Event Brief of Q3 2006 Internet Capital Group Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

PARTICIPANTS

. Karen Greene, Internet Capital Group, VP of IR . Walter Buckley, Internet Capital Group, President, CEO, and Chairman . R. Kirk Morgan, Internet Capital Group, CFO . Jeff Van Rhee, Craig-Hallum Capital Group, Analyst . Derek Fisher, Emerald Asset Management, Analyst

OVERVIEW

ICGE reported 3Q06 aggregate revenue of core companies of $42.2m, consolidated net income of $13.4m, and consolidated net income per diluted share of $0.34. Looking forward to rest of 2006, Co. expects that its core companies will grow aggregate revenues at least 25% for the year.

FINANCIAL DATA

A. Key Data From Call 1. 3Q06 aggregate revenue of core companies = $42.2m. 2. 3Q06 consolidated net income = $13.4m. 3. 3Q06 consolidated net income per diluted share = $0.34. 4. 3Q06 aggregate net loss for core companies = $6.2m. 5. Cash at the parent Co. at 3Q06-end = $108.6m. 6. Cash, marketable securities and escrows as of 09/30/06 = $212m. 7. 2006 aggregate revenues for core companies guidance = grow at least 25%.

PRESENTATION SUMMARY

S1. 3Q06 Business Review (W.B.) 1. Goals & Objectives: 1. 3Q06 was extremely productive at both the partner co. level as well as within ICGE. 2. Continued to demonstrate good progress against key objectives and goals. 3. Mission is to be a leader in the On-Demand Internet and software services space, by owning major stakes in leading On-Demand software companies. 1. Actions are guided by this mission and Co. continues to be excited about the compelling opportunities it is seeing in this space. 2. Revenue & EBITDA: 1. Eight core partner companies had aggregate revenue growth of 29% and EBITDA improvement of 41% vs. 3Q05.

2. ICG Commerce, StarCite, Freeborders, and Metastorm, all had

good qtr. 1. All had excellent revenue growth and saw substantial pipeline increases, which bodes well for 2007. 3. ICG Commerce, StarCite, Marketron, and Metastorm were EBITDA positive from an operating perspective for the third consecutive qtr. 4. Vcommerce and WhiteFence were recent acquisitions, and

continue to build out their infrastructure and sales and

marketing resources. 1. Freeborders and Investor Force continue to engage in price development initiatives, which should wind down in 1H07. 5. Co. has been actively looking at new deals in 3Q06, as pipeline of opportunities continued to expand. 6. M&A activity at partner companies continued to grow. 1. Both CreditTrade and StarCite announced pending mergers. 2. CreditTrade transaction is expected to close within the next few weeks. 3. Expects StarCite to close shortly after year-end. 4. Co. is enthusiastic about both transactions. 7. Recruited outstanding executives into ICG Commerce and WhiteFence, and believes both companies are well positioned to grow and achieve leadership positions in their respective markets. 3. Core Companies: 1. ICG Commerce:

1. ICG Commerce is a leading procurement services provider and

continued to experience strong revenue growth in 3Q06. 2. Revenue growth increased over 30% vs. 3Q05. 3. Pipeline of new customers continued to increase. 4. New customer relationships include Global Crossing, a large national retailer and a global industrial manufacturer. 5. ICG also expanded relationships with several key customers including Alcan, Conair, and a large software …