Long-Term Relationship Continues to Provide Revenue

PHOENIX, Arizona (August 16, 2005) –

iLinc Communications, Inc. (AMEX:ILC), developers of Web conferencing software and audio conferencing solutions today announced that the company has signed a new contract with an existing Fortune 1000 customer that will represent $500,000 of new revenue in the next two to three quarters. The contract is with a long-term customer that has been purchasing iLinc products and services since 2002. iLinc will develop a Web portal as well as custom training courses for the customer’s e-Learning University. The project has already begun with completion scheduled for the end of the calendar year.

Commenting on the contract, president and chief executive officer James M. Powers Jr., said, “Our existing customer relationships are continuing to bring us new business by purchasing iLinc products and services that support training. We see renewed growth in the training sector, and this new large contract supports the view that spending in corporate training is on the rise. We have a history of providing technology and services to the training industry since 2001 and we continue to offer superior products for training including our award-winning virtual classroom software. While the revenue from this contract is not core Web conferencing revenue, we appreciate both the continued customer relationship and more importantly the contribution that it makes to our overall revenue gains.”

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