MAIL Incredimail Ltd. (MM)

IncrediMail Ltd. (Nasdaq:MAIL), a leading software company specializing in consumer products and services on the Internet, has signed an agreement with Yahoo! to offer a co-branded version of the Yahoo! Personals service. IncrediMail launched the new dating service, "IncrediMail Personals provided by Yahoo! Personals," this month. The service is located at http://incredimail.personals.yahoo.com. IncrediMail and Yahoo! are working together to maximize opportunities that exist between IncrediMail and online dating. IncrediMail has a 10 million-strong active daily user base, while there are about 16 million Americans who have engaged in online dating.(1) IncrediMail will use Yahoo! Personals as its exclusive dating partner in the U.S. and will market Yahoo! Personals under its brand name to its large and growing user base. "We are constantly working to enhance and improve our product and service offering and business model through business development. This goal was jumpstarted with the recent opening of our New York office. The initial result of this activity is this agreement with Yahoo! Personals, which underscores our commitment towards this goal," said Yaron Adler, Chief Executive Officer of IncrediMail. Mr. Adler added, "We are very excited about the opportunity to leverage our large user base and Yahoo!'s well-known brand. Yahoo! Personals is a market leader in the US online dating market, and we believe this agreement will yield strong results for IncrediMail." Separately, IncrediMail and PointMatch agreed to terminate their agreement for the provision of matchmaking services. (1) Online Dating, Pew Internet & American Life Project, Analysts Mary Madden and Amanda Lenhart, March 5, 2006 About IncrediMail Ltd. IncrediMail designs and markets an integrated suite of customized and entertaining email software products for the consumer market, offering users the ability to design highly personalized email presentations with our large collection of multimedia content for email communication. Our products include: IncrediMail Xe, which allows users to personalize email messages with creative features and is offered free of charge; IncrediMail Premium, an enhanced version of IncrediMail Xe; IncrediMail Letter Creator, which enables further personalization of backgrounds; The Gold Gallery, a content database of additional backgrounds, animation and notifiers, JunkFilter Plus, an anti-spam solution, and the recently introduced Magentic, a desktop enhancing solution. IncrediMail generates revenue by the sale of these products and services; licensing and co-branding the Incredi brand to operators of third party websites; and selling paid advertising and sponsored links on its website and email client. For more information about IncrediMail, visit www.incredimail-corp.com. Forward-Looking Statements This press release contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of the Company. The words "believe," "expect," "intend," "plan," "should" and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of the Company with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in the markets in which the Company operates and in general economic and business conditions, loss of key customers and unpredictable sales cycles, competitive pressures, market acceptance of new products, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this press release. Various risks and uncertainties may affect the Company and its results of operations, as described in reports filed by the Company with the Securities and Exchange Commission from time to time. The Company does not assume any obligation to update these forward-looking statements.