Mediaboss Marketing

25 October 2006

("IBG" or the "Company")

Trading Update

Internet Business Group plc, the AIM listed online advertising and e-commerce specialist announces an update on trading for the financial year ended 31 October 2006.

Financial Update

Following a positive outlook reported at the time of our interim results trading has remained strong. As a result, turnover for the financial year ending 31 October 2006 is anticipated to grow by at least 105% to £13.0 million (2005: £6.32 million), representing an increase of 12% above current market expectations of £11.54 million. As a result of this increase and the operational gearing of IBG, earnings before interest, tax, depreciation, amortisation and movement on investments are anticipated to grow by almost 175% to approximately £1.15 million (2005: £0.42 million), 20% above current market expectations of £0.96 million. Profit before tax is anticipated to be in the region of £1.1 million (2005: £0.41 million), 9% over current market expectations of £1.01 million.

This strong performance is primarily attributable to the better than anticipated trading of IBG's performance advertising division, AffiliateFuture, supported by solid progress in the newly established media division of the Company.

IBG will be adopting International Financial Reporting Standards early and will be reporting in line with the new standard from the financial year commencing on 1 November (Stuttgart: A0Z24E - news) 2006.

Operational Update

IBG is in the preliminary stages of establishing a discrete media division, incorporating the two key websites acquired from Cheap Flights Limited, as reported on 5 July 2006. These acquisitions have been successfully integrated and the newly recruited commercial team seek to exploit the on-going opportunities. Since IBG's acquisition of the websites the consumer experience has remained unchanged, however, the underlying platform has been completely replaced and upgraded by an IBG in-house designed platform. IBG's media team in London has been supplemented by further recruitment in our Spanish office.

IBG's own travel search engine, Henoo.com, is undergoing significant levels of commercial and technical development. The Directors believe that whilst this activity is strictly a media operation, it provides our performance advertising business, AffiliateFuture, with technologies that significantly differentiate us within the travel sector.

AffiliateFuture Inc., the US online advertising division, is continuing to make good progress and to increase its client base. Whilst the operation's earnings have not broken even on a monthly basis in the current financial year, it is expected to make a small contribution to profit during the course of the 2007 financial year and remains important to the medium-to-long term development of IBG.

Maziar Darvish, Chief Executive, commented: "We are pleased, once more, to be providing a positive trading update which re-iterates the strength of our business model and the growth in our underlying markets. I believe strongly that our core competencies of technology and online marketing, coupled with a solid strategy, differentiate our offering and provide us with strong competitive advantages in the sector. We continue to invest in both infrastructure and people in order to exploit the substantial market opportunities available."

The Company expects to report its preliminary results for the year ended 31 October 2006 by early February 2007.

Enquiries:

Internet Business Group

Maziar Darvish, CEO

Mob: 07967 039 693

http://www.ibg.co.uk

Tavistock Communications

Matt Ridsdale / John West

Tel: 020 7920 3150

Mob: 07796 956 710

Altium Capital Limited

Mike Fletcher / Steven Whitehead

Tel: 0161 831 9133

Notes to Editors:

IBG's performance advertising business trades as AffiliateFuture and its best known e-commerce operation is Sweatband.com. IBG's core skills are in the areas of Internet technology, online marketing ∓ design.

Read more:
Internet Business Gp - Trading Update