Highlights for the third quarter include:

• Revenues for the third quarter of 2006 were $33.8 million compared to revenues of $31.8 million for the same period last year, an increase of 6%.
• Earnings per diluted share from continuing operations were $0.03 and included stock-based compensation expense of $0.02.

Beginning on January 1, 2006, Jupitermedia began expensing stock-based compensation. The results of the third quarter of 2006 include non-cash stock-based compensation expense of $1.2 million. Net income for the third quarter of 2006 was $1.0 million, or $0.03 per diluted share, compared to net income of $60.4 million, or $1.62 per diluted share, for the same period last year. Net income for the third quarter of 2005 included a gain of $29.1 million, net of income taxes, related to the sale of Jupitermedia's Search Engine Strategies events and ClickZ.com Network, as well as a $23.5 million benefit from the reversal of the valuation allowance related to deferred income tax assets.

"We have been emphasizing the development of our Jupiterimages division and have made significant investments in our image production, technology platforms and direct sales teams over the past several quarters. At the same time, we have made progress in integrating our many recent image acquisitions, as we reduced operating expenses this quarter." stated Jupitermedia's Chairman and CEO Alan M. Meckler. "Jupitermedia continues to grow as a powerful creator and distributor of a wide range of commercial images and digital content. In addition to the expansion of our image offerings, we increased our wholly-owned royalty-free music offerings during the quarter," added Meckler.

Jupitermedia Corporation 3rd Quarter 2006 Financial Results Conference Call Alert

Jupitermedia Corporation invites you to participate in its conference call reviewing 2006 third quarter results on Thursday, November 9, 2006 at 11:00 am EST.

The conference call number is (800) 895-1085 for domestic participants and (785) 424-1055 for international participants; confirmation code "594 6893." Please call five minutes in advance to ensure that you are connected prior to the presentation. The conference call replay will be available until Wednesday, November 22, 2006. Replay call numbers are (888) 203-1112 for domestic participants and (719) 457-0820 for international participants: pass code: "594 6893."

Acquisitions

• In August 2006, Jupitermedia acquired the assets of RoyaltyFreeMusic.com (www.royaltyfreemusic.com). RoyaltyFreeMusic.com's library includes over 1,100 wholly-owned tracks of high quality royalty-free themes, underscores, voiceovers beats, loops and bumpers. Terms of this acquisition were not disclosed.
• In October 2006, Jupitermedia announced that its Jupiterimages division acquired all of the shares of Cover - Imagen y Publicaciones, S.L. (www.cover.es). With offices in Barcelona and Madrid, Cover Images is a leading Spanish agency focused on the distribution of local and international rights-managed images. Terms of this acquisition were not disclosed.
• In November 2006, Jupitermedia announced that its Jupiterimages division has signed a definitive written agreement to increase its ownership position from an initial 49.7% equity investment made in January 2006 to 90% in HAAP Media Ltd. Based in Budapest, Hungary, HAAP Media operates two stock photo related Web Sites: Stockxpert.com (www.stockxpert.com) and Stock.xchng (www.sxc.hu). Stockxpert.com is one of the world's fastest growing "micropayment" stock image libraries. The transaction is expected to close during the fourth quarter of 2006. Financial terms of the pending transaction were not disclosed.

Divestiture and Discontinued Operations
In March 2006, Jupitermedia announced that it sold its JupiterResearch division for $10.1 million in cash and the assumption of certain liabilities by the purchaser, subject to certain post-closing adjustments. The purchaser is JupiterResearch, LLC a subsidiary of JupiterKagan, Inc., which is a portfolio company of MCG Capital Corporation (Nasdaq: MCGC). As a result of this sale, Jupitermedia's Research segment is now being presented as a discontinued operation in accordance with Statement of Financial Accounting Standards No. 144.

New Online Images Offerings
Jupitermedia continued to expand its international presence and strengthen its world-class image offerings with the addition of:

In July 2006, Jupitermedia launched a powerful new search engine on its Jupiterimages Web site (www.jupiterimages.com). The new search engine was built with key input from Jupiterimages' customers and delivers the critical features they need, including the ability to find images with and without people and by gender, age and ethnicity. It also enables search by the subjects' emotions (i.e., subject is angry, content, frustrated, happy, laughing, sad, serious or worried) and by the subject looking at or away from the camera and includes many other requested search features.

In July 2006, Jupitermedia announced the launch of photos.jp (www.photos.jp), the first micropayment stock photography Web site based in Japan. Photos.jp was developed and built in Japan with JupitermediaÕs partner Aeria, Inc. and utilizes software based on Jupiterimages' partner Stockxpert.com (www.stockxpert.com), a leading micropayment stock photography Web site.

In September 2006, Jupitermedia announced the launch of Comstock Complete (www.comstockcomplete.com), a new paid subscription service offering over 100,000 royalty-free images, including the complete collections from Comstock Images and Thinkstock Images. Comstock Complete responds to the demands of creative professionals who need Comstock-quality, high resolution images at an affordable price. Comstock Complete offers two subscription levels: Print-resolution with images up to 14MB and Web-resolution with images up to 1.7MB. Comstock Images (www.comstock.com) continues to offer images on a pay-per-download basis and on CD.

In October 2006, Jupitermedia announced the launch of JupiterGreetings.com, a new paid subscription service for animated online greeting cards, 3D films and cartoons, online photo albums and more. By combining some of the 400,000 high-quality 3D animations and movies from Animation Factory (www.animationfactory.com) with music and sound effects from RoyaltyFreeMusic.com (www.royaltyfreemusic.com), Jupiterimages has efficiently and rapidly created a new line of business.

New Online Media Offerings
Jupitermedia continued to expand and strengthen its world-class proprietary JupiterWeb content and advertising opportunities with the addition of the following:

In August 2006, Jupitermedia announced the launch of APIFinder.com (www.apifinder.com/), a new destination for developers within JupiterWeb's DevX network. The site includes an expansive index of application programming interfaces (APIs), a vital tool for the modern software architect. By searching the index, developers can quickly find the functionality they need to create software that leverages public services from industry leaders such as Yahoo!, Amazon and Google. Site visitors can directly submit new APIs to the index and can upload articles and API software projects for editorial review and publication. In addition to the easy-to-use API index, the site provides expert advice on API programming and allows visitors to share ideas and techniques.

In October 2006, Jupitermedia announced that its JupiterWeb division launched internetnews.com podcasts (www.internetnews.com/podcasts), a series of Web-based audio "newscasts" covering the hottest stories in the enterprise IT and Internet technology sectors. Weekly topics include breaking news on: Linux and Open Source; Enterprise Software; Chips, Processors and Hardware; Storage; and leading IT companies such as Microsoft, Sun, Oracle and Google, as reported by internetnews.com's beat reporters and experts. The podcasts are free of charge.