IceWEB(TM) Awarded $483,000 Contract To Provide Layer-7 Firewalls to Federal Agency.

Company Reiterates 2007 Revenue Forecast of $17 Million

HERNDON, Va. -- IceWEB Inc., www.iceWEB.com (OTCBB:IWEB), announced today that it has been awarded a contract valued at $483,000 to provide advanced Layer-7 Firewalls to the U.S. Government.

"Traditional firewalls operate at Layers 3 and 4 of the Open Systems Interconnect (OSI) reference model and cannot protect against many common penetration attempts due to their lack of ability to inspect and monitor data at the application layer (Layer 7)," said Tim J. McNamee, IceWEB's VP of Sales, "The U.S. Government is constantly working to secure their mission critical data from mischievous or malicious visitors. Implementing advanced Layer 7 Firewall technology gives the Government the ability to inspect traffic at the highest level of the ISO/OSI Reference Model, thus fully securing access."

John R. Signorello, Chairman and CEO of IceWEB Inc., stated, "IceWEB's Federal group continues to accelerate their practice of bringing the best performing and most advanced network security innovations to bear on behalf of our government clients. The sales momentum we have been experiencing in the past quarter further strengthens our confidence in our revenue forecast of $17 Million compared to our 2006 revenue of $4.6 Million. The Federal Government historically increases Information Technology spending in the fourth quarter. If this trend continues, we will increase our revenue forecast accordingly."

To be added to IceWEB's investor relations email list please click on the following link: http://www.iceweb.com/home_investrelations.asp or call Investor Relations at 703-964-8000 ext 0961.

About IceWEB

IceWEB, Inc., (OTCBB:IWEB), utilizes a hosted software services model that brings technologies normally reserved for large corporations to the small business customer. By subscribing to IceWEB's flagship products, IceMAIL and IcePORTAL small and medium sized businesses can now have the benefits of these more advanced software systems for a low 'pay as you grow' basis instead of being faced with large up-front capital expenses. IceWEB also provides network infrastructure solutions services to our enterprise and Government customers with a specific focus on network security. Founded in 2000, IceWEB is headquartered in Herndon, VA, and serves customers in the public and private sectors. For more information, please visit http://www.IceWEB.com or http://www.IceMAIL.com.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to business conditions and the amount of growth in the computer industry and general economy, competitive factors, and other risks detailed from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-K and its quarterly reports on Forms 10-Q. The Company does not undertake any obligation to update forward-looking statements.

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