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Web.com Reports Second Quarter Financial Results

August 8, 2006

ATLANTA, Aug. 8, 2006 (PRIMEZONE) -- Web.com, Inc. (Nasdaq:WWWW), the leading destination for websites and web services, today reported its results for its second quarter ended June 30, 2006.

Summary of Second Quarter 2006 Results:


  -- Total revenues for the quarter were $12.1 million, down from
     $12.3 million in the first quarter of 2006. The second quarter
     marked the last quarter of recognizing Verizon revenues (a deal
     that was initially cancelled in December 2004 and terminated in
     the second quarter of 2006).
  -- Net income for the quarter was negative $5.7 million, or
     $(0.35) per share, including a $3.5 million charge from the
     WebSource Media acquisition and $0.2 million in legal costs associated
     with the acquisition, versus a negative $5.5 million, or $(0.34)
     per share, in the quarter ended March 2006.
  -- Adjusted net income from continuing operations(1) was negative
     $3.6 million, including an impairment of $3.5 million from
     WebSource Media and $0.2 million in legal costs associated
     with the acquisition.
  -- Net subscribers totaled approximately 148,000 for the quarter,
     down from approximately 149,000 in the first quarter of 2006. The
     reduction in the second quarter as compared to the first quarter
     includes the loss of approximately 3,200 Verizon subscribers.
     Excluding the loss of Verizon subscribers, the Company added
     approximately 1,600 subscribers in the quarter.

"Web.com continued to drive subscriber growth across its core website and web services plans by refining our sales and marketing efforts and working closely with strategic distribution partners," stated Jeff Stibel, President and CEO, Web.com. "While we had unfortunate news about an acquisition we made during the quarter, the company has moved on and is working on further solidifying its position as a leader in the industry."

"The second quarter presented some challenges for Web.com, however if you exclude these events and look at the core business, the company was able to add subscribers within attractive subscriber acquisition rates," stated Gonzalo Troncoso, Executive Vice President and Chief Financial Officer. "The company has stated in the past that it intends to create a model that brings in new subscribers and up-sells them to new web services over time. This model is taking shape and we feel confident that over the long term it will be a cost-effective means to grow revenues and create long-standing relationships with our customer base."

About Web.com

Web.com, Inc. (NASDAQ: WWWW), formerly Interland, Inc. (NASDAQ: INLD), is the leading destination for the simplest, yet most powerful solutions for websites and web services. Web.com offers do-it-yourself and professional website design, website hosting, ecommerce, web marketing and email. Since 1995, Web.com has been helping individuals and small businesses leverage the power of the Internet to build a web presence. More than 4 million websites have been built or hosted using Web.com's proprietary tools, services and patented technology. For more information on the company, please visit www.web.com or www.interland.com or call at 1-800-WEB-HOST.

Web.com will host a conference call today to discuss its quarterly results at 9:30AM ET (6:30AM PT). A live webcast of the call can be accessed on the investors section of the company's website at www.web.com/ir. A replay of the call will be available on the site for seven days.


 (1) Adjusted net income from continuing operations is a non-GAAP
     financial measure and is defined as net income from continuing
     operations excluding interest income or expense, provision for
     income taxes, depreciation, amortization of intangibles, and
     stock-based compensation.

Note Regarding Use of Non-GAAP Financial Measures

This earnings release contains non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of a company's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Web.com, Inc. has provided reconciliations below release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Adjusted net income (loss) from continuing operations is presented in this earnings release because management believes that this non-GAAP measure of financial performance provides investors with valuable insight into the Company's ongoing business and operating results from period-to-period. We define adjusted net income (loss) from continuing operations as net income (loss) from continuing operations excluding (i) provision for income taxes, (ii) interest income or expense, (iii) depreciation, (iv) amortization of intangibles, and (v) stock based compensation. Management uses this non-GAAP financial measure as a primary measure in monitoring and evaluating our ongoing operating results and trends of our operations. We believe that excluding income (loss) from discontinued operations provides a more relevant measure of our present web services business. Income (loss) from discontinued operations relates to the Company's prior business of manufacturing personal computers, which the Company sold in fiscal 2001, and is wholly unrelated to the Company's present web services business. Management believes the exclusion of stock based compensation provides a more consistent comparison against prior periods, since stock based compensation was not included in net income (loss) for prior fiscal years. Management believes that measuring the performance of the business without regard to interest, taxes and depreciation and amortization can make trends in operating results more readily apparent, and when considered with other information, assist management and investors in evaluating our ability to generate future earnings.

Adjusted net income (loss) from continuing operations should be considered in addition to, and not as a substitute for, net income or loss or other measures of financial performance reported in accordance with GAAP. Adjusted net income (loss) from continuing operations does not take into account costs of doing business that can be substantial, such as income taxes and interest expense. Adjusted net income (loss) from continuing operations may not be comparable to similarly captioned information reported by other companies.

Forward-Looking Statements

Except for the historical information contained in this press release, statements in this press release may be considered forward-looking statements. These forward-looking statements include, but are not limited to, the ability to stabilize the company's revenues and cost structure, increase customers and revenues, sell additional products and services to existing customers, create a well-known brand for the Company's product offerings, successfully access the consumer segment of the web hosting market and enter into strategic alliances with leading companies in the industry. Forward-looking statements are also identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue", similar expressions, and variations or negatives of these words. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements are based on Web.com's current expectations, estimates, projections, beliefs and assumptions. These forward-looking statements speak only as of the date hereof and are based upon the information available to the Company at this time. Such information is subject to change, and the Company will not necessarily inform you of such changes. These statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, the Company's actual results could differ materially and adversely from those expressed in any forward-looking statement as a result of various factors. Factors which could affect these forward-looking statements, and Web.com's business, include but are not limited to: the ability to operate within budgeted expense, the ability of the Company to improve customer satisfaction, reduce churn, and expand its customer base as planned, growing dependence on reseller and other indirect sales channels, general economic conditions, the impact of competition, quarterly fluctuations in operating results, the loss of customers with failing businesses and customer churn in general, customer acceptance of new products and services, the retention of key employees, potential liabilities from the sale of dedicated server assets, possible disruptions for customers due to our data centers being maintained by third parties, higher than expected costs of litigation and the impact of liabilities that could carry over from the Company's discontinued operations. Certain of these and other risks associated with Web.com's business are discussed in more detail in its public filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, its Quarterly Reports and Transition Report on Form 10-Q and its Current Reports on Form 8-K, and its most recent proxy statement. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company does not undertake to update its forward-looking statements.


 WEB.COM, INC.
 CONSOLIDATED STATEMENT OF OPERATIONS
 (In thousands, except per share amounts)
 (Unaudited)
                                  For the             For the
                             three months ended    six months ended
                              -----------------   -------------------
                              June 30,  May 31,   June 30,   May 31,
                                2006     2005       2006       2005
                              -------   -------   --------   --------
 Revenues                     $12,053   $22,307   $ 24,315   $ 44,929

 Operating costs
  and expenses:
 Network operating costs,
  exclusive of depreciation
  shown below(a)                2,269     6,272      4,653     11,576
 Sales and marketing,
  exclusive of depreciation
  shown below(a)                3,335     5,687      6,485     10,068
 Technical support, exclusive
  of depreciation shown
  below(a)                      1,761     3,005      3,483      6,659
 General and administrative,
  exclusive of depreciation
  shown below(a)                4,696     7,672     14,608     15,378
 Bad debt expense                 242       535        519      1,000
 Depreciation and amortization  2,225     5,686      3,359     10,992
 Restructuring costs               23     1,666         66      1,666
 Impairment of investment in
  and advances to WebSource
  Media                         3,488        --      3,488         --
 Gain on sale of accounts          --    (1,915)        --     (1,915)
 Other expense (income), net       (2)      (96)        (3)       (24)
                              -------   -------   --------   --------
 Total operating costs
  and expenses                 18,037    28,512     36,658     55,400
                              -------   -------   --------   --------
 Operating loss                (5,984)   (6,205)   (12,343)   (10,471)
 Interest income (expense),
  net                             248       131        509        214
                              -------   -------   --------   --------
 Loss from continuing
  operations before income
  taxes                        (5,736)   (6,074)   (11,834)   (10,257)
 Income tax benefit                 9        --        863         --
                              -------   -------   --------   --------
 Loss from continuing
  operations                   (5,727)   (6,074)   (10,971)   (10,257)

                              -------   -------   --------   --------
 Net loss                     $(5,713)  $(6,247)  $(11,216)  $(10,519)
                              =======   =======   ========   ========

 Net loss per share,
  basic and diluted:
   Continuing operations      $ (0.35)  $ (0.38)  $  (0.67)  $  (0.64)
     Discontinued operations       --     (0.01)     (0.01)     (0.02)
                              $ (0.35)  $ (0.39)  $  (0.68)  $  (0.66)
                              =======   =======   ========   ========
 Number of shares used in
  per share calculation:
   Basic and diluted           16,511    16,032     16,453     16,024

 (a) Includes stock-based
      compensation as follows:
      Network operating costs $     6   $    --   $     12   $     --
      Sales and marketing          39        --         54         --
      Technical support             9        --         17         --
      General and
       administrative             105        --      5,413        162
                              -------   -------   --------   --------
    Total stock-based
     compensation             $   159   $    --   $  5,496   $    162
                              =======   =======   ========   ========

 WEB.COM, INC.
 Adjusted Net Income (Loss) from Continuing Operations
 Reconciliation to Net Income (Loss)
 (In thousands)
 (Unaudited)
                                   For the              For the
                             three months ended     six months ended
                             -------------------   -------------------
                             June 30,    May 31,   June 30,    May 31,
                               2006       2005       2006       2005
                             --------   --------   --------   --------
 Net loss                    $ (5,713)  $ (6,247)  $(11,216)  $(10,519)
  Depreciation and
   amortization                 2,225      5,686      3,359     10,992
  Amortization of stock-
   based compensation             159         --      5,496        162
  Interest expense (income)      (248)      (131)      (509)      (214)
  Income tax benefit               (9)        --       (863)        --
  Discontinued operations         (14)       173        245        262
                             --------   --------   --------   --------
 Adjusted net income (loss)
  from continuing
  operations                 $ (3,600)  $   (519)  $ (3,488)  $    683
                             ========   ========   ========   ========


 WEB.COM, INC.
 CONSOLIDATED BALANCE SHEETS
 (In thousands)
 (Unaudited)
                                                       As of
                                               ----------------------
                                                June 30,   December 31,
                                                 2006         2005
                                               ---------    ---------
 Assets
  Current assets
   Cash and cash equivalents                   $  13,163    $  17,370
   Trade receivables, net of allowance for
    doubtful accounts                              1,739        1,812
   Other receivables                               1,139        1,180
   Other current assets                            1,698        2,026
   Restricted investments                            279          276
                                               ---------    ---------
  Total current assets                            18,018       22,664

   Restricted investments                          8,322        9,015
   Securities, held-to-maturity                       --           53
   Property, plant and equipment, net              4,757        6,303
   Goodwill                                          921          921
   Intangibles, net                                5,900        6,568
   Other assets                                    5,600        5,600
                                               ---------    ---------
 Total assets                                  $  43,518    $  51,124
                                               =========    =========
 Liabilities and shareholders' equity
  Current liabilities
   Accounts payable                            $   1,893    $     934
   Accrued expenses                                6,637        6,232
   Accrued restructuring charges                   2,838        4,416
   Current portion of long-term debt and
    capital lease obligations                      1,716        1,693
   Deferred revenue                                4,517        4,637
                                               ---------    ---------
  Total current liabilities                       17,601       17,912

   Long-term debt and capital lease obligations    2,906        3,850
   Deferred revenue, long-term                       239          206
   Other liabilities                                 155          934
                                               ---------    ---------
 Total liabilities                                20,901       22,902
                                               ---------    ---------

 Commitments and contingencies
  (note 9)                                            --           --

 Shareholders' equity
  Common stock, $.01 par value, authorized
   26 and 21 million shares, issued and
   outstanding 16.6 and 16.6 million shares,
   respectively                                      166          166
  Additional capital                             331,104      325,493
  Warrants                                         2,128        2,128
  Note receivable from shareholder                  (735)        (735)
  Accumulated deficit                           (310,046)    (298,830)
                                               ---------    ---------
 Total shareholders' equity                       22,617       28,222
                                               ---------    ---------
 Total liabilities and shareholders' equity    $  43,518    $  51,124
                                               =========    =========


 WEB.COM, INC.
 CONSOLIDATED BALANCE SHEETS
 (In thousands)
 (Unaudited)
                                                        As of
                                                ----------------------
                                                 June 30,    March 31,
                                                  2006         2006
                                                ---------    ---------
 Assets
  Current assets
   Cash and cash equivalents                    $  13,163    $  16,790
   Trade receivables, net of allowance for
    doubtful accounts                               1,739        1,559
   Other receivables                                1,139          706
   Other current assets                             1,698        1,707
   Restricted investments                             279          278
                                                ---------    ---------
  Total current assets                             18,018       21,040

   Restricted investments                           8,322        8,567
   Securities, held-to-maturity                        --           53
   Property, plant and equipment, net               4,757        6,435
   Goodwill                                           921          907
   Intangibles, net                                 5,900        6,233
   Other assets                                     5,600        5,606
                                                ---------    ---------
  Total assets                                  $  43,518    $  48,841
                                                =========    =========

 Liabilities and shareholders' equity
  Current liabilities
   Accounts payable                             $   1,893    $     910
   Accrued expenses                                 6,637        6,290
   Accrued restructuring charges                    2,838        3,121
   Current portion of long-term debt and capital
    lease obligations                               1,716        1,708
   Deferred revenue                                 4,517        4,671
                                                ---------    ---------
  Total current liabilities                        17,601       16,700

   Long-term debt and capital lease obligations     2,906        3,384
   Deferred revenue, long-term                        239          243
   Other liabilities                                  155          355
                                                ---------    ---------
 Total liabilities                                 20,901       20,682
                                                ---------    ---------
 Commitments and contingencies
  (note 9)                                             --           --

 Shareholders' equity
  Common stock, $.01 par value, authorized
   26 and 21 million shares, issued and
   outstanding 16.6 and 16.6 million shares,
   respectively                                       166          166
  Additional capital                              331,104      330,933
  Warrants                                          2,128        2,128
  Note receivable from shareholder                   (735)        (735)
  Accumulated deficit                            (310,046)    (304,333)
                                                ---------    ---------
 Total shareholders' equity                        22,617       28,159
                                                ---------    ---------
 Total liabilities and shareholders' equity     $  43,518    $  48,841
                                                =========    =========


 WEB.COM, INC.
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (In thousands)
 (Unaudited)
                                                        For the
                                                    six months ended
                                                  --------------------
                                                  June 30,    May 31,
                                                    2006        2005
                                                  --------    --------
 CASH FLOWS FROM OPERATING ACTIVITIES
 Net loss                                         $(11,216)   $(10,519)
 Adjustments to reconcile net loss to net cash
  used in operating activities from continuing
  operations:
   Loss from discontinued operations                   245         262
   Depreciation and amortization                     3,359      10,992
   Bad debt expense                                    519       1,000
   Gain on sale of assets                               (4)        (24)
   Gain on sale of accounts                             --      (1,915)
   Impairment of investment in and advances to
    WebSource Media                                  3,488          --
   Stock-based compensation                          5,496         162
   Restructuring costs                                  66       1,666
   Changes in operating assets and liabilities
    net of effect of acquisition:
     Receivables                                      (405)       (895)
     Other current assets                              328         504
     Accounts payable, accrued expenses and
      deferred revenue                              (1,338)      1,291
                                                  --------    --------
 Cash provided by (used in) operating
  activities of continuing operations                  538       2,524
                                                  --------    --------

 CASH FLOWS FROM INVESTING ACTIVITIES
  Expenditures for property, plant,
   and equipment                                    (1,141)     (6,421)
  Payment for purchase of WebSource Media           (3,261)         --
  Net proceeds from sale of accounts                    --       2,733
  Purchase of held-to-maturity investment
   securities                                           --         (50)
  Proceeds from sale of held-to-maturity
   investment securities                                53          --
  Purchases of auction rate securities                  --      (6,000)
  Proceeds from auction rate securities                 --      19,025
  Net change in restricted investments                 690         594
                                                  --------    --------
 Cash (used in) provided by investing activities
  of continuing operations                          (3,659)      9,881
                                                  --------    --------

  CASH FLOWS FROM FINANCING ACTIVITIES
  Repayments of debt and capital lease obligations    (921)     (1,206)
  Proceeds from exercises of stock options             115          37
                                                  --------    --------
  Cash used in financing activities of
   continuing operations                              (806)     (1,169)
                                                  --------    --------

  Net cash (used in) provided by continuing
   operations                                       (3,927)     11,236
                                                  --------    --------
  Net cash used in discontinued operations
   (Revised - See note 2)
     Operating cash flows                             (280)       (401)
     Investing cash flows                               --          --
     Financing cash flows                               --          --
                                                  --------    --------
  Total cash flows used in discontinued
   operations                                         (280)       (401)
                                                  --------    --------
  Net increase (decrease) in cash and
   cash equivalents                                 (4,207)     10,835
  Cash and cash equivalents at beginning
   of period                                        17,370      13,132
                                                  --------    --------
  Cash and cash equivalents at end of period      $ 13,163    $ 23,967
                                                  ========    ========

CONTACT: Web.com
Peter Delgrosso
404-260-2500
investor@corp.web.com