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Interland (Nasdaq: INLD), a leading providerof online sales and marketing services for small and medium-sizedbusinesses, today announced the results of the Interland Spring 2005Business Barometer, a nationwide survey of 1,032 leaders of small andmedium-sized businesses. The detailed report, which reviews issuesimpacting small and medium businesses - such as Social Security andtort reform - can be downloaded at http://www.interland.com/about/news/.

Thefindings revealed that two out of three business leaders clearlybelieve that business Web sites influence overall sales, both on- andoff-line. In addition, 94 percent say their businesses have Internetaccess, and seven out of 10 cite email as very or somewhat critical totheir business.

When asked to name their top three 2005 businesspriorities, all tracked back to the bottom line, with 79 percent ofbusiness leaders naming revenue growth, 70 percent customer retentionand 46 percent expense reduction. The group named rising inflation (44percent), the current trade deficit and the collapse of the dollar’svalue (40 percent), and energy and other supply shortages (40 percent)as the top three immediate threats to the success of small andmedium-sized U.S. businesses. Meanwhile, the group identified the topthree greatest strengths of U.S. businesses as technological lead andstrong productivity (49 percent), democratic government (46 percent)and a flexible economy and labor force (39 percent).

Specific tothe impact of Web sites on business sales, 44 percent of those with Websites said they generated from 1 to 25 percent of their 2004 revenuesthrough online purchases or offline purchases that were influenced bytheir Web site. Additionally, nearly a quarter (24 percent) say 26 to100 percent of their revenue was attributable to having a Web site.

Thereport showed that of the 24 percent of those businesses surveyed whichare actively using e-commerce features (such as online paymenttransactions, online business forms or email requests) to sell throughtheir Web site, 87 percent are receiving monthly revenue from their Website. In fact, 42 percent say they derive more than a quarter of theirmonthly revenue from their Internet presence.

“This study showsthat small and medium-sized businesses that are using the Internet tomarket their services and offerings are getting a clear return intop-line revenues for their investment,” says Joel Kocher, CEO andChairman of Interland. “Looking at the data carefully, you can start tosee how tightly online tools and services are starting to fit withsmall-business priorities. For example, business email can be used tohelp up-sell and cross-sell, to help reinforce customer loyalty and toreduce business expenses. We are getting to the point in mostsmall-business categories where it will soon be safe to say that ifyou’re not online, you’re not really serious about being in business.”

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