Company Continues to Gain Traction with Web Conferencing Ownership Licensing

PHOENIX , Arizona (February 28, 2005) –

iLinc Communications , Inc. (AMEX:ILC), developers of Web conferencing software and integrated audio conferencing solutions, today announced another new customer that has selected iLinc as their Web conferencing solution: Paulhus & Associates. The company has chosen to purchase and own the iLinc Web conferencing software but allow iLinc to host their application to eliminate any internal impact on their IT resources. Organizations typically take advantage of this solution when they have more than casual Web conferencing needs and foresee the capability as a common business practice over the course of the next year. iLinc has gained more than 250 new Web and audio conferencing customers each quarter for the past two consecutive quarters with many of these customers switching from other market leaders and selecting an iLinc Web conferencing software purchase.

According to a report from industry analyst Frost and Sullivan titled, “World Web Conferencing Markets” in April 2004, the global Web conferencing market will grow about 30% CAGR between 2002 and 2010. About 90% of the revenues during this timeframe will be generated from two distinct markets: the Web conferencing service provider market and the Web conferencing software provider market. The difference between the two is that the service providers offer Web conferencing as an ASP service while Web conferencing software providers offer solutions that can be purchased and owned by customers (whether they are installed internally or purchased by customers and hosted by the provider). The software market is the fastest growing segment, with about 40% CAGR between 2002 and 2010, as compared with the service provider market which is growing about 22% CAGR for the same time period. According to the report, the software provider market is projected to outgrow the service provider market by 2010 to represent more than half of the entire market.

“We have found that the market is migrating toward favoring ownership of Web conferencing software over the yearly or monthly renting of these capabilities,” said James Powers, president and chief executive officer of iLinc Communications, Inc. “Any organization that pays recurring fees for the use of conferencing capabilities can demonstrate a tremendous return on investment by purchasing software such as ours. We also offer a unique ability to purchase our software and have it hosted in our co-location facility. Many organizations take advantage of this option to enjoy the ROI benefits of a software purchase without the impact that an installed solution may have on their IT staff.”

“iLinc is an outstanding product that we use everyday for sales, support, training, and marketing,” said Michael Sheehan , director of marketing & sales for Paulhus and Associates. “The combination of the savings we have seen from a one-time purchase fee and the value associated with their ability to host our software has made us feel extremely positive about selecting iLinc.”

“Organizations that have adopted Web and audio conferencing as a best practice to save time and money greatly appreciate the difference that iLinc offers,” further commented Dr. Powers. “We are continuing to attract new customers and create new business in existing accounts by offering a combination of Web conferencing software that can be purchased for a one-time fee by customers, integrated Web and audio conferencing capabilities and service offerings such as adoption and implementation services that ensure our customers are successful.”

About iLinc Communications, Inc.

iLinc Communications, Inc. is a leading developer of integrated Web and audio (phone) conferencing products and services for highly secure and cost-effective collaborative meetings, presentations, and training sessions. The Company enables customers to purchase and own iLinc Web conferencing software, which can be installed inside of a customer’s network or hosted by iLinc. Our products and services include the iLinc suite of Web Conferencing software (MeetingLinc, LearnLinc, ConferenceLinc, and SupportLinc); Phone (Audio) Conferencing Services; On-Demand Conferencing; and EventPlus, a service for professionally managed online and audio conferencing events. iLinc’s products and services are used by organizations worldwide in sales, HR and training, marketing, and customer support. More information about the Phoenix-based company may be found on the Web at www.iLinc.com.

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 include the rate of acceptance of the Company’s products and services by customers, changes in the Web conferencing and audio conferencing market in general, the acceptance of new products, the Company’s need for working capital, the result of pended litigation, the competition the Company faces from larger and more well-capitalized competitors, and other matters more fully 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, MeetingLinc, LearnLinc, ConferenceLinc, SupportLinc, and its logo are trademarks or registered trademarks of iLinc Communications, Inc. All other company names and products may be trademarks of their respective companies.

Source: iLinc