ILC Ilinc Communications,

iLinc Communications, Inc. (AMEX:ILC), a leading provider of Web conferencing software and audio conferencing solutions, today provided an update on the Web conferencing market and the impact to iLinc�s fourth quarter software sales mix. The overall weak economy and an increasing number of customers opting for the new subscription (rental) model has resulted in the company not achieving the guidance provided last quarter. �iLinc has not been immune from the overall economic slowdown that has impacted U.S. businesses as a whole and specifically the software industry,� said James M. Powers, Jr., iLinc�s President and Chief Executive Officer. �Like other software and services providers, iLinc has been directly affected by the overall U.S. economy and corresponding tightening of capital budgets,� continued Dr. Powers. �Our strategic approach has been to emphasize a software purchase model as a way to gain a market advantage over our larger competitors in the Web conferencing sector. That software purchase model, while providing iLinc a distinctive competency, was impacted by tightening corporate capital budgets and concerns of an economic slowdown,� continued Dr. Powers. �Despite verbal customer approvals, we have seen larger sales transactions delay. To adapt to these market conditions, last quarter we began offering a subscription model that has increased our bookings and shortened sales cycles.� �We have already seen success from the focus on our subscription model. In the fourth quarter, iLinc achieved a record number of sales booking transactions, which was in line with quarterly expectations. However, shifting to a subscription model spreads the recognition of revenue over a longer term, providing less revenue in the near term and increasing the resulting quarterly loss,� added Dr. Powers. �We adapted quickly and continue to have considerable flexibility with our industry-leading product in a growing market. We have a substantial customer base with many long-term lease agreements in place. Additionally, later in the first quarter we plan to launch iLinc 10, with many enhanced capabilities, including the newest version of our unique, patent pending, iLinc Green Meter. In this economic climate, companies are looking for ways to cut costs and using Web conferencing provides a way to reduce travel costs while enhancing productivity. We are focused on continued success with our indirect sales channel strategy, which continues to make advancements as we capitalize on the telecom and rapidly expanding unified communications market,� concluded Dr. Powers. �In Fiscal 2008, we invested aggressively in sales and marketing activities that were designed to provide software purchase sales growth that did not materialize,� said James L. Dunn, Jr., iLinc�s Chief Financial Officer. �Broader economic conditions and licensing models aside, capital market constraints required that we adapt accordingly. To address the short-term impact of lower quarterly revenues, we have already implemented overhead reductions that will be revealed in the first quarter of fiscal 2009 and the remainder of that fiscal year. We believe that it is important to return to profitability as quickly as possible to bolster investor and customer confidence.� �Due to the challenging and cost prohibitive capital markets, we have addressed short-term capital needs through a reduction in overhead as well as consideration of the monetization of certain non-core assets. We believe these steps will adequately address any short-term capital needs that are presented by the market shift from the software purchase to subscription revenue model. iLinc�s long-term debt is unsecured, is not due until 2010 and 2012 and does not impose operating covenants on iLinc. We will provide more information about the March 2008 fiscal quarter, and our expectations for fiscal year 2009, during our quarterly earnings conference call scheduled for May 13,� concluded Mr. Dunn. About iLinc Communications, Inc. iLinc Communications, Inc. is a leading developer of Web conferencing software and audio conferencing solutions for highly secure and cost-effective online meetings, presentations, and training sessions. The Company's technology allows people in diverse locations to communicate and collaborate online while avoiding the expense, environmental damage, and productivity losses associated with travel. iLinc provides an award-winning, enterprise-wide suite of Web, audio and video conferencing solutions that can be scaled up or down to meet the needs of any size organization. Offering the industry's most flexible pricing models, iLinc gives organizations the power to choose an on-premise installed, on-demand hosted, or hybrid solution�whichever model delivers the highest ROI for the customer. iLinc is headquartered in Phoenix, with offices in New York and Salt Lake City. This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Factors that could contribute to such differences are disclosed in the Company�s annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company�s estimates and expectations as of the date of the press release, and subsequent events and developments may cause the Company�s estimates and expectations to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company�s estimates and expectations of its future financial performance as of any date subsequent to the date of this press release. iLinc, iLinc Communications, iLinc Suite, MeetingLinc, LearnLinc, ConferenceLinc, SupportLinc, EventPlus, On-Demand, iReduce, iLinc Enterprise Unlimited and its logos are trademarks or registered trademarks of iLinc Communications, Inc. All other company names and products may be trademarks of their respective companies.