Continues to Offer Audio Conferencing via Reseller Arrangement

iLinc Communications, Inc. (AMEX:ILC), a leading provider of Web conferencing software, today announced the sale of the majority of its audio conferencing assets for $4.1 million in cash. iLinc sold its reservationless and operator-assisted audio conferencing business to Atlanta-based Premiere Global Services, Inc., a leading provider of audio conferencing services. Details concerning the transaction are provided in the company’s Form 8-K on file with the SEC and available on the company’s Web site.

“We were pleased to consummate a transaction with Premiere Global that infuses our balance sheet with important liquidity at a time of tight capital markets,” said James M. Powers, Jr., iLinc’s President and Chief Executive Officer. “We made the strategic decision to divest our non-core audio conferencing business in order to better position our company as a pure-play web conferencing provider in a marketplace where recent valuations have exceeded four-times revenue,” continued Dr. Powers.

iLinc will continue to offer audio conferencing services to its customers as a reseller of Premiere Global. Through integration of the two products, iLinc customers may continue to manage all aspects of their audio conference call through iLinc’s call-control menu, providing ease-of-use for iLinc’s Web and audio customers.

Continued Dr. Powers, “Our recent shift to the growing software-as-a-service (“SaaS”) model from the traditional software purchase model will spread short-term revenues over longer license periods. The natural result of this shift is near-term decline in revenue and profitability while we grow long-term recurring revenue. Despite those short-term effects, we are more and more focused on continued success with our direct sales results and our indirect sales channel strategy, which continues to make advancements as we capitalize on the telecom and rapidly expanding unified communications markets,” concluded Dr. Powers.

“To further address the short-term impact of lower quarterly revenues, we have also implemented an overhead reduction program across iLinc that we expect will return iLinc to profitability, further bolstering investor and customer confidence,” said James L. Dunn, Jr., iLinc’s Chief Financial Officer. “With the monetization of our non-core audio conferencing assets, we have strengthened our balance sheet and we believe we have adequately addressed iLinc’s capital needs. We will provide more information about the March 2008 fiscal quarter and our expectations for fiscal year 2009, during our quarterly earnings conference call now anticipated to be May 20,” concluded Mr. Dunn.

About iLinc Communications, Inc.

iLinc Communications, Inc. is a leading developer of Web conferencing software and audio conferencing solutions for highly secure and cost-effective online meetings, presentations, and training sessions. The Company’s technology allows people in diverse locations to communicate and collaborate online while avoiding the expense, environmental damage, and productivity losses associated with travel. iLinc provides an award-winning, enterprise-wide suite of Web, audio and video conferencing solutions that can be scaled up or down to meet the needs of any size organization. Offering the industry’s most flexible pricing models, iLinc gives organizations the power to choose an on-premise installed, on-demand hosted, or hybrid solution—whichever model delivers the highest ROI for the customer. iLinc is headquartered in Phoenix, with offices in New York and Salt Lake City.

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Factors that could contribute to such differences are disclosed in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company’s estimates and expectations as of the date of the press release, and subsequent events and developments may cause the Company’s estimates and expectations to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company’s estimates and expectations of its future financial performance as of any date subsequent to the date of this press release.

iLinc, iLinc Communications, iLinc Suite, MeetingLinc, LearnLinc, ConferenceLinc, SupportLinc, EventPlus, On-Demand, iReduce, iLinc Enterprise Unlimited and its logos are trademarks or registered trademarks of iLinc Communications, Inc. All other company names and products may be trademarks of their respective companies.

Contacts

iLinc Communications, Inc., Phoenix
James M. Powers, Jr., 602-952-1200
James L. Dunn, Jr., 602-952-1200