InsWeb Reports First Quarter 2008 Results

SACRAMENTO, CA, Apr 17 (MARKET WIRE) --
InsWeb Corp. (NASDAQ: INSW), a leading online insurance marketplace, today
announced results for the first quarter ended March 31, 2008.

Revenues for the first quarter of 2008 were a record $13.0 million, an
increase of approximately 61% as compared to $8.1 million in the first quarter
of 2007. Net income for the first quarter of 2008 was approximately $0.7
million, or $0.12 per diluted share, as compared to net income in the first
quarter of 2007 of approximately $0.4 million, or $0.09 per diluted share.

Adjusted EBITDA, a non-GAAP financial measure used by InsWeb's management
and
defined below, amounted to approximately $1.0 million in the first quarter of
2008, a new record and reflecting increases of 55% and 39% as compared to
$0.6 million and $0.7 million in the fourth quarter and first quarter of 2007,
respectively.

"As previously announced, during this seasonally strong first quarter we
further benefited from new traffic arrangements, continued progress in agent
adoption of our AgentInsider(R) program and our expanded relationship with
NetQuote,
which was not in effect during the first quarter of last year," stated InsWeb
Chairman & CEO Hussein Enan. "Overall, traffic increased by more than 130%
sequentially and 160% over the first quarter of 2007, while per consumer
acquisition costs decreased by 12% sequentially and 21% compared to a year ago.
That
clearly demonstrates our ability to achieve very significant and profitable
growth once we reach a critical mass of providers using our platform, our most
impactful endeavor, and one on which the entire company is focused."

"Our first quarter results have set the stage for strong growth in fiscal
2008,
and we are reaffirming our guidance for revenues and net income to increase
roughly 25% over the prior year, excluding one-time gains or losses,"
concluded Mr. Enan.

Non-GAAP Financial Information

In evaluating InsWeb's business, the Company's management considers and uses
Adjusted EBITDA as a supplemental measure of operating performance. Adjusted
EBITDA
refers to a financial measure that the Company defines as net income
excluding interest, taxes, depreciation, amortization, share-based compensation,
and
other one-time gains and losses that are not related to the Company's
continuing operations. This measure is an essential component of InsWeb's
internal planning process because it facilitates period-to-period
comparisons of the Company's operating performance by eliminating potential
differences in net income caused by the existence and timing of non-cash
charges and non-recurring gains and losses. Furthermore, Adjusted EBITDA
reflects the key revenue and expense items for which InsWeb's operating managers
are responsible.

InsWeb Corporation

NON-GAAP FINANCIAL MEASURE AND RECONCILIATION
(In thousands)
(unaudited)

Three months Ended
March 31, December 31, March 31,
----------- ----------- -----------
2008 2007 2007
----------- ----------- -----------
Net income $ 670 $ 1,341 $ 402
Less
Lease loss accrual - 985 -
Interest Income 89 91 72
Add
Provision for income taxes 9 45 -
Share-based compensation expense 334 276 314
Depreciation and amortization of
property and equipment from
continuing operations 34 31 44
----------- ----------- -----------
Adjusted EBITDA from continuing
operations $ 958 $ 617 $ 688
=========== =========== ===========

Adjusted EBITDA is not a measurement of the Company's financial
performanceunder U.S. GAAP and has limitations as an analytical tool. You
should not
consider it in isolation or as a substitute for the Company's U.S. GAAP
netincome. The principal limitations of this measure are that: 1) it does
notreflect the Company's actual expenses and may thus have the effect of
inflating the Company's net income and net income per share; and 2) it may
not be comparable to Adjusted EBITDA as reported by other companies.

Earnings Call Information

The InsWeb first quarter teleconference and webcast is scheduled to begin at
2:00 p.m., Pacific Time, on Thursday, April 17, 2008. To participate on the
live call, analysts and investors should dial 800-240-5318 at least ten
minutes prior to the call. InsWeb will also offer a live and archived webcast
of
the conference call, accessible from the "Investor Relations" section of the
Company's Web site at http://investor.insweb.com/index.cfm.

About InsWeb

InsWeb (NASDAQ: INSW) enables consumers to compare multiple, actionable
quotes for
auto, term life, health, homeowners, renters and condominium insurance offerings
from
many of the nation's highly rated insurers. The top-rated online insurance
marketplace also provides interactive tools and independent research.
Headquartered in Sacramento, Calif., InsWeb is accessible at www.insweb.com.

For further information regarding InsWeb Corporation, please review the
Company's filings with the Securities and Exchange Commission, including
Quarterly
Reports on Form 10-Q and Annual Reports on Form 10-K, and in particular
Management's Discussion and Analysis of Financial Condition and Results of
Operations.

This news release contains forward-looking statements reflecting
management's
current forecast of certain aspects of the Company's future. It is based on
current information, which we have assessed, but which by its nature is
dynamic and subject to rapid and even abrupt changes. Forward-looking statements
include statements expressing the intent, belief or current expectations of the
Company and members of our management team regarding: projected future
revenues, revenue growth, expenses, profitability and financial position;
marketing
and consumer acquisition; the results of strategic initiatives, including
AgentInsider
and the Agent Directory; increased or decreased participation by insurance
companies,agents and other purchasers of consumer leads; and product and
technological
implementations. The Company's actual results might differ materially from those
stated or implied by such forward-looking statements due to risks and
uncertainties
associated with the Company's business, which include, but are not limited to:
variations in consumer usage of the internet to shop for and purchase
insurance; the willingness and capability of insurance companies or other
insurance
entities to offer their products or instant quotes on the Company's website or
through the Company's licensed subsidiaries; changes in the Company's
relationships
with existing insurance companies or other customers, including, changes due to
consolidation within the insurance industry; changes in the Company's
relationship
with strategic and/or marketing partners; the Company's ability to attract and
integrate new insurance providers and strategic partners; implementation of
competing Internet strategies by existing and potential competitors;
implementation and consumer acceptance of new product or service offerings;
the outcome of litigation in which the Company is a party; insurance and
financial services industry regulation; fluctuations in operating results; or
other
unforeseen factors. The forward-looking statements should be considered in
the context of these and other risk factors disclosed in the Company's
filings with the Securities and Exchange Commission.

"INSWEB" and "AGENTINSIDER" are registered service marks of InsWeb
Corporation.
All marks above are those of InsWeb Corporation, except for those of
insurance insurers, brokers, agents, industry organizations, financial
institutions,
online partners, service providers, other mentioned companies and educational
institutions, which are the marks of their respective entities.

INSWEB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
[ Amounts in thousands, except per share amounts ]
[ unaudited ]

Three months ended
March 31,
-------------------------
2008 2007
------------ ------------
Revenues:
Transaction fees $ 12,971 $ 8,043
Other 61 67
------------ ------------
Total revenues 13,032 8,110

Operating expenses:
Direct marketing 9,305 4,528
Sales and marketing 1,295 1,478
Technology 816 876
General and administrative 1,026 902
----------- ------------
Total operating expenses 12,442 7,784
------------ ------------
Income from operations 590 326
Interest income 89 72
Other income, net - 4
------------ ------------
Income before income taxes 679 402
Provision for income taxes 9 -
------------ ------------
Net income $ 670 $ 402
============ ============

Net income per share:
Basic $ 0.14 $ 0.10
============ ============
Diluted $ 0.12 $ 0.09
============ ============

Weighted-average shares used in computing net
income per share:
Basic 4,641 4,119
============ ============
Diluted 5,783 4,452
============ ============

INSWEB CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
[Amounts in thousands]
[unaudited]

March 31, December 31,
2008 2007
----------- -----------
ASSETS

Current assets:
Cash and cash equivalents $ 12,161 $ 10,777
Accounts receivable, net 3,548 2,428
Prepaid expenses and other current assets
(including related party receivable of $48 as
of December 31, 2007) 368 596
----------- -----------
Total current assets 16,077 13,801

Property and equipment 291 257
Other assets 75 75
----------- -----------
Total assets $ 16,443 $ 14,133
=========== ===========

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Accounts payable $ 2,918 $ 2,118
Accrued expenses 1,643 1,426
Deferred revenue 229 246
----------- -----------
Total current liabilities 4,790 3,790

Commitments and contingencies

Shareholders' equity:
Common stock 8 8
Paid-in capital 206,846 206,208
Treasury stock (6,334) (6,334)
Unrealized gain on available-for-sale
securities 2 -
Accumulated deficit (188,869) (189,539)
----------- -----------
Total shareholders' equity 11,653 10,343
----------- -----------
Total liabilities and shareholders'
equity $ 16,443 $ 14,133
=========== ===========

The following financial highlights and key metrics are provided as a
resource for our investors. Please refer to the Company's filings with the
Securities and Exchange Commission for additional information regarding our
business.

Three months Ended
----------------------------------------
March 31, December 31, March 31,
------------ ------------ ------------
2008 2007 2007
------------ ------------ ------------
Revenues:
Auto $ 11,197,000 $ 6,668,000 $ 6,411,000
Home/Condo/Renters $ 931,000 $ 584,000 $ 405,000
Term Life $ 485,000 $ 408,000 $ 1,215,000
Agent Directory $ 351,000 $ - $ -
All other $ 7,000 $ 7,000 $ 12,000
------------ ------------ ------------
Total transaction fees $ 12,971,000 $ 7,667,000 $ 8,043,000
# of Consumers:
Auto 2,862,000 1,477,000 1,318,000
Home/Condo/Renters 184,000 132,000 77,000
Term Life 9,000 16,000 60,000
Agent Directory 719,000 N/M N/M
------------ ------------ ------------
Total 3,774,000 1,625,000 1,455,000
Transaction revenue per consumer:
Auto $ 3.91 $ 4.51 $ 4.86
Home/Condo/Renters $ 5.06 $ 4.42 $ 5.26

Auto Segment B Revenue per Click $ 6.70 $ 6.57 $ 5.68
Avg. Times Lead Sold- (Auto and
Home) 3.7 4.3 N/M
Agent Network (Auto and Home):
Carrier-Sponsored Agents 2,390 2,400 N/M
AgentInsider Approved Agents 5,764 5,256 4,309

Direct Marketing Costs: $ 9,305,000 $ 4,543,000 $ 4,528,000
Marketing Costs Per Consumer:
Total $ 2.47 $ 2.80 $ 3.11
Excluding Agent Directory $ 2.90 $ 2.80 $ 3.11
Direct Marketing Costs as a
percent of Revenues: 71% 59% 56%

Cash and Cash Equivalents: $ 12,161,000 $ 10,777,000 $ 7,091,000
Account Receivable: $ 3,548,000 $ 2,428,000 $ 3,412,000
Day Sales Outstanding (DSO): 21 44 35
Staffing: 72 62 85

Definitions:

"# of consumers" Represents consumers acquired from
marketing activities

"Per Consumer Information" Represents Revenues earned or marketing
costs incurred per consumer who has
started an InsWeb quote form

"Segment B" Auto Insurance consumers classified as
non-standard (bad driving record, not
enough experience, or not permanently
incurred for 3 years)

"Avg. Times Lead Sold" Total # of times a lead is sold,
including leads sold by NetQuote on our
behalf

"Carrier-Sponsored Agents" Carriers buying leads through InsWeb on
behalf of their Agents

"AgentInsider approved Agents" # of agents approved to buy leads
through AgentInsider

"Direct Marketing Costs" Represents expenses incurred by InsWeb
to drive the consumers to InsWeb's
online insurance marketplace

*N/M Information not meaningful

Investor Relations Contact:
Molly Plyler
The Blueshirt Group
415-217-7722
Email Contact

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