Web.com Group, Inc.
Nov 3, 2009

Web.com Reports Third Quarter 2009 Financial Results

JACKSONVILLE, Fla., Nov. 3, 2009 (GLOBE NEWSWIRE) -- Web.com Group, Inc. (Nasdaq:WWWW), a leading provider of online marketing for small businesses, today announced results for the third quarter ended September 30, 2009.

David Brown, Chairman and CEO of Web.com, said, "We are pleased with the company's high level of execution and continued solid cash flow in the face of a challenging economic environment. During the third quarter, Web.com expanded its subscriber base, brought customer churn down to a record low level and continued to diversify its distribution channels with the addition of several new partnerships. We are increasingly encouraged about Web.com's future based on the growing stability of our financial performance and progress made towards putting in place a foundation for long-term growth."

Summary of Third Quarter 2009 Results:



 * Total revenue was $26.1 million for the third quarter of 2009,
   compared to $26.5 million in the second quarter of 2009 and
   $30.0 million for the third quarter of 2008.

 * Due to non-recurring restructuring and related stock-based
   compensation charges of approximately $1.9 million, the
   Company reported an operating loss, calculated in accordance
   with U.S. generally accepted accounting principles (GAAP), of
   $1.6 million, compared to operating income of $1.4 million for
   the third quarter of 2008.

 * GAAP net loss from continuing operations, due to the above
   mentioned non-recurring restructuring and related stock-based
   compensation charges, was $1.6 million for the third quarter
   of 2009.  This compares to net income from continuing
   operations of $1.6 million in the third quarter of 2008.  GAAP
   net loss from continuing operations was $0.06 per diluted
   share for the third quarter of 2009, compared to net income
   from continuing operations of $0.05 per diluted share for the
   third quarter of 2008.

 * Non-GAAP operating income was $4.1 million for the third
   quarter of 2009, representing a non-GAAP operating margin of
   16% and compared to $5.4 million for the third quarter of 2008.

 * Non-GAAP net income was $4.1 million for the third quarter of
   2009, compared to $5.2 million in the third quarter of 2008.
   Non-GAAP net income per diluted share was $0.15 for the third
   quarter of 2009, compared to $0.17 per diluted share for the
   third quarter of 2008.

 * Adjusted EBITDA, which excludes the impact of stock-based
   compensation, depreciation and amortization expenses, and
   restructuring charges was $4.8 million for the third quarter
   of 2009, compared to $6.2 million for the third quarter of
   2008.

 * Cash flows from operations were $3.5 million for the third
   quarter of 2009, and $5.1 million excluding the pay down of
   accrued restructuring expenses.  This compared to $6.2 million
   and $7.1 million, respectively, for the third quarter of 2008.

Other Highlights:



 * Web.com's total net subscribers were over 272,000 at the end
   of the third quarter of 2009, up approximately 5,600 compared
   to the end of the prior quarter.

 * Customer churn was at 3.4% in the third quarter of 2009,
   representing an all-time low and down from 3.7% in the second
   quarter of 2009.

 * The company repurchased an aggregate of 371,000 shares and
   shares issuable upon exercise of stock options during the
   third quarter of 2009, bringing the total number of shares and
   shares issuable upon the exercise of stock options repurchased
   to approximately 3,237,000 and 225,000, respectively, since
   the $20 million share repurchase program was authorized in the
   third quarter of 2008.

 * On September 1, 2009, Web.com announced an agreement with
   First Data to provide small and medium-sized businesses with
   secure payment processing and online marketing and eCommerce
   solutions.  Under the agreement, small business customers can
   work with Web.com to either establish a website and online
   presence or strengthen and expand their website through the
   addition of search engine marketing, search engine
   optimization and eCommerce solutions. Web.com's customers have
   access to First Data's leading suite of payment processing
   products and services, which provides merchants with the
   ability to transact payments securely both online and at the
   point of sale.

 * On August 19, 2009, Web.com announced the expansion of its
   partnership with MerchantCircle, one of the largest networks
   of local business owners with over 20 million unique visitors
   per month.  As a result of the new agreement, MerchantCircle's
   large network of 900,000+ local business-owner members have
   access to Web.com-powered marketing products and services
   designed to help them successfully market their businesses
   online. As part of the expansion, Web.com became
   MerchantCircle's exclusive provider of search engine marketing
   (SEM) services.  In addition, Web.com's customers have direct
   access to MerchantCircle's growing directory providing them
   with greater online visibility and access to prospective
   customers.

 * On August 13, 2009, Web.com announced an agreement with
   Progressive Insurance, in which Progressive agents will enjoy
   a discount on Web.com's professional website design and online
   marketing packages.  This unique offer to Progressive agents
   includes a unique domain address, listings on major search
   engines and directories, a real-time scorecard to measure
   results and to access website analytics, an agent RSS "news
   feed," and customized real-time agent quoting functionality.

Conference Call Information

Management will host a conference call to discuss Web.com's results and other matters related to the Company's business, including guidance related to future results, today November 3, 2009, at 5:00 p.m. (Eastern Time). To access this call, dial 877-407-0784 (domestic) or 201-689-8560 (international). A replay of this conference call will be available for a limited time at 877-660-6853 (domestic) or 201-612-7415 (international). The replay passcode is 334738. A webcast of this conference call will also be available for a limited time on the "Investor Relations" page of the Company's Web site, www.web.com.

All per share numbers for non-GAAP net income per share are expressed on a weighted-average diluted per share basis. Non-GAAP net income excludes stock-based compensation expense, amortization expense related to acquisitions, restructuring charges, the deferred revenue adjustment due to purchase accounting, income tax expense, and includes an estimated cash tax rate to be paid during 2009. Non-GAAP operating income excludes stock-based compensation expense, amortization expense related to acquisitions, restructuring charges, and the deferred revenue adjustment related to purchase accounting. A reconciliation of GAAP financial measures to non-GAAP financial measures results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Use of Non-GAAP Financial Measures."

About Web.com

Web.com Group, Inc. (Nasdaq:WWWW) is a leading provider of online marketing for small businesses. Web.com offers a full range of online services, including Internet marketing and advertising, local search, search engine marketing (SEM), search engine optimization (SEO), lead generation, contractor quotes, website design and publishing, logo and brand development and eCommerce solutions, meeting the needs of small businesses anywhere along their lifecycle. For more information on the company, please visit www.web.com or call 1-800-GETSITE.

Note to Editors: Web.com is a registered trademark of Web.com Group, Inc.

Use of Non-GAAP Financial Measures

Some of the measures in this press release are non-GAAP financial measures within the meaning of the SEC Regulation G. Web.com believes presenting non-GAAP net income attributable to common stockholders, non-GAAP net income per share attributable to common stockholders and non-GAAP operating income is useful to investors, because it describes the operating performance of the company and helps investors gauge the company's ability to generate cash flow, excluding some recurring charges that are included in the most directly comparable measures calculated and presented in accordance with GAAP. Company management uses these non-GAAP measures as important indicators of the company's past performance and in planning and forecasting performance in future periods. The non-GAAP financial information Web.com presents may not be comparable to similarly-titled financial measures used by other companies, and investors should not consider non-GAAP financial measures in isolation from, or in substitution for, financial information presented in compliance with GAAP. You are encouraged to review the reconciliation of non-GAAP financial measures to GAAP financial measures included elsewhere in this press release.

Relative to each of the non-GAAP measures the company presents above, management further sets forth its rationale as follows:



 * Non-GAAP Operating Income.  The Company excludes from non-GAAP
   operating income amortization of intangibles, fair value
   adjustment to deferred revenue, restructuring charges and
   stock-based compensation charges.  Management believes that
   excluding these non-cash charges assists investors in
   evaluating period-over-period changes in the Company's
   operating income without the impact of items that are not a
   result of the Company's day-to-day business and operations.

 * Non-GAAP Net Income and Non-GAAP Net Income Per Diluted Share.
   The Company excludes from non-GAAP net income and non-GAAP net
   income per diluted share amortization of intangibles, income
   tax expense, fair value adjustment to deferred revenue,
   restructuring charges and stock-based compensation, and
   includes cash income tax expense, because management believes
   that excluding such measures helps investors better understand
   the Company's operating activities.

 * Adjusted EBITDA. The Company excludes from Adjusted EBITDA
   depreciation expense, amortization of intangibles, income tax,
   interest expense, interest income, and stock-based
   compensation, and restructuring charges, because management
   believes that excluding such items helps investors better
   understand the Company's operating activities.

In respect of the foregoing, Web.com provides the following supplemental information to provide additional context for the use and consideration of the non-GAAP financial measures used elsewhere in this press release:



 * Stock-based compensation.   These expenses consist of expenses
   for employee stock options and employee stock purchases under
   SFAS 123(R). The Company excludes stock-based compensation
   expenses from our non-GAAP measures primarily because they are
   non-cash expenses. Prior to the adoption of SFAS 123(R) in
   fiscal 2006, the Company did not include expenses related to
   employee stock options and employee stock purchases directly
   in its financial statements, but elected, as permitted by SFAS
   123, to disclose such expenses in the footnotes to its
   financial statements. As the Company applies SFAS 123(R), it
   believes that it is useful to its investors to understand the
   impact of the application of SFAS 123(R) to its operational
   performance, liquidity and its ability to invest in research
   and development and fund acquisitions and capital expenditures.
   While stock-based compensation expense calculated in
   accordance with SFAS 123(R) constitutes an ongoing and
   recurring expense, such expense is excluded from non-GAAP
   results because it is not an expense that typically requires
   or will require cash settlement by the Company and because
   such expense is not used by management to assess the core
   profitability of the Company's business operations. The
   Company further believes these measures are useful to
   investors in that they allow for greater transparency to
   certain line items in our financial statements. In addition,
   excluding this item from various non-GAAP measures facilitates
   comparisons to the Company's competitors' operating results.

 * Amortization of intangibles.  The Company incurs amortization
   of acquired intangibles under SFAS 141. Acquired intangibles
   primarily consist of customer relationships, non-compete
   agreements, trade names, and developed technology. The Company
   expects to amortize for accounting purposes the fair value of
   the acquired intangibles based on the pattern in which the
   economic benefits of the intangible assets will be consumed as
   revenue is generated. Although the intangible assets generate
   revenue for the Company, the item is excluded because this
   expense is non-cash in nature and because the Company believes
   the non-GAAP financial measures excluding this item provide
   meaningful supplemental information regarding the Company's
   operational performance, liquidity and its ability to invest
   in research and development and fund acquisitions and capital
   expenditures. In addition, excluding this item from various
   non-GAAP measures facilitates management's internal
   comparisons to the Company's historical operating results and
   comparisons to the Company's competitors' operating results.

 * Depreciation expense.  The Company incurs depreciation expense
   associated with its fixed assets.  Although the fixed assets
   generate revenue for the Company, the item is excluded because
   this expense is non-cash in nature and because the Company
   believes the non-GAAP financial measures excluding this item
   provide meaningful supplemental information regarding the
   Company's operational performance, liquidity and its ability
   to invest in research and development and fund acquisitions
   and capital expenditures.  In addition, excluding this item
   from certain non-GAAP measures facilitates management's
   internal comparisons to the Company's historical operating
   results and comparisons to the Company's competitors'
   operating results.

 * Interest expense.  The Company incurs interest expense related
   to the indebtedness of the Company.  This item is excluded
   because the Company believes the non-GAAP measures excluding
   this item provide meaningful supplemental information
   regarding the Company's operational performance.  In addition,
   excluding this item from various non-GAAP measures facilitates
   management's internal comparisons to the Company's historical
   operating results and comparisons to the Company's
   competitors' operating results.

 * Interest income.  The Company earns interest income related to
   its cash and cash equivalents.  This item is excluded because
   the Company believes the non-GAAP measures excluding this item
   provide meaningful supplemental information regarding the
   Company's operational performance.  In addition, excluding
   this item from various non-GAAP measures facilitates
   management's internal comparisons to the Company's historical
   operating results and comparisons to the Company's
   competitors' operating results.

 * Restructuring charges.  The Company has recorded restructuring
   charges.  The Company excludes the impact of these expenses
   from its non-GAAP measures, because such expense is not used
   by management to assess the core profitability of the
   Company's business operations.

 * Income tax expense.  Due to the magnitude of the Company's
   historical net operating losses and related deferred tax asset,
   the Company excludes income tax expense from its non-GAAP
   measures primarily because they are not indicative of the cash
   tax paid by the Company and therefore are not reflective of
   ongoing operating results. Further, excluding this non-cash
   item from non-GAAP measures facilitates management's internal
   comparisons to the Company's historical operating results.
   The Company also excludes income tax expense altogether from
   certain non-GAAP financial measures because the Company
   believes that the non-GAAP measures excluding this item
   provide meaningful supplemental information regarding the
   Company's operational performance and facilitates management's
   internal comparisons to the Company's historical operating
   results and comparisons to the Company's competitors'
   operating results.

 * Fair value adjustment to deferred revenue.  The Company has
   recorded a fair value adjustment to acquired deferred revenue
   in accordance with SFAS 141. The Company excludes the impact
   of this adjustment from its non-GAAP measures, because doing
   so results in non-GAAP revenue and non-GAAP net income which
   are reflective of ongoing operating results and more
   comparable to historical operating results, since the majority
   of the Company's revenue is recurring subscription revenue.
   Excluding the fair value adjustment to deferred revenue
   therefore facilitates management's internal comparisons to the
   Company's historical operating results.

Forward-Looking Statements

This press release includes certain "forward-looking statements" including, without limitation, statements regarding Web.com's expectations about its future financial performance and market position as well as expectations about the growth in markets, that are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this presentation that are not historical facts. These statements are sometimes identified by words such as "believe" or words of similar meaning. As a result of the ultimate outcome of such risks and uncertainties, Web.com's actual results could differ materially from those anticipated in these forward-looking statements. These statements are based on our current beliefs or expectations, and there are a number of important factors that could cause the actual results or outcomes to differ materially from those indicated by these forward-looking statements, including, without limitation, our ability to integrate Web.com businesses, our ability to maintain our sales efficiency, our ability to maintain our existing, and develop new, strategic relationships, the number of our net subscriber additions and our monthly customer turnover. These and other risk factors are set forth under the caption "Risk Factors" in Web.com's Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, as filed with the Securities and Exchange Commission, which is available on a website maintained by the Securities and Exchange Commission at www.sec.gov. Web.com expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein as a result of new information, future events or otherwise.



                         Web.com Group, Inc.
               Consolidated Statements of Operations
                  (in thousands except per share data)



                             Three Months Ended    Nine Months Ended
                                 September 30,       September 30,
                               2009       2008      2009       2008
                           (unaudited)(unaudited)(unaudited)(unaudited)
                            ---------  ---------  ---------  ---------
 Revenue:
  Subscription              $  25,209  $  29,224  $  76,665  $  89,224
  Professional services           892        822      2,482      2,093
  Other revenue                    --         --      1,000        100
                            ---------  ---------  ---------  ---------
 Total revenue                 26,101     30,046     80,147     91,417
 Cost of revenue (excluding
  depreciation and
  amortization shown
  separately below):
 Subscription (a)               9,523     10,776     28,244     32,716
  Professional services           629        327      1,504        994
                            ---------  ---------  ---------  ---------
 Total cost of revenue         10,152     11,103     29,748     33,710
                            ---------  ---------  ---------  ---------
 Gross profit                  15,949     18,943     50,399     57,707
 Operating expenses:
  Sales and marketing (a)       5,980      7,281     17,625     22,235
  Research and
   development (a)              2,174      2,230      6,302      6,896
  General and
  administrative (a)            4,097      4,556     14,959     15,056
  Depreciation and
  amortization                  3,373      3,395     10,163      9,976
  Restructuring charges (a)     1,932         82      1,921         83
                            ---------  ---------  ---------  ---------
 Total operating expenses      17,556     17,544     50,970     54,246
                            ---------  ---------  ---------  ---------
 (Loss) income from
  operations                   (1,607)     1,399       (571)     3,461
 Other income:
  Interest, net                    39        187        143        635
                            ---------  ---------  ---------  ---------
 (Loss) income before
  income taxes from
  continuing operations        (1,568)     1,586       (428)     4,096
  Income tax (expense)            (27)       (30)       (70)       (96)
                            ---------  ---------  ---------  ---------
 Net (loss) income from
  continuing operations        (1,595)     1,556       (498)     4,000
 
 Discontinued operations:
  Income (loss) from
   discontinued operations          5       (264)       232         39
  (Loss) gain on sale of
  discontinued operations          (1)        --        821         --
                            ---------  ---------  ---------  ---------
 Income (loss) from
  discontinued
  operations, net                   4       (264)     1,053         39
                            ---------  ---------  ---------  ---------
 Net (loss) income          $  (1,591)  $  1,292   $    555   $  4,039
                            =========  =========  =========  =========
 Basic earnings per share:
  (Loss) income from
   continuing operations
   attributable per
   common share             $   (0.06) $    0.06  $   (0.02) $    0.15
                            =========  =========  =========  =========
  (Loss) income from
   discontinuing operations
   attributable per
   common share             $    0.00  $   (0.01) $    0.04  $    0.00
                            =========  =========  =========  =========
  Net (loss) income
   per common share         $   (0.06) $    0.05  $    0.02  $    0.15
                            =========  =========  =========  =========
 Diluted earnings per share:
  (Loss) income from
   continuing operations
   attributable per
   common share             $   (0.06) $    0.05  $   (0.02) $    0.13
                            =========  =========  =========  =========
  (Loss) income from
   discontinuing operations
   attributable per
   common share             $    0.00  $   (0.01) $    0.04  $    0.00
                            =========  =========  =========  =========
  Net (loss) income
   per common share         $   (0.06) $    0.04  $    0.02  $    0.13
                            =========  =========  =========  =========
 Weighted-average number
  of shares used in per
  share amounts:
 Basic                         25,189     27,944     25,305     27,767
 Diluted                       25,189     30,169     25,305     30,416
 (a) Stock based
     compensation included
     above:
     Subscription (cost
      of revenue)           $     106  $      93  $     315  $     257
     Sales and marketing          210        256        645        695
     Research and
      development                 121        105        370        321
     General and
      administration              707        879      2,333      2,229
     Restructuring charges      1,183         --      1,183         --
                            ---------  ---------  ---------  ---------
 Total                      $   2,327  $   1,333  $   4,846  $   3,502
                            =========  =========  =========  =========

                    Web.com Group, Inc.
                Consolidated Balance Sheets
           (in thousands except per share data)


                                                 Sept. 30,    Dec. 31,
                                                    2009        2008
                                                (unaudited)  (audited)
                                                ----------   ---------
 Assets
 Current assets:
  Cash and cash equivalents                     $   37,315   $  34,127
  Accounts receivable, net of allowance $428
   and $645, respectively                            4,469       5,019
  Inventories, net of reserves of $0 and $78,
   respectively                                         --          39
  Prepaid expenses                                   1,349       1,430
  Prepaid marketing fees                               554         665
  Deferred taxes                                     1,094       1,093
     Other current assets                              102         134
                                                ----------   ---------
 Total current assets                               44,883      42,507

 Restricted investments                                322         316
 Property and equipment, net                         8,371       8,204
 Goodwill                                           12,456       9,000
 Intangible assets, net                             55,599      62,085
 Other assets                                          246         383
                                                ----------   ---------
 Total assets                                      121,877     122,495
                                                ==========   =========

 Liabilities and stockholders' equity
 Current liabilities:
  Accounts payable                              $    1,365   $   1,406
  Accrued expenses                                   6,528       6,230
  Accrued restructuring costs and other reserves     1,617       2,619
  Deferred revenue                                   6,652       7,831
  Accrued marketing fees                               208         263
  Notes payable                                         --          59
  Capital lease obligations                            320          --
  Other current liabilities                            106         128
                                                ----------   ---------
 Total current liabilities                          16,796      18,536

 Accrued rent expense                                  633         535
 Deferred revenue                                      167         180
 Accrued restructuring costs and other reserves        497       1,214
 Capital lease obligations                             348          --
 Deferred tax liabilites                             2,748       2,712
 Other liabilities                                     474          25
                                                ----------   ---------
 Total liabilities                                  21,663      23,202


 Stockholders' equity
 Common stock, $0.001 par value; 150,000,000
  shares authorized;  27,867,065 and
  28,093,759 shares issued and 26,154,192
  and 26,633,436 shares outstanding at
  September 30, 2009 and December 31, 2008,
  respectively                                          26          27
 Additional paid-in capital                        259,328     256,763
 Treasury Stock, at cost, 1,712,873 and
  1,460,323 shares at September 30, 2009
  and December 31, 2008, respectively               (5,681)     (3,483)
 Accumulated deficit                              (153,459)   (154,014)
                                                ----------   ---------
 Total stockholders' equity                        100,214      99,293
                                                ----------   ---------

 Total liabilities and stockholders' equity        121,877     122,495
                                                ==========   =========





                      Web.com Group, Inc.
           Reconciliation of GAAP to Non-GAAP Results
             (in thousands except per share data)
                           (unaudited)





                             Three Months Ended     Nine Months Ended
                               September 30,           September 30,
                              2009        2008       2009       2008
                            ---------  ---------  ---------  ---------


 Reconciliation of GAAP net
  (loss) income to non-GAAP
  net income

 GAAP net (loss) income     $  (1,591) $   1,292  $     555  $   4,039
  Amortization of
   intangibles                  2,612      2,507      7,913      7,620
  Stock based compensation      1,144      1,333      3,663      3,502
  Restructuring charges         1,932         82      1,921         83
  Income tax expense               27         30         70         96
  Cash income tax expense         (22)       (72)      (205)      (157)
  Fair value adjustment
   to deferred revenue              8         42         58        267
  Loss on operating assets
  and liabilities                   5         --          5         --
                            ---------  ---------  ---------  ---------
 Non-GAAP net income        $   4,115  $   5,214  $  13,980  $  15,450
                            =========  =========  =========  =========

 Reconciliation of GAAP
  basic net (loss) income
  per share to non-GAAP
  basic net income
  per share
 
 Basic GAAP net (loss)
  income per share          $   (0.06) $    0.05  $    0.02   $   0.15
  Amortization of
   intangibles per share         0.10       0.09       0.31       0.27
  Stock based compensation
   per share                     0.05       0.05       0.15       0.14
  Restructuring charges
   per share                     0.07         --       0.08         --
  Income tax expense
   per share                       --         --         --         --
  Cash income tax expense
   per share                       --         --      (0.01)     (0.01)
  Fair value adjustment
   to deferred revenue
   per share                       --         --         --       0.01
  Loss on operating assets
   and liabilities per share       --         --         --         --
                            ---------  ---------  ---------  ---------
  Basic Non-GAAP net
   income per share         $    0.16  $    0.19  $    0.55  $    0.56
                            =========  =========  =========  =========

 Reconciliation of GAAP
  diluted net (loss) income
  per share to non-GAAP
  net income per share

 Fully diluted shares:
  Common stock                 25,189     27,944     25,305     27,767
  Diluted stock options         1,733      1,936      1,407      2,316
  Diluted restricted stock        382         18        164         17
  Warrants                         --        133          3        177
  Escrow shares                    --        138         --        139
                            ---------  ---------  ---------  ---------
 Total                         27,304     30,169     26,879     30,416
                            =========  =========  =========  =========

 Diluted GAAP net (loss)
  income per share          $   (0.06) $    0.04  $    0.02  $    0.13
  Amortization of
   intangibles per share         0.10       0.08       0.29       0.25
  Stock based compensation
   per share                     0.04       0.05       0.14       0.13
  Restructuring charges
   per share                     0.07         --       0.08         --
  Income tax expense
   per share                       --         --         --         --
  Cash income tax
   expense per share               --         --      (0.01)     (0.01)
  Fair value adjustment to
   deferred revenue
   per share                       --         --         --       0.01
  Loss on operating assets
   and liabilities per share       --         --         --         --
                            ---------  ---------  ---------  ---------
 Diluted Non-GAAP net
  income per share          $    0.15  $    0.17  $    0.52  $    0.51
                            =========  =========  =========  =========

 Reconciliation of GAAP
  operating (loss) income
  to non-GAAP operating
  income
 GAAP operating (loss)
  income                    $  (1,607) $   1,399  $    (571) $   3,461
  Amortization of
   intangibles                  2,612      2,507      7,913      7,620
  Restructuring charges         1,932         82      1,921         83
  Fair value adjustment
   to deferred revenue              8         42         58        267
  Stock based compensation      1,144      1,333      3,663      3,502
                            ---------  ---------  ---------  ---------
 Non-GAAP operating income  $   4,089  $   5,363  $  12,984  $  14,933
                            =========  =========  =========  =========

 Reconciliation of GAAP
  operating margin to
  non-GAAP operating margin
 GAAP operating margin             -6%         5%        -1%         4%
  Amortization of
   intangibles                     10%         8%        10%         8%
  Restructuring charges             7%         0%         2%         0%
  Fair value adjustment
   to deferred revenue              0%         1%         0%         0%
  Stock based compensation          5%         4%         5%         4%
                            ---------  ---------  ---------  ---------
 Non-GAAP operating margin         16%        18%        16%        16%
                            =========  =========  =========  =========

 Reconciliation of GAAP
  operating (loss) income
  to adjusted EBITDA
 GAAP operating (loss)
  income                    $  (1,607) $   1,399  $    (571) $   3,461
  Depreciation and
   amortization                 3,373      3,395     10,163      9,976
  Restructuring charges         1,932         82      1,921         83
  Stock based compensation      1,144      1,333      3,663      3,502
                            ---------  ---------  ---------  ---------
 Adjusted EBITDA            $   4,842  $   6,209  $  15,176  $  17,022
                            =========  =========  =========  =========


                        Web.com Group, Inc.
              Consolidated Statement of Cash Flows
                          (in thousands)

                                                    Nine Months Ended
                                                       September 30,
                                                    2009       2008
                                                (unaudited) (unaudited)
                                                 ---------   ---------

 Cash flows from operating activities
 
 Net income                                      $     555   $   4,039

 Adjustments to reconcile net income to net
  cash provided by operating activities:
 Gain on sale of discontinued operations              (821)         --
 Depreciation and amortization                      10,163       9,976
 Loss on operating assets and liabilities                5          --
 Stock-based compensation expense                    3,663       3,502
 Restructuring charges                               1,921          83
 Deferred income tax                                    36         (95)
 Changes in operating assets and liabilities:
  Accounts receivable                                  912          52
  Inventories                                           39         (24)
  Prepaid expenses and other assets                    131       3,108
  Accounts payable, accrued expenses and other
  liabilities                                       (3,488)    (10,106)
  Deferred revenue                                  (1,507)       (326)
                                                 ---------   ---------
 Net cash provided by operating activities          11,609      10,209


 Cash flows from investing activities
 
 Business acquisition, net of cash received         (3,490)     (4,573)
 Proceeds from sale of investment                       --       8,500
 Gain from sale of discontinued operations             821          --
 Purchase of investment                                 --      (3,502)
 Change in restricted investments                       (6)      1,228
 Purchase of property and equipment                   (867)     (4,436)
 Investment in intangible assets                        (4)       (945)
                                                 ---------   ---------
 Net cash (used in) investing activities            (3,546)     (3,728)

 Cash flows from financing activities
 
 Stock issuance costs                                  (14)        (19)
 Common stock repurchased                           (4,658)     (2,482)
 Stock options repurchased                            (979)
 Payment of debt obligations                          (397)     (1,158)
 Proceeds from exercise of stock options             1,173       1,047
                                                 ---------   ---------
 Net cash (used in) financing activities            (4,875)     (2,612)
                                                 ---------   ---------

 Net increase in cash and cash equivalents           3,188       3,869
 Cash and cash equivalents, beginning of period     34,127      29,746
                                                 ---------   ---------
 Cash and cash equivalents, end of period        $  37,315   $  33,615
                                                 ---------   ---------
 Supplemental cash flow information:
   Interest paid                                 $      35   $      25
                                                 =========   =========
   Income tax paid                               $     318   $     126
                                                 =========   =========
CONTACT:  ICR
          Kori Doherty
          617-956-6730
          kori.doherty@icrinc.com

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