iLinc Liberates Another Customer from ASP Model with $170,000 Sale

PHOENIX, Arizona (August 26, 2005) –

iLinc Communications, Inc. (AMEX:ILC), developers of Web conferencing software and audio conferencing solutions today announced that the Company has secured a new contract with a large real estate investment trust organization for enterprise-wide Web conferencing. The agreement will bring approximately $170,000 of new revenues to iLinc in the current quarter. This new customer joins the hundreds who have switched from their previous Web conferencing service provider model (ASP) to iLinc’s Web conferencing software purchase model. iLinc is winning new customers from its competitors because it can easily demonstrate the immediate return on investment and feature strength to large organizations who are actively looking to move from their ASP service providers to a purchase software model.

The new customer selected the iLinc hosted software solution, which enables companies to buy their Web conferencing software and yet have it hosted by iLinc. The result is that these organizations enjoy an immediate return with unlimited Web conferencing without placing extra responsibility on their IT resources.

“As Web conferencing usage grows within any organization, the more traditional software purchase model becomes attractive because it offers important benefits over application service providers such as WebEx and Microsoft LiveMeeting. Those benefits include a higher return on investment, better control and security, and better integration with existing applications,” noted James M. Powers, Jr., president and chief executive officer of iLinc Communications. “This new customer is a great example of a company that uses Web conferencing throughout their organization and that will benefit greatly by owning their Web conferencing software solution instead of renting it.”

Until the end of September, iLinc is offering special incentives for organizations that wish to transition from their current Web conferencing ASP provider to iLinc Web conferencing software. Interested parties can receive more information by contacting iLinc Sales at 800-767-7145.

About iLinc Communications, Inc.
iLinc Communications, Inc. is a leading developer of Web conferencing software and audio (phone) conferencing 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); 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 pending 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, iLinc Suite, 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.

Contact:
Mark R. Yeager
Vice President of Marketing
602-952-1200
pr@ilinc.com

Source: iLinc