EmailLabs experienced an eight percent revenue increase in Q2 2005 over Q1 2005 and 57 percent over Q2 2004. This success was largely driven by the signing of 59 new clients including Gulfstream, Kate's Paperie, LRP Publications, Point Vantage, Reply.com, Robbins Diamonds, Saatchi & Saatchi, SAFE Credit Union, Scharffen Berger Chocolate Maker, SIIA and Steve Madden. The company also achieved record high new sales revenues closed for a month and quarter.

Additionally, the company unveiled innovative email marketing features and enhancements during the quarter, including:

-- Visual Message Report: This report overlays click-through rates and number of clicks on hyperlinked text and images in a client's email message. This enables clients to visualize the hot spots and most clicked links in their messages and better refine message format, content and images for increased customer actions.

-- Purchase Tracking: This feature passes data captured via EmailLabs' Action Tracking (Web site tracking) from a client's Web site back into the EmailLabs database as a data field -- such as purchase price, product SKU, color or style, etc. Clients can then conduct behavior-based campaigns using segmentation filters and triggered emails.

-- Distribution Groups: An enhancement of an existing feature, Distribution Groups allows users to split their lists by percentage or by number of members for A/B or multivariate testing.

-- Other enhancements include enhanced list hygiene capabilities and increased trigger control settings.

Other Key Announcements for Q2 2005:

-- Award Wins: Further propelling EmailLabs' positive momentum was the recognition the company received from two prestigious organizations: ClickZ.com awarded the company's Intevation Report newsletter the 2005 Marketing Excellence Award for Best B2B E-Mail Newsletter; and EmailLabs Vice President of Marketing, Loren McDonald, was presented with the 2005 American Business Award (a.k.a. Stevie Award) for "Best Marketing Executive."

-- Management Team Expansion: EmailLabs expanded its management team by hiring Matt Bradley as director of partnerships and business development and promoting Jim Herbold to vice president of sales.

"Our continued success is largely driven by our commitment to work closely with clients to create and implement results-driven email marketing programs," said David Sousa, CEO of EmailLabs. "As the complexity of email marketing steadily increases, we are continuing to form partnerships and add services and new features that make it easier for our clients to conduct more sophisticated behavioral and lifecycle messaging-based programs."