NORWALK, Conn., Nov 12, 2009 (BUSINESS WIRE) ----WebMediaBrands Inc. (Nasdaq: WEBM), an Internet media company concentrating on BtoB communities, today reported results for the quarter ended September 30, 2009.

Revenues from continuing operations for the third quarter of 2009 were $4.5 million compared to revenues of $7.6 million for the same period in 2008. Loss from continuing operations was $4.6 million for the third quarter of 2009 compared to $21.8 million for the same period in 2008.

"Despite the continued downturn in the economy, which had an impact on our online advertising sales operations during the third quarter, revenues from our job board operations showed improvement during the third quarter and were up 26% compared to the second quarter of 2009. Also, operating costs in this quarter reflect significant cost savings that we believe will be in effect for the balance of the year and into 2010," stated Alan M. Meckler, Chairman and CEO of WebMediaBrands.

In August 2009 WebMediaBrands entered into an asset purchase agreement to sell its Internet.com division to QuinStreet, Inc. for an aggregate purchase price of $18.0 million in cash, subject to a working capital purchase price adjustment. The Company anticipates consummating the transaction on or about November 30, 2009, subject to stockholder approval.

In February 2009 WebMediaBrands completed the sale of its online images business to Getty Images, Inc. for an aggregate purchase price of $96.0 million in cash, subject to a working capital purchase price adjustment. As a result of the sale, these financial results reflect WebMediaBrands's online images segment as a discontinued operation, and continuing operations are comprised solely of the online media business. Prior year financial results have been presented to reflect WebMediaBrands's online images segment as a discontinued operation.

WebMediaBrands Inc. 3rd Quarter 2009 Financial Results Conference Call Alert

WebMediaBrands Inc. invites you to participate in its conference call reviewing 2009 third quarter results on Thursday, November 12, 2009 at 5:00 pm EST.

The conference call number is 800-967-7134 for domestic participants and 719-457-1506 for international participants; pass code "677 5406." Please call five minutes in advance to ensure that you are connected prior to the presentation. The conference call replay will be available until Thursday, November 26, 2009. Replay call numbers are 888-203-1112 for domestic participants and 719-457-0820 for international participants; pass code "677 5406."

   WebMediaBrands Inc.
   Unaudited Consolidated Condensed Statements of Operations
   For the Three and Nine Months Ended September 30, 2008 and 2009
   (in thousands, except per share amounts)
   Three Months Ended               Nine Months Ended
   September 30,                    September 30,
   2008             2009            2008             2009
   Revenues                                                       $   7,575        $   4,540       $   24,889       $   16,143
   Cost of revenues (exclusive of items shown separately below)       4,265            2,899           13,308           10,313
   Advertising, promotion and selling                                 2,005            1,406           6,198            4,795
   General and administrative                                         4,488            2,319           16,251           10,211
   Depreciation                                                       299              276             761              824
   Amortization                                                       811              216             2,432            700
   Impairment                                                         --               --              --               662
   Restructuring charge                                               --               --              --               875
   Total operating expenses                                           11,868           7,116           38,950           28,380
   Operating loss from continuing operations                          (4,293  )        (2,576 )        (14,061 )        (12,237
   )
   Other income (loss), net                                           (6      )        48              (11     )        179
   Interest income                                                    6                3               12               161
   Interest expense                                                   (1,625  )        (182   )        (5,198  )        (1,674
   )
   Loss on extinguishment of debt                                     --               --              --               (2,119
   )
   Loss on fair value of interest rate swap                           --               --              --               (6,732
   )
   Loss from continuing operations before income taxes and            (5,918  )        (2,707 )        (19,258 )        (22,422
   )
   noncontrolling
   interest
   Provision (benefit) for income taxes                               15,908           1,898           15,941           (682
   )
   Noncontrolling interest                                            (19     )        --              (25     )        11
   Loss from continuing operations                                    (21,845 )        (4,605 )        (35,224 )        (21,729
   )
   Income (loss) from discontinued operations                         (38,641 )        --              (30,914 )        208
   Gain (loss) on sale of discontinued operations                     --               (40    )        --               7,019
   Provision for income taxes from discontinued operations            2,136            --              880              25
   Net loss                                                       $   (62,622 )    $   (4,645 )    $   (67,018 )    $   (14,527
   )
   Income (loss) per share:
   Basic
   Loss from continuing operations                                $   (0.61   )    $   (0.13  )    $   (0.98   )    $   (0.60
   )
   Income (loss) from discontinued operations                         (1.13   )        --              (0.88   )        0.20
   Net loss                                                       $   (1.74   )    $   (0.13  )    $   (1.86   )    $   (0.40
   )
   Diluted
   Loss from continuing operations                                $   (0.61   )    $   (0.13  )    $   (0.98   )    $   (0.60
   )
   Income (loss) from discontinued operations                         (1.13   )        --              (0.88   )        0.20
   Net loss                                                       $   (1.74   )    $   (0.13  )    $   (1.86   )    $   (0.40
   )
   Shares used in computing income (loss) per share:
   Basic                                                              35,967           36,813          35,967           36,377
   Diluted                                                            35,967           36,813          35,967           36,377
   

   WebMediaBrands Inc.
   Consolidated Condensed Balance Sheets
   December 31, 2008 and September 30, 2009
   (in thousands, except share and per share amounts)
   December 31,         September 30,
   2008                 2009
   (unaudited)
   ASSETS
   Current assets:
   Cash and cash equivalents                                               $    3,755           $    4,134
   Accounts receivable, net of allowances of $438 and $167, respectively        6,673                3,229
   Prepaid expenses and other current assets                                    4,040                2,219
   Deferred income taxes                                                        53                   --
   Assets of discontinued operations                                            14,138               --
   Total current assets                                                         28,659               9,582
   Property and equipment, net of accumulated depreciation of $9,947            2,424                2,114
   and $9,814, respectively
   Intangible assets, net                                                       3,060                2,362
   Goodwill                                                                     26,062               27,378
   Investments and other assets                                                 2,564                1,137
   Assets held for sale and of discontinued operations                          101,324              3,200
   Total assets                                                            $    164,093         $    45,773
   LIABILITIES AND STOCKHOLDERS' EQUITY
   Current liabilities:
   Accounts payable                                                        $    1,074           $    716
   Accrued payroll and related expenses                                         1,557                1,533
   Accrued expenses and other current liabilities                               5,224                1,893
   Current portion of long-term debt                                            81,213               --
   Deferred revenues                                                            2,347                2,127
   Liabilities of discontinued operations                                       25,937               --
   Total current liabilities                                                    117,352              6,269
   Loan from related party                                                      --                   7,197
   Deferred revenues                                                            108                  100
   Deferred income taxes                                                        1,266                1,530
   Fair value of interest rate swap                                             7,559                --
   Other long-term liabilities                                                  205                  158
   Liabilities of discontinued operations                                       2,727                --
   Total liabilities                                                            129,217              15,254
   Commitments and contingencies
   Stockholders' equity:
   Preferred stock, $.01 par value, 4,000,000 shares authorized, no             --                   --
   shares issued
   Common stock, $.01 par value, 75,000,000 shares authorized,                  360                  370
   36,032,152 and 36,976,237
   shares issued, respectively
   Additional paid-in capital                                                   273,324              279,233
   Accumulated deficit                                                          (234,479 )           (249,006 )
   Treasury stock, 65,000 shares at cost                                        (106     )           (106     )
   Accumulated other comprehensive income (loss)                                (4,223   )           28
   Total stockholders' equity                                                   34,876               30,519
   Total liabilities and stockholders' equity   $ 164,093    $ 45,773
   

   WebMediaBrands Inc.
   Unaudited Consolidated Condensed Statements of Cash Flows
   For the Nine Months Ended September 30, 2008 and 2009
   (in thousands)
   Nine Months Ended
   September 30,
   2008              2009
   Cash flows from operating activities:
   Net loss                                                              $     (67,018 )   $     (14,527 )
   Less: Income (loss) from discontinued operations, net of tax                (31,794 )         183
   Less: Gain on sale of discontinued operations                               --                7,019
   Loss from continuing operations                                             (35,224 )         (21,729 )
   Adjustments to reconcile net loss to net cash provided by (used in)
   operating activities:
   Loss on fair value of swap                                                  --                6,732
   Depreciation and amortization                                               3,193             1,524
   Impairment                                                                  --                662
   Stock-based compensation                                                    3,972             2,447
   Provision for losses on accounts receivable                                 99                48
   Noncontrolling interest                                                     25                (11     )
   Other income, net                                                           --                (150    )
   Amortization of debt issuance costs                                         223               11
   Loss on extinguishment of debt                                              --                2,119
   Deferred income taxes                                                       15,193            (2,561  )
   Excess tax benefit from stock-based compensation                            --                (3,226  )
   Changes in operating assets and liabilities (net of businesses
   acquired/disposed):
   Accounts receivable, net                                                    870               3,220
   Prepaid expenses and other assets                                           1,452             4,520
   Accounts payable and accrued expenses and other liabilities                 (1,231  )         (2,734  )
   Deferred revenues                                                           117               (228    )
   Discontinued operations                                                     23,529            (1,359  )
   Net cash provided by (used in) operating activities                         12,218            (10,715 )
   Cash flows from investing activities:
   Purchases of property and equipment                                         (1,973  )         (539    )
   Purchases of businesses, assets and other                                   (854    )         (1,630  )
   Proceeds from sale of assets and other                                      295               --
   Proceeds from sale of discontinued operations                               --                91,205
   Discontinued operations                                                     (7,569  )         (217    )
   Net cash provided by (used in) investing activities                         (10,101 )         88,819
   Cash flows from financing activities:
   Debt issuance costs                                                         (15     )         (384    )
   Borrowings under long-term obligations                                      1,600             7,197
   Settlement of interest rate swap                                            --                (6,732  )
   Repayment of borrowings under credit facilities                             (6,615  )         (81,213 )
   Proceeds from exercise of stock options                                     7                 246
   Excess tax benefit from stock-based compensation                            --                3,226
   Net cash used in financing activities                                       (5,023  )         (77,660 )
   Effects of exchange rates on cash and cash equivalents                      29                (65     )
   Net change in cash and cash equivalents                                     (2,877  )         379
   Cash and cash equivalents, beginning of period                              7,301             3,755
   Cash and cash equivalents, end of period                              $     4,424       $     4,134
   Supplemental disclosures of cash flow:
   Cash refund of income taxes, net                                      $     1,204       $     1,320
   Cash paid for interest                                                $     5,062       $     1,660
   Non-cash investing activities:
   Acquisitions of long-lived assets                                     $     219         $     23
   

About WebMediaBrands Inc.

WebMediaBrands Inc. (Nasdaq: WEBM, www.webmediabrands.com) is an Internet media company concentrating on BtoB communities. WebMediaBrands has three online communities: Internet.com for IT managers and Web developers; Mediabistro.com for media professionals and Graphics.com for design and creative professionals. All three communities offer job boards, marketplaces, online education offerings and events.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release that are not historical facts are "forward-looking statements" under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example, the successful completion of the sale of the Internet.com business to QuinStreet, Inc.; general economic conditions; the competitive environment in which WebMediaBrands competes; the unpredictability of WebMediaBrands's future revenues, expenses, cash flows and stock prices; and WebMediaBrands's dependence on a limited number of advertisers. For a more detailed discussion of such risks and uncertainties, refer to WebMediaBrands's reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and WebMediaBrands assumes no obligation to update the forward-looking statements after the date hereof, except as required by law.

All current WebMediaBrands press releases can be found online at www.webmediabrands.com/corporate/press.html

SOURCE: WebMediaBrands Inc.

   WebMediaBrands Inc. 
   Amanda Barrett, 212-547-7879 
   Director of Marketing 
   press@webmediabrands.com
   

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