JUPITERMEDIA CORPORATION REPORTS RECORD RESULTS FOR ITS FIRST QUARTER ENDED MARCH 31, 2005

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JUPITERMEDIA CORPORATION REPORTS RECORD RESULTS FOR ITS FIRST QUARTER ENDED MARCH 31, 2005

(New York, NY - May 3, 2005) - Jupitermedia Corporation (Nasdaq: JUPM) today reported results for the quarter ended March 31, 2005. Revenues for the first quarter of 2005 were $25.0 million compared to revenues of $14.4 million for the same period last year, an increase of 74%. Net income for the first quarter was $5.5 million, or $0.16 per diluted share, compared to net income of $1.6 million, or $0.06 per diluted share, for the same period last year. We acquired Dynamic Graphics Group on March 7, 2005. Excluding the results of Dynamic Graphics Group for the quarter ended March 31, 2005, our revenues for the first quarter were $21.6 million and net income was $5.2 million.

"We are pleased with our financial results for the first quarter, with record revenues and net income," stated Jupitermedia's Chairman and CEO Alan M. Meckler. "Significant highlights for the first quarter include continued growth of our JupiterImages division, both organically and with the recent acquisition of Dynamic Graphics Group. With the acquisition of Dynamic Graphics Group, Jupitermedia is now the third largest company in the world in the field of selling and distributing stock photography, stock footage and other imagery. Dynamic Graphics' Creatas Images, PictureQuest and Liquid Library brands are widely known worldwide and provide us with thriving sales operations in the United States, the U.K., Germany and Australia. In addition, Dynamic Graphics Group is one of the leading publishers of magazines for stock photo and graphics professionals. We will make effective use of these properties to help distribute and cross-promote our existing JupiterImages brands. This acquisition was accretive to our earnings for the first quarter," added Meckler.

Jupitermedia Corporation 1st Quarter 2005 Financial Results Conference Call Alert
Jupitermedia Corporation invites you to participate in its conference call reviewing 2005 first quarter results, scheduled for Wednesday, May 4, 2005 at 11:00 am EST.

The conference call number is (800) 289-0518 for domestic participants and (913) 981-5532 for international participants; pass code "784 8237." Please call five minutes in advance to ensure that you are connected prior to the presentation. The conference call replay will be available until Wednesday, May 18, 2005. Replay call numbers are (888) 203-1112 for domestic participants and (719) 457-0820 for international participants: pass code: "784 8237."

Acquisitions

In March, Jupitermedia announced the acquisition of Creatas, L.L.C., the parent company of Dynamic Graphics, Inc. (www.dgusa.com) and PictureQuest Acquisition Company, L.L.C., and their many stock photo and related graphics brands ("Dynamic Graphics Group"), for $38.2 million in cash and 1,483,074 restricted shares of Jupitermedia common stock for a total purchase price of approximately $60.4 million. Jupitermedia financed the cash portion of the purchase price with cash on hand and $20.0 million in borrowings under a credit facility with JP Morgan Chase Bank, N.A. obtained in connection with the transaction.
In March, Jupitermedia announced the acquisition of GraphicDesignForum (www.graphicdesignforum.com), a leading interactive community of design professionals. This site, which is now part of Jupitermedia's Graphics.com Network, provides designers and creative professionals with tutorials on using leading illustration and image editing programs. Terms of this acquisition were not disclosed.
In April, Jupitermedia announced the acquisition of JGuru.com (www.jguru.com), an online community that provides news, information, forums and online courses designed for Java™ programmers and software developers. The JGuru.com online community is comprised of top Java™ developers, who are encouraged to maintain their individuality and express their own opinions freely, which gives JGuru.com the credibility needed for the success of any online community. Terms of this acquisition were not disclosed.

Online Image Offerings
Jupitermedia continued to expand and strengthen its world-class proprietary JupiterImages offerings with the addition of the following:

In February, Jupitermedia announced the re-launch of its Animations.com Web site, (www.animations.com), which now offers over 300,000 animations, Flash components, background graphics and other images. Many of the images are original creations. Animations.com's royalty-free license allows subscribers to use graphics in any personal, commercial or professional project. Animations.com now includes all of the content previously available on FlashComponents.com.

In March, Jupitermedia announced the launch of PhotoObjects.net (www.photoobjects.net), a royalty-free subscription image service offering more than 100,000 photo-objects. Pre-masked and ready to drop into any background, photo-objects from PhotoObjects.net provide high-resolution quality and save creative professionals significant design time.

In April, Jupitermedia announced a collaboration with Adobe through Adobe® Stock Photos, a new stock photography service that offers designers one-stop shopping for high-quality, royalty-free images for layout and design. Designers can download non-watermarked comp images from Jupitermedia's Comstock Images collection (www.comstock.com) and bring them into a layout and then purchase without ever having to leave Adobe Creative Suite 2.

The following table sets forth the organic and acquisition-related revenue growth of Jupitermedia's online images business for the three months ended March 31, 2005 (dollars in thousands):

unaudited	Three Months Ended March 31, 2004	Organic Revenue Increase (Decrease)	Acquisition Revenue Growth	Three Months Ended March 31, 2005	Organic Growth Rate%	Overall Growth Rate%

Online Images:
JupiterImages(1):	$2,457	$1,097	$-	$3,554	4%	45%
Acquisitions(2):	-	-	8,609	8,609	N/M	N/M

Online Images Revenues:	$2,457	$1,097	8,609	12,163	4%	395%


unaudited	Three Months Ended December 31, 2004	Organic Revenue Increase (Decrease)	Acquisition Revenue Growth	Three Months Ended March 31, 2005	Organic Growth Rate%	Overall Growth Rate%

Online Images:
JupiterImages(3):	$6,984	$656	$-	$7,640	4%	45%
Acquisitions(4):	542	-	3,981	4,523	N/M	73%

Online Images Revenues:	$7,526	$656	3,981	12,163	-	6%



(1) JupiterImages consists of ArtToday, Inc., which was acquired on June 30, 2003. (2) Acquisitions include: Comstock Images, acquired on April 1, 2004; Thinkstock Images, acquired on July 28, 2004; Hemera Images, acquired on November 12, 2004; and Dynamic Graphics Group, acquired on March 7, 2005. (3) JupiterImages consists of: ArtToday, Inc., acquired on June 30, 2003; Comstock Images, acquired on April 1, 2004; and Thinkstock Images, acquired on July 28, 2004. (4) Acquisitions include: Hemera Images, acquired on November 12, 2004; and Dynamic Graphics Group acquired on March 7, 2005. Since Hemera Images was acquired on November 12, 2004, a comparison of revenues for the period from the date of acquisition to December 31, 2004, to revenues for the three months for the period ended March 31, 2005, is not meaningful. Accordingly, for the purpose of calculating organic growth from the three months ended December 31, 2004 to the three months ended March 31, 2005, revenues from Hemera Images have been excluded.

Online Media Offerings
Jupitermedia continued to expand and strengthen its world-class proprietary JupiterWeb offerings with the addition of the following:

In February, Jupitermedia announced the launch of the Personal Technology Channel on internet.com (www.internet.com), which provides enterprise IT and Internet Industry professionals with the news, information resources and community they need to succeed in today's rapidly evolving IT and business environment. internet.com's Personal Technology Channel attracts professionals and serious enthusiasts, from developers to senior-level executives looking for up-to-date analysis, insight and perspective on digital mobile devices, PDAs, smart phones and wireless access, among other topics. Sites in this channel include CPUPlanet.com, PalmBoulevard.com, PDAStreet.com, PocketPCCity.com, PocketPCWire.com, PSIONPlace.com, RIMRoad.com, SharkyExtreme.com, SmartPhoneToday.com and Wi-FiHotSpotList.com.

In March, Jupitermedia announced the launch of Enterprise VoIP Planet (www.voipplanet.com), The IT Manager's Guide to Voice Over IP. Enterprise VoIP Planet provides decision support resources for IT managers who are evaluating and implementing the move from traditional phone service to VoIP. The site, which is part of JupiterWeb's internet.com Network, features news, tutorials, case studies and tips.

Research Services
In April, Jupitermedia announced the launch of the SMB Marketing research service, the ninth new practice started by JupiterResearch since its acquisition in July 2002 by Jupitermedia. This service helps companies market effectively and increase sales to small- and medium-size businesses. Though numerous, small-and medium-size businesses are highly diverse, variable in their technology purchasing patterns and difficult to target cost effectively. Drawing on comprehensive surveys of SMB decision makers, intelligence from successful marketers and JupiterResearch studies on evolving online marketing best practices, SMB Marketing identifies and profiles attractive market segments and spells out effective tactics to win SMB market share.

Conferences and Trade Shows

JupiterEvents, a division of Jupitermedia, produces paid conferences and trade shows on IT and business-specific topics worldwide that are aligned with the content on our Web sites and our research offerings. JupiterEvents held one paid conference and trade show in the first quarter of 2005, Search Engine Strategies Conference & Expo 2005.

JupiterEvents has announced the following conferences and trade shows for the remainder of 2005:

WiFi/VoWiFi Planet Conference & Expo 2005 (April 20-21, Tokyo, Japan)
Search Engine Strategies Conference & Expo 2005 (April 20-21, Tokyo, Japan)
Search Engine Strategies Conference & Expo 2005 (May 4-5, Toronto, Canada)
Stretch Design Conference 2005 (May 5-7, Austin, TX)
ISPCON Spring 2005 (May 24-26, Baltimore, MD)
Search Engine Strategies Conference & Expo 2005 (June 1-2, London, U.K.)
WiFi/VoWiFi Planet Conference & Expo 2005 (June 14-16, Baltimore, MD)
Digital Rights Management Strategies 2005 (July 27-28, New York, NY)
Search Engine Strategies Conference & Expo 2005 (August 8-11, San Jose, CA)
IT Service Management Forum Conference & Expo 2005 (September 19-24, Chicago, IL)
ISPCON Fall 2005 (October 18-20, Santa Clara, CA)
Search Engine Strategies Conference & Expo 2005 (October 26-27, Stockholm, Sweden)
Search Engine Strategies Conference & Expo 2005 (December 5-8, Chicago, IL)
WiFi/VoWiFi Planet Conference & Expo 2005 (December 6-8, San Jose, CA)

Jupitermedia Corporation

Consolidated Statements of Operations

For the Three Months Ended March 31, 2004 and 2005

(unaudited)

(in thousands, except per share amounts)

	Three Months Ended March 31,
	2004	2005
Revenues	$14,353	$25,014
Cost of revenues	6,020	$9,552
Gross Profit	$8,333	$15,462

Operating expenses:
Advertising, promotion and selling	$3,575	$4,693
General and administrative	2,525	3,407
Depreciation	223	287
Amortization	395	829
Total operating expenses	6,718	9,216

Operating income	1,615	6,246
Income (loss) on investments and other, net	14	(30)
Interest income	18	119
Interest expense	(6)	(88)
Income before income taxes, minority interests and equity income from venture fund investments and other, net	1,641	6,247
Provision for income taxes	-	678
Minority interests	$(11)	$(23)
Equity income from venture fund investments and other, net	7	-
Net income	$1,637	$5,546

Earnings per share:
Basic	$0.06	$0.17
Diluted	$0.06	$0.16

Shares used in computing earnings per share:
Basic	26,026	32,733
Diluted	29,544	35,693

Jupitermedia Corporation

Consolidated Statements of Operations

For the Three Months Ended March 31, 2005

(unaudited)

(in thousands, except per share amounts)

	Jupitermedia Pre-acquisition	Dynamic Grapics Group(1)	Jupitermedia Post-acquisition
Revenues	$21,550	$3,464	$25,014
Cost of revenues	7,847	1,705	9,552
Gross Profit	$13,703	$1,759	$15,462

Operating expenses:
Advertising, promotion and selling	4,053	640	4,693
General and administrative	2,949	458	3,407
Depreciation	236	51	287
Amortization	704	125	829
Total operating expenses	7,942	1,274	9,216

Operating income	5,761	485	6,246
Income (loss) on investments and other, net	(30)	-	(30)
Interest income	118	1	119
Interest expense	(88)	-	(88)
Income before income taxes, minority interests and equity income from venture fund investments and other, net	5,761	486	6,247
Provision for income taxes	573	105	678
Minority interests	$(23)	-	(23)
Net income	$5,165	$381	$5,546

(1) Represents the operating results of Dynamic Graphics Group for the period from the date of acquisition by Jupitermedia (March 7, 2005) to March 31, 2005.

Segment Information

The following tables summarize the results of the segments of Jupitermedia for the three months ended March 31, 2004 and 2005. Online images consists of the JupiterImages business that includes Comstock Images, Creatas Images, PictureQuest, Liquid Library, Thinkstock Images, Thinkstock Footage, Photos.com, HemeraImages.com, Ablestock.com, PhotoObjects.net, Clipart.com and Animations.com. Online media consists of the JupiterWeb business that includes the internet.com, EarthWeb.com, DevX.com, ClickZ.com and Graphics.com Networks. Research represents the JupiterResearch business. Events represent the JupiterEvents business. Other includes corporate overhead, depreciation, amortization and venture fund related activities.

(unaudited)(In thousands)
	Three Months Ended March 31
	2004	2005
Revenues:
Online Images	$2,457	$12,163
Online Media	$7,219	$7,540
Research	$2,342	$2,555
Events	$2,322	$2,748
Other	$13	$8
	$14,353	$25,014
Cost of revenues:
Online Images	$635	$3,185
Online Media	$2,903	$3,071
Research	$1,236	$1,440
Events	$1,246	$1,856
	$6,020	$9,552
Gross Profit:
Online Images	$1,822	$8,978
Online Media	$4,316	$4,469
Research	$1,106	$1,115
Events	$1,076	$892
Other	$13	$8
	$8,333	$15,462
Advertising, promotion and selling:
Online Images	$319	$1,576
Online Media	$1,684	$1,793
Research	$718	$868
Events	$854	$456
	$3,575	$4,693
General and administrative:
Online Images	$254	$598
Online Media	$420	$181
Research	$197	$223
Events	$44	$40
Other	$1,610	$2,365
	$2,525	$3,407
Depreciation	$223	$287
Amoritization	$395	$829
Operating income (loss):
Online Images	$1,249	$6,804
Online Media	$2,212	$2,495
Research	$191	$24
Events	$178	$396
Other	$(2,215)	$(3,473)
	$1,615	$6,246

Jupitermedia Corporation

Consolidated Balance Sheets

December 31, 2004 and March 31, 2005

(in thousands, except share and per share amounts, unaudited)

	December 31, 2004	March 31, 2005

ASSETS

Current assets:
Cash and cash equivalents	$30,179	$19,586
Accounts receivable, net of allowances of $966 and $1,550, respectively	15,385	20,496
Unbilled accounts receivable	1,530	1,580
Prepaid expenses and other	2,713	3,970
Total current assets	49,807	45,632

Property and equipment, net of accumulated depreciation of $9,256 and $9,495, respectively	2,339	8,645
Intangible assets, net of accumulated amortization of $5,371 and $6,199, respectively	20,939	28,695
Goodwill	42,015	95,259
Investments and other assets	1,197	1,336
Total assets	$116,297	$179,567

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable	$2,277	$9,423
Accrued payroll and related expenses	1,785	2,525
Accrued expenses and other	5,037	7,263
Deferred revenues	14,183	19,457
Current portion of long-term debt	-	6,667
Total current liabilities	23,282	45,335

Long Term Debt	-	13,333
Deferred Revenues	510	586
Deferred income tax Liabilities	121	606
Other long-term liabilities	225	197
Total liabilities	24,138	60,057

Stockholders' equity:
Preferred stock, $.01 par value, 4.0 shares authorized, no shares issued	-	-
Common stock, $.01 par value, 75,000,000 shares authorized, 32,378,361 and 33,912,127 shares issued at December 31, 2004 and March 31, 2005, respectively	324	339
Additional paid-in capital	215,648	237,574
Accumulated deficit	(123,690)	(118,144)
Treasury stock, shares at cost	(106)	(106)
Accumulated other comprehensive income	(17)	(153)
Total stockholders' equity	92,159	119,510
Total liabilities and stockholders' equity	$116,297	$179,567

Jupitermedia Corporation

Consolidated Statements of Cash Flows

Three Months Ended March 31, 2004 and 2005

(unaudited)

(in thousands)

	Three Months Ended March 31
	2004	2005
Cash flows from operating activities:
Net income	$1,637	$5,546
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	618	1,116
Provision (benefit) for losses on accounts receivable	217	(38)
Minority interests	11	23
Equity income from venture fund investments and other, net	(7)	-
(Income) on investments and other, net	(14)	30
Changes in current assets and liabilities, (net of businesses acquired):
Accounts receivable	(645)	1,483
Unbilled accounts receivable	(10)	(50)
Prepaid expenses and other	196	264
Accounts payable and accrued expenses	(965)	(2,084)
Deferred revenues	2,203	913
Net cash provided by operating activities	3,241	7,203

Cash flows from investing activities:
Additions to property and equipment	(61)	(221)
Acquisitions of businesses and other	(1,273)	(37,830)
Distribution from internet.com venture funds	144	-
Proceeds from sales of assets and other	5	-
Net cash used in investing activities	(1,185)	(38,051)

Cash flows from financing activities:
Borrowings under credit facilities	-	20,000
Debt issuance costs	-	(75)
Proceeds from exercise of stock options	1,080	330
Net cash provided by financing activities	1,080	20,255

Net increase (decrease) in cash and cash equivalents	3,136	(10,593)

Cash and cash equivalents, beginning of period	9,567	30,179

Cash and cash equivalents, end of period	$12,703	$19,586

Supplemental disclosures of cash flow:
Cash paid for income taxes	$-	$227
Cash paid for interest	$6	$5

Business Outlook

Jupitermedia's financial guidance is prepared in accordance with accounting principles generally accepted in the United States of America. Historical results below have been adjusted to conform to this presentation. The amounts below reflect the preliminary allocation of the purchase prices paid by Jupitermedia in connection with its recent acquisitions of Thinkstock Images, Megapixel.net, Hemera Technologies Inc., Creatas, L.L.C., the parent company of Dynamic Graphics, Inc., GraphicDesignForum.com and JGuru.com and are subject to change pending a final allocation of these amounts. The following forward looking-statements reflect Jupitermedia's expectations as of May 3, 2005. Due to potential changes in general economic conditions and the various other risk factors discussed below and in Jupitermedia's reports filed with the Securities and Exchange Commission from time to time, actual results may differ materially. Jupitermedia intends to continue its practice of not updating forward-looking statements until its next quarterly results announcement, other than in publicly available statements.

Future Expectations

	Actual Total 2004	Q1 2005	Q2 2005	Total 2005
(in millions, except per share amounts)
Revenues ($M)	$72.0	$25.0	$32.5-33.5	$125.0-129.0
Cost of revenues, advertising, promotion & selling, and G & A expenses	$53.0	$17.7	$22.5-23.5	$86.5-89.5
EBITDA (Earnings before interest, taxes, depreciation and amortization)	$19.0	$7.3	$9.5-10.5	$38.5-39.5
Depreciation and amortization	$3.0	$1.1	$1.8	$6.5
Provision for Income taxes (1)	$0.3	$0.7	$1.1	$3.5
Net income	$15.7	$5.5	$7.1	$28.0-30.0
Diluted share count	$31.8	$35.7	$37.2	$37.0
Earnings per diluted share	$0.49	$0.16	$0.19	$0.77-0.79

(1) The increase in the provision for income taxes from Jupitermedia's guidance issued on February 15, 2005 is primarily due to deferred income tax expense related to the amortization of certain intangibles, primarily goodwill from the Dynamic Graphics Group acquisition, for income tax purposes that are not amortized in our financial statements. This deferred income tax expense will be recorded as a long-term liability on our balance sheet and will not be paid in cash unless the related assets are sold.

About Jupitermedia Corporation
Jupitermedia Corporation (Nasdaq: JUPM), (www.jupitermedia.com) headquartered in Darien, CT, is a leading global provider of original information, images, research and events for information technology, business and creative professionals. Jupitermedia includes JupiterImages, one of the leading images companies in the world with over 7.0 million images online serving creative professionals with brands like Comstock Images, Creatas Images, PictureQuest, Liquid Library, Thinkstock Images, Thinkstock Footage, Photos.com, HemeraImages.com, Ablestock.com, PhotoObjects.net, Clipart.com and Animations.com; and JupiterWeb, the online media division of Jupitermedia which operates five distinct online networks: internet.com and EarthWeb.com for IT and business professionals; DevX.com for developers; ClickZ.com for interactive marketers; and Graphics.com, for creative professionals. JupiterWeb properties include more than 150 Web sites and over 150 e-mail newsletters that are viewed by over 20 million users and generate over 300 million page views monthly. Jupitermedia also includes: JupiterResearch, a leading international research advisory organization specializing in business and technology market research in 18 business areas and 14 vertical markets; and JupiterEvents, which produces offline conferences and trade shows focused on IT and business-specific topics, including Search Engine Strategies and WiFi/VoWiFi Planet.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release which are not historical facts are "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example, the competitive environment in which Jupitermedia competes; the unpredictability of Jupitermedia's future revenues, expenses, cash flows and stock price; Jupitermedia's ability to integrate acquired businesses, products and personnel into its existing businesses; Jupitermedia's dependence on a limited number of advertisers; and Jupitermedia's ability to protect its intellectual property. For a more detailed discussion of such risks and uncertainties, refer to Jupitermedia's reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and Jupitermedia assumes no obligation to update the forward-looking statements after the date hereof.

All current Jupitermedia Corporation press releases can be found on the World Wide Web at www.jupitermedia.com/corporate/press.html

CONTACT:
Lisa DiGiacomo
Marketing & Public Relations Associate
Jupitermedia Corporation
212-547-7939
[email protected]

All current Jupiter Research press releases can be found online at www.jupitermedia.com/corporate/press.html.

All current Jupitermedia Corporation press releases can be found on the World Wide Web at http://www.internet.com/corporate/press.html.