Houston, December 11, 2007 - Internet America, Inc. (OTCBB: GEEK), a Houston-based provider of Internet access services, today announced the private sale of 4 million shares of its common stock at $1.00 per share for $4 million to a trust controlled by Mr. Steven G. Mihaylo. Additionally, Mr. Mihaylo was elected to fill a vacancy in the Company’s Board of Directors.

Internet America has filed a Form 8-K with the Securities and Exchange Commission that attaches as an exhibit the form of Securities Purchase Agreement and Registration Rights Agreement under which the Company issued 4 million shares of Common Stock and agreed to limited registration rights for those shares. As a result of this transaction, Mr. Mihaylo is now positioned as the Company’s largest shareholder with an approximate 23% ownership stake.

Mr. Mihaylo founded Inter-Tel (Delaware), Incorporated in 1969 and served as its CEO from 1969 to February 2006. During his stewardship, Inter-Tel grew from a one-man business to a global organization employing over 2,000 people and servicing over 500,000 business customers.

“I see a tremendous opportunity for Internet America to establish a leading position in the rural wireless Internet access market,” said Mr. Mihaylo. “I intend on being an active participant in the Company’s growth and aim on directing my forty plus years of business experience in the telecommunications and data industries to educating the institutional investment community on the Company’s strategic objectives and market opportunity.”

“We are very excited about completing this capital raise as it allows us to continue our active growth and acquisition strategy,” said William (Billy) E. Ladin, Jr., Internet America’s Chief Executive Officer. “We believe that we are better positioned to pursue our growth initiatives now that we have expanded our access to lower rate Department of Agriculture Rural Utilities Service debt, coupled with the proceeds generated from this private placement. Additionally, adding Steve to our board will enable us to benefit from his vast experience in supporting the growth of early stage telecommunications companies.”

About Internet America
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.

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.