Think Partnership Second Quarter 2007 Financial Results

EBITDA up 24% to $2.1 Million Sequentially Despite Lower Revenues

Think Partnership Inc. (AMEX:THK), an international leader in interactive performance-based marketing and related Internet technologies, reported financial results for the second quarter ended June 30, 2007.

Q2 2007 Financial Results

As compared to the previous quarter and the same period a year ago:
Revenues totaled $16.9 million, a decrease of 4% from $17.7 million in the previous quarter and a decrease of 12% from $19.3 million a year ago.
Net loss from operations was $0.4 million, an improvement from a loss of $0.7 million in the previous quarter and compared to a gain of $0.3 million a year ago.
Basic and fully diluted earnings per common share totaled a loss of ($0.01), unchanged from a loss of ($0.01) in the previous quarter, and an improvement from a loss of ($0.03) per share a year ago.
Earnings before interest, taxes, depreciation and amortization expenses (”EBITDA”) was $2.1 million, an increase of 24% from $1.7 million reported in the previous quarter and an increase of 2% from $2.0 million reported a year ago. This includes approximately $200,000 of restructuring costs directly related to severances, relocation, and other consolidation efforts. A reconciliation of EBITDA to income from operations is included at the end of this release.

Q2 2007 Event Highlights
Microsoft selected Think Partnership’s KowaBunga! affiliate tracking and management solution with ValidClick click fraud protection to launch and manage the affiliate networks of its Online Services Group. Think Partnership customized the KowaBunga! MYAP v9 platform for Microsoft, allowing it to create unique, yet integrated, fraud-protected affiliate programs for each of its product lines.
Think Partnership released ValidClick DirectAds 2.1, a private labeled PPC platform which allows publishers to manage their own pay-per-click advertisers through an online interface. Version 2.1 presents advertisers with significantly improved conversion tracking and reporting abilities.
Oversee.net chose Think Partnership’s ValidClick DirectAds private label PPC platform for Revenue.net as part of its direct navigation advertiser solution.
Think Partnership and BET Interactive launched an online dating service. The enterprise-level solution provides BET with the technology and services to automate the signup, management and networking of single African-Americans in a branded, exclusive dating network.

“We have been pleased with the adoption rate of our products and services by our clients as well as the increased effectiveness of our advertising platform, which was significantly enhanced during the quarter.” said Scott P. Mitchell, president and chief executive officer of Think Partnership. “However, our Advertising Segment did not realize $2.5 million of expected revenue primarily due to delays in execution of a certain contract as well as ongoing weaknesses in its international business. As a result, this segment realized an operating loss of more than $300,000 rather than an expected gain of more than $200,000. The delayed contract work is expected to be completed in the second half of 2007.”

Mitchell added, “Although our growth has been slower then we forecasted, we are confident that our financial performance during the second half of our fiscal year will show an improvement over the first half based on the business we already have in place. Meanwhile, we will continue to execute our consolidation and integration plans, evaluate strategic opportunities that could unlock shareholder value, and focus on growing both the top and bottom line.”

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