SOURCE: IC Places, Inc.

January 17, 2008 09:30 ET

IC Places State of the Company Address

ORLANDO, FL--(Marketwire - January 17, 2008) - IC Places, Inc. (PINKSHEETS: ICPA) (www.icPlaces.com/Orlando) is pleased to update Shareholders on the state of the company.

IC Places is America's first city-based Internet community with a national template and access to global buying power. IC Places' city-based websites give local businesses, governments and citizens a global template that breaks the Internet language barrier. It does this by giving everyone an easy-to-understand road map to each city. It takes the highly fragmented world of city websites and gives it uniform structure. Because of this structure, when visitors go to an IC city site... they will always be able to find their way around any IC Places city site.

IC Places' websites are built with an extremely robust proprietary database backbone. Company management realized that it had to meld that backbone to the most user friendly experience possible. To do this IC Places has stepped outside the box and hired three of the nation's top design and consulting firms to work together and create a new user interface, marketing plan and branding package for the company's websites. The results (which will take 3 months to finish) will be an easy-to-use graphically based group of city websites that flow with greater ease and are much more intuitive in their design. More details about the firms hired and user interface changes will be announced in future press releases.

For advertisers, IC Places offers tools to advertisers that combine the quality and power of Flash video, the latest interactive features, and the most comprehensive online tracking and reporting capabilities to dramatically enhance the impact and effectiveness of any ad campaign. These tools lead to more compelling and inherently more effective campaigns. The ability to use technology and expertise to the advertiser's advantage to continually surprise and delight their audiences -- while successfully meeting or exceeding their campaign objectives -- is what makes campaigns truly memorable and effective. Combine that with IC Places' unique ability to offer the complete video and rich media ad creative to more of advertisers' online audiences on each and every campaign and greater reach and returns are the result.

Revenue Potential

Today's Internet has become a very powerful tool for advertisers seeking to reach their most desirable audiences with compelling and effective rich media ad campaigns. Broadband penetration now exceeds 79% percent of homes in the USA according to the latest figures from Forester Research -- making the Internet much more compelling to consumers and advertisers alike.

As a result of the increased bandwidth now available to most Internet users, advertisers and agencies are able to deliver more compelling branding and messaging experiences to their audiences. Major advertisers are attempting to capitalize on the power of the Internet by shifting larger portions of their ad budgets online. As they do so, maximizing the return on online ad spend is becoming increasingly important -- critical, in fact. Gone are the days of delivering video and rich media ads just for the "wow" factor -- today's savvy online advertisers are expecting quantifiable and significant returns on their ad spend. Accordingly, they are also demanding better performance from their rich media providers.

The main source of IC Places' revenues will come from Advertising Sales. This has become the Internet's fastest growing sector.

Online Advertising...

U.S. online advertising revenue grew 26 percent year on year to a record $4.9 billion in the first quarter of 2007, according to the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC). The online advertising sector has seen strong growth in recent years as marketers put more money into online, and away from traditional areas such as newspapers and television. The continued growth of online ad revenues clearly illustrates marketers' increased comfort with the extraordinary vitality and accountability of this medium.

The sector has been bolstered in recent months by merger and acquisition activity involving some of online advertising's biggest names. In May of 2007 Microsoft Corp. agreed to buy aQuantive Inc., an online advertising business for $6 billion, while advertising group WPP Group Plc. said it would pay $649 million for 24/7 Real Media Inc. In April, Google, Inc. said it would pay $3.1 billion for Doubleclick, Inc., which offers a digital marketplace that connects ad agencies, marketers and Web site publishers.

Investors are betting on increased growth in the online ad sector as broadband penetration grows and more services move to the Web. We may expect continued strong revenue growth buoyed by an expanding broadband subscriber base. This could translate into more users spending more time online and offers a platform for rich media and video ads which is the cornerstone of IC Places rich media offering.

Video Classified advertisements...

According to new estimates by the Newspaper Association of America, online advertising classified revenues reached $750m in the first quarter of 2007. The biggest decline in traditional print advertising continues to be in the classified advertising category. In total, this category declined by 13.2 percent to $3.4bn, with real estate and recruitment advertising both down by more than 14 percent. This decline reflects the growing shift of classified advertising to rivals on the Internet such as Craigslist, which often provide the service for free.

IC Places has created free local Video Classified advertisements. The service gives sellers of cars, boats, planes, houses or anything that can best be seen with live action video the ability to show off their item for sale through video. For the buyer, it gives them a new perspective when shopping online. The IC Places Classified ads stand out from the competition as it takes advantage of the company's advanced video streaming technologies which is uncommon amongst most websites like Craigslist.

The Video Classified Ads are free. So how do we make money? Before each video runs, a 15 - 30 second commercial is played. This commercial is sold and placed into the ad by our video partners. We split the ad revenue 50/50 with our partners. On our side the process is automated so our job is to get the word out that the free Video Classified Ads are available.

Whenever a video plays on our sites, a post- or pre-roll commercial runs and IC Places makes money. So we expanded videos on the sites into area of editorial Video News stories and reports.

In each city we have local people looking to make a name for themselves. These may include local Chefs, Lawyers, Financial professionals and other business people. We offer these individuals a platform in their city to show why they are an expert in their field. We do this by allowing them to write and/or film stories about their area of expertise. These stories are then displayed in the site of the city they live in. This, in return, establishes them as local experts and brings them business.

The editorial process is simple and automated. These individuals are given a web interface. They login and submit monthly stories. Once the story is submitted a national editor will review it and approved or declined the story. With one click the story finds its way to the main page of the writer's city. Each article will also include a video part to the story. The video is done by the writer and could be anything from a full story to supporting footage.

IC Places makes money when the video is played because we receive 50% of the ad revenue for the commercial that is played before or after the video runs. The articles give the readers great information and, if written well, may inspire the reader to do business with this author. For the Author, it gives them a big soap box to stand on to tell their story. For IC Places, it gives our sites local content and revenues.

Getting the Most out of online Ad Spending with IC Places

So why will Rich Media and Video campaigns that use IC Places websites perform so exceptionally? What is behind the increased brand lift and campaign effectiveness that leads to higher ROI on clients' online ad spends?

IC Places offers tools to advertisers that combine the quality and power of Flash video, the latest interactive features, and the most comprehensive online tracking and reporting capabilities to dramatically enhance the impact and effectiveness of any ad campaign. These tools lead to more compelling and inherently more effective campaigns. The ability to use technology and expertise to the advertiser's advantage to continually surprise and delight their audiences -- while successfully meeting or exceeding their campaign objectives -- is what makes campaigns truly memorable and effective. Combine that with IC Places' unique ability to offer the complete video and rich media ad creative to more of advertisers' online audiences on each and every campaign and greater reach and returns are the result.

Most city-based websites force advertisers to model text ads to fit the site's needs. Working within these templated platforms tends to result in standardized campaigns that under perform with regard to brand lift and campaign objectives. When creativity is constrained from the start, it becomes very difficult to surprise, delight, and truly engage audiences.

IC Places knows that every advertiser -- and every online ad campaign -- is unique. Campaigns have different sets of objectives, and different creative goals. Rich media implementations are required to deliver the specific and quantifiable results that today's online advertisers expect. That's why, unlike most websites, IC Places does not limit creative options to a pre-programmed platform. In fact, IC Places encourages online agencies and advertisers to think outside of the box on every rich media campaign.

Maximizing the return on online ad spend is becoming more important as greater percentages of marketing budgets are shifted online. Today's savvy online advertisers are expecting quantifiable and significant returns, and they are also demanding better performance and accountability from websites they advertise with.

When it comes to delivering bottom-line results for today's online ad campaigns, not all websites are created equal. To maximize brand lift, campaign effectiveness, and ROI on online ad dollars, it is important to select a website platform that offers its advertisers, agencies, and publishers the most comprehensive capabilities. IC Places is that website platform.

About IC Places, Inc.

IC Places is America's first city-based Internet community with a national template and access to global buying power. The flagship site is www.icplaces.com/Orlando. IC Places' city-based websites give local businesses, governments and citizens a global template that breaks the Internet language barrier. It does this by giving everyone an easy-to-understand road map to each city. It takes the highly fragmented world of city websites and gives it uniform structure. Because of this structure, when visitors go to an IC city site... they will always be able to find their way around any IC Places city site.

Safe Harbor Statement

Note: Except for the historical information contained herein, this news release contains forward-looking statements that involve substantial risks and uncertainties. Among the factors that could cause actual results or timelines to differ materially are risks associated with research and clinical development, regulatory approvals, supply capabilities and reliance on third-party manufacturers, product commercialization, competition, litigation, and the other risk factors listed from time to time in reports filed by IC Places, Inc. with the Securities and Exchange Commission, including but not limited to risks described under the caption "Important Factors That May Affect Our Business, Our Results of Operation and Our Stock Price." The forward-looking statements contained in this news release represent judgments of the management of IC Places, Inc as of the date of this release. IC Places, Inc. and its managers and agents undertake no obligation to publicly update any forward-looking statements.

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