IBG Trading Statement

[pistol101]

RNS Number:9850K
Internet Business Group
25 October 2006

Internet Business Group plc
("IBG" or the "Company")

Trading Update

Internet Business Group plc, the AIM listed online advertising and e-commerce
specialist announces an update on trading for the financial year ended 31
October 2006.

Financial Update

Following a positive outlook reported at the time of our interim results trading
has remained strong. As a result, turnover for the financial year ending 31
October 2006 is anticipated to grow by at least 105% to £13.0 million (2005:
£6.32 million), representing an increase of 13% above current market
expectations of £11.54 million. As a result of this increase and the operational
gearing of IBG, earnings before interest, tax, depreciation, amortisation and
movement on investments are anticipated to grow by almost 175% to approximately
£1.15 million (2005: £0.42 million), 20% above current market expectations of
£0.96 million. Profit before tax is anticipated to be in the region of £1.1
million (2005: £0.41 million), 9% over current market expectations of £1.01
million.

This strong performance is primarily attributable to the better than anticipated
trading of IBG's performance advertising division, AffiliateFuture, supported by
solid progress in the newly established media division of the Company.

IBG will be adopting International Financial Reporting Standards early and will
be reporting in line with the new standard from the financial year commencing on
1 November 2006.

Operational Update

IBG is in the preliminary stages of establishing a discrete media division,
incorporating the two key websites acquired from Cheap Flights Limited, as
reported on 5 July 2006. These acquisitions have been successfully integrated
and the newly recruited commercial team seek to exploit the on-going
opportunities. Since IBG's acquisition of the websites the consumer experience
has remained unchanged, however, the underlying platform has been completely replaced and upgraded by an IBG in-house designed platform. IBG's media team in London has been supplemented by further recruitment in our Spanish office.

IBG's own travel search engine, Henoo.com, is undergoing significant levels of
commercial and technical development. The Directors believe that whilst this
activity is strictly a media operation, it provides our performance advertising
business, AffiliateFuture, with technologies that significantly differentiate us
within the travel sector.

AffiliateFuture Inc., the US online advertising division, is continuing to make
good progress and to increase its client base. Whilst the operation's earnings
have not broken even on a monthly basis in the current financial year, it is
expected to make a small contribution to profit during the course of the 2007
financial year and remains important to the medium-to-long term development of IBG.

Maziar Darvish, Chief Executive, commented: "We are pleased, once more, to be providing a positive trading update which re-iterates the strength of our
business model and the growth in our underlying markets. I believe strongly that our core competencies of technology and online marketing, coupled with a solid strategy, differentiate our offering and provide us with strong competitive advantages in the sector. We continue to invest in both infrastructure and people in order to exploit the substantial market opportunities available."

The Company expects to report its preliminary results for the year ended 31
October 2006 by early February 2007.

Enquiries:

Internet Business Group
Maziar Darvish, CEO
Mob: 07967 039 693
www.ibg.co.uk

Tavistock Communications
Matt Ridsdale / John West
Tel: 020 7920 3150
Mob: 07796 956 710

Altium Capital Limited
Mike Fletcher / Steven Whitehead
Tel: 0161 831 9133

Notes to Editors:

IBG's performance advertising business trades as AffiliateFuture and its best
known e-commerce operation is Sweatband.com. IBG's core skills are in the areas of Internet technology, online marketing & design.

[pricethat]

Perfect, now you can spend some of that money sorting your data feeds and stop making all of that money at the expense of other peoples patience

Pretty pretty please can you sort your data feed issues out, it makes it impossible to work with you guys and god knows how much we have tried in the past.

[Brendon]

Going to spend some of that money getting one of the CF domains unbanned in Google? Might be worth it

[drivetowin]

Well done guys - good to see AF and IBG doing well.

Would echo pricethat's comments on the data feeds though.....

[Gavinio]

All this inspite of the £'000's of alcohol expenses Pete files every month?!

That's awesome work, and some severe growth in the last year.

I might tentatively agree about the feeds though...

[justhomdotcom]

Thats excellent growth

Regarding feeds it's been said above and i think everyone knows where I stand on it so im not going to repeat it

ok perhaps i will a little

sort feeds, invest some of that money into new tools, facilites on the network as AF is lagging behind everyone else

[Azam.net]

Pleased to see you doing so well Affiliate Future. Putting aside all the financials, for me an affiliate network is made of its people and AF definitely has one of the most talented teams around. Unlike the people who work for many other networks, AF staff are genuine and honest.

[Itchy]

Originally Posted by justhomdotcom sort feeds, invest some of that money into new tools, facilites on the network as AF is lagging behind everyone else

you should see their printer then ...... a bag of spuds and a saucer of paint

[pricethat]

Originally Posted by Itchy you should see their printer then ...... a bag of spuds and a saucer of paint

Cool, may i ask that affiliate future deliver the product information via their printer then please as i think it would be better for me to import than the out of date unreliable stuff we are getting at the moment.