OREM, Utah, September 5, 2006 - iMergent, Inc. (AMEX: IIG), a leading provider of eCommerce and software for small businesses and entrepreneurs, announced today that its board of directors has authorized a stock repurchase program of up to $20 million of common stock.
The shares will be purchased in the open market, by block purchases or in private transactions, based on prevailing market conditions, and the stock repurchase program is expected to be completed within three years. The program may be suspended or discontinued at any time. The company had approximately 12.4 million shares of common stock outstanding as of July 31, 2006. The shares repurchased will be available for re-issuance to satisfy employee stock plans and for other corporate purposes. The board also approved a Rule 10b5-1 trading plan, which allows the company to repurchase the company's common stock in the open market during periods in which stock trading is otherwise closed for the company. The discretionary repurchase provisions and the 10b5-1 provisions of the program will be effective September 13, 2006.
Don Danks, chairman and chief executive officer of iMergent, said, "As we mentioned in our last conference call, the board has been evaluating measures to best utilize our strong cash balance to maximize shareholder value. Our available resources and internally generated funds enable the company to repurchase these shares, while at the same time preserve adequate liquidity to continue growing our business."
Safe Harbor Statement
Statements made in this press release regarding the Company's plans to repurchase its stock, the anticipated effect of such repurchase on the Company's liquidity and other statements that are not historical in nature constitute forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations and beliefs of the management of iMergent and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include, without limitation, the Company's continued ability to maintain operations; the Company's ability generally to continue to provide domestic and international workshops; the Company's ability to offer solutions to customers; the Company's ability to have lucrative long term relationships with its customers; that the market for the Company's products will continue to grow; whether regulatory authorities will bring future actions against iMergent; the Company's ability to generate cash flow from operating activities and sales of receivables; the Company's ability to expand current markets and develop new markets and establish profitable strategic partnerships; the Company's ability to build long term shareholder value; the Company's ability to have available resources and internally generated funds to repurchase the shares; whether shares will be available for repurchase; the Company's ability to continue to finance extended payment term arrangement customer contracts; and whether there is continual demand for the Company's products and services in its target market of small business and entrepreneurs for assistance in establishing websites. For a more detailed discussion of risk factors that affect iMergent's operations, please refer to the Company's Form 10-K for the year ended June 30, 2005 and its Forms 10-Q for the quarterly periods ended September 30, 2005, December 31, 2005 and March 31, 2006. The Company undertakes no obligation to update this forward-looking information, except as required by law.
About iMergent
iMergent provides eCommerce solutions to entrepreneurs and small businesses enabling them to market and sell their business products or ideas via the Internet. Headquartered in Orem, Utah, the company sells its proprietary StoresOnline software and training services, helping users build a successful Internet strategy to market products, accept online orders, analyze marketing performance, and manage pricing and customers. In connection with Internet software, iMergent also offers Website development, Website hosting, marketing and mentoring products and services. iMergent typically reaches its target audience through concentrated direct marketing efforts to fill Preview Sessions, in which a StoresOnline expert reviews the product opportunities and costs. These sessions lead to a follow-up Workshop Conference, where experts train potential users on the software and services and encourage them to make purchases. iMergent, Inc. and StoresOnline are trademarks of iMergent, Inc
Company Contact:
Rob Lewis, CFO
iMergent, Inc.
801.431.4695
investor_relations@imergentinc.com
Investor Relations Contacts:
Kirsten Chapman
Lippert/Heilshorn & Assoc.
415.433.3777
kirsten@lhai-sf.com