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Toronto, Canada - (Cheap Web Hosting Directory) - November 15, 2006 - Internet services provider, Tucows, reported its financial results for the third quarter of fiscal 2006 ending September 30, 2006, indicating a 40% year-over-year increase in net revenue, with a record $16.9 million and net income of $1.9 million.

Highlights for the third quarter included: - A 41% increase in adjusted EBITDA to $1.5 million; - A 20% year-over-year increase in deferred revenue to a record $44.7 million; and - Acquisition of the Kiko calendaring service.

Elliot Noss, President and Chief Executive Officer of Tucows Inc. explained, ”Our financial results for the third quarter of fiscal 2006 show increased momentum in our business driven by growth in all our service offerings. Operationally this quarter, we completed the bulk of integration of NetIdentity and acquired the Kiko calendaring service, further evidence of our commitment to having the best hosted email service in the world. In addition, we continued to invest in strengthening our operations. This will allow us to better capitalize on the significant leverage inherent in our business model.”

Tucows will archive a conference call for replay both by telephone and via the Internet. To access the archived conference call by telephone, dial 1-800-408-3053 or 416-695-5800 and enter the pass code 3202095 followed by the pound key. To access the archived conference call via the Internet, at the firm’s website, at the ”Investor Relations” area.

Information included includes other income of $1.9 million related to contingent consideration associated with the sale in 2002 of patents acquired through the reverse takeover of Infonautics in 2001. Net revenue for the third quarter of fiscal 2006 increased 40% to $16.9 million from $12.1 million for the third quarter of fiscal 2005. The increase was the result of growth across all aspects of the Company’s business. Net income for the third quarter of fiscal 2006 was $1.9 million, or $0.03 per share, compared with $0.8 million, or $0.01 per share, for the third quarter of fiscal 2005. Adjusted EBITDA for the third quarter of fiscal 2006 increased 41% to $1.5 million, or 9.0% of net revenue, from $1.1 million, or 8.9% of net revenue, for the corresponding quarter of last year. Deferred revenue at the end the third quarter of fiscal 2006 was $44.7 million, an increase of 20% from $37.3 million at the end of the third quarter of fiscal 2005 and an increase of 4% from $43.2 million at the end of the second quarter of fiscal 2006. Cash, short-term investments and restricted cash at the end of the third quarter of fiscal 2006 decreased to $3.8 million from $7.0 million at the end of the second quarter of fiscal 2006 and $18.4 million at the end of the third quarter of fiscal 2005. The decrease compared to the end of the second quarter of fiscal 2006 is primarily the result of cash payments of $2.1 million to repay one of two promissory notes associated with the acquisition of Mailbank.com Inc. (NetIdentity) and investments of $0.8 million in property and equipment, mostly for Internet services infrastructure.

Tucows Inc. provides Internet services and download libraries through a global distribution network of 6,000 service providers. This distribution network primarily consists of web hosting companies, ISPs (Internet Service Providers) and other Internet related service companies. The companies use Tucows’ provisioned services to offer solutions to customer: enterprises, small and medium businesses and consumers. Tucows is an accredited registrar with ICANN (the Internet Corporation for Assigned Names and Numbers) and earns most of its revenue from domain name registration services plus hosted email, spam and virus protection, blogware, website building tools, the Platypus Billing System and digital certificates.

To learn more, please visit: www.tucowsinc.com

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