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Orem, Utah - (Cheap Web Hosting Directory) - September 7, 2006 - E-commerce web host, iMergent, Inc., has filed suit with the United States District Court, District of Utah, Central Division seeking a declaratory judgment that the Utah Business Opportunity Disclosure Act is not applicable to iMergent, Inc.

Don Danks, chairman and CEO of iMergent commented, ”iMergent sells software enabling small businesses and entrepreneurs to transact business on the Internet. We believe our company is not, nor ever has been a seller of business opportunities. We are proactively seeking judgment from a federal court to declare as such. We will fight this request vigorously. Several times in the past other states have also requested our company to register as a seller of business opportunities. But after their reviews of our business, we have never been required to register. We sell software and support, not business opportunities. Once and for all, we want to clarify this issue, and we are confident we will demonstrate to the court that we are not subject to the business opportunity statutes.”

In a settlement agreement with the State of Utah on November 15, 2003, the State expressly agreed iMergent was not required to register as a seller of business opportunities. However, on August 28, 2006, the Utah Division of Consumer Protection initiated an administrative proceeding seeking to require iMergent to register.

Jeff Korn, General Counsel of iMergent added, ”This is an important issue; therefore, we felt it was essential for the US District Court to review the matter and make a determination. We believe the State of Utah has acted improperly. First and foremost, we do not sell business opportunities nor do we hold seminars or sell software licenses in Utah. In addition, there are constitutional issues.”

iMergent’s declaratory action raised other issues, as well. It is, in part, these constitutional concerns that enable the company to file with a US District Court.

– Whether this action violates due process since the state entered a previous agreement relied upon by the company;
– Whether the Utah statute is unconstitutionally vague; and
– Whether a state can regulate conduct that occurs entirely outside of that state.

iMergent provides eCommerce solutions to entrepreneurs and small businesses, designed to enable marketing and selling business products or ideas via the Internet. Headquartered in Orem, Utah, the company sells its proprietary StoresOnline software and training services, developed to help users build a successful Internet strategy to market products, accept online orders, analyze marketing performance, and manage pricing and customers. In connection with Internet software, iMergent also offers website development, website hosting, marketing and mentoring products and services. iMergent typically reaches its target audience through concentrated direct marketing efforts to fill Preview Sessions, in which a StoresOnline expert reviews the product opportunities and costs. The sessions lead to a follow-up Workshop Conference, where experts train potential users on the software and services and encourage them to make purchases.

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

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