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iVillage Net Income More Than Triples for Fiscal 2005 Compared to Prior Year

Year-over-Year Fourth Quarter Revenue Increases 65%, With Full-Year 2005 Revenue Increasing 36% Compared to 2004

NEW YORK, Feb. 13 /PRNewswire-FirstCall/ -- iVillage Inc. (Nasdaq: IVIL), The Internet For Women(TM), a leading women's media company and the number one source for women's content and community online, today announced financial results for the fourth quarter and full-year ended December 31, 2005.

Fourth quarter 2005 revenue totaled $30.1 million, a 65% increase when compared to revenues of $18.2 million for the same period one year ago. Net income for the fourth quarter of 2005 was $8.8 million, or $0.12 per share, compared to net income of $2.4 million, or $0.03 per share, for the fourth quarter of 2004.

iVillage reported Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1) of $11.1 million for the fourth quarter of 2005 compared to $3.2 million for the fourth quarter of 2004.

Douglas W. McCormick, Chairman & Chief Executive Officer, iVillage Inc., said, "Our record results continue to demonstrate the sustainable operating leverage we've established in our strong online platform. The online advertising marketplace remains robust and we believe we are well-positioned to accelerate growth through our leading women and health offerings. We continue to focus on initiatives that will set iVillage apart, including augmenting our video and multimedia content, implementing our aggressive search optimization strategy and growing our unique visitors and page views. With our resources and the profitable growth opportunities we are pursuing, we believe iVillage is on track to achieve another record performance in 2006."

Full-year 2005 revenue totaled $91.1 million, a 36% increase when compared to revenues of $66.9 million for the full-year 2004. Net income for the full-year 2005 was $9.5 million, or $0.12 per share, compared to net income of $2.7 million, or $0.04 per share, for the full-year 2004.

iVillage reported full-year 2005 EBITDA of $17.0 million, which includes approximately $0.5 million primarily in one-time legal expenses. This compares to $7.8 million in EBITDA for the full-year 2004.

As of December 31, 2005, iVillage had $55.9 million in cash and cash equivalents on its balance sheet. The Company continues to carry no debt.

              First Quarter and Full-Year 2006 Business Outlook

For the first quarter of 2006, iVillage expects to generate revenues between $21.5 million and $23.5 million, which compares to $17.3 million in revenue for the first quarter of 2005. The Company currently anticipates reporting EBITDA between $1.5 million and $2.5 million for the first quarter of 2006, which compares to EBITDA of $0.1 million for the first quarter of 2005. Additionally, in the first quarter of 2006, iVillage expects to report a net loss of between $1.3 million and $0.3 million, which includes an estimated $0.8 million in non-cash, stock-based compensation expenses. This compares to a $1.3 million net loss for the first quarter of 2005.

For the full-year 2006, iVillage expects to generate revenue between $105.0 million and $113.0 million and EBITDA of between $24.0 million and $29.0 million. The Company also expects to report net income between $13.8 million and $18.8 million for the full-year 2006, which includes an estimated $3.2 million in non-cash, stock-based compensation expenses.

iVillage does not undertake any obligation to update its financial outlook, but reserves the right to do so at any time for any reason.

                                   Metrics

    * According to comScore Media Metrix, iVillage delivered approximately
      14.5 million unique monthly visitors and the iVillage Network was the
      41st most visited Web site in the U.S. in January 2006.  According to
      the same report, iVillage reaches approximately 8.5% of the total U.S.
      online population and nearly 11% of U.S. women 18+ online monthly.
      Visitors return more than 2 times per month on average.

    * Also according to the comScore Media Metrix January 2006 report,
      iVillage is the #1 women's community site, the #4 community site overall
      and, when combined, the iVillage health properties rank 5th among the
      most visited commercial, full-service health web properties and 8th
      among the overall most visited health web properties.

    * iVillage delivered approximately 362 million average monthly page views
      for the fourth quarter of 2005.

                               2005 Highlights

    * iVillage announced the renewal of a content publication agreement with
      the MSN(R) network during the fourth quarter of 2005. Under the
      agreement, MSN will continue to present select iVillage content on its
      lifestyle channel, MSN Lifestyle, located at http://lifestyle.msn.com/.

    * During the third quarter of 2005, iVillage entered into a distribution
      agreement with Yahoo! Search Marketing. The agreement, which went into
      effect on September 1, 2005, brings Yahoo!'s comprehensive suite of
      sponsored search, Content Match(TM) and Yahoo! Search products to
      iVillage visitors.

    * During the second quarter of 2005, iVillage acquired all of the
      outstanding equity of HealthCentersOnline, Inc., a privately-held,
      leading online destination for physician-edited information on health
      conditions, treatments and preventative care for patients.

    * Also during the second quarter of 2005, iVillage completed its
      acquisition of the iVillage.co.uk website and certain related assets.
      iVillage UK is one of the top destinations in the region for women.

    * iVillage announced during the first quarter of 2005 that it had acquired
      Healthology, Inc., a leading producer and distributor of streaming video
      health programs and physician-authored articles on the Internet.

    * Kicking off its 10-year anniversary, the Company relaunched iVillage.com
      at the beginning of 2005.  The redesigned site offers the latest trends
      and news for women, enhanced navigation and new, customizable features.

                     Advertising & Sponsorship Highlights

    * iVillage.com revenue increased approximately 68% for the full-year 2005
      when compared to the full-year 2004(2).

    * iVillage continued to receive substantial advertising commitments from
      blue-chip advertisers, with Consumer Package Goods (CPG) and
      Pharmaceutical/Healthcare categories showing the highest growth.  Fourth
      quarter advertisers included: American Express, AstraZeneca, Citibank,
      Colgate-Palmolive, DreamWorks, General Mills, Kraft, Norelco, Pfizer,
      Procter & Gamble, and Sony Pictures, among others.

    * The Company continued to make strides and execute on its strategy to
      develop and distribute compelling original multimedia and video features
      that also are attractive advertising vehicles.  iVillage recently
      launched its first original Web TV show, "What Men Won't Tell You, but
      Women Need to Know," hosted by Dr. Bob Berkowitz.  Additionally, the
      Company launched audio/slide shows based on two best-selling books,
      "Teenage Waistland" and "A Day in the Life of the American Woman."

                               Conference Call

iVillage will hold a conference call to discuss its fourth quarter and full-year 2005 financial results today at 4:30 PM (EST). The conference call will be broadcast live on the Internet and will be available on iVillage's Investor Relations Web site, located at http://www.ivillage.com/investor, and on Street Events, located at http://www.streetevents.com. A replay of the conference call will be available on the iVillage Investor Relations Web site approximately one hour after the call ends on Monday, February 13, 2006 until 5:30 PM (EST) on Monday, February 20, 2006. A transcript of the conference call will be available on the iVillage Investor Relations Web site thereafter.

About iVillage Inc.

iVillage is "the Internet for women" and consists of several online and offline media-based properties that seek to enrich the lives of women, teenage girls and parents through the offering of unique content, community applications, tools and interactive features. iVillage Inc. (Nasdaq: IVIL) was established in 1995 and is headquartered in New York City.

Average monthly page views for iVillage.com and its affiliate Web sites ("The iVillage Network") totaled 362 million for the quarter ended December 31, 2005. In January 2006, according to comScore Media Metrix, The iVillage Network ranked 41st among the top 100 Web and Digital Media properties with approximately 14.5 million unique visitors in the United States and had an average reach of approximately 8.5% of the total online population and nearly 11% of women 18+ online. Also, according to the same report, The iVillage Network was the number one "women's community site" and the number four "community site" overall on the Web.

For more information about iVillage, visit http://www.ivillage.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

iVillage Inc. has included in this press release certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning iVillage's business, operations and financial condition. The words or phrases "can be," "expects," "may affect," "anticipates," "may depend," "believes," "estimates," "plans," "projects" and similar words and phrases are intended to identify such forward-looking statements. These forward-looking statements are subject to various known and unknown risks and uncertainties and iVillage cautions you that any forward-looking information provided by or on behalf of iVillage is not a guarantee of future results, performance or achievements. Actual results could differ materially from those anticipated in these forward-looking statements due to a number of factors, some of which are beyond iVillage's control. In addition to those risks discussed in iVillage's other press releases, public filings and statements by iVillage's management, factors that may cause iVillage's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied in such forward looking statements include: (i) the volatile and competitive nature of the Internet industry and the media industry, (ii) changes in domestic and foreign economic, political and market conditions, (iii) the effect of federal, state and foreign regulation on iVillage's business, (iv) the impact of recent and future acquisitions and joint ventures on iVillage's business and financial condition, (v) iVillage's ability to establish and maintain relationships with advertisers, sponsors, and other third-party providers and partners, (vi) iVillage's ability to maintain or increase user traffic levels, (vii) the loss of one or more of iVillage's major customers, (viii) the effect of seasonal fluctuations in traditional online advertising purchasing patterns on iVillage's results of operations and (ix) the impact of pending litigation on iVillage's business, results of operations and financial condition. All such forward-looking statements are current only as of the date on which such statements were made. iVillage does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

    (1) To supplement its consolidated financial statements presented in
        accordance with generally accepted accounting principles ("GAAP") in
        the United States, iVillage uses non-GAAP measures of operating
        results and net income, such as EBITDA (defined by iVillage as
        Earnings (Loss) Before Interest, Taxes, Depreciation and
        Amortization), which are adjusted from results based on GAAP to
        exclude certain expenses.  These non-GAAP adjustments are provided to
        enhance individuals' overall understanding of the Company's current
        financial performance and its prospects for the future. Specifically,
        iVillage believes the non-GAAP financial measures provide useful
        information to both management and investors by excluding certain
        expenses that are not indicative of the Company's core operating
        results. In addition, since iVillage has historically reported
        non-GAAP results to the investment community, the Company believes the
        inclusion of non-GAAP financial measures provides consistency in its
        financial reporting. Further, these non-GAAP results are one of the
        primary indicators management uses for planning and forecasting in
        future periods, as well as for executive compensation. The
        presentation of this additional information is not meant to be
        considered in isolation or as a substitute for results prepared in
        accordance with GAAP.  Please refer to iVillage's unaudited
        consolidated financial statements accompanying this press release for
        a reconciliation of any non-GAAP financial measures included in this
        press release to the corresponding GAAP financial measures.  Although
        EBITDA is frequently used as a measure of operating performance, it is
        not necessarily comparable to other similarly titled captions of other
        companies due to differences in methods of calculation.

    (2) Please see the attached financial tables for a reconciliation of
        iVillage.com revenue.


                        iVillage Inc. and Subsidiaries
               Condensed Consolidated Statements of Operations
                   (in thousands, except per share amounts)
                                 (unaudited)

                                 Three months ended         Year ended
                                     December 31,           December 31,
                                   2005        2004        2005       2004

    Revenues                     $30,111    $18,200      $91,061    $66,903

    Operating
     expenses:

      Editorial, product
       development and
       technology                  8,257      6,639       33,702     28,903
      Sales and marketing          7,324      5,352       26,865     19,022
      General and administrative   3,439      2,994       13,535     11,227
      Depreciation and
       amortization                2,393      1,114        8,906      6,011

        Total operating expenses  21,413     16,099       83,008     65,163

        Income from operations     8,698      2,101        8,053      1,740

    Interest income, net             452        338        1,561        642
    Other income, net                 28        110           96        207
    Gain on sale of joint
     venture interest                 --         76          101        395
    Income from continuing
     operations before
     income taxes                  9,178      2,625        9,811      2,984
    Provision for income taxes      (355)      (307)        (355)      (307)
    Income from continuing
     operations                   $8,823      2,318        9,456      2,677
    Discontinued operations           25         69           25         69
    Net income                    $8,848     $2,387       $9,481     $2,746

    Basic (per share data):

    Income from continuing
     operations                    $0.12      $0.03        $0.13      $0.04
    Income from discontinued
     operations                    $0.00      $0.00        $0.00      $0.00
    Net income                     $0.12      $0.03        $0.13      $0.04

    Diluted (per share data):

    Income from continuing
     operations                    $0.11      $0.03        $0.12      $0.04

    Income from discontinued
     operations                    $0.00      $0.00        $0.00      $0.00

    Net income                     $0.11      $0.03        $0.12      $0.04

    Weighted-average shares of
     common stock outstanding
     used in computing basic
     net income per share         72,634     71,668       72,307     65,054

    Weighted-average shares of
     common stock outstanding
     used in computing diluted
     net income per share         77,363     75,829       76,587     69,853



                        iVillage Inc. and Subsidiaries
                    Condensed Consolidated Balance Sheets
                                (in thousands)
                                 (unaudited)

                                                December 31,      December 31,
                                                     2005              2004

                                     ASSETS:

    Current assets:
     Cash and cash equivalents                     $55,881           $83,046
     Accounts receivable, net                       20,820             9,708
     Prepaid rent                                      318               318
     Other current assets                            5,374             3,740
       Total current assets                         82,393            96,812

    Fixed assets, net                               12,272             8,381
    Goodwill and intangible assets, net             59,495            32,073
    Prepaid rent, net of current portion             3,051             3,203
    Other assets                                       104                79
       Total assets                               $157,315          $140,548


          LIABILITIES and STOCKHOLDERS' EQUITY:

    Current liabilities:
     Accounts payable and accrued expenses         $11,735           $10,142
     Deferred revenue                                4,157             2,080
     Other liabilities                                 144               168
       Total current liabilities                    16,036            12,390

    Deferred rent, net of current portion            1,196             1,339
       Total liabilities                            17,232            13,729

    Commitments and contingencies

    Stockholders' equity                           140,083           126,819
       Total liabilities and stockholders' equity $157,315          $140,548



                        iVillage Inc. and Subsidiaries
                          Quarterly Income Statement
                 ($ in million except for per share amounts)
                                 (unaudited)

                                   Mar-04   Jun-04   Sep-04   Dec-04    FY 04

    Revenue                       $15.507  $16.498  $16.698  $18.200  $66.903
    Growth q-q                        -2%       6%       1%       9%
    Growth Y/y                        23%      25%      23%      15%      21%


    Editorial, product
     development & technology       7.511    7.013    7.740    6.639   28.903
      % of Revenues                   48%      43%      46%      36%      43%
    Sales and marketing             4.385    4.723    4.562    5.352   19.022
      % of Revenues                   28%      29%      27%      29%      28%
    General and administrative      2.908    2.885    2.440    2.994   11.227
      % of Revenues                   19%      17%      15%      16%      17%
    Depreciation and amortization   1.804    1.953    1.140    1.114    6.011
      % of Revenues                   12%      12%       7%       6%       9%
    Total operating expenses       16.608   16.574   15.882   16.099   65.163
      % of Revenues                  107%     100%      95%      88%      97%

    (Loss) income from operations  (1.101)  (0.076)   0.816    2.101    1.740

    Interest income, net            0.018    0.050    0.236    0.338    0.642
    Other income, net               0.052    0.034    0.011    0.110    0.207
    Gain on sale of joint venture
     interest                       0.167    0.076    0.076    0.076    0.395
    Provision for income taxes         --       --       --   (0.307)  (0.307)
    (Loss) income from continuing
     operations                    (0.864)   0.084    1.139    2.318    2.677
    Discontinued operations            --       --       --    0.069    0.069

    Net (loss) income             $(0.864)  $0.084   $1.139   $2.387   $2.746

    Basic (per share data):

    (Loss) income from continuing
     operations                    $(0.01)   $0.00    $0.02    $0.03    $0.04
    Income from discontinued
     operations                        --       --       --     0.00     0.00

    Net (loss) income              $(0.01)   $0.00    $0.02    $0.03    $0.04

    Diluted (per share data):

    (Loss) income from continuing
     operations                    $(0.01)   $0.00    $0.02    $0.03    $0.04
    Income from discontinued
     operations                        --       --       --     0.00     0.00

    Net (loss) income              $(0.01)   $0.00    $0.02    $0.03    $0.04

     Weighted average shares of
      common stock outstanding -
      basic                          58.4     59.1     70.9     71.7     65.1
     Weighted average shares of
      common stock outstanding -
      diluted                        58.4     64.4     75.2     75.8     69.9

    Additional Financial
     Information
    Revenue from barter             0.844    1.119    1.204    1.363    4.530
      % of Revenues                    5%       7%       7%       7%       7%


                                   Mar-05   Jun-05   Sep-05   Dec-05    FY 05

    Revenue                       $17.274  $21.080  $22.596  $30.111  $91.061
    Growth q-q                        -5%      22%       7%      33%
    Growth Y/y                        11%      28%      35%      65%      36%


    Editorial, product
     development & technology       8.239    8.921    8.285    8.257   33.702
      % of Revenues                   48%      42%      37%      27%      37%
    Sales and marketing             5.936    7.001    6.604    7.324   26.865
      % of Revenues                   34%      33%      29%      24%      30%
    General and administrative      2.989    3.572    3.535    3.439   13.535
      % of Revenues                   17%      17%      16%      11%      15%
    Depreciation and amortization   1.804    2.311    2.398    2.393    8.906
      % of Revenues                   10%      11%      11%       8%      10%
    Total operating expenses       18.968   21.805   20.822   21.413   83.008
      % of Revenues                  110%     103%      92%      71%      91%

    (Loss) income from operations  (1.694)  (0.725)   1.774    8.698    8.053

    Interest income, net            0.352    0.358    0.399    0.452    1.561
    Other income, net                  --    0.016    0.052    0.028    0.096
    Gain on sale of joint venture
     interest                       0.076    0.025       --       --    0.101
    Provision for income taxes         --       --       --   (0.355)  (0.355)
    (Loss) income from continuing
     operations                    (1.266)  (0.326)   2.225    8.823    9.456
    Discontinued operations            --       --       --    0.025    0.025

    Net (loss) income             $(1.266) $(0.326)  $2.225   $8.848   $9.481

    Basic (per share data):

    (Loss) income from continuing
     operations                    $(0.02)  $(0.00)   $0.03    $0.12    $0.13
    Income from discontinued
     operations                        --       --       --     0.00     0.00

    Net (loss) income              $(0.02)  $(0.00)   $0.03    $0.12    $0.13

    Diluted (per share data):

    (Loss) income from continuing
     operations                    $(0.02)  $(0.00)   $0.03    $0.11    $0.12
    Income from discontinued
     operations                        --       --       --     0.00     0.00

    Net (loss) income              $(0.02)  $(0.00)   $0.03    $0.11    $0.12

     Weighted average shares of
      common stock outstanding -
      basic                          71.9     72.2     72.4     72.6     72.3
     Weighted average shares of
      common stock outstanding -
      diluted                        71.9     72.2     76.6     77.4     76.6

    Additional Financial
     Information
    Revenue from barter             1.680    1.606    1.232    1.062    5.580
      % of Revenues                   10%       8%       5%       4%       6%



                        iVillage Inc. and Subsidiaries
                         Supplemental Financial Data
                                (in thousands)
                                 (unaudited)

                                       Three months ended     Year ended
                                          December 31,        December 31,
                                         2005    2004        2005     2004
    EBITDA reconciliation:
     Net income                         $8,848  $2,387      $9,481  $2,746
     Addback: Depreciation and
               amortization              2,393   1,114       8,906   6,011
              Interest income, net        (452)   (338)     (1,561)   (642)
              Other income, net            (28)   (110)        (96)   (207)
              Gain on sale of
               joint venture interest       --     (76)       (101)   (395)
              Provision for income taxes   355     307         355     307
              Discontinued operations      (25)    (69)        (25)    (69)
     EBITDA                            $11,091  $3,215     $16,959  $7,751

    Revenues by property:
     iVillage.com (1)                  $22,709 $12,520     $67,882 $40,377
     Astrology.com                       1,494     925       5,109   3,461
     IVPN                                3,920   2,921      13,779  18,662
     PAG                                 1,988   1,834       4,291   4,403
   Total revenues                      $30,111 $18,200     $91,061 $66,903

    iVillage.com organic revenue
     growth excluding recent
     acquisitions and Hearst
     advertising legacy deal:
      iVillage.com (1)                 $22,709 $12,520     $67,882 $40,377
      Less: Recent acquisitions         (6,441)     --     (16,921)     --
            Hearst advertising
             legacy deal                    --      --          --  (1,443)
    iVillage.com (1) organic
     revenue growth excluding
     recent acquisitions and
     Hearst advertising
     legacy deal                       $16,268 $12,520     $50,961 $38,934
    iVillage.com (1) organic
     revenue growth % excluding
     recent acquisitions and
     Hearst advertising
     legacy deal                           30%                 31%

    (1) Included in iVillage.com revenues are iVillage.com, Healthology, Inc.,
        HealthCentersOnline, Inc., iVillage Limited, Promotions.com,
        Substance.com, Women.com and GardenWeb properties and gURL.com,
        iVillage Consulting and iVillage Solutions divisions.



                        iVillage Inc. and Subsidiaries
                    Quarterly Supplemental Financial Data
                 ($ in million except for per share amounts)
                                 (unaudited)

                                       Mar-04   Jun-04  Sep-04  Dec-04  FY 04
    EBITDA reconciliation:
    Net (loss) income                 $(0.864) $0.084  $1.139  $2.387  $2.746
    Addback: Depreciation and
     amortization                       1.804   1.953   1.140   1.114   6.011
                   Interest income,
                    net                (0.018) (0.050) (0.236) (0.338) (0.642)
                   Other income, net   (0.052) (0.034) (0.011) (0.110) (0.207)
                   Gain on sale of
                    joint venture
                    interest           (0.167) (0.076) (0.076) (0.076) (0.395)
                   Provision for
                    income taxes           --      --      --   0.307   0.307
                   Discontinued
                    operations             --      --      --  (0.069) (0.069)
    EBITDA                             $0.703  $1.877  $1.956   3.215  $7.751


                                      Mar-05   Jun-05  Sep-05  Dec-05  FY 05
    EBITDA reconciliation:
    Net (loss) income                $(1.266) $(0.326) $2.225  $8.848  $9.481
    Addback: Depreciation and
     amortization                      1.804    2.311   2.398   2.393   8.906
                   Interest income,
                    net               (0.352)  (0.358) (0.399) (0.452) (1.561)
                   Other income, net      --   (0.016) (0.052) (0.028) (0.096)
                   Gain on sale of
                    joint venture
                    interest          (0.076)  (0.025)     --      --  (0.101)
                   Provision for
                    income taxes          --       --      --   0.355   0.355
                   Discontinued
                    operations            --       --      --  (0.025) (0.025)
    EBITDA                             0.110    1.586   4.172  11.091  16.959

SOURCE  iVillage Inc.
            02/13/2006
    /CONTACT:  Carl R. Fischer IV of iVillage Inc., +1-212-600-6502,
cfischer@mail.ivillage.com; or Carina Davidson, ccd@abmac.com, or Eliza
Johnson, edj@abmac.com, both of The Abernathy MacGregor Group,
+1-212-371-5999, for iVillage Inc./
    /Web site:  http://www.ivillage.com/
    (IVIL)