EasyLink Services International (ESIC) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

PRESS RELEASE
Media Contact: 
Terri Deuel
EasyLink Services International
678-533-8003

EasyLink Services International Corporation Announces Financial Results and an Investor Conference Call On October 25,
2007 to Discuss Fiscal Year 2007 and the New Business Plan

Norcross, Georgia – October 23, 2007 – EasyLink Services International Corporation (NasdaqCM: ESIC) (formerly known as Internet Commerce Corporation), a global provider of comprehensive messaging services, today announced financial results for its fiscal fourth quarter and fiscal year 2007 and an investor conference call to discuss its new business plan.

Fourth Quarter Fiscal Year 2007 Results

Fourth quarter revenues from continuing operations in fiscal 2007 were approximately $5.4 million compared with our fourth quarter of fiscal 2006 revenues of approximately $5.2 million. Operating income increased 65% in fourth quarter fiscal 2007 from the prior-year period to approximately $885,000 from approximately $535,000. Net income was approximately $907,000 compared with net income of approximately $1.3 million a year ago, which included a one-time cash consideration of $825,000 for the sale of four patents and related patent applications.

Fiscal Year 2007 Results

For the fiscal year ended July 31, 2007, revenues from continuing operations totaled approximately $21.9 million, up 11% compared with fiscal year 2006 revenues of approximately $19.8 million. Operating income increased 29% in fiscal year 2007 from the prior-year period to $2.8 million from $2.2 million. Net income was approximately $2.7 million compared to a net income of approximately $3.0 million a year ago, which included a one-time cash consideration of $825,000 for the sale of four patents and related patent applications. Basic and diluted income per common share from continuing operations were $0.12 and $0.11, respectively, the same as compared to basic and diluted per common share for the fiscal year 2006 period.

Investor Conference Call and Slide Presentation

An investor call and slide presentation is scheduled to discuss EasyLink Services International Corporation’s fiscal year 2007 results and its new business plan. The conference call and slide presentation will begin at 10:00 a.m. EDT on Thursday, October 25, 2007.

The audio portion of the meeting will be accessed by dialing 800-503-2899 (US) and 303-248-0817 (International) and entering the pass code of 5338010. The slide presentation will be accessed through meeting id ESIC atwww.livemeeting.com/cc/icc/join. A meeting key will not be required to join. This investor conference call and slide presentation will be also be available for replay on the Company’s websites atwww.easylink.com orwww.icc.net.

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Forward-Looking and Cautionary Statements

Except for the historical information and discussion contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in the company’s filing with the U.S. Securities and Exchange Commission (SEC).

About EasyLink Services International Corporation

EasyLink Services International Corporation (EasyLink) (NasdaqCM: ESIC), headquartered in Norcross, GA, is uniquely positioned to deliver a variety of messaging services that range from simple web-based fax delivery for small businesses to sophisticated fax hosting, tailored corporate e-mail messaging, EDI business-to-business exchanges, specialized Telex protocol transmissions for marine and finance industries, and so much more. With more than $90 million in revenue and over two decades of servicing customers around the globe, EasyLink has established a proven track record for providing effective, reliable and secure communications. For more information on EasyLink, visit www.easylink.com or www.icc.net.

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EASYLINK SERVICES INTERNATIONAL CORPORATION

Consolidated Statements of Operations (unaudited)
(in thousands, except for share and per share amounts)

	Three Months Ended						Twelve Months Ended
	July 31,						July, 31
	2007			2006			2007			2006
Service revenues	$	5,370		$	5,206		$	21,870		$	19,771
Expenses:
Cost of services		1,801			1,546			7,630			7,447
Product development and enhancement		523			131			2,421			632
Selling and marketing		203			548			1,471			1,854
General and administrative		1,958			2,446			7,568			7,684
		4,485			4,671			19,090			17,617
Operating income		885			535			2,780			2,154
Other income (expense):
Interest and investment income		90			65			323			200
Interest expense		(86	)		(22	)		(145	)		(158	)
Other income (expense)		—			786			(21	)		841
		4			829			157			883
Income before provision for income taxes		889			1,364			2,937			3,037
(Benefit) provision for income taxes, current		(18	)		33			201			61
Net Income		907			1,331			2,736			2,976
Dividends on preferred stock		(50	)		(101	)		(284	)		(400	)
Extinguishment of dividends on retired preferred stock		—			—			200			—
Net income (loss) attributable to common stockholders	$	857		$	1,230		$	2,652		$	2,576
Basic income (loss) per common share	$	0.04		$	0.06		$	0.12		$	0.12
Diluted income (loss) per common share	$	0.04		$	0.05		$	0.11		$	0.11
Anti-dilutive stock options and warrants outstanding		1,392,786			1,235,989			1,379,036			1,584,704
Weighted average number of common shares outstanding – basic		23,160,695			20,092,440			22,860,683			20,643,139
Weighted average number of common shares outstanding – diluted		24,862,914			22,397,935			22,480,784			22,640,496

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EASYLINK SERVICES INTERNATIONAL CORPORATION

Consolidated Balance Sheets
(in thousands)

	July 31,			July 31,
	2007			2006
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	5,444		$	6,989
Accounts receivable, net of allowance for doubtful accounts and allowance for sales returns and allowances of $559 and $458, respectively		3,479			3,631
Prepaid expenses and other current assets		603			462
Total current assets		9,526			11,082
Restricted cash		434			433
Property and equipment, net		944			1,113
Goodwill		6,293			6,148
Other intangible assets, net		3,737			4,830
Investment in EasyLink		13,223			—
Deferred acquisition costs		1,039			—
Debt issue costs		203			—
Other assets		19			38
Total assets	$	35,418		$	23,644
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	615		$	662
Notes payable		10,000			—
Accrued expenses		1,153			575
Accrued dividends – preferred stock		116			232
Deferred revenue		228			262
Lease liability from acquisition		268			250
Other current liabilities		189			116
Total current liabilities		12,569			2,097
Long-term lease liability from acquisition		709			967
Total liabilities		13,278			3,064
Stockholders’ Equity:
Preferred stock		(a)			(a)
Common stock		233			227
Additional paid-in capital		101,861			103,043
Accumulated deficit		(79,954	)		(82,690	)
Total stockholders’ equity		22,140			20,580
Total liabilities and stockholders’ equity	$	35,418		$	23,644

(a) less than 1,000

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