Jupitermedia Corporation Reports Results for Its Second Quarter Ended June 30, 2006

Highlights for the second quarter include:

-- Revenues for the second quarter of 2006 were $35.0 million compared to revenues of $29.1 million for the same period last year, an increase of 20%.

-- Earnings per diluted share from continuing operations were $0.09 and included stock-based compensation expense of $0.02.

Beginning on January 1, 2006, Jupitermedia began expensingstock-based compensation. The results of the second quarter of 2006include non-cash stock-based compensation expense of $906,000. Theprovision for income taxes for the second quarter of 2006 was $88,000,which was net of a $1.5 million benefit from the reversal of thevaluation allowance related to deferred income tax assets. Net incomefor the second quarter of 2006 was $2.4 million, or $0.07 per dilutedshare, compared to net income of $7.0 million, or $0.19 per dilutedshare, for the same period last year. Net income for the secondquarter of 2006 included a loss of $718,000, net of income taxes,related to the sale of Jupitermedia's Research business.

"We have been emphasizing the development of our Jupiterimagesdivision and have made significant investments in our imageproduction, technology platforms and direct sales teams over the pastseveral quarters. The full benefits of these investments, as well asthe benefits from integrating our many recent image acquisitions, willbe more apparent in future quarters," stated Jupitermedia's Chairmanand CEO Alan M. Meckler. "Jupitermedia continues to grow as a powerfulcreator and distributor of a wide range of commercial images anddigital content. In addition to the expansion of our image offerings,through several acquisitions we increased our wholly-ownedroyalty-free music offerings," added Meckler.

Jupitermedia Corporation 2nd Quarter 2006 Financial ResultsConference Call Alert

Jupitermedia Corporation invites you to participate in itsconference call reviewing 2006 second quarter results on Wednesday,August 9, 2006 at 11:00 am EST.

The conference call number is (800) 565-5442 for domesticparticipants and (913) 312-1298 for international participants;confirmation code "473 2301." Please call five minutes in advance toensure that you are connected prior to the presentation. Theconference call replay will be available until Wednesday, August 23,2006. Replay call numbers are (888) 203-1112 for domestic participantsand (719) 457-0820 for international participants: pass code: "4732301."

Acquisitions

In April 2006, Jupitermedia acquired certain assets of SteveShapiro Music, including a wholly-owned music library of over 2,200royalty-free music tracks. Steve Shapiro Music owns a wide selectionof tracks offering moods, themes and instrumentation ranging fromhip-hop to classical styles. Terms of the acquisition were notdisclosed.

In May 2006, Jupitermedia acquired all of the shares of IFABilderteam GmbH (www.ifa-bilderteam.com). IFA Bilderteam isheadquartered in Munich, Germany and has an office in Dusseldorf,Germany. IFA Bilderteam is a leading resource for rights-managedimages. Terms of the acquisition were not disclosed.

In June 2006, Jupitermedia acquired all of the shares of Workbook,Inc. (www.workbookstock.com) from Alexis Scott. Workbook Stock, adivision of Workbook, Inc., is a leading resource for high-endrights-managed images. Workbook Stock is headquartered in Los Angeles,CA. Simultaneously, Alexis Scott purchased the Workbook printdirectories, Workbook.com, and all other assignment products fromWorkbook, Inc. Terms of the transactions were not disclosed.

In August 2006, Jupitermedia acquired the assets ofRoyaltyFreeMusic.com (www.royaltyfreemusic.com).RoyaltyFreeMusic.com's library includes overy 1,100 wholly-ownedtracks of high quality royalty-free themes, underscores, voiceoversbeats, loops and bumpers. Terms of the acquisition were not disclosed.

Divestiture and Discontinued Operations

In March 2006, Jupitermedia announced that it sold itsJupiterResearch division for $10.1 million in cash and the assumptionof certain liabilities by the purchaser, subject to certainpost-closing adjustments. The purchaser is JupiterResearch, LLC asubsidiary of JupiterKagan, Inc., which is a portfolio company of MCGCapital Corporation (Nasdaq: MCGC). As a result of this sale,Jupitermedia's Research segment is now being presented as adiscontinued operation in accordance with Statement of FinancialAccounting Standards No. 144.

New Online Images Offerings

Jupitermedia continued to expand its international presence andstrengthen its world-class image offerings with the addition of:

In July 2006, Jupitermedia announced the launch of photos.jp(www.photos.jp), the first micropayment stock photography Web sitebased in Japan. Photos.jp was developed and built in Japan withJupitermedia's partner Aeria, Inc. and utilizes software based onJupiterimages' partner Stockxpert.com (www.stockxpert.com), a leadingmicropayment stock photography Web site.

In July 2006, Jupitermedia launched a powerful new search engineon its Jupiterimages Web site (www.jupiterimages.com). The new searchengine was built with key input from Jupiterimages' customers anddelivers the critical features they need, including the ability tofind images with and without people and by gender, age and ethnicity.It also enables search by the subjects' emotions (i.e., subject isangry, content, frustrated, happy, laughing, sad, serious or worried)and by the subject looking at or away from the camera and includesmany other requested search features.

New Online Media Offerings

Jupitermedia continued to expand and strengthen its world-classproprietary JupiterWeb content and advertising opportunities with theaddition of the following:

In May 2006, JupiterWeb division announced the launch ofTwoMinuteTips.com (www.twominutetips.com). TwoMinuteTips.com producesoriginal interactive video programming for its audience of ITprofessionals and presents brief tutorials that will help ITprofessionals solve everyday problems. The first video tutorialsproduced were titled "Building Mobile Apps" and "Adding Dynamic Menuswith ASP.NET 2.0."

In May 2006, JupiterWeb division announced the launch of OpenNetworks Today (http://www.opennetworkstoday.com/) in EarthWeb.com'sNetworking Channel. The editors of Open Networks Today review articlesfrom across the Web and provide networking news through frequentlyupdated headlines tailored to the network professional. Open NetworksToday attracts professionals and serious enthusiasts, from executiveIT management to senior-level IT staff and consultants looking forup-to-date news, feature stories and community resources, on topicssuch as network security, infrastructure, management, standards andprotocols and network services.

In June 2006, JupiterWeb division introduced two new services,ProspectLink(sm) (www.jupiterweb.com/prospectlink/) and ClickLink(sm)(www.jupiterweb.com/clicklink/), to its "Guaranteed EffectiveMarketing Solutions" (GEMS) series. ProspectLink is a turnkey solutionfor technology marketers interested in attracting qualified IT buyers,while ClickLink is a cost-per-click advertising program that deliversthe contextual targeting and simplicity of buying keywords.
Jupitermedia Corporation

Unaudited Consolidated Condensed Statements of Operations

For the Three Months and Six Months Ended June 30, 2005 and 2006
(in thousands, except per share amounts)

Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2005 2006 2005 2006
-------- -------- -------- --------
Revenues $29,075 $35,026 $48,786 $68,967
Cost of revenues (exclusive of
items shown separately below) 10,390 12,712 16,646 24,637
Advertising, promotion and
selling 5,498 7,875 8,867 15,041
General and administrative 4,289 7,136 7,433 13,367
Depreciation 423 849 701 1,502
Amortization 876 2,095 1,705 4,366
-------- -------- -------- --------
Total operating expenses 21,476 30,667 35,352 58,913
-------- -------- -------- --------

Operating income 7,599 4,359 13,434 10,054

Income (loss) on investments and
other, net (11) 64 (41) 137
Interest income 95 164 214 281
Interest expense (200) (1,393) (288) (2,712)
-------- -------- -------- --------

Income before income taxes,
minority interests and equity
income from investments, net 7,483 3,194 13,319 7,760
Provision for income taxes 934 88 1,612 1,803
Minority interests (8) (26) (31) (35)
Equity income from investments,
net 132 59 132 50
-------- -------- -------- --------
Income from continuing
operations 6,673 3,139 11,808 5,972
Income from discontinued
operations, net of taxes 363 - 774 67
Gain (loss) on sale of
discontinued operations, net of
taxes - (718) - 5,573
-------- -------- -------- --------
Net income $7,036 $2,421 $12,582 $11,612
======== ======== ======== ========

Earnings per share:
Basic
Income from continuing
operations $0.19 $0.09 $0.35 $0.17
======== ======== ======== ========
Net income $0.21 $0.07 $0.38 $0.33
======== ======== ======== ========
Diluted
Income from continuing
operations $0.18 $0.09 $0.33 $0.16
======== ======== ======== ========
Net income $0.19 $0.07 $0.35 $0.32
======== ======== ======== ========
Shares used in computing
earnings per share:
Basic 34,304 35,333 33,523 35,223
======== ======== ======== ========
Diluted 36,836 36,307 36,044 36,238
======== ======== ======== ========

See notes to consolidated financial statements.

Segment Information

The following tables summarize the results of the segments ofJupitermedia for the three and six months ended June 30, 2005 and2006. Online images consists of the Jupiterimages business thatincludes: BananaStock, Workbook Stock, Brand X, FoodPix, Botanica,Nonstock, The Beauty Archive, IFA Bilderteam, Comstock Images, CreatasImages, PictureQuest, Liquid Library, Thinkstock Images, ThinkstockFootage, Bigshot Media, Goodshoot, ITStockFree, Stock Image, Pixland,Photos.com, Ablestock.com, PhotoObjects.net, Clipart.com,FlashFoundry.com and AnimationFactory.com. Online media consists ofthe JupiterWeb business that includes the internet.com, EarthWeb.com,DevX.com and Graphics.com Networks. Other includes corporate overhead,depreciation and amortization.
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2005 2006 2005 2006
-------- -------- -------- --------
Revenues:
Online images $19,731 $26,807 $31,894 $53,372
Online media (A) 9,336 8,213 16,876 15,589
Other 8 6 16 6
-------- -------- -------- --------
29,075 35,026 48,786 68,967
-------- -------- -------- --------

Cost of revenues and operating
expenses:(B)
Online images 11,783 17,747 17,264 33,969
Online media 5,706 5,457 10,780 10,638
Depreciation and amortization 1,299 2,944 2,406 5,868
Other 2,688 4,519 4,902 8,438
-------- -------- -------- --------
21,476 30,667 35,352 58,913
-------- -------- -------- --------

Operating income (loss):
Online images 7,948 9,060 14,630 19,403
Online media 3,630 2,756 6,096 4,951
Other (C) (3,979) (7,457) (7,292) (14,300)
-------- -------- -------- --------
$7,599 $4,359 $13,434 $10,054
======== ======== ======== ========

(A) Jupitermedia sold its ClickZ.com Network on August 5, 2005. Online
media revenues include $766,000 and $1.5 million for the three and
six months ended June 30, 2005, respectively, from the ClickZ.com
Network.

(B) Operating expenses include stock-based compensation expense of
$906,000 and $1.7 million, respectively, for the three and six
months ended June 30, 2006.

(C) Includes depreciation and amortization expense.

Jupitermedia Corporation

Unaudited Consolidated Condensed Balance Sheets

December 31, 2005 and June 30, 2006
(in thousands, except share and per share amounts)

December 31, June 30,
2005 2006
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $18,546 $20,480
Accounts receivable, net of allowances
of $1,935 and $1,766, respectively 20,640 23,696
Prepaid expenses and other 3,517 4,805
Deferred income taxes 425 1,362
Assets of discontinued operations 8,763 -
------------ ------------
Total current assets 51,891 50,343
------------ ------------

Property and equipment, net of accumulated
depreciation of $10,211 and $11,836,
respectively 9,807 11,628
Intangible assets, net 66,799 80,826
Goodwill 169,960 184,191
Deferred income taxes 8,690 5,053
Investments and other assets 1,766 2,160
------------ ------------
Total assets $308,913 $334,201
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,552 $6,458
Accrued payroll and related expenses 2,390 3,009
Accrued expenses and other 13,287 14,347
Current portion of long-term debt 16,000 20,000
Deferred revenues 11,743 12,652
Liabilities of discontinued operations 7,211 -
------------ ------------
Total current liabilities 57,183 56,466
Long-term debt 46,214 52,249
Deferred revenues 156 196
------------ ------------
Total liabilities 103,553 108,911
------------ ------------
Stockholders' equity:
Preferred stock, $.01 par value,
4,000,000 shares authorized, no shares
issued - -
Common stock, $.01 par value,
75,000,000 shares authorized,
34,937,025 and 35,486,622 shares
issued at December 31, 2005 and June
30, 2006, respectively 349 355
Additional paid-in capital 251,919 258,650
Accumulated deficit (45,291) (33,679)
Treasury stock, 65,000 shares at cost (106) (106)
Accumulated other comprehensive income
(loss) (1,511) 70
------------ ------------
Total stockholders' equity 205,360 225,290
------------ ------------
Total liabilities and stockholders'
equity $308,913 $334,201
============ ============

See notes to consolidated financial statements.

Jupitermedia Corporation

Unaudited Consolidated Condensed Statements of Cash Flows

For the Six Months Ended June 30, 2005 and 2006
(in thousands)

Six Months Ended
June 30,
-----------------
2005 2006
-------- --------
Cash flows from operating activities:
Income from continuing operations $11,808 $5,972
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 2,406 5,868
Stock-based compensation - 1,668
Provision (benefit) for losses on accounts
receivable (65) 209
Minority interests 31 35
Equity income from investments, net (132) (50)
(Income) loss on investments and other, net 41 (138)
Deferred income taxes 1,009 (1,179)
Excess tax benefit from stock-based compensation - (2,698)
Changes in current assets and liabilities (net of
businesses acquired):
Accounts receivable, net 548 (3,479)
Prepaid expenses and other 393 (1,409)
Accounts payable and accrued expenses (3,725) (2,893)
Deferred revenues (508) 949
Discontinued operations 2,036 1,110
-------- --------
Net cash provided by operating activities 13,842 3,965
-------- --------
Cash flows from investing activities:
Purchases of property and equipment (846) (1,296)
Acquisitions of businesses and other (49,523) (25,684)
Proceeds (distributions) from sales of assets and
other (65) 363
Proceeds from sale of discontinued operations - 9,600
Discontinued operations - -
-------- --------
Net cash used in investing activities (50,434) (17,017)
-------- --------
Cash flows from financing activities:
Borrowings under credit facilities 20,000 19,000
Debt issuance costs (257) (38)
Repayment of borrowings under credit facilities - (8,965)
Proceeds from exercise of stock options 6,620 2,195
Excess tax benefit from stock-based compensation - 2,698
Discontinued operations - -
-------- --------
Net cash provided by financing activities 26,363 14,890
-------- --------
Effects of exchange rates on cash - 96
-------- --------
Net increase (decrease) in cash and cash equivalents(10,229) 1,934
Cash and cash equivalents, beginning of period 30,179 18,546
-------- --------
Cash and cash equivalents, end of period $19,950 $20,480
======== ========
Supplemental disclosures of cash flow:
Cash paid for income taxes $482 $6,107
======== ========
Cash paid for interest $196 $1,594
======== ========
Non-cash investing activities:
Common stock issued for acquisitions $21,611 $-
======== ========

See notes to consolidated financial statements.

Business Outlook

Jupitermedia's financial guidance is prepared in accordance withaccounting principles generally accepted in the United States ofAmerica. Historical results below have been adjusted to conform tothis presentation. The amounts below reflect the preliminaryallocation of the purchase prices paid by Jupitermedia in connectionwith its recent acquisitions and are subject to change pending a finalallocation of these amounts. The following forward looking-statementsreflect Jupitermedia's expectations as of August 8, 2006. Due topotential changes in general economic conditions and the various otherrisk factors discussed below and in Jupitermedia's reports filed withthe Securities and Exchange Commission from time to time, actualresults may differ materially. Jupitermedia intends to continue itspractice of not updating forward-looking statements until its nextquarterly results announcement, other than in publicly availablestatements.
Future Expectations

(In millions except for earnings per diluted Q3 2006
share) to
Q3 2006 Q2 2007
-------- --------
(A) (A)

Revenues $35.8-36.8 $151.0-156.0

Cost of revenues, advertising, promotion &
selling, and general & administrative
expenses $25.5-26.5 $103.0-108.0

EBITDA (Earnings before interest, taxes,
depreciation and amortization) $10.3 $46.0-50.0

Depreciation and amortization $3.5 $14.5-15.5

Interest expense, net $1.3 $3.8

Provision for income taxes $2.2 $11.0-12.0

Net income $3.3 $17.7

Diluted share count 36.3 36.8

Earnings per diluted share $0.09 $0.45-0.50

Notes:

(A) This financial guidance does not include estimated share-based
compensation expense relating to employee stock options in the
amount of $0.02 per share and $0.08 per share for Q3 2006 and for
the period from July 1, 2006 to June 30, 2007, respectively.

About Jupitermedia Corporation

Jupitermedia Corporation (Nasdaq: JUPM) (www.jupitermedia.com),headquartered in Darien, CT, is a leading global provider of originalinformation and images for information technology, business andcreative professionals. Jupitermedia includes Jupiterimages, one ofthe leading images companies in the world with over 7.0 million imagesonline serving creative professionals with brands like BananaStock,Workbook Stock, Brand X, FoodPix, Botanica, Nonstock, The BeautyArchive, IFA Bilderteam, Comstock Images, Creatas Images,PictureQuest, Liquid Library, Thinkstock Images, Thinkstock Footage,Bigshot Media, Goodshoot, ITStockFree, Stock Image, Pixland,Photos.com, Ablestock.com, PhotoObjects.net, Clipart.com,FlashFoundry.com, AnimationFactory.com and RoyaltyFreeMusic.com. Theonline media division of Jupitermedia is JupiterWeb, which operatesfour distinct online networks: internet.com and EarthWeb.com for ITand business professionals; DevX.com for developers; and Graphics.comfor creative professionals. JupiterWeb properties include more than150 Web sites and over 150 e-mail newsletters that are viewed by over20 million users and generate over 350 million page views monthly.

"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 ability to protect itsintellectual property; and Jupitermedia's dependence on a limitednumber of advertisers. For a more detailed discussion of such risksand uncertainties, 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