WEBM Webmediabrands (MM)

WebMediaBrands Inc. (Nasdaq: WEBM), an Internet media company concentrating on BtoB communities, today reported results for the quarter ended March 31, 2009.

In February 2009, WebMediaBrands completed the sale of its Online images business to Getty Images, Inc. for an aggregate purchase price of $96.0 million in cash, subject to a working capital purchase price adjustment. As a result of the sale, these financial results reflect WebMediaBrands�s Online images segment as a discontinued operation and continuing operations are comprised solely of the Online media business, in accordance with Statement of Financial Accounting Standards No. 144. Prior year financial results have been presented to reflect WebMediaBrands Online images segment as a discontinued operation.

Revenues from our continuing operations for the first quarter of 2009 were $5.8 million compared to revenues of $8.4 million for the same period in 2008. Operating loss from continuing operations was $8.0 million, or $0.22 per share, for the first quarter of 2009 and included non-cash stock-based compensation expense, impairment and restructuring charges, which totaled $3.6 million or $0.10 per share. Net loss for the first quarter of 2009, including the results of the discontinued operation, was $8.7 million and included a gain of $7.1 million related to the sale of the Online images business.

"Our ad sales and job board operations had significant declines due primarily to economic conditions. Our online education business, however, had growth on a year over year basis. Also, operating costs in this quarter do not reflect significant cost savings that will take place over the balance of the year and into 2010," stated Alan M. Meckler, Chairman and CEO of WebMediaBrands.

WebMediaBrands Inc. 1st Quarter 2009 Financial Results Conference Call Alert

WebMediaBrands Inc. invites you to participate in its conference call reviewing 2009 first quarter results on Thursday, May 14, 2009 at 5:00 pm EDT.

The conference call number is (877) 874-1586 for domestic participants and (719) 325-4821 for international participants; pass code �477 5876�. Please call five minutes in advance to ensure that you are connected prior to the presentation. The conference call replay will be available until�Thursday, May�28, 2009. Replay call numbers are (888) 203-1112 for domestic participants and (719) 457-0820 for international participants; pass code �477 5876.�

Acquisition

In April 2009, WebMediaBrands acquired the assets of Brandsoftheworld.com (www.brandsoftheworld.com). Brandsoftheworld.com is a user generated content site where readers view and download more than 160,000 vector format brands and logos. The site has over 2 million unique visitors and over 30 million page views per month. Terms of the acquisition were not disclosed.

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WebMediaBrands Inc.

Unaudited Consolidated Condensed Statements of Operations

For the Three Months Ended March 31, 2008 and 2009

(in thousands, except per share amounts)

� Three Months EndedMarch 31, � 2008 � � 2009 � Revenues $ 8,404 � $ 5,774 � � Cost of revenues (exclusive of items shown separately below) 4,103 4,584 Advertising, promotion and selling 1,915 1,899 General and administrative 5,712 5,550 Depreciation 232 274 Amortization 792 279 Impairment � 662 Restructuring charge � � � � 567 � � Total operating expenses � 12,754 � � 13,815 � � Operating loss from continuing operations (4,350 ) (8,041 ) Other income (loss), net (2 ) 64 Interest income 5 1 Interest expense (1,726 ) (1,307 ) Loss on extinguishment of debt � (2,119 ) Loss on fair value of interest rate swap � � � � (7,170 ) � Loss from continuing operations before income taxes and noncontrolling interest (6,073 ) (18,572 ) Benefit for income taxes (292 ) (2,646 ) Noncontrolling interest � (8 ) � 11 � Loss from continuing operations (5,789 ) (15,915 ) Income from discontinued operations 4,712 208 Gain on sale of discontinued operations � 7,063 Provision for income taxes from discontinued operations � 33 � � 25 � � Net loss $ (1,110 ) $ (8,669 ) � Income (loss) per share: Basic Loss from continuing operations $ (0.16 ) $ (0.44 ) Income from discontinued operations � 0.13 � � 0.20 � Net loss $ (0.03 ) $ (0.24 ) � Diluted Loss from continuing operations $ (0.16 ) $ (0.44 ) Income from discontinued operations � 0.13 � � 0.20 � Net loss $ (0.03 ) $ (0.24 ) � Shares used in computing income (loss) per share: Basic � 35,967 � � 35,969 � Diluted � 35,967 � � 35,969 � � �

WebMediaBrands Inc.

Consolidated Condensed Balance Sheets

December 31, 2008 and March 31, 2009

(in thousands, except share and per share amounts)

� December 31,2008 March 31,2009 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 3,755 $ 7,931 Accounts receivable, net of allowances of $438 and $194, respectively 6,673 4,837 Prepaid expenses and other current assets 4,040 3,791 Deferred income taxes 53 � Assets of discontinued operations � 14,138 � � � � � Total current assets 28,659 16,559 � Property and equipment, net of accumulated depreciation of $9,947 and $9,326, respectively 2,424 2,307 Intangible assets, net 3,060 2,560 Goodwill 26,062 26,062 Investments and other assets 2,564 1,106 Assets held for sale and of discontinued operations � 101,324 � � 3,200 � - Total assets $ 164,093 � $ 51,794 � � LIABILITIES AND STOCKHOLDERS� EQUITY Current liabilities: Accounts payable $ 1,074 $ 1,240 Accrued payroll and related expenses 1,557 2,158 Accrued expenses and other current liabilities 5,224 4,277 Current portion of long-term debt 81,213 � Deferred revenues 2,347 2,325 Liabilities of discontinued operations � 25,937 � � � � � Total current liabilities 117,352 10,000 � Deferred revenues 108 98 Deferred income taxes 1,266 1,443 Other long-term liabilities 7,764 7,377 Liabilities of discontinued operations � 2,727 � � � � � Total liabilities � 129,217 � � 18,918 � � � Stockholders� equity: Preferred stock, $.01 par value, 4,000,000 shares authorized, no shares issued � � Common stock, $.01 par value, 75,000,000 shares authorized, 36,032,152 and 36,042,070 shares issued, respectively 360 360 Additional paid-in capital 273,324 275,730 Accumulated deficit (234,479 ) (243,148 ) Treasury stock, 65,000 shares at cost (106 ) (106 ) Accumulated other comprehensive income (loss) � (4,223 ) � 40 � � Total stockholders� equity � 34,876 � � 32,876 � � Total liabilities and stockholders� equity $ 164,093 � $ 51,794 � �

WebMediaBrands Inc.

Unaudited Consolidated Condensed Statements of Cash Flows

Three Months Ended March 31, 2008 and 2009

(in thousands)

� Three Months EndedMarch 31, � 2008 � � � 2009 � Cash flows from operating activities: Net loss $ (1,110 ) $ (8,669 ) Less: Income from discontinued operations, net of tax 4,679 183 Less: Gain on sale of discontinued operations � � � � 7,063 � Loss from continuing operations (5,789 ) (15,915 ) Adjustments to reconcile net loss to net cash provided by operating activities: Loss on fair value of swap � 7,170 Depreciation and amortization 1,024 553 Impairment � 662 Stock-based compensation 685 2,403 Provision (benefit) for losses on accounts receivable (123 ) 50 Noncontrolling interest 8 (11 ) Other loss, net � (155 ) Amortization of debt issuance costs 97 � Loss on extinguishment of debt � 2,119 Deferred income taxes (846 ) (2,680 ) Changes in operating assets and liabilities (net of businesses acquired/disposed): Accounts receivable, net 70 1,613 Prepaid expenses and other assets 348 619 Accounts payable and accrued expenses and other liabilities 457 (308 ) Deferred revenues 334 (32 ) Discontinued operations � 9,923 � � (1,373 ) Net cash provided by (used in) operating activities � 6,188 � � (5,285 ) Cash flows from investing activities: Purchases of property and equipment (290 ) (105 ) Purchases of assets and other (194 ) (44 ) Proceeds from sale of discontinued operations � 91,205 Discontinued operations � (2,595 ) � (159 ) Net cash provided by (used in) investing activities � (3,079 ) � 90,897 � Cash flows from financing activities: Debt issuance costs (14 ) (161 ) Repayment of borrowings under credit facilities (188 ) (81,213 ) Proceeds from exercise of stock options 7 3 Discontinued operations � � � � � � Net cash used in financing activities � (195 ) � (81,371 ) Effects of exchange rates on cash and cash equivalents � 55 � � (65 ) Net change in cash and cash equivalents 2,969 4,176 Cash and cash equivalents, beginning of period � 7,301 � � 3,755 � Cash and cash equivalents, end of period $ 10,270 � $ 7,931 � Supplemental disclosures of cash flow: Cash refund of income taxes, net $ 138 � $ 454 � Cash paid for interest $ 1,732 � $ 1,307 � � Non-cash investing activities: Acquisitions of long-lived assets $ 389 � $ 92 �

About WebMediaBrands Inc.

WebMediaBrands Inc. (Nasdaq: WEBM, www.webmediabrands.com), headquartered in Darien, CT, is an Internet media company concentrating on BtoB communities. WebMediaBrands has three online communities: Internet.com for IT managers and Web developers; Mediabistro.com for media professionals and Graphics.com for design and creative professionals. All three communities offer job boards, marketplaces, online education offerings and events.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release that are not historical facts are "forward-looking statements" under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example, the competitive environment in which WebMediaBrands competes; the unpredictability of WebMediaBrands�s future revenues, expenses, cash flows and stock prices; and WebMediabrands�s dependence on a limited number advertisers. For a more detailed discussion of such risks and uncertainties, refer to WebMediaBrands� reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and WebMediaBrands assumes no obligation to update the forward-looking statements after the date hereof, except as required by law.

All current WebMediaBrands press releases can be found online at www.webmediabrands.com/corporate/press.html.