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Wayne, PA – February 25, 2009 – Internet Capital Group, Inc. (Nasdaq: ICGE) today reported its results for the fourth quarter and fiscal year ended December 31, 2008.

“Against the backdrop of a harsh economic environment, we are pleased that our core partner companies were, in aggregate, EBITDA positive for the fourth quarter, exclusive of stock-based compensation and unusual items, and achieved solid quarterly revenue growth,” said Walter Buckley, ICG's Chairman and Chief Executive Officer. “These results reflect the value these companies deliver to their customers as well as cost cutting initiatives during the year. We believe our efforts to further enhance the operational performance of our companies to attain sustainable, profitable growth will result in long-term stockholder value.”

ICG Financial Results

ICG’s financial statements reflect the consolidated results of three partner companies, ICG Commerce, Investor Force and Vcommerce, for the three months and twelve months ended December 31, 2008, versus the results of two partner companies, ICG Commerce and Investor Force, for the three months and twelve months ended December 31, 2007. Vcommerce’s results were consolidated starting May 1, 2008, when ICG’s ownership interest increased to more than 50%.

ICG reported consolidated revenue of $20.5 million for the fourth quarter of 2008, versus $14.1 million for the comparable 2007 period. ICG reported consolidated revenue of $71.2 million for the fiscal year ended December 31, 2008, versus $52.9 million for the comparable 2007 period.

ICG reported a net loss of ($26.6) million, or ($0.71) per diluted share, for the fourth quarter of 2008, versus a net loss of $(3.0) million, or $(0.08) per diluted share, for the comparable 2007 period. ICG reported a consolidated net loss of ($22.9) million, or ($0.60) per diluted share, for the full fiscal year 2008, versus a net loss of $(30.6) million, or $(0.81) per diluted share, for the comparable 2007 period.

Results for the fourth quarter of 2008 include $(16.9) million of net charges, which primarily related to impairments of partner companies, versus $6.8 million of net gains in the comparable 2007 period. Results for the twelve months ended December 31, 2008 include $21.8 million in net gains, primarily driven by the Company’s gain of Creditex sale, versus $4.4 million in net gains in the comparable prior year period.

As of December 31, 2008, ICG has repurchased approximately 1.9 million shares for $9.3 million pursuant to its $25.0 million stock buyback program.

As of December 31, 2008, ICG’s corporate cash balance was $73.2 million and the value of its holdings in Blackboard (Nasdaq: BBBB) was $64.0 million, including $6.6 million in hedge positions. At December 31, 2008, the value of ICG’s holdings in GoIndustry (LSE.AIM: GOI) was $5.3 million.

Online versions of Q4 2008 (pdf):

• Internet Capital Group - Consolidated Statements of Operations
• Internet Capital Group - Condensed Consolidated Balance Sheets
• Internet Capital Group - Q4 Core Partner Company Information
• Internet Capital Group - Supplemental Information - Description of Terms

ICG Core Partner Company Information

Set forth below is aggregate information relating to the following eight core partner companies: Channel Intelligence, Freeborders, ICG Commerce, Investor Force, Metastorm, StarCite, Vcommerce and WhiteFence. This aggregate information represents the total of the individual GAAP results of each of these companies. Please refer to the supplemental financial data at the end of this release for a reconciliation of the aggregate revenue and aggregate EBITDA information with the GAAP results.

In the fourth quarter of 2008, aggregate revenue of the eight core companies grew more than 16% year-over-year, to $70.4 million from $60.5 million in the fourth quarter of 2007. Aggregate EBITDA (loss) for the core companies was $(1.5) million in the fourth quarter of 2008, versus $(11.6) million in the fourth quarter of 2007. Excluding the impact of stock-based compensation and unusual items, aggregate EBITDA for the core companies was $3.8 million in the fourth quarter of 2008 versus $(8.1) million in the fourth quarter of 2007.

In 2008, annual aggregate revenue of ICG’s eight core companies grew 23% year-over-year, to $264.7 million from $214.4 million in the comparable prior year period. Aggregate EBITDA (loss) for the core companies was $(30.7) million in the twelve months ended December 31, 2008, versus $(33.3) million in the comparable prior year period.

“ICG enters 2009 in a strong financial position, with significant aggregate EBITDA improvement and solid revenue growth at our partner companies during the fourth quarter,” said R. Kirk Morgan, ICG’s Chief Financial Officer. “On an annual basis, in 2009 we expect to improve significantly aggregate EBITDA, exclusive of stock-based compensation and unusual items, while growing revenues, and we will continue to take a disciplined, conservative approach to capital deployment.”

ICG will host a webcast at 10:00 a.m. ET today to discuss its financial results. As part of the live webcast for this call, ICG will post a slide presentation to accompany the prepared remarks. To access the webcast, go to http://www.internetcapital.com/investorinfo-preswebcast.htm and click on the link for the fourth quarter conference call webcast. Please log on to the website approximately ten minutes prior to the call to register and download and install any necessary audio software. The conference call is also accessible through listen-only mode by dialing 800-299-8538 (domestic) or 617-786-2902 (international). The participant pass code for either dial-in is 49166521.

For those unable to participate in the conference call, a replay will be available from February 25, 2009 at 12:00 p.m. ET until March 5, 2009 at 11:59 p.m. ET. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international). The pass code is 37660649. The replay and slide presentation also can be accessed on the Internet Capital Group web site at http://www.internetcapital.com/investorinfo-preswebcast.htm.

About Internet Capital Group
Internet Capital Group (www.internetcapital.com) acquires and builds Internet software and services companies that drive business productivity and reduce transaction costs between firms. Founded in 1996, ICG devotes its expertise and capital to maximizing the success of these platform companies, which are delivering software and service applications to customers worldwide.

Safe Harbor Statement under Private Securities Litigation Reform Act of 1995
The statements contained in this press release that are not historical facts are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future performance of our partner companies, acquisitions or dispositions of interests in partner companies, the effect of economic conditions generally, capital spending by customers, the development of the e-commerce and information technology markets, and uncertainties detailed in the Company’s filings with the Securities and Exchange Commission. These and other factors may cause actual results to differ materially from those projected.

Contact:
Investor inquiries
Karen Greene
Internet Capital Group
610.727.6900
ir@internetcapital.com

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