OREM, Utah, August 30, 2006 -iMergent, Inc.(AMEX: IIG),announced it filed suit with the United States District Court, District of Utah, Central Division seeking a declaratory judgment that the Utah Business Opportunity Disclosure Act is not applicable to iMergent, Inc.

Don Danks, chairman and CEO of iMergent, stated, â??iMergent sells software enabling small businesses and entrepreneurs to transact business on the Internet. We believe our company is not, nor ever has been a seller of business opportunities. We are proactively seeking judgment from a federal court to declare as such.â?

In a settlement agreement with the State of Utah on November 15, 2003, the State expressly agreed iMergent was not required to register as a seller of business opportunities. However, on August 28, 2006, the Utah Division of Consumer Protection initiated an administrative proceeding seeking to require iMergent to register.

Danks added, â??We will fight this request vigorously. Several times in the past other states have also requested our company to register as a seller of business opportunities. But after their reviews of our business, we have never been required to register. We sell software and support, not business opportunities. Once and for all, we want to clarify this issue, and we are confident we will demonstrate to the court that we are not subject to the business opportunity statutes.â?

Jeff Korn, general counsel of iMergent, stated, â??This is an important issue; therefore, we felt it was essential for the US District Court to review the matter and make a determination. We believe the State of Utah has acted improperly. First and foremost, we do not sell business opportunities nor do we hold seminars or sell software licenses in Utah. In addition, there are constitutional issues.â?

iMergent's declaratory action raised other issues, as well. It is, in part, these constitutional concerns that enable the company to file with a US District Court.

  • Whether this action violates due process since the state entered a previous agreement relied upon by the company;
  • Whether the Utah statute is unconstitutionally vague; and
  • Whether a state can regulate conduct that occurs entirely outside of that state.
Safe Harbor Statement

Statements made in this press release 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 to continue to provide domestic and international workshops; whether the Company will be deemed to have sold, currently sell or sell in the future a business opportunity; whether the Company will vigorously defend any action raised by the State of Utah, or vigorously prosecute the declaratory action filed by the Company; whether the US District Court will review the matter and deliver a determination; whether the prior settlement with the State of Utah will be deemed controlling to the present action; whether the State of Utah has acted improperly; whether there are in fact constitutional issues properly raised in the action filed by the Company; whether regulatory authorities will bring future actions against iMergent; . For a more detailed discussion of factors that affect iMergent's operations, please refer to the Company's Form 10-K for the year ended June 30, 2005 and its Form 10-Q for the quarterly period ended March 31, 2006. The Company undertakes no obligation to update this forward-looking information.

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.