IMSI Books Q3 Net Income

AccessMedia Merger Expected to Be Approved at May 23 Annual Meeting

NOVATO, Calif., May 15 /PRNewswire-FirstCall/ -- IMSI(R) (OTC Bulletin Board: IMSI), a leading provider of house plans online and a leading developer and publisher of precision design, and consumer and business software solutions, today announced its financial results for the third fiscal quarter ended March 31, 2006. For the three months ended March 31, 2006, IMSI reported net income of $251,000, or $0.01 per share on net revenues of $4.0 million. Net revenues increased by 50% in the Houseplans(TM) business and 6% overall, as compared to the previous fiscal year, reflecting primarily continued growth in the Houseplans(TM) business.

    The following are highlights for the three months ended March 31, 2006:

    -- Net income of $251,000.
    -- Growth in Houseplans(TM) was 50% and 83% for the three and nine months,
       and 6% and 27% for the three and nine months without the acquisition of
       globalHouseplans.com.
    -- Company gross margins improved to 64.7% from 64.3% in the prior quarter
    -- Houseplans(TM) gross margins improved to 65% from 55% as compared to
       the previous fiscal year.
    -- International net revenue increased 144% driven by
       globalHouseplans.com.
    -- A proxy statement was distributed for the May 23 Annual Meeting where
       the shareholders will consider the proposed merger with AccessMedia
       Networks, Inc. ("AccessMedia") and the change of name to Broadcaster,
       Inc.

    Non-GAAP Information

    -- GAAP net income (loss) when adjusted for certain non-cash activity and
       taxes to "EBITDA" was a positive $641,000 for the quarter.

"While the company is currently in the final stages of the proposed merger with AccessMedia, we still see excellent results in the existing businesses. The Houseplans(TM) business has prospered during the current building season and we expect it to expand with innovative products and services. We continue to add stock house plans to serve the customer and now have over 23,000 for what we believe is the Web's largest collection of exceptional house plans," said Martin Wade III, Chief Executive Officer. "We believe we have the resources on hand to grow our businesses with $9.7 million in cash and cash equivalents," continued Mr. Wade. "We picked up $776,000 from the escrow from the sale of Allume in March and have a final payment due in December 2006. The Precision Design business launched TurboCAD version 12 in March and we expect good June quarter results from the product renewal cycle. Additionally, we expect a month or more of results in the June quarter from AccessMedia. We expect those product offerings to launch and accelerate the company's growth."

Conference call set for May 16, 2006

The quarterly conference call to discuss results of the third quarter results ended March 31, 2006 and the pending merger with AccessMedia will take place on Tuesday, May 16, 2006, at 4:00 p.m. Eastern Time (1:00 p.m. Pacific Time). The public may participate in this event by calling (877) 704-5386. Individuals are also invited to listen to the conference call, which will be broadcast live over the Internet beginning Tuesday, May 16, 2006, at 4:00 p.m. Eastern Time.

The webcast will also be distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.earnings.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password protected event management site, StreetEvents ( www.streetevents.com).

A telephone replay will be made available for 7 days following the call. To hear a replay, call 888-203-1112 toll free or 719-457-0820 direct and use passcode I.D. # 3438849.

May 23 Annual Meeting to vote on Merger and Name Change to Broadcaster, Inc.

The 2006 Annual Meeting of Shareholders of International Microcomputer Software, Inc., will be held at the offices of AccessMedia Networks, Inc., 9201 Oakdale Avenue, Suite 200, Chatsworth, CA 91311, on May 23, 2006 at 10:00 a.m. Pacific Time.

Martin Wade, IMSI's CEO, who will continue to lead the combined organization, said, "This meeting will be the key step toward the proposed acquisition of AccessMedia and the proposed corporate name change to Broadcaster, Inc. I enthusiastically support the merger and join IMSI's Board of Directors in recommending that you consider and vote for the proposals submitted to the stockholders. The shareholders will also consider authorizing a reverse (1:2) stock split."

In addition to disclosing results determined in accordance with generally accepted accounting principles (GAAP), IMSI also discloses non-GAAP results of operations that exclude certain items. By disclosing this non-GAAP information, management intends to provide investors with additional information to further analyze the company's performance, core results and underlying trends. Management utilizes a measure of net income on a non-GAAP basis that excludes certain charges to better assess operating performance.

    Non-GAAP information is not GAAP. Therefore, the information is not
necessarily comparable to other companies and should not be used to compare
the company's performance over different periods. Non-GAAP information should
not be viewed as a substitute for, or superior to, net income or other data
prepared in accordance with GAAP as measures of our profitability or
liquidity. Users of this financial information should consider the types of
events and transactions for which adjustments have been made. See the
following table for a reconciliation of this non-GAAP information to amounts
reported under GAAP.


    EBITDA Analysis
     (In thousands)
                                 FY 2005                     FY 2006
                         Q1         Q2     Q3       Q1       Q2       Q3

     Net (Loss)
      Income - the
      GAAP measure     ($275)     $129 ($1,246) ($1,952)     $122    $249
     Interest paid        70        55      64      123        21    ($26)
    Taxes                  5         3       2       --        39     $21
    Depreciation &
     Amortization        262       303     302      356       422    $396

     EBITDA - Non-GAAP   $62      $490   ($878) ($1,473)     $604    $640


    Notes on components
     of Net (Loss)
     Income related to
     transactions
     Income from the
      sale of
      Discontinued
      Operations         285       159    (449)       0             0              0

          Gain  from  the  sale
            of  Discontinued
            Operations                    53                  0              0          (843)            369          776


                  INTERNATIONAL  MICROCOMPUTER  SOFTWARE,  INC.  AND  SUBSIDIARIES
                                        CONDENSED  CONSOLIDATED  BALANCE  SHEETS
                                          (In  thousands,  except  share  amounts)

                                                                                                    March  31,  2006  June  30,  2005

        Unaudited
        ASSETS
        Current  assets:
            Cash  and  cash  equivalents                                              $9,723                  $4,347
            Trading  securities                                                                      0                        714
            Receivables,  less  allowances  for  doubtful
              accounts,  discounts  and  returns  of  $493
              as  of  March  31,  2006  and  $626  as  of
              June  30,  2005.                                                                        989                        773
            Inventories,  net                                                                      910                        758
            Receivables,  other  (related  to
              discontinued  operations)                                                        0                    2,000
            Receivables,  other                                                                      0                          30
            Other  current  assets                                                          1,479                        530
            Assets  related  to  discontinued  operations                        0                  12,231
        Total  current  assets                                                            13,101                  21,383

        Fixed  assets,  net                                                                        302                        377

        Intangible  assets
            Capitalized  software,  net                                                    231                        494
            Domain  names  and  brands,  net                                          1,818                    1,574
            Distribution  rights  and  proprietary
              plans,  net                                                                                753                        170
            Capitalized  customer  lists,  agreements
              and  relationships,  net                                                    1,227                        326
            Goodwill                                                                                  3,852                    2,090
            Trademarks,  net                                                                          18                            1
        Total  intangible  assets                                                        7,899                    4,655

        Total  assets                                                                          $21,302                $26,415

        LIABILITIES  AND  SHAREHOLDERS'  EQUITY
        Current  liabilities:
            Short-term  debt                                                                          93                    2,764
            Trade  accounts  payable                                                      1,315                    2,245
            Accrued  and  other  liabilities                                        1,598                    1,871
            Deferred  revenues                                                                      26                          38
            Liabilities  related  to  discontinued  operations              0                    1,037

        Total  current  liabilities                                                    3,032                    7,955

        Long-term  debt  and  other  obligations                                  176                        230

        Total  liabilities                                                                    3,208                    8,185

        Shareholders'  equity
            Common  stock,  no  par  value;  300,000,000
              authorized;  30,144,160  issued  and  outstanding
              as  of  March  31,  2006  and  28,796,886  issued
              and  outstanding  as  of  June  30,  2005                        44,854                  43,663
            Accumulated  deficit                                                        (26,911)              (25,331)
            Accumulated  other  comprehensive  income  (loss)            151                      (102)
        Total  shareholders'  equity                                                18,094                  18,230

        Total  liabilities  and  shareholders'  equity              $21,302                $26,415


                  INTERNATIONAL  MICROCOMPUTER  SOFTWARE,  INC.  AND  SUBSIDIARIES
            CONDENSED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS  and  COMPREHENSIVE
                                                                INCOME/(LOSS)
                                      (In  thousands,  except  per  share  amounts)
                                                                  (Unaudited)

                                                            Three  months  ended                  Nine  months  ended
                                                                    March  31,                                    March  31,
                                                            2006                  2005                  2006                  2005
        Net  revenues                        $4,029              $3,799            $11,714            $10,412
        Product  costs                        1,424                1,272                4,207                3,415
        Gross  margin                          2,605                2,527                7,507                6,997

        Costs  and  expenses
            Sales  and  marketing        1,669                1,635                4,859                4,523
            General  and
              administrative                1,047                    932                3,801                2,773
            Research  and
              development                          486                    418                1,474                1,255
        Total  operating
          expenses                                3,202                2,985              10,134                8,551

        Operating  loss                        (597)                (458)            (2,627)            (1,554)

        Other  income  (expense)
            Interest  and  other,
              net                                            93                    (61)                    40                    (22)
            Realized/unrealized
              gain  on  securities              --                  (276)                  765                    145
        Loss  before  income  tax        (504)                (795)            (1,822)            (1,431)

        Income  tax  provision                21                      (2)                    60                      (9)

        Loss  from  continuing
          operations                              (525)                (797)            (1,882)            (1,440)

        Income  from
          discontinued
          operations,  net  of
          income  tax                                  --                    411                      --                    856
        Gain  (loss)  from  the
          sale  of  discontinued
          operations,  net  of
          income  tax                                776                      --                    302                      52

        Net  income  (loss)                  $251                ($386)          ($1,580)              ($532)

        Other  comprehensive
          income  (loss)


            Foreign  currency
              translation
              adjustments                            62                      (5)                  253                    (38)
        Comprehensive  income
          (loss)                                      $313                ($391)          ($1,327)              ($570)

        Basic  earnings  (loss)
          per  share:
        Loss  from  continuing
          operations                          ($0.01)            ($0.01)            ($0.06)            ($0.01)
        Income  from
          discontinued
          operations,  net  of
          Income  tax                            $0.00                $0.00                $0.00                $0.00
        Gain  (loss)  from  the
          sale  of  discontinued
          operations,  net  of
          income  tax                            $0.02                $0.01                $0.01                $0.03
        Net  income  (loss)                $0.01              ($0.01)            ($0.05)            ($0.02)
        Diluted  earnings  (loss)
          per  share:
        Loss  from  continuing
          operations                          ($0.01)            ($0.01)            ($0.06)            ($0.01)
        Income  from
          discontinued
          operations,  net  of
          income  tax                            $0.00                $0.00                $0.00                $0.00
        Gain  (loss)  from  the
          sale  of  discontinued
          operations,  net  of
          income  tax                            $0.02                $0.01                $0.01                $0.03
        Net  income  (loss)                $0.01              ($0.01)            ($0.05)            ($0.02)

        Shares  used  in
          computing  basic
          earnings  (loss)
          per  share                            30,043              28,051              29,850              27,623
        Shares  used  in
          computing  diluted
          earnings  (loss)
          per  share                            30,043              28,051              29,850              27,623



                  INTERNATIONAL  MICROCOMPUTER  SOFTWARE,  INC.  AND  SUBSIDIARIES
                    CONDENSED  CONSOLIDATED  STATEMENTS  OF  SHAREHOLDERS'  EQUITY
                                            Nine  months  ended  March    31,  2006
                                          (In  thousands,  except  share  amounts)
                                                                  (Unaudited)

                                                                  Common  Stock

                                                                                                                Accumulated
                                                                                                                    other
                                                                                    Accumulated    comprehensive
                                          Shares              Amount        deficit        income  (loss)  Total

        Balance  at
          July  1,  2005    28,796,886        $43,663        ($25,331)            ($102)        $18,230

        Issuance  of
          common  stock
          related  to:
            Stock  options
              exercised              99,291                  80                                                                    --
            Warrants
              exercised  and
              other                    428,673                  --                                                                    80
            Acquisitions        826,583            1,021                                                              1,021
            Finder's  fee
              related  to
              acquisition          20,000                  25                                                                    25

        Issuance  of
          stock  options
          related  to:
            Consulting
              services
              rendered                                              21                                                                    21

        Issuance  of
          warrants  related
          to:
            Acquisitions                                          6                                                                    6
            Procurement
              of  short-term
              debt                                                      68                                                                    68

        Stock  buy  back        (27,273)              (30)                                                                (30)

        Issuance  of  stock
          options                                                      2                                                                      2

        Variable
          accounting
          adjustment                                              (2)                                                                  (2)

        Net  loss                                                                      (1,580)                                (1,580)

        Foreign  currency
          translation
          adjustment                                                                                              253              253

        Balance  at
          March  31,
          2006                    30,144,160        $44,854          ($26,911)              $151      $18,094


                  INTERNATIONAL  MICROCOMPUTER  SOFTWARE,  INC.  AND  SUBSIDIARIES
                              CONDENSED  CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS
                                                                (In  thousands)
                                                                  (Unaudited)

                                                                                                    Nine  months  ended  March  31,
                                                                                                              2006                      2005
          Cash  flows  from  operating  activities:
          Net  cash  provided  by  (used  in)  operating
            activities                                                                              ($948)                    $237
          Cash  flows  from  investing  activities:
            Proceeds  from  sale  of  discontinued  operations      10,242                        608
            Proceeds  from  sale  of  product  line                                    --                        258
            Acquisition  of  subsidiaries                                          (1,807)                (1,356)
            Acquisition  of  software  development,
              domain  names  and  trademarks                                                --                      (602)
            Purchases  of  equipment  and  software                                (31)                    (213)
            Transfer  cash  to  escrow  for  Jupitermedia                        --                      (499)
            Proceeds  from  the  sale  of  marketable  securities    1,524                    1,780
            Other                                                                                              (8)                      371
            Cash  provided  by  discontinued  operations
              in  investing  activities                                                        --                        470
          Net  cash  provided  by  investing  activities                  9,920                        817
          Cash  flows  from  financing  activities:
            Proceeds  from  borrowings                                                      850                        400
            Repayments  of  notes                                                          (4,579)                (2,368)
            Proceeds  from  warrants  and  options  exercised                80                        152
            Cash  provided  by  discontinued  operations
              in  financing  activities                                                        --                        (20)
          Net  cash  used  in  financing  activities                        (3,649)                (1,836)
          Effect  of  exchange  rate  change  on  cash
            and  cash  equivalents                                                                53                        (39)
          Net  increase  (decrease)  in  cash  and
            cash  equivalents                                                                  5,376                      (821)
          Cash  and  cash  equivalents  at  beginning
            of  period                                                                                4,347                    3,212
          Cash  and  cash  equivalents  at
          end  of  the  period                                                                $9,723                  $2,391



                                                                                                    Nine  months  ended  March  31,
                                                                                                              2006                      2005
          SUPPLEMENTAL  DISCLOSURE  OF  CASH  FLOW  INFORMATION
          Interest  paid                                                                                  2                        189
          Income  tax  paid                                                                            66                            2
          SUPPLEMENTAL  DISCLOSURE  OF  NON-CASH
            INVESTING  AND  FINANCING  ACTIVITIES
          Capital  stock  issued  in  conjunction  with
            acquisitions                                                                          1,046                    1,602
          Warrants  issued  in  conjunction  with  acquisitions            6                          --

          Notes  payable  incurred  in  conjunction
            with  acquisitions                                                                1,000                        480
          Warrants  issued  in  conjunction
            with  short-term  debt                                                                68                          --



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