iPayment Announces Results for First Quarter 2006

iPayment, Inc. today announced financial results for the first quarter ended March 31, 2006.

Revenues increased to $170,901,000 for the first quarter of 2006 from $163,363,000 for the first quarter of 2005. Revenues, net of interchange, were $72,788,000 for the first quarter of 2006 compared with $66,509,000 for the first quarter of 2005.

Net income was $7,622,000 for the first quarter of 2006, up from $6,872,000 for the first quarter of 2005, while adjusted EBITDA increased to $25,448,000 from $23,729,000.

Results for the first quarter of 2006 included other expense of $878,000, principally related to the previously announced work of the Special Committee of the Board of Directors, and $579,000 of stock-based compensation, included in selling, general and administrative expenses, related to the adoption of FAS 123R on January 1, 2006. Adjusted EBITDA excludes these amounts.