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Wayne, PA – November 2, 2006 – Internet Capital Group, Inc. (Nasdaq: ICGE) today reported its results for the third quarter ended September 30, 2006.

Third Quarter Highlights:

• Achieved strong quarterly Core company revenue growth;
• Strong operating results at ICG Commerce, StarCite, and Metastorm;
• Announced pending mergers of CreditTrade and StarCite with Creditex Group and OnVantage, respectively; and
• Recruited two outstanding executives to fill CEO positions: Carl Guarino at ICG Commerce and Eric Danziger at WhiteFence.

“We saw strong momentum this quarter, as demonstrated by the underlying revenue growth, improved operating results and transforming M&A activity we are seeing at a number of our Core companies,” said Walter Buckley, ICG’s Chairman and Chief Executive Officer. “Specifically, the pending mergers between CreditTrade and Creditex Group and StarCite and OnVantage, represent important milestones toward growing and creating future value in these companies. In addition, as the on-demand sector continues to grow, we are building a robust pipeline of deal flow. Ultimately, we expect that this level of growth, M&A activity and deal flow will have a significant impact on value creation for ICG and its stockholders.

ICG Financial Results

ICG reported consolidated revenue of $16.6 million for the third quarter of 2006, versus $14.6 million for the 2005 period. The third quarter of 2006 included the results of three partner companies: ICG Commerce, InvestorForce and StarCite. The third quarter of 2005 included the results of four partner companies: CommerceQuest, ICG Commerce, InvestorForce and StarCite. ICG reported consolidated revenue of $47.7 million for the nine months ended September 30, 2006, versus $35.5 million for the comparable 2005 period.

ICG reported net income of $13.4 million, or $0.34 per diluted share, for the third quarter of 2006, versus net income of $87.3 million, or $1.97 per diluted share, for the 2005 period. Results for the 2006 quarter include $21.1 million in net after-tax gains, primarily related to gains from the release of the LinkShare escrow and the Investor Force database division sale, versus $100.4 million in net after-tax gains in the 2005 period, primarily from the sale of LinkShare. Additionally, results for the 2006 quarter include $1.9 million of stock-based compensation, versus $2.2 million in the prior year’s period. ICG reported net income of $0.7 million, or $0.02 per diluted share, for the nine months ended September 30, 2006, versus net income of $85.3 million, or $1.94 per diluted share, for the prior year period.

ICG’s corporate cash and short-term investment balance at September 30, 2006 was $108.6 million, excluding the $14.3 million LinkShare escrow proceeds received on October 2, 2006. Additionally, the value of its public securities was $85.1 million as of September 30, 2006.

Online versions of Q3 Release Earnings (PDF):

• Internet Capital Group - Consolidated Statements of Operations
• Internet Capital Group - Condensed Consolidated Balance Sheets
• Internet Capital Group - 2006 Pro Forma Core Partner Company Information
• Internet Capital Group - Supplemental Information - Description of Terms

ICG Core Partner Company Information

In July 2006, ICG announced that CreditTrade had entered into a merger agreement with Creditex Group. The merger is expected to close in November 2006, subject to customary closing conditions and regulatory approval. Upon the closing of the merger, ICG will acquire an ownership interest of less than 20% in the parent company, Creditex Group. Because our ownership interest in Creditex Group will be accounted for under the cost method of accounting, we have removed CreditTrade from our Core category. Set forth below is pro forma information relating to ICG’s current eight private Core companies: Freeborders, ICG Commerce, Investor Force, Marketron, Metastorm, StarCite, Vcommerce and WhiteFence. Our ownership positions in these eight companies average 51%.

Aggregate pro forma revenue of ICG’s eight private Core companies grew 29% year-over-year, to $42.2 million in the third quarter of 2006, from $32.6 million in the third quarter of 2005. Aggregate pro forma EBITDA (loss) for the Core companies improved to $(4.0) million in the third quarter of 2006 from $(6.8) million in the third quarter of 2005. 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.

“We are very pleased with the growth we are seeing at a number of our companies,” said Kirk Morgan, Chief Financial Officer at ICG. “Based on this growth and the removal of CreditTrade from the Core category, we are projecting revenue growth of at least 25% for the year.”

ICG will host a webcast at 10:00 a.m. ET today to discuss 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 third 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 beginning November 2, 2006 at 11:00 a.m. ET until November 9, 2006 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 217404. The replay and slide presentation can also 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) owns 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 and 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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