WebMediaBrands Inc. Reports Fourth Quarter and Full Year 2008 Results

DARIEN, Conn.--(Business Wire)--
WebMediaBrands Inc. (Nasdaq: WEBM), an Internet media company concentrating on
BtoB communities, today reported results for the quarter and full year ended
December 31, 2008. Formerly known as Jupitermedia Corporation, these results
include information related to both WebMediaBrands`s remaining online media
business and Jupiterimages (the online images business that was sold on February
23, 2009). See the Segment Information section of this release for detail on
each reporting segment. Jupiterimages will be accounted for as a discontinued
operation commencing in the first quarter of 2009, and our continuing operations
will be comprised solely of our online media business.

Revenues for the fourth quarter of 2008 were $27.8 million compared to revenues
of $36.1 million for the same period in 2007. Net loss was $49.7 million, or
$1.38 per diluted share for the fourth quarter of 2008, and included (i)
non-cash stock-based compensation expense, legal and other fees related to the
recently completed sale of Jupiterimages and the establishment of a valuation
allowance on certain deferred tax assets, which totaled $0.23 per diluted share
and (ii) non-cash impairment charges of $41.1 million, or $1.14 per diluted
share, related to the write-down of goodwill and intangible assets.

Revenues were $128.4 million for 2008 compared to revenues of $140.3 million for
2007. Net loss was $116.7 million, or $3.24 per diluted share, for the full year
of 2008 and included (i) non-cash stock-based compensation expense, legal and
other fees related to the recently completed sale of Jupiterimages and the
establishment of a valuation allowance on certain deferred tax assets, which
totaled $0.83 per diluted share and (ii) non-cash impairment charges of $81.1
million, or $2.26 per diluted share, related to the write-down of goodwill and
intangible assets.

4th Quarter 2008 Financial Results Conference Call Alert

WebMediaBrands Inc. invites you to participate in its conference call reviewing
2008 fourth quarter and full year results on Monday, March 30, 2009 at 5:00 pm
EST.

The conference call number is 888-713-3587 for domestic participants and
913-312-0680 for international participants; pass code "694 8588." Please call
five minutes in advance to ensure that you are connected prior to the
presentation. The conference call replay will be available until Monday, April
13, 2009. Replay call numbers are 888-203-1112 for domestic participants and
719-457-0820 for international participants: confirmation code: "694 8588."

WebMediaBrands Inc.
Consolidated Condensed Statements of Operations
For the Three Months and Year Ended December 31, 2007 and 2008
(in thousands, except per share amounts)

Three Months Ended Year Ended
December 31, December 31,
2007 2008 2007 2008
Revenues $ 36,128 $ 27,807 $ 140,334 $ 128,394
Cost of revenues (exclusive of items shown separately below) 15,337 13,351 59,162 58,460
Advertising, promotion and selling 7,617 6,781 29,151 29,051
General and administrative 6,575 7,729 27,796 30,400
Depreciation 1,094 1,362 4,447 5,093
Amortization 3,553 4,235 13,222 16,072
Impairment of goodwill and intangible assets 87,186 41,108 87,186 81,108
Total operating expenses 121,362 74,566 220,964 220,184

Operating loss (85,234 ) (46,759 ) (80,630 ) (91,790 )
Other income, net 475 734 103 676
Interest income 44 155 184 331
Interest expense (1,914 ) (1,954 ) (7,146 ) (7,152 )
Loss before income taxes and minority interests (86,629 ) (47,824 ) (87,489 ) (97,935 )
Provision (benefit) for income taxes (5,165 ) 1,903 (5,278 ) 18,724
Minority interests 45 64 (64 ) (22 )

Net Loss $ (81,419 ) $ (49,663 ) $ (82,275 ) $ (116,681 )

Loss per share:
Basic net loss $ (2.26 ) $ (1.38 ) $ (2.29 ) $ (3.24 )
Diluted net loss $ (2.26 ) $ (1.38 ) $ (2.29 ) $ (3.24 )

Shares used in computing loss per share:
Basic 35,950 35,967 35,880 35,967
Diluted 35,950 35,967 35,880 35,967

Segment Information

The following tables summarize the results of the segments of WebMediaBrands for
the three months and years ended December 31, 2007 and 2008. Online media
includes the internet.com, Mediabistro.com and Graphics.com Networks. Online
images consists of the Jupiterimages business. Other includes corporate
overhead, depreciation and amortization.

(in thousands) Three Months Ended Year Ended
December 31, December 31,
2007 2008 2007 2008
Revenues:
Online images $ 26,783 $ 20,564 $ 108,904 $ 96,263
Online media 9,345 7,243 31,430 32,131
Other - - - -
36,128 27,807 140,334 128,394
Cost of revenues and operating expenses:(A)
Online images 18,646 16,837 74,091 71,129
Online media 7,155 7,632 23,950 28,914
Depreciation and amortization 4,647 5,597 17,669 21,165
Impairment of goodwill and intangible assets 87,186 41,108 87,186 81,108
Other (B) 3,728 3,392 18,068 17,868
121,362 74,566 220,964 220,184
Operating income (loss):
Online images 8,137 3,727 34,813 25,134
Online media 2,190 (389 ) 7,480 3,217
Impairment of goodwill and intangible assets (87,186 ) (41,108 ) (87,186 ) (81,108 )
Other (B) (C) (8,375 ) (8,989 ) (35,737 ) (39,033 )
$ (85,234 ) $ (46,759 ) $ (80,630 ) $ (91,790 )

(A) Cost of revenues and operating expenses include non-cash, stock-based
compensation expense of $655,000 and $3.0 million, respectively, for the
three months and year ended December 31, 2007, and $673,000 and $4.6
million, respectively, for the three months and year ended December 31,
2008.

(B) The year ended December 31, 2007 includes $1.9 million in legal and other
fees associated with discussions with Getty Images, Inc. regarding a
potential transaction which was terminated on March 7, 2007. The year
ended December 31, 2008 includes $1.4 million of legal and accounting
fees related to the recently completed sale of Jupiterimages. The year
ended December 31, 2008 also includes approximately $700,000 of one-time
expenses for accounting and other professional fees related to the non
-cash impairment charge and restatement in the fourth quarter of 2007.

(C) Includes depreciation and amortization expense.

WebMediaBrands Inc.
Consolidated Condensed Balance Sheet
December 31, 2007 and December 31, 2008
(in thousands, except share and per share amounts)

December 31, December 31,
2007 2008
ASSETS
Current assets:
Cash and cash equivalents $ 7,301 $ 3,755
Accounts receivable, net of allowances of $2,026 and $2,305, respectively 25,689 18,939
Prepaid expenses and other current assets 5,797 5,468
Deferred income taxes 1,441 496

Total current assets 40,228 28,658
Property and equipment, net 13,022 14,333
Intangible assets, net 74,002 54,896
Goodwill 139,813 63,444
Deferred income taxes 13,049 -
Investments and other assets 2,575 2,762

Total assets $ 282,689 $ 164,093

LIABILITIES AND STOCKHOLDERS` EQUITY
Current liabilities:
Accounts payable $ 7,153 $ 6,889
Accrued payroll and related expenses 3,383 3,440
Accrued expenses and other current liabilities 11,822 11,224
Current portion of long-term debt 750 81,213
Deferred revenues 15,121 14,585

Total current liabilities 38,229 117,351
Long-term debt 83,375 -
Deferred revenues 507 290
Deferred income taxes - 3,812
Other long-term liabilities 3,586 7,764

Total liabilities 125,697 129,217

Commitments and contingencies
Stockholders` equity:
Preferred stock, $.01 par value, 4,000,000 shares authorized, no shares - -
issued and outstanding
Common stock, $.01 par value, 75,000,000 shares authorized, 36,029,651 360 360
and 36,032,152 shares issued at December 31, 2007 and 2008, respectively
Additional paid-in capital 266,858 273,324
Accumulated deficit (117,798 ) (234,479 )
Treasury stock, 65,000 shares, at cost (106 ) (106 )
Accumulated other comprehensive income (loss) 7,678 (4,223 )

Total stockholders` equity 156,992 34,876

Total liabilities and stockholders` equity $ 282,689 $ 164,093

WebMediaBrands Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2007 and 2008
(in thousands)

Year Ended December 31,
2007 2008
Cash flows from operating activities:
Net loss $ (82,275 ) $ (116,681 )
Adjustments to reconcile net loss to net cash provided by operating activities:
Impairment of goodwill and intangible assets 87,186 81,108
Depreciation and amortization 17,669 21,165
Stock-based compensation 3,019 4,646
Provision (benefit) for losses on accounts receivable (310 ) 470
Minority interests 64 22
Other (income) loss, net 835 (8 )
Amortization of debt issue costs 253 208
Loss on extinguishment of debt 401 -
Deferred income taxes (7,598 ) 16,839
Excess tax benefit from stock-based compensation (1,129 ) (1,813 )
Changes in current assets and liabilities (net of businesses acquired):
Accounts receivable, net 934 4,903
Prepaid expenses and other assets (518 ) 2,390
Accounts payable and other accrued expenses (3,496 ) (1,334 )
Deferred revenues 991 (429 )
Net cash provided by operating activities 16,026 11,486

Cash flows from investing activities:
Purchases of property and equipment (5,168 ) (6,274 )
Acquisitions of businesses, images and other (30,813 ) (5,725 )
Proceeds from sale of assets and other 133 40
Net cash used in investing activities (35,848 ) (11,959 )

Cash flows from financing activities:
Borrowings under credit facilities 94,900 3,900
Debt issuance costs (1,790 ) (483 )
Repayment of borrowings under credit facilities (76,674 ) (6,813 )
Proceeds from exercise of stock options 1,179 7
Excess tax benefit from stock-based compensation 1,129 1,813
Net cash provided by (used in) financing activities 18,744 (1,576 )

Effect of exchange rates on cash (512 ) (1,497 )

Net decrease in cash and cash equivalents (1,590 ) (3,546 )
Cash and cash equivalents, beginning of year 8,891 7,301

Cash and cash equivalents, end of year $ 7,301 $ 3,755

Supplemental disclosures of cash flow:
Cash paid for (refund of) income taxes, net $ 1,139 $ (1,026 )
Cash paid for interest $ 6,859 $ 7,008
Non-cash investing activities:
Accrual of acquisitions of long-lived assets $ 716 $ 372
Accrual of purchase obligation $ - $ 61

About WebMediaBrands Inc.

WebMediaBrands Inc. (Nasdaq: WEBM, www.webmediabrands.com), headquartered in
Darien, CT, is an Internet media company concentrating on BtoB communities.
WebMediaBrands has three online communities: Internet.com for IT managers and
Web developers; Mediabistro.com for media professionals and Graphics.com for
design and creative professionals. All three communities offer job boards,
marketplaces, online education offerings and events.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release which are not historical facts are
"forward-looking statements" that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from those described in the forward-looking
statements. The potential risks and uncertainties address a variety of subjects.
For a more detailed discussion of such risks and uncertainties, refer to
WebMediaBrands` reports filed with the Securities and Exchange Commission
pursuant to the Securities Exchange Act of 1934. The forward-looking statements
included herein are made as of the date of this press release, and
WebMediaBrands assumes no obligation to update the forward-looking statements
after the date hereof.

All current WebMediaBrands press releases can be found online at
www.webmediabrands.com/corporate/press.html .

For information on WebMediaBrands:
WebMediaBrands Inc.
Adrian Maynard, 212-389-2005
Director of Marketing
press@webmediabrands.com

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