Jupitermedia Corporation Reports Record Results for Its Second Quarter Ended June 30, 2005

"We are pleased with our financial results for the second quarter,with record revenues and net income," stated Jupitermedia's Chairmanand CEO Alan M. Meckler. "We have been emphasizing the development ofour JupiterImages division and the second quarter illustratescontinued organic and overall growth in the sales and distribution ofcommercial images. The acquisition of PictureArts in July marks ourseventh major images acquisition since June 2003 (ArtToday, Comstock,Thinkstock, Hemera, Dynamic Graphics, Goodshoot and PictureArts). Weplan to continue our acquisitions program in the coming months. Ouremployees are working hard to shape and integrate these acquisitionsso that Jupitermedia becomes a powerful creator and distributor of awide range of commercial images. The full impact of this integrationwill be more apparent in future quarters. In the meantime we continueto evolve as a company making positive financial progress not onlywith JupiterImages, but with our JupiterWeb, JupiterResearch andJupiterEvents divisions," added Meckler.

Jupitermedia Corporation 2nd Quarter 2005 Financial ResultsConference Call Alert

Jupitermedia Corporation invites you to participate in itsconference call reviewing 2005 second quarter results, scheduled forTuesday, August 2, 2005 at 11:00 am EST.

The conference call number is (800) 289-0730 for domesticparticipants and (913) 981-5509 for international participants; passcode "892 6504." Please call five minutes in advance to ensure thatyou are connected prior to the presentation. The conference callreplay will be available until Tuesday, August 16, 2005. Replay callnumbers are (888) 203-1112 for domestic participants and (719)457-0820 for international participants: pass code: "892 6504."

Acquisitions

In May, Jupitermedia announced the acquisition of JGuru.com(www.jguru.com), an online community that provides news, information,forums and online courses designed for Java(TM) programmers andsoftware developers. The JGuru.com online community is comprised oftop Java(TM) developers, who are encouraged to maintain theirindividuality and express their own opinions freely, which givesJGuru.com the credibility needed for the success of any onlinecommunity. Terms of this acquisition were not disclosed.

In May, Jupitermedia announced that it had acquired all of theshares of Goodshoot S.A.S (www.goodshoot.com), for approximately U.S.$9.8 million in cash. Goodshoot, based in Annecy-le-Vieux, France, isa leading resource for royalty free digital images for business usersand creative professionals.

In July, Jupitermedia acquired PictureArts Corporation(www.picturearts.com) for approximately $63.2 million in cash, subjectto certain post-closing adjustments. The acquisition includesPictureArts' quality brands: Brand X Pictures, FoodPix, Botanica andNonstock, as well as its image distribution business. Jupitermediafinanced the purchase price with cash on hand and borrowings under a$90 million senior credit facility with JPMorgan Chase Bank, N.A.obtained in connection with the transaction.

Online Image Offerings

In April, Jupitermedia announced a collaboration with Adobethrough Adobe(R) Stock Photos, a new stock photography service thatoffers designers one-stop shopping for high-quality, royalty-freeimages for layout and design. Designers can download non-watermarkedcomp images from Jupitermedia's Comstock Images collection(www.comstock.com) and bring them into a layout and then purchasewithout ever having to leave Adobe Creative Suite 2.

In July, Jupitermedia announced an agreement with Corbis(www.corbis.com), a leading media services company, to distribute itsComstock Images and Thinkstock Images collections. Under the terms ofthe agreement Corbis will distribute select Comstock and Thinkstockimages worldwide through its Web site www.corbis.com, starting inSeptember.

The following table sets forth the organic and acquisition-related
revenue growth of Jupitermedia's Online images business on a year over
year and sequential quarterly basis for the three months ended June
30, 2005 (dollars in thousands):



(unaudited) Three Three
Months Months
Ended Organic Ended Organic Overall
June 30, Revenue Acquisition June 30, Growth Growth
2004 Growth Revenue 2005 Rate % Rate %
-------- -------- ----------- -------- ------- -------
Online images:
JupiterImages
(1) $5,791 $1,005 $- $6,796 17% 17%
Acquisitions
(2) - - 12,935 12,935 N/M N/M
-------- -------- ----------- -------- ------- -------
Online images
revenues $5,791 $1,005 $12,935 $19,731 17% 241%
======== ======== =========== ======== ======= =======


Three Three
Months Months
Ended Organic Ended Organic Overall
March 31, Revenue Acquisition June 30, Growth Growth
2005 Growth Revenue 2005 Rate % Rate %
-------- -------- ----------- -------- ------- -------
Online images:
JupiterImages
(3) $8,458 $123 $- $8,581 1% 1%
Acquisitions
(4) 3,705 - 7,445 11,150 N/M 201
-------- -------- ----------- -------- ------- -------
Online images
revenues $12,163 $123 $7,445 $19,731 1% 62%
======== ======== =========== ======== ======= =======


(1) JupiterImages consists of: ArtToday, Inc., acquired on June 30,
2003; and Comstock Images, acquired on April 1, 2004.

(2) Acquisitions include: Thinkstock Images, acquired on July 28,
2004; Hemera Images, acquired on November 12, 2004; and Dynamic
Graphics Group, acquired on March 7, 2005.

(3) JupiterImages consists of: ArtToday, Inc., acquired on June 30,
2003; Comstock Images, acquired on April 1, 2004; Thinkstock
Images, acquired on July 28, 2004; and Hemera Images, acquired on
November 12, 2004. Hemera Images' retail box product line has been
excluded since it has been discontinued.

(4) Acquisitions include: Dynamic Graphics Group acquired on March 7,
2005; and Goodshoot S.A.S. acquired on May 19, 2005.


The following table sets forth the organic and acquisition-related
revenue growth of Jupitermedia's Online images business on a year over
year basis for the six months ended June 30, 2005 (dollars in
thousands):


(unaudited) Six Six
Months Months
Ended Organic Ended Organic Overall
June 30, Revenue Acquisition June 30, Growth Growth
2004 Growth Revenue 2005 Rate % Rate %
-------- -------- ----------- -------- ------- -------
Online images:
JupiterImages
(1) $5,184 $2,118 $- $7,302 41% 41%
Acquisitions
(2) 3,064 - 21,528 24,592 N/M 703
-------- -------- ----------- -------- ------- -------
Online images
revenues $8,248 $2,118 $21,528 $31,894 41% 287%
======== ======== =========== ======== ======= =======


(1) JupiterImages consists of ArtToday, Inc., which was acquired on
June 30, 2003.

(2) Acquisitions include: Comstock Images, acquired on April 1, 2004;
Thinkstock Images, acquired on July 28, 2004; Hemera Images,
acquired on November 12, 2004; Dynamic Graphics Group, acquired on
March 7, 2005; and Goodshoot S.A.S. acquired on May 19, 2005.

Research Services

In April, Jupitermedia announced the launch of JupiterResearch'sSMB Marketing research service. The SMB Marketing research servicemarks the ninth new practice started by JupiterResearch since itsacquisition in July 2002 by Jupitermedia. This service helps companiesmarket effectively and increase sales to small- and medium-sizebusinesses (SMBs). Drawing on comprehensive surveys of SMB decisionmakers, intelligence from successful marketers and JupiterResearchstudies on evolving online marketing best practices, SMB Marketingidentifies and profiles attractive market segments and spells outeffective tactics to win SMB market share.

In June, Jupitermedia announced the launch of a new podcastingservice called JupiterResearch Conversations. Podcasts are audioprograms than can be listened to online or downloaded and listened toon a portable media player. JupiterResearch's podcasts featureconversations with JupiterResearch analysts about key topics relatingto the Internet and emerging consumer technologies. JupiterResearchConversations are available at podcasts.jupiterresearch.com.

Conferences and Trade Shows

JupiterEvents, a division of Jupitermedia, produces paidconferences and trade shows on IT and business-specific topicsworldwide that are aligned with the content on our Web sites and ourresearch offerings. JupiterEvents held eight paid conferences andtrade shows in the second quarter of 2005: Search Engine StrategiesConference & Expo Munich 2005; WiFi/VoWiFi Planet Conference & ExpoTokyo 2005; Search Engine Strategies Conference & Expo Tokyo 2005;Search Engine Strategies Conference & Expo Toronto 2005; ISPCONConference & Expo Spring 2005; Search Engine Strategies Conference &Expo London 2005; WiFi/VoWiFi Planet Conference & Expo Spring 2005;and Search Engine Watch Forums Live 2005. JupiterEvents has announcedthe following conferences and trade shows for the remainder of 2005:

-- Search Engine Strategies Conference & Expo 2005 (August 8-11, San Jose, CA)

-- IT Service Management Forum Conference & Expo 2005 (September 19-24, Chicago, IL)

-- ISPCON Fall 2005 (October 18-20, Santa Clara, CA)

-- Search Engine Strategies Conference & Expo 2005 (October 26-27, Stockholm, Sweden)

-- Search Engine Strategies Conference & Expo 2005 (December 5-8, Chicago, IL)

Jupitermedia Corporation
Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 2004 and 2005
(unaudited)
(in thousands, except per share amounts)

Three Months Six Months
Ended Ended
June 30, June 30,
----------------- -----------------
2004 2005 2004 2005
-------- -------- -------- --------
Revenues $17,846 $33,795 $32,199 $58,809
Cost of revenues 6,547 13,113 12,567 22,665
-------- -------- -------- --------

Gross profit 11,299 20,682 19,632 36,144
-------- -------- -------- --------

Operating expenses:
Advertising, promotion and
selling 4,550 6,900 8,125 11,593
General and administrative 2,152 4,521 4,677 7,928
Depreciation 242 423 465 710
Amortization 722 876 1,117 1,705
-------- -------- -------- --------
Total operating expenses 7,666 12,720 14,384 21,936
-------- -------- -------- --------

Operating income 3,633 7,962 5,248 14,208

Income (loss) on investments and
other, net 105 (11) 119 (41)
Interest income 9 95 27 214
Interest expense (56) (200) (62) (288)
-------- -------- -------- --------
Income before income taxes,
minority interests and equity
income from venture fund
investments and other, net 3,691 7,846 5,332 14,093
Provision for income taxes 140 934 140 1,612
Minority interests (26) (8) (37) (31)
Equity income (loss) from venture
fund investments and other, net (16) 132 (9) 132
-------- -------- -------- --------
Net income $3,509 $7,036 $5,146 $12,582
======== ======== ======== ========

Earnings per share:
Basic $0.13 $0.21 $0.19 $0.38
======== ======== ======== ========
Diluted $0.11 $0.19 $0.17 $0.35
======== ======== ======== ========
Shares used in computing earnings
per share:
Basic 27,903 34,304 26,965 33,523
======== ======== ======== ========
Diluted 30,906 36,836 29,783 36,044
======== ======== ======== ========


Segment Information

The following tables summarize the results of the segments of
Jupitermedia for the three and six months ended June 30, 2004 and
2005. Online images consists of the JupiterImages business that
includes Comstock Images, Creatas Images, PictureQuest, Liquid
Library, Thinkstock Images, Thinkstock Footage, Goodshoot Images,
Photos.com, HemeraImages.com, Ablestock.com, PhotoObjects.net,
Clipart.com and Animations.com. Online media consists of the
JupiterWeb business that includes the internet.com, EarthWeb.com,
DevX.com, ClickZ.com and Graphics.com Networks. Research represents
the JupiterResearch business. Events represent the JupiterEvents
business. Other includes corporate overhead, depreciation,
amortization and venture fund related activities.


Three Months Six Months
(unaudited) Ended Ended
(in thousands) June 30, June 30,
----------------- -----------------
2004 2005 2004 2005
-------- -------- -------- --------
Revenues:
Online images $5,791 $19,731 $8,248 $31,894
Online media 8,002 9,336 15,221 16,876
Research 2,201 2,801 4,543 5,356
Events 1,841 1,919 4,163 4,667
Other 11 8 24 16
-------- -------- -------- --------
17,846 33,795 32,199 58,809
-------- -------- -------- --------
Cost of revenues:
Online images 1,143 6,935 1,778 10,120
Online media 2,867 3,455 5,770 6,526
Research 1,318 1,409 2,554 2,849
Events 1,219 1,314 2,465 3,170
-------- -------- -------- --------
6,547 13,113 12,567 22,665
-------- -------- -------- --------
Gross profit:
Online images 4,648 12,796 6,470 21,774
Online media 5,135 5,881 9,451 10,350
Research 883 1,392 1,989 2,507
Events 622 605 1,698 1,497
Other 11 8 24 16
-------- -------- -------- --------
11,299 20,682 19,632 36,144
-------- -------- -------- --------
Advertising, promotion and
selling:
Online images 1,237 3,583 1,556 5,159
Online media 1,760 1,915 3,444 3,708
Research 780 833 1,498 1,701
Events 773 569 1,627 1,025
-------- -------- -------- --------
4,550 6,900 8,125 11,593
-------- -------- -------- --------
General and administrative:
Online images 263 1,083 517 1,681
Online media (186) 163 234 344
Research 177 184 374 407
Events 38 48 82 88
Other 1,860 3,043 3,470 5,408
-------- -------- -------- --------
2,152 4,521 4,677 7,928
-------- -------- -------- --------

Depreciation 242 423 465 710
Amortization 722 876 1,117 1,705

Operating income (loss):
Online images 3,148 8,130 4,397 14,934
Online media 3,561 3,803 5,773 6,298
Research (74) 375 117 399
Events (189) (12) (11) 384
Other (2,813) (4,334) (5,028) (7,807)
-------- -------- -------- --------
3,633 7,962 5,248 14,208
-------- -------- -------- --------


Jupitermedia Corporation
Consolidated Balance Sheets
December 31, 2004 and June 30, 2005
(in thousands, except share and per share amounts)

December 31, June 30,
2004 2005
------------ ------------
(unaudited)
ASSETS

Current assets:
Cash and cash equivalents $30,179 $19,950
Accounts receivable, net of allowances
of $966 and $1,351, respectively 15,385 21,417
Unbilled accounts receivable 1,530 1,336
Prepaid expenses and other 2,713 4,238
------------ ------------
Total current assets 49,807 46,941

Property and equipment, net of accumulated
depreciation of $9,256 and $9,876,
respectively 2,339 8,673
Intangible assets, net of accumulated
amortization of $5,371 and $7,074,
respectively 20,939 31,877
Goodwill 42,015 103,674
Investments and other assets 1,197 1,345
------------ ------------
Total assets $116,297 $192,510
============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable $2,277 $8,157
Accrued payroll and related expenses 1,785 3,039
Accrued expenses and other 5,037 8,198
Deferred revenues 14,183 18,957
Current portion of long-term debt - 8,333
------------ ------------
Total current liabilities 23,282 46,684

Long-term debt - 11,744
Deferred revenues 510 847
Deferred income tax liabilities 121 1,234
Other long-term liabilities 225 -
------------ ------------
Total liabilities 24,138 60,509
------------ ------------

Stockholders' equity:
Preferred stock, $.01 par value,
4,000,000 million shares authorized,
no shares issued and outstanding - -
Common stock, $.01 par value,
75,000,000 shares authorized, and
32,378,361 and 34,694,930 shares
issued at December 31, 2004 and June
30, 2005, respectively 324 347
Additional paid-in capital 215,648 243,856
Accumulated deficit (123,690) (111,108)
Treasury stock, 65,000 shares, at cost (106) (106)
Accumulated other comprehensive income (17) (988)
------------ ------------
Total stockholders' equity 92,159 132,001
------------ ------------
Total liabilities and stockholders'
equity $116,297 $192,510
============ ============


Jupitermedia Corporation
Consolidated Statements of Cash Flows
Six Months Ended June 30, 2004 and 2005
(unaudited)
(in thousands)

Six Months Ended
June 30,
-----------------
2004 2005
-------- --------
Cash flows from operating activities:
Net income $5,146 $12,582
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,582 2,415
Provision (benefit) for losses on accounts
receivable (144) (65)
Provision for income taxes 37 1,009
Minority interests 37 31
Equity (income) loss from venture fund
investments and other, net 9 (132)
(Income) loss on investments and other, net (119) 41
Changes in current assets and liabilities (net of
businesses acquired):
Accounts receivable 322 919
Unbilled accounts receivable (46) 195
Prepaid expenses and other (267) 378
Accounts payable and accrued expenses 1,408 (4,709)
Deferred revenues 1,855 659
-------- --------
Net cash provided by operating activities 9,820 13,323
-------- --------

Cash flows from investing activities:
Additions to property and equipment (207) (846)
Acquisitions of businesses and other (22,917) (49,004)
Distribution from internet.com venture funds 148 -
Proceeds (distributions) from sales of assets and
other 135 (65)
-------- --------
Net cash used in investing activities (22,841) (49,915)
-------- --------

Cash flows from financing activities:
Proceeds from issuance of common stock, net 30,580 -
Borrowings under credit facilities 13,000 20,000
Debt issuance costs - (257)
Repayment of borrowings under credit facility (13,000) -
Proceeds from exercise of stock options 2,096 6,620
-------- --------
Net cash provided by financing activities 32,676 26,363
-------- --------

Net increase (decrease) in cash and cash equivalents 19,655 (10,229)
Cash and cash equivalents, beginning of period 9,567 30,179
-------- --------
Cash and cash equivalents, end of period $29,222 $19,950
======== ========

Supplemental disclosures of cash flow:
Cash paid for income taxes $- $482
======== ========
Cash paid for interest $62 $196
======== ========

Non-cash investing activities:
Common stock issued for acquisitions $- $21,611
======== ========


Business Outlook

Jupitermedia's financial guidance is prepared in accordance with
accounting principles generally accepted in the United States of
America. Historical results below have been adjusted to conform to
this presentation. The amounts below reflect the preliminary
allocation of the purchase prices paid by Jupitermedia in connection
with its recent acquisitions of Thinkstock Images, Megapixel.net,
Hemera Technologies Inc., Creatas, L.L.C., the parent company of
Dynamic Graphics, Inc., GraphicDesignForum.com, JGuru.com, Goodshoot
S.A.S and PictureArts Corporation, and are subject to change pending a
final allocation of these amounts. The following forward
looking-statements reflect Jupitermedia's expectations as of August 1,
2005. Due to potential changes in general economic conditions and the
various other risk factors discussed below and in Jupitermedia's
reports filed with the Securities and Exchange Commission from time to
time, actual results may differ materially. Jupitermedia intends to
continue its practice of not updating forward-looking statements until
its next quarterly results announcement, other than in publicly
available statements.

Future Expectations

Actual
Total Actual Actual
2004 Q1 2005 Q2 2005 Q3 2005 Total 2005
-------- --------- --------- ----------- -------------
(in millions, except per share amounts)

Revenues $72.0 $25.0 $33.8 $39.5-40.5 $139.0-141.0
Cost of
revenues,
advertising,
promotion &
selling, and
G&A expenses $53.0 $17.7 $24.6 $28.0-29.0 $96.5-98.5
EBITDA
(Earnings
before
interest,
taxes,
depreciation
and
amortization) $19.0 $7.3 $9.2 $11.0-12.0 $42.0-43.0
Depreciation
and
amortization $3.0 $1.1 $1.3 $1.7 $5.9
Interest
expense, net $- $- $0.1 $1.2 $2.5
Equity income $- $- $0.1 $- $0.1
Provision for
income taxes
(1) $0.3 $0.7 $0.9 $1.3 $4.2

Net income $15.7 $5.5 $7.0 $7.3 $29.0-31.0
363636.8
Diluted share
count 31.8 35.7 36.8 37.0 36.7
0.19
Earnings per
diluted share $0.49 $0.16 $0.19 $0.20 $0.81-0.83


(1) The provision for income taxes includes deferred income tax
expense related to the amortization of certain intangibles, primarily
goodwill from the Dynamic Graphics Group and PictureArts acquisitions,
for income tax purposes that are not amortized in our financial
statements. This deferred income tax expense will be recorded as a
long-term liability on our balance sheet and will not be paid in cash
unless the related assets are sold.

About Jupitermedia Corporation

Jupitermedia Corporation (NASDAQ:JUPM) (www.jupitermedia.com),headquartered in Darien, CT, is a leading global provider of originalinformation, images, research and events for information technology,business and creative professionals. Jupitermedia includesJupiterImages, one of the leading images companies in the world withover 7.0 million images online serving creative professionals withbrands like Brand X, FoodPix, Botanica, Nonstock, Comstock Images,Creatas Images, PictureQuest, Liquid Library, Thinkstock Images,Thinkstock Footage, Goodshoot Images, Photos.com, HemeraImages.com,Ablestock.com, PhotoObjects.net, Clipart.com and Animations.com; andJupiterWeb, the online media division of Jupitermedia which operatesfive distinct online networks: internet.com and EarthWeb.com for ITand business professionals; DevX.com for developers; ClickZ.com forinteractive marketers; and Graphics.com, for creative professionals.JupiterWeb properties include more than 170 Web sites and over 170e-mail newsletters that are viewed by over 20 million users andgenerate over 300 million page views monthly. Jupitermedia alsoincludes: JupiterResearch, a leading international research advisoryorganization specializing in business and technology market researchin 18 business areas and 14 vertical markets; and JupiterEvents, whichproduces offline conferences and trade shows focused on IT andbusiness-specific topics, including Search Engine Strategies and ITService Management Forum.

"Safe Harbor" Statement under the Private Securities LitigationReform Act of 1995: Statements in this press release which are nothistorical facts are "forward-looking statements" that are madepursuant to the safe harbor provisions of the Private SecuritiesLitigation Reform Act of 1995. Such forward-looking statements involverisks and uncertainties that could cause actual results to differmaterially from those described in the forward-looking statements. Thepotential risks and uncertainties address a variety of subjectsincluding, for example, the competitive environment in whichJupitermedia competes; the unpredictability of Jupitermedia's futurerevenues, expenses, cash flows and stock price; Jupitermedia's abilityto integrate acquired businesses, products and personnel into itsexisting businesses; Jupitermedia's dependence on a limited number ofadvertisers; and Jupitermedia's ability to protect its intellectualproperty. For a more detailed discussion of such risks anduncertainties, refer to Jupitermedia's reports filed with theSecurities and Exchange Commission pursuant to the Securities ExchangeAct of 1934. The forward-looking statements included herein are madeas of the date of this press release, and Jupitermedia assumes noobligation to update the forward-looking statements after the datehereof.

All current Jupitermedia Corporation press releases can be foundon the World Wide Web athttp://www.jupitermedia.com/corporate/press.html