MAIL Incredimail Ltd. (MM)

IncrediMail Ltd. (NASDAQ:MAIL), a software company specializing in Internet consumer products and services, announced that Magentic has begun contributing to the Company�s increase in advertising and keyword search revenue, having recorded over 2.8 million registered downloads, worldwide, since April 2006. Magentic (downloadable at www.magentic.com) is a software application enabling consumers to add personality and style to their desktop environment with over one thousand high quality images and screensavers, in addition to their own personal photos that can be used as screensavers and wallpapers. All Magentic materials are available to the consumer at no cost and are completely spyware- and adware- free. The product offering includes pages generating keyword searches, resulting in revenue for the company. �We expect advertising revenues generated by Magentic to contribute as much as 5% of our revenues in the second quarter of 2007 and grow from there,� said Yaron Adler, chief executive officer of IncrediMail. �After investing two years of research and development in Magentic, it is extremely exciting to see this product begin generating revenue.� Mr. Adler continued, �Keyword search advertising revenue is IncrediMail�s fastest growth engine, and we plan to continue and roll out new products that will generate new searches and thus help maintain and grow this trend. Our goal is to further develop updated versions of Magentic, as well as additional new, free products that will continue to expand our user base, ultimately expected to fuel our advertising revenue model. Indeed, we expect to introduce a new version of Magentic itself within a year.� Magentic�s overall content library includes a wide array of multimedia presentations with high-resolution graphics, animations, 3D graphics, and sounds. In addition to providing high-quality content, Magentic allows users to easily transform their own digital photos into wallpapers and screensavers to create a custom desktop environment. 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 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.