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Wayne, PA – August 2, 2007 – Internet Capital Group, Inc. (Nasdaq: ICGE) today reported its results for the second quarter ended June 30, 2007.

Highlights:

• Aggregate core company revenue grew 27% from the comparable 2006 period;
• Sold Marketron, realizing $36.7 million in proceeds, $4.8 million of which is held in escrow;
• ICG Commerce increased backlog by $49 million through new and extended agreements; and
• Subsequent to quarter end, Metastorm announced the acquisition of Proforma Corporation.

“During the quarter, our partner companies continued to demonstrate solid growth,” said Walter Buckley, ICG’s chairman and CEO. “This growth, combined with the M&A activity at a number of our companies, reflects our progress in building value within the core group, with the ultimate goal of capturing value for our shareholders. To that end, the monetization of Marketron was an important milestone in realizing our monetization goals for 2007.”

ICG Financial Results

ICG consolidated the results of two partner companies, ICG Commerce and Investor Force, for the three and six months ended June 30, 2007, versus the results of three partner companies, ICG Commerce, Investor Force and StarCite, for the three and six months ended June 30, 2006.

ICG reported consolidated revenue of $12.5 million for the second quarter of 2007, versus $16.0 million for the comparable 2006 period. ICG reported consolidated revenue of $24.3 million for the six months ended June 30, 2007, versus $31.2 million for the comparable 2006 period.

ICG reported a net loss of $(4.0) million, or $(0.11) per share, for the second quarter of 2007, versus a net loss of $(7.8) million, or $(0.21) per share, for the comparable 2006 period. Results for the second quarter of 2007 include $4.0 million in net gains, driven primarily by an $8.2 million gain related to the sale of Marketron, offset by charges of $6.0 million related to hedges associated with a portion of our Blackboard (Nasdaq: BBBB) holdings. Results for the second quarter of 2006 include $(0.3) million in net charges primarily related to a loss on debt repurchases offset by other gains and an income tax benefit. ICG reported a net loss of $(23.6) million, or $(0.63) per share, for the six months ended June 30, 2007, versus a net loss of $(12.7) million, or $(0.34) per share, for the prior year period.

As of June 30, 2007, ICG’s corporate cash balance was $85.4 million and the value of its holdings in Blackboard was $85.0 million, net of $7.1 million in hedge positions. The value of its holdings in GoIndustry (LSE.AIM: GOI) was $29.2 million.

Online versions of Q2 Release Earnings (PDF):

• Internet Capital Group - Consolidated Statements of Operations
• Internet Capital Group - Condensed Consolidated Balance Sheets
• Internet Capital Group - 2007 Pro Forma Core Partner Company Information
• Internet Capital Group - Supplemental Information - Description of Terms

ICG Core Partner Company Information

Recently, Marketron was sold and Metastorm announced the acquisition of Proforma Corporation. To aid in the comparability of the ICG core company information, ICG is presenting pro forma financial information assuming those events occurred on January 1, 2006. Set forth below is pro forma information relating to ICG’s eight core companies: Channel Intelligence, Freeborders, ICG Commerce, Investor Force, Metastorm, StarCite, Vcommerce and WhiteFence. Our average ownership position in these eight companies was 45% at June 30, 2007. Please refer to the supplemental financial data at the end of this release for a reconciliation of such amounts to the nearest comparable GAAP measures.

In the second quarter of 2007, aggregate pro forma revenue of ICG’s eight core companies grew 27% year-over-year, to $57.1 million from $44.8 million in the second quarter of 2006. Aggregate pro forma EBITDA (loss) for the core companies was $(3.9) million in the second quarter of 2007, versus $(8.4) million in the second quarter of 2006. In the first half of 2007, aggregate pro forma revenue of ICG’s eight core companies grew 29% year-over-year, to $110.9 million from $86.0 million in the first half of 2006. Aggregate pro forma EBITDA (loss) for the core companies improved to $(8.2) million in the first half of 2007 from $(15.8) million in the first half of 2006.

“Based on the momentum we are seeing at our core companies, we would expect our full year revenue growth for 2007 to be in line with the revenue growth we have experienced in the first half of 2007,” said R. Kirk Morgan, CFO at ICG.

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 second 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 at 877-407-8035. The international dial-in number is 201-689-8035.

For those unable to participate in the conference call, a replay will be available from August 2, 2007 at 11:00 a.m. ET until August 12, 2007 at 11:59 p.m. ET. To access the replay, dial 877-660-6853 (domestic) or 201-612-7415 (international) and enter the account code 286, followed by the conference ID number 248303. 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 additional 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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