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IceWEB CEO, Rob Howe, Comments on 10-K Filing

IceWEB™, Inc. (IWEB), a leading provider of Unified Data Storage appliances for cloud and virtual environments as well as secure, infinitely scalable Cloud Services, announced today that CEO, Rob Howe, issued the following comments concerning the filing of the Company’s Form 10-K for the fiscal year ended September 30, 2012.

As you look over our filings for fiscal 2012, the period ending in September of 2012, I would ask you to keep your reading of these results in context. As I have repeatedly predisposed anyone who was listening to understand, in addition to the personal issues surrounding the tragic passing of IceWEB Founder and CEO, John Signorello in late May of 2012, the company’s business activity suffered a major hit as well. So let me repeat, when I took over at IceWEB in late July, sales were at a standstill, customer and reseller confidence had dropped to zero, and those who had recently purchased anything bearing the IceWEB brand were extremely concerned that there would not be a company around to support them. Recovering from such a difficult set of issues takes a lot of hard work—and time.

The hard work began immediately, and to our credit, the IceWEB team of dedicated associates, dug in and made the improvements I asked of them in near-record time. They have proven themselves to be a committed and hard-working group, with the best long-term interests of IceWEB and our shareholders as their driving concern. We repaired old processes, instituted new ones, developed new products and launched them, identified and solidified new relationships and began rebuilding old ones, along with revamping our marketing and sales processes resulting in shipping product. We are no longer the demoralized company hanging by a thread that we were when I came on board the last week of July. Much has changed—and all for the better.

Repairing the sales and customer relationships proved to be more difficult and has taken longer than we hoped. Many customers and resellers, understandably, took a “wait-and-see” attitude. Wait and see if IceWEB will make it. Wait and see if somebody else will make the first move toward IceWEB’s technology. Wait and see if the new guy can do what he says he’ll do. We exited September with a great deal of work remaining in repairing our direct and reseller sales channels, but that work was underway, and was showing positive signs.

Therefore, I ask you to read these Fiscal 2012 results in the context in which they took place. Many of you repeatedly send me emails asking me to give updates on the current progress of the company. I always reply to you the same way, that the reporting cycle for our company is the place where those results will be revealed and nowhere else. I continue to stand by that.

Our Q-1 2013 results will be reported in accordance with SEC regulations in February. All of us here at IceWEB wish you a most prosperous New Year.

Rob

About IceWEB

IceWEB manufactures award-winning, high performance unified data storage appliances with enterprise storage management capabilities at a fraction of the price of traditional providers, while reducing space, power and cooling requirements and simplifying storage management for land-based, virtual and cloud environments. For more information please call 800-465-4637 or visit www.IceWEB.com. To become part of the Company's e-mail list for industry updates and press releases, please send an e-mail to ir@iceweb.com.

This press release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases you can identify those so-called "forward looking statements" by words such as "may," "will," "should," "expects," "plans," "targets," "believes," "anticipates," "estimates," "predicts," "potential," or "continue" or the negative of those words and other comparable words. These forward looking statements are subject to risks and uncertainties, product tests, commercialization risks, availability of financing and results of financing efforts that could cause actual results to differ materially from historical results or those anticipated. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC, which are available on its website at: http://www.sec.gov. We assume no obligation to update or alter our forward-looking statements made in this release or in any periodic report filed by us under the Securities Exchange Act of 1934, as amended, or any other document, whether as a result of new information, future events or otherwise, except as otherwise required by applicable federal securities laws.

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