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Marina Del Rey, California - (Cheap Web Hosting Directory) - September 11, 2007 -E-commerce transaction software and services firm for the advertising and publishing industries, AdStar, has reported its second quarter operating results for the first half of 2007.

For the three months ended June 30, 2007, net revenues decreased to $1.17 million, compared with net revenues of $1.24 million during the same period in 2006. The net decrease was primarily a result of delayed installation and customization projects, as well as lower volume of upgrade sales. Recurring revenues from transaction and support fees remained relatively constant, despite a slight decrease in ASP revenues. Gross profit margin for the three months ended June 30, 2007 remained constant at 55 percent of revenues when compared with the same period in 2006. The company’s cash balance at June 30, 2007 was $2,528,000, a decrease of $17,000 from the balance at December 31, 2006.

AdStar reported a net loss applicable to common shareholders of $630,000, or $0.03 per share, for the first quarter of 2007, versus a net loss of $186,000, or $0.01 per share, in the second quarter of 2006. For the second quarter of 2007, the loss before interest, taxes, depreciation and amortization (EBITDA), and share-based payment charges, totaled $439,000, compared with a gain of $33,000 in the three months ended June 30, 2006 (see table at end of this release for further Non-GAAP information).

Leslie Bernhard, President and Chief Executive Officer of AdStar, Inc. remarked, ”Throughout the second quarter, we continued to focus our business development efforts on expanding the scope of our service offerings into the mobile advertising arenas, as well as working with digital media publishers that are developing new channels for their advertising content. We understand the challenges of integrating old and new media, and AdStar is committed to technology solutions that will meet the comprehensive needs of our customers in an evolving industry environment.”

Mr. Bernhard added, ”We see tremendous opportunity beyond our Web-based ad sales and payment processing services, and have dedicated appropriate business development, marketing and technical resources for the development of these solutions, which will extend our capabilities to encompass multiple publishers and platforms. AdStar is uniquely positioned to provide an integrated solution for an advertising campaign requiring delivery to several publishing channels from a single session.”

Selling and marketing expenses increased by $185,000 to $468,000 in the three months ended June 30, 2007, over the same prior year period. The increase during the second quarter is primarily due to business development initiatives in mobile advertising where the company has designed a prototype mobile advertising platform. The company has also focused on enterprise-level marketing of its services to provide a common solution to publishing groups.

Product maintenance and development expenses increased by $105,000 to $286,000 during the second quarter of 2007. The increase was primarily a result of technical activities associated with interfaces designed for multi-channel advertising campaigns. General and administrative costs increased by $140,000 to $518,000 during the second quarter, over the same prior year period; primarily due to stock compensation paid to consultants and to an increase in legal and accounting fees, including the cost of compliance with the provisions of the Sarbanes-Oxley Act.

For the six months ended June 30, 2007, net revenues increased to $2.53 million, from $2.52 million in the first half of 2006. The increase was primarily a result of increased customization and installation revenues during the first quarter. AdStar reported a net loss applicable to common shareholders of $1.63 million, or $0.08 per share, during the first half of 2007, versus a loss of $654,000, or $0.03 per share, for the same period in 2006.

AdStar’s ASP technology infrastructure processed 99,000 ads in the second quarter of 2007, compared with 112,000 in the second quarter of 2006. Total ad transactions, including large contract accounts, were 133,000 in the most recent quarter, versus 143,000 in the prior-year period. The decrease is primarily due to newspaper advertising declines in general, particularly in the real estate category.

AdStar, Inc. is a provider of e-commerce transaction software and services for the advertising and publishing industries. AdStar’s proprietary suite of e-commerce services includes remote ad entry software and web-based ad transaction services. AdStar is also a supplier of automated payment processing services. AdStar’s ad transaction infrastructure powers classified ad sales for more than 40 of the largest newspapers in the United States, CareerBuilder, and a growing number of other online and print media companies. EdgCapture, AdStar’s automated payment process solution, is currently employed by call centers at more than 100 of the nation’s leading newspaper and magazines. AdStar is headquartered in Marina del Rey, Calif.

To learn more about AdStar, Inc., please visit: www.adstar.com.

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