Department of Defense Awards IceWEB’s INLINE Corporation Contract to Provide Innovative Storage Solutions

DULLES, Va. — (BUSINESS WIRE) — August 12, 2009 IceWEB, Inc. (OTCBB: IWEB), www.iceweb.com, today announced that its wholly owned subsidiary, INLINE Corporation, was recently awarded a contract by the Department of Defense (DoD) to develop innovative storage solutions to accommodate the Government’s growing need for data storage in connection with defense applications. The Company has initially designed a storage system that has the capability to scale to 2 petabytes.

Under the agreement, INLINE Corporation will provide data storage to one of DoD's Combatant Commands. INLINE Corporation’s TruEnterprise 444 model, a scalable data center grade product, will be deployed by the DoD to build an initial 48TB repository for geospatial imagery data. DoD plans to scale the overall solution to accommodate growth of this GIS data to upwards of 200TB’s.

Stephen A. Gill, Vice President of Global Sales, commented on the contract award, “Our vast experience in deploying mission critical Geospatial solutions makes INLINE Corporation’s product suites the de-facto leader in providing high performance, highly reliable data storage for these complex and heavy-data-lifting applications. We're pleased to have been chosen by the Department of Defense to service their GIS needs.”

About IceWEB, Inc.

Headquartered just outside of Washington, D.C., IceWEB manufactures and markets storage solutions and on-line cloud computing application services. Its customer base includes U.S. government agencies, enterprise companies, and small to medium sized businesses (SMB). For more information, please visit www.IceWEB.com.

This press release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases you can identify those so-called "forward looking statements" by words such as "may," "will," "should," "expects," "plans," "targets," "believes," "anticipates," "estimates," "predicts," "potential," or "continue" or the negative of those words and other comparable words. These forward looking statements are subject to risks and uncertainties, product tests, commercialization risks, availability of financing and results of financing efforts that could cause actual results to differ materially from historical results or those anticipated. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC, which are available on its website at: http://www.sec.gov. We assume no obligation to update or alter our forward-looking statements made in this release or in any periodic report filed by us under the Securities Exchange Act of 1934 or any other document, whether as a result of new information, future events or otherwise, except as otherwise required by applicable federal securities laws.



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