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Orem, Utah - (Cheap Web Hosting Directory) - September 12, 2007 - E-commerce web host, software and services provider for small businesses and entrepreneurs, iMergent, Inc., intends to appeal an order of the Ventura County Superior Court of California, which entered a preliminary injunction against the company.

As reported in a SEC Form 8-K before the stock market today, the Court entered a preliminary injunction which requires the company to register under the California Seller Assisted Marketing Plans Act (”SAMP Act”) to engage in certain sales in the State of California until the case is resolved. The Court has not yet set a schedule for trial.

The company intends to appeal the preliminary injunction order with the California Court of Appeals on the grounds that relevant provisions of California’s SAMP Act are unconstitutionally vague and cannot be enforced. The company also intends to file a writ of supersedes with the California Court of Appeals in an attempt to stay enforcement of the preliminary injunction pending the outcome of the appeal on the grounds that the preliminary injunction constitutes a mandatory injunction mandating such a stay.
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Recently, the company appointed Todd A. Goergen as non-executive Chairman of the Board of Directors. Donald L. Danks will remain as Chief Executive Officer and Director. The company also announced that it had completed its investigation of Mr. Danks and the independent members of the iMergent board of directors reviewed the investigation and delivered remedies.

In its SEC Form 10-Q for the quarter ended March 31, 2007, issued on May 10, 2007, the company disclosed that in an article in the May 5, 2007 edition of Barron’s alleged Don Danks shared material non-public information with select individual and institutional investors. In a conference call that day, the company also disclosed its general counsel together with outside counsel for the independent members of the board of directors, launched a thorough investigation of that allegation and the actions of the chief executive officer.

As reported in a SEC Form 8-K before the stock market August 30, the investigation concerning these allegations determined Mr. Danks appears to have violated Regulation Fair Disclosure (Reg. FD) under the federal securities laws by disclosing material nonpublic information about the company’s third quarter 2007 earnings to a third party. The investigation found no evidence that Danks disclosed this earnings information to anyone else. The company mitigated any potential misuse of the information contained in the article published on Saturday, May 5, 2007 by releasing its quarterly financial information in a press release and on SEC Form 8-K before the stock market opened on Monday, May 7, 2007.

The independent members of the iMergent’s board of directors took the following actions:

• The Board of Directors accepted the resignation of Mr. Danks as chairman.
• The Board of Directors determined to impose certain requirements on Mr. Danks including requiring him to attend compliance training, restricting his communications with outside securities professionals and requiring him to disclose to the general counsel on a monthly basis the identity of any securities professionals or investors with whom he has discussed the company.
• The Board of Directors determined not to grant a salary increase to Mr. Danks and not to award him any compensation increases for at least the remainder of calendar year 2007.

The Board of Directors appointed Todd Goergen as non-executive Chairman of the Board of the company. Mr. Goergen is Managing Member of Ropart Asset Management, LLC (”RAM”). RAM makes direct investments in small to mid-size companies. In addition he is a Managing Member of Ropart Investments, LLC, a private investment partnership. Between 1999 and 2000, Mr. Goergen was the Director of Acquisitions and Corporate Development at Blyth, Inc. From 1994 to 1999, Mr. Goergen was an Associate/Analyst in the Mergers and Acquisitions Group of Donaldson, Lufkin and Jenrette. Mr. Goergen received his degree in Economics and Political Science in 1994 from Wake Forest University. Mr. Goergen is a Board Member of Dimensions Holding, LLC, Genapure Corporation, Heads Threads International, LLC, and US Personnel Inc. Mr. Goergen is serving as a director until the annual meeting of stockholders for the fiscal year ending June 30, 2008.

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.

For more information about iMergent, please visit: www.imergentinc.com.

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