OREM, Utah, Nov. 5 /PRNewswire-FirstCall/ -- iMERGENT, Inc. (AMEX: IIG) announced today its results for the three month period ended September 30, 2003. The total revenues for the quarter ended September 30, 2003, our first quarter of the fiscal year ending June 30, 2004, increased to $20,545,136 from $11,283,849 in the quarter ended September 30, 2002, an increase of 82%.

Net income for the fiscal quarter ended September 30, 2003 was up 99% to $2,152,081 or $0.18 a diluted share in earnings representing 11,966,483 shares as compared to net income of $1,083,150 or $0.10 a diluted share representing 11,035,459 shares for the comparable quarter of the prior fiscal year.

Stated Chairman and Chief Executive Officer, Don Danks, "We are very excited about the numbers we are reporting today. These financial results reflect the hard work and intelligent implementation of our plan to sell eCommerce technology and services to the enormous market of small businesses and entrepreneurs. First of all, we are pleased that earnings grew from the year ago period even faster than our top line revenues reflecting the growing operating leverage of our business. And we are especially proud to report these results while investing in key areas of customer support and international marketing that will set the stage for future revenue and earnings growth. The stockholders in our company should be proud of the terrific effort put forth by every single person at iMERGENT."

President Brandon Lewis added, "I am especially pleased with the record results, given that the summer quarter is seasonally weaker than the first two calendar quarters. Our base business is growing rapidly, while our large customer database and powerful educational channel should provide additional exciting growth opportunities for our company and its shareholders in the future. The team here at iMERGENT is proud of our effort and we have definitely reaped the rewards of our past investment in new sales and training teams, as well as successful new marketing campaigns. Our team will continue to focus our efforts on bringing positive growth and return to our shareholders."

The company will hold a conference call to discuss these results on November 5, 2003 at 12 noon EST; 9 a.m. PST. The call in number for the call is 800-556-3831. The Conference Pass Code is 00754. A replay of the call can be heard up through midnight Friday, November 7, 2003 by calling 888-293-6054. A replay of the call can also be accessed by logging on to www.imergentinc.com and clicking on earnings conference call replay.

About iMERGENT, Inc.

iMERGENT is a leading technology and training company delivering eServices to small business and entrepreneurs. iMERGENT provides eServices to over 100,000 customers annually. iMERGENT enables companies of all sizes to extend their business to the Internet quickly, effectively-with minimal investment. iMERGENT develops, hosts, licenses, and supports a wide range of Internet applications. iMERGENT, Inc. ( www.imergentinc.com ) is located at 754 Technology Ave., Orem, UT 84097.

Statements made in this press release that are not historical in nature constitute forward-looking statements within the meaning of the Safe Harbor Provision 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 factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For a more detailed discussion of factors that affect iMERGENT's operating results, please refer to its SEC reports including its most recent Form 10-K and Form 10-Q.

IMERGENT, INC. AND SUBSIDIARIES
                     Condensed Consolidated Balance Sheets

                                                 September 30,    June 30,
                                                     2003           2003
                                                  (Unaudited)
    Assets

    Current assets
    Cash                                          $2,444,115     $2,319,618
    Trade receivables, net of allowance
     for doubtful accounts of $6,160,786
     at September 30, 2003 and $4,471,667
     at June 30, 2003.                             6,240,549      4,965,769
    Other receivables                                  1,990         50,000
    Inventories                                       34,026         34,194
    Prepaid expenses                                 648,142        687,984
    Credit card reserves, net of
     allowance for doubtful accounts of
     $243,385 at September 30, 2003 and
     $319,812 at June 30, 2003.                      528,081        450,200
      Total current assets                         9,896,903      8,507,765

    Property and equipment, net                      179,867        200,174
    Goodwill, net                                    455,177        455,177
    Trade receivables, net of allowance
     for doubtful accounts of $3,028,587
     at September 30, 2003 and $2,131,593
     at June 30, 2003.                             3,023,826      2,254,969
    Other assets, net of allowance for
     doubtful accounts of $100,783 at
     September 30, 2003 and $100,783 at
     June 30, 2003.                                  203,481        103,460
      Total Assets                                13,759,254     11,521,545

    Liabilities and Stockholders' Equity

    Current liabilities

    Accounts payable                              $1,816,381     $1,413,112
    Accounts payable - related party                      --        114,925
    Accrued wages and benefits                       324,490        411,620
    Accrued liabilities                              255,802        204,137
    Current portion of capital lease
     obligations                                      16,729         26,536
    Current portion of notes payable                  60,987        121,206
    Other current liabilities                         41,192         35,840
    Deferred revenue                                 401,258        653,463
      Total current liabilities                    2,916,839      2,980,839

    Capital lease obligations, net of
     current portion                                   1,802          1,802
    Notes payable, net of current portion            400,000        435,857
      Total liabilities                            3,318,641      3,418,497

    Commitments and contingencies

    Stockholders' Equity
    Capital stock, par value $.001 per share
      Preferred stock - authorized
       5,000,000 shares; none issued
      Common stock - authorized
       100,000,000 shares; issued and
       outstanding 11,272,441 and
       11,062,290 shares, at
       September 30, 2003 and June 30, 2003,
       respectively                                   11,273         11,063
      Additional paid-in capital                  72,787,896     72,605,749
      Deferred compensation                          (19,347)       (22,474)
      Accumulated other comprehensive loss            (4,902)        (4,902)
      Accumulated deficit                        (62,334,308)   (64,486,389)
        Total stockholders' equity                10,440,613      8,103,047

    Total Liabilities and
     Stockholders' Equity                        $13,759,254    $11,521,545


                       IMERGENT, INC. AND SUBSIDIARIES
          Unaudited Condensed Consolidated Statements of Operations
            For The Three Months Ended September 30, 2003 and 2002

                                                     2003           2002

    Revenue                                      $20,545,136    $11,283,849

    Cost of revenue                                4,361,702      2,234,716
    Cost of revenue - related party                       --        223,716
      Total cost of revenue                        4,361,702      2,458,432

      Gross profit                                16,183,434      8,825,417

    Operating Expenses

      Research and Development                        76,694         76,810
      Selling and marketing                        6,223,131      4,243,288
      Selling and marketing - related party               --        278,060
      General and administrative                   1,758,275        857,608
      Depreciation and amortization                   27,423        148,417
      Bad debt expense                             6,220,234      2,287,733
        Total operating expenses                  14,305,757      7,891,916

    Earnings from operations                       1,877,677        933,501

    Other income (expense)
      Other income (expense)                             970          2,873
      Interest income                                275,244        155,764
      Interest expense                                (1,810)        (8,988)
        Total other income (expense)                 274,404        149,649

    Net Earnings                                   2,152,081      1,083,150

    Basic earnings (loss) per share:
          Basic                                        $0.19          $0.10
          Diluted                                       0.18           0.10

    Weighted average shares outstanding:
          Basic                                   11,152,998     10,999,478
          Diluted                                 11,966,483     11,035,459