SOURCE: SNAP Interactive, Inc.

SNAP Interactive, Inc.

August 19, 2009 12:29 ET

SNAP Interactive Announces Second Quarter 2009 Operating Results

SNAP Maintains Year-Over-Year Revenue Growth, Continued Profitability

NEW YORK, NY--(Marketwire - August 19, 2009) - SNAP Interactive, Inc. ("SNAP" or the "Company") (OTCBB: STVI), a leading provider of online dating applications for social networking websites, today announced operating results for the quarter ended June 30, 2009.

Operational Highlights:

-- Q2 2009 revenue: $784,242, as compared to $533,257 in Q2 2008 -- a 47% year-over-year increase

-- Sixth consecutive profitable quarter

-- Continued development & growth of AreYouInterested.com & Are You Interested mobile dating application on the iPhone

(A comprehensive description of results follows below.)

"We are excited to report our sixth consecutive quarter of operational profit," stated SNAP President & CEO Clifford Lerner. "We were able to maintain profitability while continuing to focus on growing the company and expanding our products and user base. Development continued on our new website, AreYouInterested.com, as well as the Are You Interested iPhone app for mobile dating and we remain optimistic that both of these products will play a major role in the company going forward. In Q2 we continued to experience declining advertising payouts and intend to aggressively pursue other potential means of monetization in order to offset this in the upcoming quarters."

Comprehensive Operational Results Description

Revenue for the three months ended June 30, 2009 was $784,242, as compared to $533,257 for the three months ended June 30, 2008, a 47% increase. Revenue for the six months ended June 30, 2009 was $1,553,214, as compared to $1,053,159 for the six months ended June 30, 2008, a 47% increase.

These revenues are primarily generated from advertisements and premium features placed on our various applications. The increase in revenue was primarily due to higher engagement on our applications in 2009 compared to the same time period in 2008 as well as the introduction of premium features to our applications to generate additional revenue. We did not offer premium fee-generating features on our applications during the same period in 2008.

Our revenue of $784,242 for the three months ended June 30, 2009 represented a 2% increase as compared to revenue of $768,972 for the quarter ending March 31, 2009.

Net income for the three months ended June 30, 2009 was $46,430 as compared to net income of $144,862 for the three months ended June 30, 2008, a 68% decrease. Net income for the six months ended June 30, 2009 was $112,902 as compared to net income of $335,371 for the six months ended June 30, 2008, a 66% decrease. The decrease in net income was primarily due to the provision for income taxes which were not paid during the same periods last year as a result of a Net Operating Loss carry-forward from previous quarters.

About SNAP Interactive, Inc.

Incorporated in Delaware and headquartered in New York City, SNAP Interactive, Inc. is a leading provider of online dating applications for social networking websites and mobile platforms. SNAP has developed two dating applications built on Facebook ® Platform which have in excess of 17 million installations on Facebook, and has also launched dating applications on MySpace Developer Platform, Bebo, and Hi5 Developer Platform. The newest addition to SNAP's portfolio is an online dating site for singles called AreYouInterested.com that utilizes Facebook Connect to share content with their Facebook friends. SNAP also recently launched an iPhone application for mobile dating called 'Are You Interested?'

For more information visit www.snap-interactive.com.

Facebook® is a registered trademark of Facebook Inc.

iPhone™ is a trademark of Apple Inc.

Forward-Looking Safe Harbor Statement:

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future. There are a number of factors that could cause actual results and developments to differ materially from forecasted results. These risks and uncertainties include product demand, market competition, fluctuations in advertising payouts, delays in website & application development, technical issues beyond our control, reliance on the various platforms that we build applications on, and risks inherent in our operations. For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov. All traffic statistics are recent averages.

                  Snap Interactive, Inc. and Subsidiaries
                  Condensed Consolidated Balance Sheets

                                  ASSETS
                                  ------

                                                  June 30,    December 31,
                                                    2009          2008
                                                ------------  ------------
                                                (Unaudited)
Current Assets
    Cash                                        $  1,411,129  $  1,529,354
    Investments                                      251,623             -
    Accounts receivable, net                         294,869       386,507
Prepaid Expense                                       76,346           398
                                                ------------  ------------
  Total Current Assets                             2,033,967     1,916,259
                                                ------------  ------------

Property and Equipment, net                           89,371        31,297

Other Assets
Security Deposit                                      33,435        18,750
                                                ------------  ------------
Total Other Assets                                    33,435        18,750
                                                ------------  ------------

Total Assets                                    $  2,156,773  $  1,966,306
                                                ============  ============

                   LIABILITIES AND STOCKHOLDERS' EQUITY
                   ------------------------------------

Current Liabilities
  Accounts payable and accrued expenses         $    261,990  $    332,731
  Settlement Payable                                  22,553        21,888
  Convertible Notes Payable - Related Party           45,486        35,348
  Accrued interest                                    20,077        18,731
                                                ------------  ------------
Total Current Liabilities                            350,106       408,698
                                                ------------  ------------

Long Term Liabilities
    Settlement Payable                                11,793        23,238
    Convertible Notes Payable - Related Party              -        10,138

                                                ------------  ------------
Total Liabilities                                    361,899       442,074
                                                ------------  ------------

Commitments and Contingencies

Stockholders' Equity
  Preferred stock, $0.001 par value, 10,000,000
   shares authorized, none issued and outstanding          -             -
  Common stock,  $0.001 par value; 100,000,000
   shares authorized, 10,837,823 and 10,700,395
   shares issued and outstanding, respectively        10,836        10,700
  Additional paid-in capital                       2,507,396     2,368,397
  Accumulated deficit                               (709,679)     (822,581)
  Less: deferred compensation                        (13,679)      (32,284)
                                                ------------  ------------
Total Stockholders' Equity                         1,794,874     1,524,232
                                                ------------  ------------

Total Liabilities and Stockholders' Equity      $  2,156,773  $  1,966,306
                                                ============  ============




                  Snap Interactive, Inc. and Subsidiaries
              Condensed Consolidated Statements of Operations
                                (Unaudited)
                                 ---------


                             For the Three Months     For the Six Months
                                    Ended                   Ended
                             June 30,    June 30,    June 30,    June 30,
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------

Revenue                     $  784,242  $  533,257  $1,553,214  $1,053,159

Cost of Revenue                298,857     195,854     606,897     331,947
                            ----------  ----------  ----------  ----------

Gross Profit                   485,385     337,403     946,317     721,212

Operating Expenses
Depreciation and Amortization    4,874       3,071       8,565       5,360
Compensation expense           175,363     110,031     318,113     188,492
Consulting Fees                      -      15,187           -      15,187
Advertising expense                  -       2,150           -      10,470
Professional Fees               32,913      14,101      82,200      36,755
Insurance expense               20,076       6,969      35,386      11,894
Investor relations expense      22,243           -      46,308           -
Rent                            33,542      15,495      56,451      19,548
General and administrative      65,339      25,266     111,686      97,696
                            ----------  ----------  ----------  ----------
Total Operating Expenses       354,350     192,270     658,709     385,402
                            ----------  ----------  ----------  ----------

Income from Operations         131,035     145,133     287,608     335,810

Other Income (Expense)
Interest Expense                (1,269)     (1,558)     (2,592)     (3,219)
Other Income                     4,001           -       7,404           -
Interest Income                  4,218       1,287       7,037       2,780
                            ----------  ----------  ----------  ----------
Total Other Expense, net         6,950        (271)     11,849        (439)
                            ----------  ----------  ----------  ----------

Income Before Provision For
 Income Taxes                  137,985     144,862     299,457     335,371

Provision for Income Taxes     (91,555)          -    (186,555)          -
                            ----------  ----------  ----------  ----------

Net Income                  $   46,430  $  144,862  $  112,902  $  335,371
                            ==========  ==========  ==========  ==========

Net Income Per Share  -
 Basic                      $     0.00  $     0.01        0.01        0.03
                            ==========  ==========  ==========  ==========

Net Income Per Share  -
 Diluted                    $     0.00  $     0.01        0.01        0.03
                            ==========  ==========  ==========  ==========

Weighted average number of
 shares outstanding during
 the period - Basic         10,814,417  10,337,923  10,795,210  10,335,898
                            ==========  ==========  ==========  ==========

Weighted average number of
 shares outstanding during
 the period - Diluted       10,989,602  11,416,049  10,970,395  11,414,024
                            ==========  ==========  ==========  ==========

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