Intermix Announces Record Third Quarter Revenues

Intermix Announces Record Third Quarter Revenues

Company Increases Revenue Forecast for Fiscal Year 2005

LOS ANGELES, Feb. 7 /PRNewswire-FirstCall/ -- Intermix Media, Inc. (AMEX:MIX), reported record third quarter revenues today of $20.3 million, compared to $14.1 million for the same quarter last year. Revenues for the nine months ended December 31, 2004 were $54.8 million, compared to $38.5 million for the same period last year.

The Company also reported third quarter net income of $38,000, compared to a net loss of $2.1 million in the same period last year. Third quarter earnings before interest, taxes, depreciation and amortization expenses ("EBITDA") were $800,000, compared to a loss of $11,000 in the same period last year.

The Company's net income for the nine months ended December 31, 2004 was $4.9 million, compared to a net loss of $8.7 million in the same period last year. EBITDA for the nine months ended December 31, 2004 was $7.1 million, compared to a loss of $5.0 million in the same period last year. Net income and EBITDA for fiscal year 2005 reflect $5.3 million in gains arising from sale of assets and extinguishment of debt in the Company's second fiscal quarter ended September 30, 2004.

Product marketing segment revenues for the quarter ended December 31, 2004 were $12.4 million, compared to $9.4 million for the same quarter last year. This increase was primarily due to greater sales of the Body Shapetm, Dream Shapetm and Hydrodermtm product lines experienced at the Company's Alena business unit.

Network segment revenues for the quarter ended December 31, 2004 were $7.9 million, compared to $4.7 million for the same quarter last year. This increase was primarily due to higher advertising and search revenues realized by the Company's Intermix Network Subsidiary.

Business Growth and Investments

Intermix and its subsidiaries continued to focus on infrastructure and growth in both segments of the business and made significant investments in the most recent quarter. These activities included:

* Significantly expanding Alena's tools and technologies to allow for
the launch of multiple products and product categories. Alena began
gathering data and analytics on new product categories and expects the
roll-out of additional products in the coming quarters.

* Launching Grab.com, Intermix Network's premier casual gaming site with
innovative community-based features including online games, avatar
technology, friends' lists, on site messaging, ladders and
tournaments, and a proprietary engine that allows users to challenge
friends to grab.com games. According to comScore Media Metrix,
Grab.com received over 1.1 million unique visitors in December 2004,
its third full month since launch.

* Expanding the reach and infrastructure of MySpace.com, a popular
social networking and life style portal. According to comScore Media
Metrix, MySpace.com received over 5.8 million unique visitors during
the month of December 2004, up from 1.1 million in June 2004. MySpace
is making significant capital investments in network infrastructure
and recruiting technical, sales and other personnel to support and
foster the anticipated continued growth of MySpace.com

* Intermix's purchase of Focalex, Inc. for $4.3 million in cash and
common stock in November 2004 and integration of its optimization and
monetization technologies. Focalex is an Internet advertising and
affiliate marketing company through which Intermix expects to realize
increased monetization of its network traffic and a new channel of
distribution for its proprietary content and branded products.

* Investment of $4 million in Intermix by Redpoint Ventures and the
signing of a non-binding term sheet providing for Redpoint's
investment in a Company subsidiary that will own and operate the
MySpace.com business.



"This was a very important quarter for Intermix Media in validating our new business focus and strategy," stated Richard Rosenblatt, Chief Executive Officer of Intermix. "We experienced significant growth in revenues in both segments of our business while continuing to invest in our infrastructure, proprietary tools and technologies, and new personnel. We believe that the investments we made in the third quarter and those we expect to make in upcoming quarters will allow us to further leverage our assets and businesses in fiscal 2006."

Fiscal Year 2005 and 2006 Outlook

The Company has raised its previously issued revenue forecast for fiscal year 2005. The Company currently expects fiscal year 2005 revenue to be approximately $76 million to $77 million, which equates to a growth in annual revenue of approximately 33% to 35%.

For the fourth quarter of fiscal year 2005 ending March 31, 2005, Intermix expects to report revenue of between $21 million and $22 million. The Company expects to continue to invest in its web properties and infrastructure. As such, the Company expects to record a small net loss for the quarter, but to have positive EBITDA.

The Company expects to provide a forecast of its fiscal year 2006 results in late March 2005.

Conference Call

Intermix will hold a conference call and webcast to discuss the Company's third quarter 2005 financial results, as well as provide a general business update on Monday, February 7, 2005, at 4:30 p.m. EST (1:30 p.m. PST). Those wishing to join the conference call should dial (877) 699-1062 (international callers dial (706) 634-6379) and request the Intermix Media conference call.


Source: Intermix Media, Inc.

CONTACT: Bennet Ratcliff of Group SJR, +1-310-806-6200,
bratcliff@groupsjr.com, for Intermix Media, Inc.

Web site: http://www.grab.com/

Web site: http://www.myspace.com/


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