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Goleta, California - (Cheap Web Hosting Directory) - August 10, 2006 - Commerce Planet, Inc., has made its final $500,000 debt repayment earlier than expected, and is now free from any further long-term debt obligations.

Michael Hill, CEO of Commerce Planet explained, ”Less than one year ago, we had well over $3 million in debt, due primarily to our main investor Dutchess Capital Management. They’ve been an outstanding, value-added investor over the past several years and for that I am grateful, but I can proudly say that we are now in a position of tremendous flexibility with our customers, vendors and banking relationships. In addition to lowering our cost of doing business, we’ve also eliminated significant interest expense which collectively should even further improve our bottom line performance as we progress forward.”

Earlier this month, Commerce Planet repaid $775,000 in debt with cash generated from operations, after experiencing a 460% increase in revenue, indicating record profits during the second quarter of 2006. Mr. Hill stated at that time, ”Our goal as we progress into the second half of 2006 is to increase both the breadth and depth of our offerings by continuing to introduce additional products and services which assimilate seamlessly into our model without disruption to our processes or bottom line. Given the continued robust outlook for online commerce, I believe we are positioned perfectly for further growth well into the foreseeable future. With this most recent pay down of our obligations, now brings the year to date total to approximately $2.2 million in debt reduction. With our business continuing at a brisk pace, we now look forward to far exceeding our prior expectations by becoming virtually debt free by the end of the year.”

Revenue for the quarter ending June 30, 2006 was $7,086,818, while $1,258,616 was reported for the quarter ending June 30, 2005. Net income during the quarter ended June 30, 2006 was $1,460,117 vs. a net loss of ($1,986,382) for the quarter ended June 30, 2005. The Company’s complete financial results can be viewed in its Form 10-QSB filing for the quarter ended June 30, 2006.

Mr. Hill stated, ”I am very pleased to report such outstanding performance to our shareholders. Clearly our momentum is continuing as sequentially from the first quarter our revenue more than doubled and our profits increased over 650%. In just six months of this year our $11 million in revenue and $1.6 million in net income, far exceeds our performance for all of 2005. Additionally, we recently announced year to date debt repayment of $2.2 million with cash flow from operations and with over $1.8 million in cash, the overall health of Commerce Planet has never been better.”

CommercePlanet, Inc. through its websites ‘commerceplanet.com’, ‘osimaging.com’, ‘onlinesupplier.com’, ‘buydiscount.com’ and ‘mysoftwaretutor.com’, provides ecommerce solutions, printing, fulfillment, and thousands of high value products at savings to its online loyalty club customers and members.

For more information about CommercePlanet, please visit: www.commerceplanet.com.

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