iMergent Announces Australian Court Enters Settlement Between ACCC and iMergent; Company to Continue Conducting Educational Workshops in Australia

May 10, 2006; 01:54 AM

OREM, Utah - iMergent, Inc. (AMEX:IIG), a leading provider of eCommerce software and services for small businesses and entrepreneurs, announced the Australian court entered a settlement agreement on May 9, 2006 in Sydney, Australia between the Australian Competition and Consumer Commission (ACCC) and iMergent. The settlement resolves all outstanding matters with the ACCC. As a result, iMergent will continue to conduct StoresOnline(TM) workshops in Australia. All previous injunctions issued against iMergent have expired.

Under terms of the settlement and without an admission of any liability, iMergent has agreed to allow refunds up to a maximum of approximately US $468,000 to certain Australian customers and pay related administrative costs to the ACCC of approximately US $28,000. The refund account is funded entirely by funds of iMergent presently held as restricted cash in an Australian bank account and will be transferred into the refund account. If the refund account is not exhausted by the claims of certain Australian customers, the remainder of the refund account will be paid back to iMergent. iMergent will not be paying any other fees, costs or penalties under the settlement agreement. If the total value of qualifying claims exceeds the amount of the refund account payments will be made pro rata to those seeking refunds. iMergent's total liability in this matter will not exceed approximately US $496,000, and the company had reserved a substantial portion of this settlement amount in previous quarters.

"Australia has always been an exciting market and again represents a significant international opportunity for growing our business," said Don Danks, chairman and chief executive officer of iMergent. "With this settlement behind us, we can look forward to again bringing our StoresOnline workshops to Australia."

Under the terms of the settlement agreement, a letter containing information on making a statutory declaration and a claim for a refund will be sent by the ACCC to: (1) all customers who have filed written complaints with the ACCC and/or iMergent that have not been resolved; and (2) all customers who respond to the ACCC's press release. In addition, the ACCC will be providing notification of the requirements and procedures for claiming a refund in a press release.

All terms of the settlement agreement are in Australian dollars. All dollar amounts appearing in this press release are shown on an "as converted" basis to the approximate US dollar equivalent as of March 31, 2006. The actual payments will be made in Australian dollars; thus, actual US dollar equivalents will vary according to prevailing exchange rates at the time of payments.

Safe Harbor Statement

Statements made in this press release regarding iMergent's conduct of StoresOnline workshops in Australia and other statements that are not historical in nature constitute forward-looking statements within the meaning of the Safe Harbor Provisions 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 risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include, without limitation, the Company's continued ability to maintain operations; the Company's ability generally to continue to provide domestic and international workshops and specifically provide workshops in Australia; the total amount of claims filed by customers; whether there will be any funds returned to iMergent from the settlement account; whether the terms of the settlement will be deemed to be adhered to by iMergent on an ongoing basis; whether regulatory authorities will bring future actions against iMergent; and whether Australia will ultimately represent a significant international opportunity for iMergent to grow its business. For a more detailed discussion of factors that affect iMergent's operations, please refer to the Company's Form 10-K for the year ended June 30, 2005 and its Form 10-Q for the quarterly period ended March 31, 2006. The Company undertakes no obligation to update this forward-looking information.

About iMergent

iMergent provides eCommerce solutions to entrepreneurs and small businesses enabling them to market and sell their business products or ideas via the Internet. Headquartered in Orem, Utah, the company sells its proprietary StoresOnline software and training services, helping users build a successful Internet strategy to market products, accept online orders, analyze marketing performance, and manage pricing and customers. In connection with Internet software, iMergent also offers Website development, Website hosting, marketing and mentoring products and services. iMergent typically reaches its target audience through concentrated direct marketing efforts to fill Preview Sessions, in which a StoresOnline expert reviews the product opportunities and costs. These sessions lead to a follow-up Workshop Conference, where experts train potential users on the software and services and encourage them to make purchases.

iMergent, Inc. and StoresOnline are trademarks of iMergent, Inc.