinued operations - - - 0.00 0.00 - Net (loss) income $(0.02) $(0.00) $0.03 $0.11 $0.12 $(0.04) Weighted average shares of common stock outstanding - basic 71.9 72.2 72.4 72.6 72.3 72.8 Weighted average shares of common stock outstanding - diluted 71.9 72.2 76.6 77.4 76.6 72.8 Additional Financial Information Revenue from barter 1.680 1.606 1.232 1.062 5.580 1.050 % of Revenues 10% 8% 5% 4% 6% 5% DATASOURCE: iVillage Inc. CONTACT: Carl R. Fischer IV of iVillage Inc., +1-212-600-6502, ; or Carina Davidson, , or Eliza Johnson, , both of The Abernathy MacGregor Group, +1-212-371-5999 Web site: http://www.ivillage.com/

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