EarthLink Reports $25 Million Loss in Fourth Quarter

Press Release - February 7, 2007

American Internet Service Provider, EarthLink Inc., reported fourth-quarter losses of $24.8 million yesterday, in stark contrast to the profit of $29.2 million generated in the same period a year earlier.

The bulk of losses were due to the high marketing and operating costs associated with EarthLink’s wireless joint venture, Helio. These expenses will ultimately pay off, however, the company claims, with Helio expected to more than triple its annual revenue in 2007.

EarthLink’s core dialup business has continued to decline in recent months, and is expected to leek between 75,000 and 175,000 additional subscribers over the course of this year.

Shares in EarthLink were down $0.28 or 3.87% yesterday on the NASDAQ stock exchange, to close at US$6.96.