Communicate.com Inc.
OTC Bulletin Board : CMNN

Communicate.com Inc.

May 12, 2006 17:06 ET

Communicate's Q1 Revenues Increase 56%; eCommerce Sales Increase 102%

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 12, 2006) - Communicate.com Inc. (OTCBB:CMNN), a rapidly growing eCommerce company, today announced results for the three months ended March 31, 2006. All dollar amounts are expressed in USD.

First Quarter 2006 financial highlights and important corporate developments include:

- Record Q1 revenues of $1,531,946 compared to $978,326 for the same period of 2005.

- Record Q1 eCommerce/product sales of $1,297,201 compared to $640,989 for the same period of 2005.

- Net loss of $39,117 compared to net income of $133,472 for the same period of 2005.

- Cash and cash equivalents of $1,504,676 as of March 31 compared to $1,229,679 as of March 31, 2005.

- ETail customer list more than three times as large as of March 31 compared to the same date in 2005.

- Brazil.com launched as travel sales site by the Company's travel subsidiary, FrequentTraveller.com Inc.

- Body.com soft-launched as eCommerce health & beauty sales site with an initial catalog of approximately 20,000 SKUs.

David Jeffs, President of Communicate.com, stated, "Without a doubt, Communicate is the strongest and most stable that it has ever been as a company. Q1 results are in line with our expectations as we continued to aggressively increase our core eTail revenues. We made some planned changes in Q1 that have adversely affected our near-term results, such as taking Brazil.com and Body.com, which were two of our most profitable pay-per-click sites, off the ad network to develop them into eCommerce sales sites. This is part of our overall business strategy and should help us achieve long-term growth with profitability. Rather than forwarding our valuable, targeted natural traffic to other companies for a one-time referral fee, we strongly believe that it is much more beneficial to maintain ownership of as many visitors to our network as possible, and nurture them into repeat clients at our growing selection of eCommerce sites."

Communicate.com's Quarterly Report on SEC Form 10-QSB for the three months ended March 31, 2006, will be accessible via the investor section of our corporate website (http://www.cmnn.com/investor.php).

About Communicate.com Inc.

Communicate.com Inc. is a rapidly growing, debt-free eCommerce company with a core focus on eTail. Communicate owns some of the Internet's most instantly credible and easily remembered brands, including www.Perfume.com, www.Body.com, www.Boxing.com, www.Brazil.com and www.Importers.com, to name just a few. Communicate's portfolio of approximately 900 top-level B2C and B2B websites intuitively attracts large numbers of type-in/direct navigation visitors and potential clients per month, providing it with a crucial competitive advantage in customer acquisition and price. Communicate is publicly traded on the NASD OTCBB under the symbol CMNN. For more information, visit www.cmnn.com.

This press release contains "forward-looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Because such statements include risks and uncertainties, actual results may differ from those expressed or implied herein. Further information on potential factors that could affect the financial results of Communicate.com Inc. is included in the Company's filings with the U.S. Securities and Exchange Commission.


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