HOUSTON, February 14, 2008 - Internet America, Inc. (OTCBB: GEEK) today announced results for the fiscal second quarter ended December 31, 2007. Total revenues for the second quarter increased by 13.4% to approximately $2.3 million compared to total revenues of approximately $2.0 million in the second quarter of 2006. Wireless broadband Internet revenue increased by $478,000, or 85.6% to $1,036,000 in the second quarter of 2007, and the Company’s wireless broadband Internet subscriber count increased by 105.3% to 7,800 as of December 31, 2007, compared to 3,800 as of December 31, 2006. For the second quarter, wireless broadband Internet revenue of $1.0 million represented 48.1% of Internet services revenue of $2.2 million compared to 27.8% of Internet services revenue of $2.0 million as of December 31, 2006. The increase in wireless broadband Internet revenue and subscriber count was due to a combination of organic growth and growth attributable to four acquisitions completed by the Company over the last twelve months. Internet America’s total subscriber count decreased to 33,200 on December 31, 2007 compared to 37,000 subscribers at the end of the same period last year. The decrease in total subscriber count was due to the anticipated decline of dial-up Internet service customers from Internet America’s legacy dial-up Internet operations.

Net loss for the second quarter of 2007 was approximately $787,000, or a loss of $0.06 per share, compared to net loss of approximately $44,000, or $0.00 per share in the same period last year. EBITDA loss (earnings before interest, taxes, depreciation and amortization) was approximately $476,000 in the first quarter compared to EBITDA of approximately $165,000 in the second quarter a year ago. Net loss and EBITDA (loss) were impacted in the second quarter of 2007 by increased costs associated with connectivity and operations, sales and marketing and general and administrative expenses. The increased costs incurred by Internet America in the second quarter of 2007 were related to increased staffing during the integration of four acquired entities and certain one time expenses related to marketing, legal fees and abandoned leases.

Billy Ladin, Chairman and Chief Executive Officer of Internet America, said, “Our quarterly results reflect continued success in our transition from legacy dial-up Internet operations to wireless broadband Internet operations, which results in higher annual revenues per subscriber. Now that we have completed integration of four recent acquisitions, we are focused on improving customer service and aggressively rationalizing the Company’s cost structure. We will continue to focus on improving operating cash flow, while continuing to drive cost saving opportunities. Our management team is dedicated to this task and intends to return the Company to EBITDA profitability on an ongoing basis after March 31, 2008.”

Internet America is a leading Internet service provider serving the Texas market. Based in Houston, Internet America offers businesses and individuals a wide array of Internet services including broadband Internet delivered wirelessly and over DSL, dedicated high-speed access, web hosting, and dial-up Internet access. Internet America provides customers a wide range of related value-added services, including Fax2email, online backup and storage solutions, parental control software, and global roaming solutions. Internet America focuses on the speed and quality of its Internet services and its commitment to providing excellent customer care. Additional information on Internet America is available on the Company’s web site at http://www.internetamerica.com.

In this press release, the Company refers to a non-GAAP financial measure called EBITDA because of management’s belief that this measure is a financial indicator of the Company’s ability to internally generate operating funds. Management also believes that this non-GAAP financial measure is useful information to investors because it is widely used by professional research analysts in the valuation and investment recommendations of companies in the Company’s peer group. EBITDA should not be considered an alternative to net income, as defined by GAAP.

This press release may contain forward-looking statements relating to future business expectations. These statements, specifically including management's beliefs, expectations and goals, are subject to many uncertainties that exist in Internet America's operations and business environment. Business plans may change, and actual results may differ materially as a result of a number of risk factors. These risks include, without limitation, that (1) we will not be able to increase our rural customer base at a rate that exceeds the loss of metropolitan area customers, (2) we will not improve EBITDA, profitability or product margins, (3) we will not be able to identify and negotiate acquisitions of wireless Internet customers and infrastructure on attractive terms. (4) we may not be able to integrate acquisitions of wireless Internet customers and infrastructure into existing operations to achieve operating efficiencies, (5) needed financing will not be available to us if and as needed, (6) we will not continue to achieve operating efficiencies in existing operations, (7) we will not be competitive with existing or new competitors, (8) we will not keep up with industry pricing or technological developments impacting the Internet, (9) we will be adversely affected by dependence on network infrastructure, telecommunications providers and other vendors, by regulatory changes and by general economic and business conditions; (10) service interruptions or impediments could harm our business; (11) we may not be able to protect our proprietary technologies or successfully defend infringement claims and may be required to enter into licensing arrangements on unfavorable terms; (12) 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 in the future; (13) government regulations could force us to change our business practices; (14) we may be unable to continually develop effective business systems, processes and personnel to support our business; (15) we may be unable to hire and retain qualified personnel, including our key executive officers; (16) provisions in our certificate of incorporation, bylaws and shareholder rights plan could limit our share price and delay a change of management; (17) our stock price has been volatile historically and may continue to be volatile; and (18) some other unforeseen difficulties may occur. This 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 cautionary statements included in our other publicly filed reports and documents.

                       Internet America, Inc.
                     Unaudited Financial Summary
       (in thousands, except per share data and subscriber count)

Statement of Operations Data:
                                                           Quarter Ended
                                                     12/31/2007   12/31/2006

Wireless Broadband Internet Subscribers                  7,800        3,800

Total Subscribers                                       33,200       37,000

Revenue:
  Internet Services                                  $   2,154    $   2,002
  Other                                                    116            -
      Total Revenue                                      2,270        2,002

Operating Costs & Expenses:
  Connectivity & Operations                              1,136        1,037
  Sales & Marketing                                        173           53
  General & Administrative                               1,443          745
  Provision for Bad Debt                                    (6)           2
  Depreciation & Amortization                              304          207
       Operating Income (Loss)                            (780)         (42)

       EBITDA (Loss)                                      (476)         165

  Interest Expense, Net                                     (7)          (2)
  Minority Interest in Loss of Consolidated Subsidiary       0            -
       Net Income (Loss)                             $    (787)   $     (44)

  Basic & Diluted Income (Loss) Per Share            $   (0.06)   $    0.00
  Weighted Average Basic & Diluted Shares               13,683       12,509


Reconciliation of Net Income (a GAAP Measure) to EBITDA (a Non-GAAP Measure)

                                                           Quarter Ended
                                                     12/31/2007   12/31/2006

  Net Income (Loss)                                  $    (787)   $     (44)
  Add:
  Depreciation & Amortization                              304          207
  Interest Expense                                           7            2
  Minority Interest in Loss of Consolidated Subsidiary       0            -
       EBITDA (Loss)                                 $    (476)   $     165


Balance Sheet Data:
                                                           Periods Ending
                                                     12/31/2007   12/31/2006

  Current Assets                                     $   6,937    $   1,668
  Property & Equipment, Net                              1,923          885
  Other Assets, Net                                      5,908        5,223
       Total Assets                                  $  14,768    $   7,746

  Current Liabilities                                $   3,260    $   2,685
  Long-Term Liabilities                                  1,637          453
  Total Stockholders' Equity                             9,971        4,608
       Total Liabilities & Stockholders' Equity      $  14,768    $   7,746