Internet America Reports Preliminary Unaudited Operating Results

HOUSTON, TX — Internet America, Inc. today announced preliminary unaudited operating results for the fiscal year ended June 30, 2011. Total earnings for the fiscal year ended June 30, 2011 decreased by 5.94% to roughly $6,979,000 as compared to total earnings of roughly $7,420,000 for the fiscal year ended June 30, 2010.

Billy Ladin, Chairman and CEO, commented, "We are pleased with our revenues and organizational progress over the last fiscal year and we believe that our EBITDA profitability will continue and possibly improve over the foreseeable future. Our flatter management structure, which has now been in place for over a year, is producing a more effective and efficient organization. We are now focused on revenue improvement and believe that we will see better top line growth beginning in the straightway quarters. Together, we expect to continue to improve profitability."

The statements contained in this press release

Certain of the statements contained in this press release, including the comments of our CEO, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks include, without limitation, that we will not be able to increase our rural customer base at the expected rate, we will not improve EBITDA, profitability or product margins, Internet revenue in high-speed broadband will continue to increase at a slower pace than the decrease in other Internet services resulting in greater operating losses in future periods, financing will not be available to us if and as needed, we will not be competitive with existing or new competitors, we will not keep up with industry pricing or technological developments impacting the Internet, we will be adversely affected by dependence on network infrastructure, telecommunications providers and other vendors or by regulatory changes, service interruptions or impediments could harm our business, we may be accused of infringing upon the intellectual property rights of third parties, which is costly to defend and could limit our ability to use certain technologies henceforth, government regulations could force us to change our business practices, we may be unable to hire and retain qualified personnel, including our key executive officers, future acquisitions of wireless broadband Internet clients and infrastructure may not be available on attractive terms and if available we may not successfully integrate those acquisitions into our operations, provisions in our certificate of incorporation, bylaws and shareholder rights plan could limit our share price and delay a change of management and our stock price has been volatile historically and may continue to be volatile. The foregoing list is intended to identify certain of the principal factors that could cause actual results to differ materially from those described in the forward-looking statements included elsewhere herein. These factors are not intended to represent a complete list of all risks and uncertainties inherent in our business, and should be read in conjunction with the more detailed risk factors included in our other annual, quarterly and current reports filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof and we disclaim any obligation to update such forward-looking statements.