IceWEB CEO Announces Operational Update and Company Status since Acquiring Computers & Tele-Comm, Inc. (CTC) and KC-NAP, LLC

IceWEB, Inc. (OTCBB:IWEB) is pleased to provide a corporate update in the form of a statement from the Chief Executive Officer of the Company, Rob Howe.

"On October 1st, IceWEB completed its acquisition of Computers & Tele-Comm, Inc. and KC-NAP, LLC, launching our Company into the data center, colocation, wireless ISP, managed services and cloud services business. We now have a unique platform that enables us to provide turn-key data storage and IT solutions to businesses of all sizes.

"The Company’s near term objectives are to rapidly increase our recurring revenue and add additional customers to fill the capacity of our data center operation. We’ve already reported signing new customers such as Block Real Estate to our new and powerful services. We’re reaching out to our existing customers and bringing them new services and capabilities to help them grow as well. Concurrently, we’re reaching out to CTC’s reseller base and energizing them about working with us, and as we’ve reported, we’re having a positive reception. Cloud Services customers need a Cloud Services company like us to provide them with the capabilities to manage their critical business functions and lower their costs at the same time. That message is getting through to end-customers and resellers alike.

"Additionally, we have launched new network and datacenter capabilities, along with exciting new technologies like our Virtual Meet Me Room (VMMR), which is capable of delivering access from up to 27 different carriers, fed from our Network Access Point (NAP). With our NAP, we are able to connect to any datacenter in the US, and we’re working with prospects in other geographies outside of the Kansas City area to reach into those markets. We’re building new supplier alliances and new provider relationships while buttressing our current ones.

"As a result of the merger we have been able to consolidate much of our operations, significantly reducing our overhead and implementing strict cost controls, with a goal of reaching profitability in the next six-to-nine months.

"Here’s what we now have:

KC-NAP: Our NAP (Network Access Point) technology allows us to provide customers with the fastest, most efficient, extremely low latency transmissions of data, which saves them time and money. We have Multi-Vendor Connectivity with the largest network providers in the US, to get businesses the connections they need where and when they need them.

Datacenters: We now offer businesses such services as Co-Location, Disaster Recovery, Data and System Backup, IT Managed Services, Business Continuity and Advanced Consultative Services.

Wireless Internet Service Provider (WISP): We now own the largest point-to-point wireless network infrastructure in the Kansas City metropolitan area, and we have relationships with other large WISPs throughout the US. Our transmission points are on over 70 rooftops, beaming wireless high-speed business-class Internet connectivity to businesses, over approximately 1,500 square miles of Kansas and Missouri. We have a team that dedicated to implementing business connections in very short order for a primary business connection to the Internet, or as a secondary or backup connection.

VoIP: Our data connectivity capabilities allow us to work with some of the top-tier providers of Voice over Internet Protocol (VoIP) in the country.

Hardware and Software: Our award-winning IceWEB data storage hardware and software offerings complement the service that we provide to our Cloud Infrastructure customers, as well as other Cloud Services companies and end users.

"We are excited about the future prospects for IceWEB, and anticipate growth in our customer base and look forward to expanding outward from our Mid-America technological epicenter in Kansas City, Missouri to provide lower costs and higher levels of service to more businesses through our direct and indirect sales model. IceWEB is well- positioned to provide critical infrastructure, technology services, knowhow, process and consultative guidance for companies large and small.

"We look forward to keeping you updated on our developments as we move forward."

For more information please call 800-465-4637 or visit www.iceweb.com. To become part of the Company’s e-mail list for industry updates and press releases, please send an e-mail to ir@iceweb.com.

This press release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases you can identify those so-called "forward looking statements" by words such as "may," "will," "should," "expects," "plans," "targets," "believes," "anticipates," "estimates," "predicts," "potential," or "continue" or the negative of those words and other comparable words. These forward looking statements are subject to risks and uncertainties, product tests, commercialization risks, availability of financing and results of financing efforts that could cause actual results to differ materially from historical results or those anticipated. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC, which are available on its website at: http://www.sec.gov. We assume no obligation to update or alter our forward-looking statements made in this release or in any periodic report filed by us under the Securities Exchange Act of 1934, as amended, or any other document, whether as a result of new information, future events or otherwise, except as otherwise required by applicable federal securities laws.