While Internet America's total subscriber base decreased by 8.6% to 34,200 at June 30, 2007 -- due to disconnects of legacy dial-up Internet customers -- the Company's broadband wireless Internet subscriber base increased 79.7% to 5,750 as of June 30, 2007. The Company's current broadband wireless Internet subscriber base is approximately 7,100.

EBITDA (earnings before interest, taxes, depreciation and amortization) for the fiscal year ended June 30, 2007 increased by $198,000 or 77.3% to $454,000 compared to $256,000 for the previous year. The improvement in EBITDA was primarily due to reductions in operating costs and overhead.

The Company's net loss was $347,000 for the fiscal year ended June 30, 2007 compared to a net loss of $636,000 for the previous year. The improvement in net loss was attributable primarily to a full year of benefit from cost cutting measures in staffing and telecommunication expenses taken by Internet America during the previous fiscal year ended June 30, 2006.

"We are quite excited with the steps that we took during the year towards establishing a stronger platform for our broadband wireless Internet business," said Billy Ladin, Chairman and CEO of Internet America. "We have expanded in areas of Texas providing broadband wireless Internet access services to under-served and non-served markets in suburban and rural areas and we expect to continue to grow by completing additional acquisitions and deploying new infrastructure throughout the Southwest. Our ability to identify new acquisition opportunities and integrate new personnel continues to improve. We completed three acquisitions during the last quarter of our 2007 fiscal year closely followed by our purchase of TeleShare Communications Services, Inc. in July 2007. While these four acquisitions had little impact on our revenues and profits for fiscal 2007, as reported in this release, we expect they will positively impact our revenues and operations in fiscal 2008."

Jennifer LeBlanc, Internet America's Chief Financial Officer, said, "Despite our significant attention on finding and completing acquisitions during the 2007 fiscal year, we were able to streamline our operations and expenses through reductions in staffing and telecommunications costs. Consequently, our EBITDA increased by almost eighty percent. We continue to evaluate our overall profitability and focus on changes in each acquired operation that will reduce costs and continue or expand organic revenue growth in these acquisitions in order to enhance long-term shareholder value."

Internet America is a leading Internet service provider serving the Texas market. Based in Houston, Internet America offers businesses and individuals a wide array of Internet services including broadband Internet delivered wirelessly and over DSL, dedicated high-speed access, web hosting, and dial-up Internet access. Internet America provides customers a wide range of related value-added services, including Fax2email, online backup and storage solutions, parental control software, and global roaming solutions. Internet America focuses on the speed and quality of its Internet services and its commitment to providing excellent customer care. Additional information on Internet America is available on the Company's web site at http://www.internetamerica.com.