IncrediMail Launches New Instant Messaging Product Targeting New Demographics.

Product Currently Offered in Closed Beta Version 

TEL AVIV, Israel -- IncrediMail Ltd. (NASDAQ:MAIL), a software company specializing in Internet consumer products and services, has released a closed beta version of the Company's new instant messaging product under the code name, "Project Messy." A previously selected population of IncrediMail users has been chosen to test both the product and application performance within a controlled environment. This is the Company's initial step toward entering the world of instant messaging (IM).

Project Messy is intended to offer unique animations, sound effects, hilarious "winks" or nudges that shake the whole interface screen in a fun way, and a wider selection of emoticons compared to the other IM applications, in a sleek, clean interface. Through a personalized approach, the vibrant graphics have been designed to reach new younger demographics.

"We think the instant messaging world needs a serious shake up. Today, we see old style conventions of communication applied to instant messaging and we think that it's simply not a good fit, it's plain old messaging and it's a dinosaur," said Yaron Adler, Chief Executive Officer of IncrediMail. "Current IM applications don't take advantage of new technologies, not to mention creativity. IM applications can be much more expressive with the many features found in Project Messy."

Project Messy is an add-on to existing IM clients, so users of popular IM applications will not need to switch programs. The beta release is compatible with Microsoft's Windows Live Messenger (formerly named MSN messenger) and is based on a patent pending technology of "Contextual Content" making creative content in IM "Instant". In applying IncrediMail's business model and leveraging future advertising opportunities, IncrediMail believes that Project Messy has the potential for providing substantial revenues.

"We chose to launch the beta version on Windows Live Messenger, as we believe it has the largest market share globally for instant messaging," said Jeff Holzmann, Executive Vice President of IncrediMail. "IM is viral by nature. As you chat, by definition, you chat with someone else. When chatting with Project Messy, everyone you send an Instant Message to will see that you are using it, and thus the viral potential of spreading the product, in a similar manner to that of IncrediMail's predecessor products."

About IncrediMail Ltd.

IncrediMail Ltd. is a software company specializing in Internet consumer products and services. The Company focuses on designing and marketing an integrated suite of customized and entertaining Internet software products for the consumer marketplace. The company's products include a email application and a wallpaper and screensaver manager. The Company generates revenue through search activity, paid advertising and sponsored links; the sale of subscription products and services; and licensing and co-branding the Incredi brand to operators of third party websites. 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.