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Wayne, PA – July 31, 2008 – Internet Capital Group, Inc. (Nasdaq: ICGE) today reported its results for the second quarter ended June 30, 2008.

Recent Highlights:

• Aggregate core company revenue growth of 31% from the comparable 2007 period, with strong growth at ICG Commerce, Channel Intelligence, WhiteFence and Freeborders
• Announcement of pending sale of Creditex to IntercontinentalExchange
• Adoption of a $20 million share repurchase program

“We are pleased with the continued progress we made during the quarter, as evidenced by the strong revenue growth achieved by many of our core companies as well as the pending sale of Creditex,” said Walter Buckley, ICG’s Chairman and Chief Executive Officer. “Despite the current challenges of the economic environment, most of our on-demand companies continue to demonstrate consistent growth, and we are enthusiastic about their long-term potential to deliver significant value. Underscoring this confidence and our commitment to enhancing stockholder value, our Board authorized a $20 million share repurchase program.”

ICG Financial Results

ICG consolidated the results of three companies, ICG Commerce, Investor Force and Vcommerce, for the three and six months ended June 30, 2008, versus the results of two partner companies, ICG Commerce and Investor Force for the three and six months ended June 30, 2007. Vcommerce’s results are consolidated starting May 1, 2008, as ICG’s ownership interest increased to more than 50%.

ICG reported consolidated revenue of $17.6 million for the second quarter of 2008, versus $12.5 million for the comparable 2007 period. ICG reported consolidated revenue of $33.6 million for the six months ended June 30, 2008, versus $24.3 million for the comparable 2007 period. ICG reported a net loss of $(12.3) million, or $(0.32) per diluted share, for the second quarter of 2008, versus a net loss of $(4.0) million, or $(0.11) per diluted share, for the comparable 2007 period. ICG reported a net loss of $(18.8) million, or $(0.49) per diluted share, for the six months ended June 30, 2008, versus $(23.6) million, or $(0.63) per diluted share, for the prior year period.

Results for the second quarter of 2008 include $0.6 million of net charges, primarily related to unrealized losses on ICG’s Blackboard hedges versus $4.0 million of net gains, primarily related to the gain on the sale of Marketron in the prior year’s quarter. Results for the first half of 2008 include $5.1 million in net gains, primarily related to gains on sales of partner companies versus $5.9 million in net charges, primarily related to charges on ICG’s repurchase of all of its remaining convertible notes in the first half of 2007.

As of June 30, 2008, ICG’s corporate cash balance was $28.8 million, and the value of its holdings in Blackboard (Nasdaq: BBBB) was $82.2 million, net of $1.4 million in hedge positions. The value of its holdings in GoIndustry (LSE.AIM: GOI) at June 30, 2008 was $26.7 million.

Online versions of Q2 2008 (pdf):

• Internet Capital Group - Consolidated Statements of Operations
• Internet Capital Group - Condensed Consolidated Balance Sheets
• Internet Capital Group - Q2 Core Partner Company Information
• Internet Capital Group - Supplemental Information - Description of Terms

ICG Core Partner Company Information

Set forth below is aggregate information relating to the following eight core companies: Channel Intelligence, Freeborders, ICG Commerce, Investor Force, Metastorm, StarCite, Vcommerce and WhiteFence. This aggregate information represents the sum total of the individual GAAP results of each of these companies. In the second quarter of 2008, aggregate revenue of the eight core companies grew 31% year-over-year, to $64.5 million from $49.4 million in the second quarter of 2007. Aggregate EBITDA (loss) for the core companies was $(10.2) million in the second quarter of 2008, versus $(6.5) million in the second quarter of 2007. In the first half of 2008, aggregate revenue of ICG’s eight core companies grew 30% year-over-year, to $124.9 million from $96.3 million in the first half of 2007. Aggregate EBITDA (loss) for the core companies was $(20.8) million in the first half of 2008, versus $(13.1) million in the first half of 2007. Please refer to the supplemental financial data at the end of this release for a reconciliation of the aggregate revenue and aggregate EBITDA information with the GAAP results.

“We are encouraged by the revenue growth we are seeing at a number of our companies, as well as the increased liquidity we will receive upon the Creditex sale to IntercontinentalExchange.” said R. Kirk Morgan, ICG’s Chief Financial Officer. “While we will fall short of the revenue growth rate we expected on an organic basis, we continue to expect aggregate revenue growth of at least 25% for our core companies for the year on a GAAP basis.”

ICG will host a webcast at 10:00 a.m. ET today to discuss its financial results. As part of the live webcast for this call, ICG will post a slide presentation to accompany the prepared remarks. To access the webcast, go to http://www.internetcapital.com/investorinfo-preswebcast.htm and click on the link for the second quarter conference call webcast. Please log on to the website approximately ten minutes prior to the call to register and download and install any necessary audio software. The conference call is also accessible through listen-only mode at 877-407-8035. The international dial-in number is 201-689-8035.

For those unable to participate in the conference call, a replay will be available from July 31, 2008 at 11:00 a.m. ET until August 7, 2008 at 11:59 p.m. ET. To access the replay, dial 877-660-6853 (domestic) or 201-612-7415 (international) and enter the account code 286, followed by the conference ID number 291297. The replay and slide presentation also can be accessed on the Internet Capital Group web site at http://www.internetcapital.com/investorinfo-preswebcast.htm.

About Internet Capital Group
Internet Capital Group (www.internetcapital.com) acquires and builds Internet software and services companies that drive business productivity and reduce transaction costs between firms. Founded in 1996, ICG devotes its expertise and capital to maximizing the success of these platform companies, which are delivering software and service applications to customers worldwide.

Safe Harbor Statement under Private Securities Litigation Reform Act of 1995
The statements contained in this press release that are not historical facts are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future performance of our partner companies, acquisitions or dispositions of interests in additional partner companies, the effect of economic conditions generally, capital spending by customers, the development of the e-commerce and information technology markets, and uncertainties detailed in the Company’s filings with the Securities and Exchange Commission. These and other factors may cause actual results to differ materially from those projected.

Contact:
Investor inquiries
Karen Greene
Internet Capital Group
610.727.6900
ir@internetcapital.com

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