United Online Reports First-Quarter 2006 Results and Declares Quarterly Cash Dividend




                       Revenues of $127.3 Million
                   Operating Income of $20.6 Million
                    Adjusted OIBDA of $34.6 Million
              Quarterly Cash Dividend of $0.20 per Share

WOODLAND HILLS, Calif., May 3, 2006 (PRIMEZONE) -- United Online, Inc. (Nasdaq:UNTD), a leading provider of consumer Internet and media services, today reported results for its first quarter ended March 31, 2006. The company also announced that its Board of Directors has declared a quarterly cash dividend of $0.20. The record date for the dividend is May 12, 2006 and the dividend is payable on May 31, 2006. In addition, effective today, the company will begin reporting its operating results by segments: Communications -- consisting of its Internet access, email and VoIP businesses; and Content & Media -- consisting of its social-networking, Web-hosting and photo-sharing businesses.

"With 32% growth in Content & Media revenues and our 19th consecutive quarter of record consolidated adjusted OIBDA, United Online's first quarter results have 2006 off to a terrific start," said Mark R. Goldston, chairman, CEO and president of United Online. "Strong organic growth in Content & Media revenues and our recent acquisitions of MyPoints.com and Namesdatabase.com demonstrate our continued focus on diversification. With over 60 million registered accounts across all of our businesses, United Online's strategy is to create long-term value by growing Content & Media revenues while managing our Communications businesses primarily for adjusted OIBDA contribution."



 First Quarter 2006 Consolidated Results:
 ----------------------------------------

  -- Total revenues were $127.3 million versus $130.5 million for
     the year-ago quarter.

  -- Operating income was $20.6 million, or 16.2% of revenues,
     versus operating income of $21.0 million, or 16.1% of revenues,
     in the year-ago quarter.

  -- Adjusted operating income before depreciation and amortization
     ("OIBDA")(1) was a record $34.6 million, or 27.2% of revenues, an
     increase of 10% versus adjusted OIBDA of $31.5 million, or 24.1%
     of revenues, in the year-ago quarter.

  -- Pay accounts(2) increased by 84,000 during the quarter to 5.1
     million; active accounts(2) totaled 18.7 million at March 31,
     2006. During the quarter, the company acquired Namesdatabase.com
     which, at the date of acquisition, had approximately 58,000 pay
     accounts and approximately 2.7 million active accounts.

  -- Net income was $12.7 million or $0.20 per share (including 
     $3.9 million of stock-based compensation expense, net
     of tax, and a $1.0 million, net of tax, cumulative effect
     adjustment in connection with the adoption of Financial
     Accounting Standards Board Statement No. 123R ("FAS 123R"),
     "Share-Based Payment", an increase of 10% versus $11.5 million
     or $0.18 per share, for the year-ago quarter (including 
     $0.9 million of stock-based compensation expense, net of tax,
     recorded under the intrinsic value method).

  -- Adjusted net income(3) was $18.1 million, an increase of 11%
     versus $16.2 million for the year-ago quarter. On a per share
     basis, adjusted net income for the quarter was $0.27 per share,
     an increase of 8% versus $0.25 per share for the year-ago
     quarter. Adjusted net income is calculated in a manner consistent
     with the analyst consensus estimate as reported by First Call.

"United Online's new segment reporting format is driven by the evolution of our business and recent developments including acquisitions, the growing scale of our Content & Media properties, and the maturation of our access business," said Charles S. Hilliard, executive vice president, finance and CFO. "As our strong first quarter results demonstrate, we continue to grow our Content & Media services in a financially disciplined manner by selectively investing in our Communications business, which declined by 104,000 pay access accounts and added 6,000 pay VoIP accounts in Q1."

Segment Reporting

A primary component of the company's strategy is to diversify its revenues beyond its legacy Internet access business. In order to focus resources towards the company's growth opportunities, including its growing social networking business, management has realigned the internal financial reporting structure into two business units.

As a result, the company's reportable segments now include the following, organized on the basis of products and services provided:



 Segment            Internet Services
 -------            -----------------
 Communications     Internet access, email and VoIP

 Content & Media    Social networking, Web hosting and photo sharing;
                    commencing on April 10, 2006, this segment will
                    also include online loyalty marketing.

 First Quarter 2006 Segment Results:  
 -----------------------------------

 Management has determined that adjusted OIBDA is the appropriate
 measure for assessing performance and for allocating resources among
 its segments.

  -- Communications revenues were $100.3 million, or 78.8% of
     consolidated revenues, versus $110.0 million, or 84.3% of
     consolidated revenues in the year-ago quarter.

  -- Content & Media revenues were $27.0 million, or 21.2% of
     consolidated revenues, an increase of 32% versus $20.5 million,
     or 15.7% of consolidated revenues, in the year-ago quarter.

  -- Communications adjusted OIBDA was $33.5 million, or 33.4% of
     Communications revenues, an increase of 2% versus $32.8 million,
     or 29.8% of Communications revenues, in the year-ago quarter.

  -- Content & Media adjusted OIBDA was $6.3 million, or 23.3% of
     Content & Media revenues, an increase of 97% versus $3.2 million,
     or 15.6% of Content & Media revenues, in the year-ago quarter.

  -- Other reconciling items (unallocated corporate expenses) to
     arrive at consolidated adjusted OIBDA were ($5.1) million versus
     ($4.5) million in the year-ago quarter.

 Additional Highlights:  
 ----------------------

  -- Cash balances at March 31, 2006 were $175.3 million, including
     cash, cash equivalents and short-term investments. During the
     quarter, the company repaid the remaining $54.2 million balance
     of its senior term loan facility and acquired
     Namesdatabase.com for $10.0 million in cash.

  -- Cash flows from operations were $14.2 million versus $31.7
     million for the year-ago quarter. In connection with the adoption
     of FAS 123R, certain tax benefits from exercised stock options
     that were previously reflected in the operating section of the
     statement of cash flows are now presented in the financing
     section.

  -- Free cash flow(4) was $8.6 million versus $28.2 million for the
     year-ago quarter.

  -- On April 10, 2006 the company acquired MyPoints.com for
     approximately $56.0 million in cash.

Business Outlook:

The following forward-looking information includes certain projections made by management as of the date of this release. United Online does not intend to revise or update this information and may not provide this type of information in the future. Due to a variety of factors, actual results may differ significantly from those projected. Factors include, without limitation, the factors referenced later in this announcement under the caption "Cautionary Information Regarding Forward-Looking Statements." These and other factors are discussed in more detail in the company's filings with the Securities and Exchange Commission.

Following is the company's guidance for the June 2006 quarter and the year ending December 31, 2006:



                    ---------------   --------------------------------
 (in millions)      Jun '06 Q Est.      CY'06 Est.    Prior CY'06 Est.
                    ---------------   --------------------------------
 Operating income    $18.1 - $20.1     $76.0 - $81.0    $73.6 - $79.6
  Depreciation            5.1              20.0             20.5
  Amortization            4.9              19.0             15.9
  Stock-based
   compensation           4.9              19.0             21.0
                    ---------------   --------------------------------
 Adjusted operating
  income before      
 depreciation and
 amortization(1)     $33.0 - $35.0    $134.0 - $139.0  $131.0 - $137.0
                    ---------------   --------------------------------
 Weighted average
  diluted shares      67.5 - 68.5       68.0 - 69.0      67.5 - 68.5

  -- Total revenues for the June 2006 quarter are estimated to be
     between $130 million and $132 million.

 (1) Adjusted operating income before depreciation and amortization
 (adjusted OIBDA) is defined as operating income before depreciation,
 amortization and stock-based compensation. Management believes that
 because adjusted OIBDA excludes certain non-cash expenses (such as
 depreciation, amortization and stock-based compensation), this
 measure provides investors with additional useful information to
 measure the company's performance, particularly with respect to
 changes in performance from period to period. Management uses
 adjusted OIBDA to measure the company's performance and previously
 monitored adjusted OIBDA to ensure compliance with specific financial
 performance covenants under its term loan, which was repaid in
 January 2006. The company's Board of Directors uses this measure in
 determining certain compensation incentives for certain members of
 the company's management. Adjusted OIBDA is not determined in
 accordance with generally accepted accounting principles (GAAP) and
 should be considered in addition to, not as a substitute for or
 superior to, financial measures determined in accordance with GAAP. A
 limitation associated with the use of adjusted OIBDA is that it does
 not reflect the periodic costs of certain capitalized tangible and
 intangible assets used in generating revenues in the company's
 business. Management evaluates the costs of such tangible and
 intangible assets through other financial measures such as capital
 expenditures and purchase accounting. An additional limitation
 associated with this measure is that it does not include stock
 compensation expenses related to the company's workforce. Management
 compensates for this limitation by providing supplemental information
 about stock compensation expense on the face of the consolidated
 statements of operations. Management does not believe either of these
 limitations is material, particularly when such measure is disclosed
 with its most comparable GAAP financial measure, operating income. A
 reconciliation to operating income is provided in the accompanying
 tables.

 (2) A pay account represents a unique billing relationship with a
 customer who subscribes to one or more of the company's services. A
 pay account does not equate to a unique subscriber since one
 subscriber could have several pay accounts. Active accounts are
 defined as all free access, VoIP, social-networking and email users
 that logged on to our services at least once during the preceding 31
 days, together with all pay accounts. Additionally, active accounts
 include the number of free Web sites that received at least one
 unique visitor within the preceding 90 days and the number of free
 photo-sharing users that logged on to the service at least once
 within the preceding 90 days. A table entitled "Analysis of Pay
 Accounts" is presented elsewhere in this release.

 (3) Adjusted net income is defined as net income before the after-tax
 effect of amortization of intangible assets, stock-based compensation
 and the cumulative effect of a change in accounting principle as a
 result of the adoption of FAS 123R. Management believes that adjusted
 net income provides investors with additional useful information to
 measure the company's financial performance, particularly from period
 to period, exclusive of certain non-cash expenses (such as
 amortization and stock-based compensation). Management also uses
 adjusted net income for this purpose. Adjusted net income is not
 determined in accordance with generally accepted accounting
 principles (GAAP) and should be considered in addition to, not as a
 substitute for or superior to, financial measures determined in
 accordance with GAAP. The limitations of adjusted net income are
 that, similar to adjusted OIBDA, it does not include certain costs,
 and the term adjusted net income does not have a standardized
 meaning. Therefore, other companies may use the same, or a similarly
 named measure but exclude different items, which may not provide
 investors a comparable view of the company's performance in relation
 to other companies in the same industry. Management compensates for
 this limitation by presenting the most comparable GAAP measure, net
 income, directly ahead of adjusted net income in this earnings
 release and by providing a reconciliation that shows and describes
 the adjustments made. Management does not believe these limitations
 are material, particularly when such measure is disclosed with its
 most comparable GAAP financial measure, net income. A reconciliation
 to net income is provided in the accompanying tables.

 (4) Free cash flow is defined as net cash provided by operating
 activities, less capital expenditures and including the excess tax
 benefits from stock-based compensation. Management believes that free
 cash flow provides investors with additional useful information to
 measure operating liquidity because it reflects the company's
 operating cash flows after investing in capital assets. This measure
 is used by management, and may also be useful for investors, to
 assess the company's ability to pay its quarterly dividend, repay
 debt obligations and generate cash flow for a variety of strategic
 opportunities, including reinvestment in the business, and effecting
 potential acquisitions and share repurchases. Free cash flow is not
 determined in accordance with generally accepted accounting
 principles (GAAP) and should be considered in addition to, not as a
 substitute for or superior to, financial measures determined in
 accordance with GAAP. The limitation of free cash flow is that it
 does not represent the total increase or decrease in cash during the
 period. Management does not believe that this is a material
 limitation, particularly when such measure is disclosed with its most
 comparable GAAP financial measure, net cash provided by operating
 activities. A reconciliation to net cash provided by operating
 activities is provided in the accompanying tables.

About United Online

United Online, Inc. (Nasdaq:UNTD) is a leading provider of consumer Internet and media services through a number of brands, including NetZero, Juno, Classmates and MyPoints. The company's Communications services include Internet access, email and VoIP. The company's Content & Media services include social networking and online loyalty marketing. United Online is headquartered in Woodland Hills, CA, with offices in New York City, NY; Renton, WA; San Francisco, CA; Schaumburg, IL; Orem, UT; Erlangen, Germany; and Hyderabad, India. For more information about United Online, please visit http://www.untd.com.

United Online will be hosting a conference call today at 2:00PM PT (5:00PM ET) to discuss its quarterly results. A live Web cast of the call can be accessed on the Investors section of the company's Web site at www.untd.com. A recording of the call will be available on the site for seven days.

Cautionary Information Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Statements containing words such as "guidance," "may," "believe," "will," "expect," "project," "projections," "business outlook" and "estimate" or similar expressions constitute forward-looking statements. These statements include, without limitation, expectations regarding: guidance for future financial performance; changes in pay accounts; weighted average diluted shares; depreciation and amortization; and stock-based compensation. Actual results may differ materially from those predicted and reported results should not be considered an indication of future performance. Potential risks and uncertainties include, among others: the effect of competition, including adoption of broadband services and changes in the company's pricing or competitors' pricing, and the use of promotional offers to acquire or retain subscribers; the company's inability to retain its existing subscribers and the rate at which new subscribers sign up for the company's services; changes in the mix of pay accounts; the effects of changes in marketing expenditures or shifts in marketing expenditures to support new products and services; the effects of seasonality and changes in Internet usage; changes in the projected number of weighted average diluted shares due to the issuance of stock, restricted stock units and stock options, stock repurchases, fluctuations in the company's stock price or other factors; changes in the projected amortization and depreciation figures due to capital spending or other factors; potential impairment of goodwill and intangibles; changes in usage by subscribers, additional telecommunications costs or other factors negatively impacting the company's cost of revenue; changes in active accounts; the company's inability to maintain its agreements with telecommunications providers on attractive terms; the company's ability to successfully integrate acquisitions; problems associated with the company's billing systems; the company's inability to retain key customers and key personnel; technological problems or developments; risks associated with litigation; and governmental regulation. From time to time, the company considers acquisitions that, if consummated, could be material. Forward-looking statements regarding financial metrics are based upon the assumption that no such acquisition is consummated during the relevant periods. If an acquisition were consummated, actual results could differ materially from any forward-looking statements. More information about potential factors that could affect the company's business and financial results is included in the company's annual and quarterly reports filed with the Securities and Exchange Commission (http://www.sec.gov), including, without limitation, information under the captions "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors."



                          UNITED ONLINE, INC.
            Unaudited Condensed Consolidated Balance Sheets
                            (in thousands)

                                                March 31,  December 31,
                                                   2006         2005
                                                ---------    ---------
 ASSETS
  Cash, cash equivalents and short-term
   investments                                  $ 175,299    $ 244,362
  Accounts receivable, net                         17,858       19,201
  Deferred tax assets, net                         67,896       68,355
  Property and equipment, net                      35,440       33,093
  Goodwill and intangible assets, net             146,270      139,837
  Other assets                                     15,512       16,340
                                                ---------    ---------
    Total assets                                $ 458,275    $ 521,188
                                                =========    =========

 LIABILITIES AND STOCKHOLDERS' EQUITY
  Accounts payable                              $  39,024    $  46,955
  Accrued liabilities                              27,165       36,249
  Deferred revenue                                 58,670       56,284
  Capital leases                                      648          698
  Term loan                                            --       54,208
  Other liabilities                                 3,820        4,379
                                                ---------    ---------
    Total liabilities                             129,327      198,773
                                                ---------    ---------

   Stockholders' equity                           328,948      322,415

                                                ---------    ---------
    Total liabilities and stockholders' equity  $ 458,275    $ 521,188
                                                =========    =========


                          UNITED ONLINE, INC.
            Unaudited Consolidated Statements of Operations
               (in thousands, except per share amounts)

                                                ----------------------
                                                  Three Months Ended
                                                        March 31,
                                                ----------------------
                                                   2006         2005
                                                ---------    ---------
 Revenues                                       $ 127,332    $ 130,531
 Operating expenses:
  Cost of revenues(a)                              29,890       27,779
  Sales and marketing(a)                           43,419       54,083
  Product development(a)                           12,816        9,106
  General and administrative(a)                    16,246       12,600
  Amortization of intangible assets                 4,389        5,978
                                                ---------    ---------
    Total operating expenses                      106,760      109,546
                                                ---------    ---------

 Operating income                                  20,572       20,985

 Interest and other income, net                     1,716        1,417
 Interest expense                                  (1,716)      (2,002)
                                                ---------    ---------

 Income before income taxes                        20,572       20,400

   Provision for income taxes                       8,921        8,913
                                                ---------    ---------

 Income before cumulative effect of change
  in accounting principle                          11,651       11,487
 Cumulative effect of a change in
  accounting principle, net of tax                  1,041           --
                                                ---------    ---------
 Net income                                     $  12,692    $  11,487
                                                =========    =========
 Basic net income per share
  Income before cumulative effect of change
   in accounting principle                      $    0.19    $    0.19
  Cumulative effect of change in accounting
   principle, net of tax                             0.01           --
                                                ---------    ---------
 Basic net income per share                     $    0.20    $    0.19
                                                =========    =========

 Diluted net income per share
  Income before cumulative effect of change
   in accounting principle                      $    0.18    $    0.18
  Cumulative effect of change in accounting
   principle, net of tax                             0.02           --
                                                ---------    ---------
 Diluted net income per share                   $    0.20    $    0.18
                                                =========    =========

 Shares used to calculate basic net
  income per share                                 62,511       60,393
                                                =========    =========
 Shares used to calculate diluted net
  income per share                                 64,889       63,038
                                                =========    =========
 Shares outstanding at end of period               63,527       60,669
                                                =========    =========
  (a) Stock-based compensation was
      allocated as follows:

 Cost of revenues                               $     237    $      25
 Sales and marketing                                  944          100
 Product development                                1,466           63
 General and administrative                         2,322          887
                                                ---------    ---------
    Total stock-based compensation              $   4,969    $   1,075
                                                =========    =========


                          UNITED ONLINE, INC.
       Unaudited Condensed Consolidated Statements of Cash Flows
                            (in thousands)

                                                ----------------------
                                                  Three Months Ended
                                                        March 31,
                                                ----------------------
                                                   2006         2005
                                                ---------    ---------
 CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income                                     $  12,692    $  11,487
 Adjustments to reconcile net income to
  net cash provided by operating activities:
   Depreciation, amortization and
    stock-based compensation                       14,065       10,527
   Deferred taxes and other                         1,135         (107)
   Tax benefits from stock-based compensation       1,873        3,947
   Excess tax benefits from stock-based
    compensation                                   (1,414)          --
   Cumulative effect of change in accounting
    principle, net of tax                          (1,041)          --
   Change in operating assets and liabilities
    (excluding the effects of acquisitions):
     Accounts receivable                            1,394          295
     Other assets                                    (730)       2,986
     Accounts payable and accrued liabilities     (15,541)      (2,856)
     Other liabilities                                (40)         825
     Deferred revenue                               1,846        4,581
                                                ---------    ---------
      Net cash provided by operating activities    14,239       31,685
                                                ---------    ---------

 CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and equipment              (7,061)      (3,455)
  Purchases of rights, patents and trademarks        (509)      (5,500)
  Purchases of short-term investments            (124,121)     (98,317)
  Proceeds from maturities and sales of
   short-term investments                         115,320      115,858
  Cash paid for acquisitions, net
   cash acquired                                  (10,990)      (8,540)
                                                ---------    ---------
    Net cash provided by (used for)
     investing activities                         (27,361)          46
                                                ---------    ---------

 CASH FLOWS FROM FINANCING ACTIVITIES:
  Payments on term loan                           (54,209)     (30,833)
  Payments on capital leases                          (50)        (288)
  Proceeds from exercises of stock options          2,622        1,821
  Repurchases of common stock                      (1,643)     (14,207)
  Payments for dividends                          (12,868)          --
  Excess tax benefits from stock-based
   compensation                                     1,414           --
                                                ---------    ---------
    Net cash used for financing activities        (64,734)     (43,507)
                                                ---------    ---------

  Effect of exchange rate changes on cash
   and cash equivalents                                28          (14)

 Change in cash and cash equivalents              (77,828)     (11,790)
 Cash and cash equivalents, beginning of period   100,397       56,512
                                                ---------    ---------
 Cash and cash equivalents, end of period       $  22,569    $  44,722
                                                =========    =========

                          UNITED ONLINE, INC.
        Reconciliation of Net Income to Adjusted Net Income(3)
                 (in thousands, except per-share data)

                                                 Three Months Ended
                                                      March 31,
                                              ------------------------
                                                2006            2005
                                              --------        --------
 Net income                                   $ 12,692        $ 11,487
 Add (deduct):
 Stock-based compensation                        4,969           1,075
 Amortization of intangible assets               4,389           5,978
 Cumulative effect of a change in
  accounting principle, net of tax(a)           (1,041)             --
                                              --------        --------
                                                21,009          18,540

 Income tax effect of adjusting entries         (2,923)         (2,315)
                                              --------        --------
 Adjusted net income                          $ 18,086        $ 16,225
                                              ========        ========

 Adjusted basic net income per share          $   0.29        $   0.27
                                              ========        ========
 Adjusted diluted net income per share        $   0.27        $   0.25
                                              ========        ========

 Shares used to calculate
  adjusted basic net income per share           62,511          60,393
                                              ========        ========
 Shares used to calculate adjusted
  diluted net income per share(b)               65,817          63,713
                                              ========        ========
 ---------------------------------------------------------------------
 (a) Cumulative effect adjustment for estimated forfeitures is an
     adjustment of previously recognized compensation cost for
     restricted stock awards outstanding at the adoption date of FAS
     123R that the company does not expect to vest.
 (b) Includes the adjustment of shares used to calculate diluted
     net income per share resulting from the elimination of
     stock-based compensation.


                          UNITED ONLINE, INC.
               Reconciliation of Non-GAAP Financial Data
                            (in thousands)

                                           Three Months Ended March 31,
                                           ---------------------------
                                                2006            2005
                                              -------         -------
 Adjusted Operating Income Before
  Depreciation and Amortization(1)
 Operating income                             $20,572         $20,985
   Depreciation                                 4,707           3,474
   Amortization                                 4,389           5,978
                                              -------         -------
 Operating income before
  depreciation and amortization                29,668          30,437
   Stock-based compensation                     4,969           1,075
                                              -------         -------
 Adjusted operating income before
  depreciation and amortization               $34,637         $31,512
                                              =======         =======


                                           Three Months Ended March 31,
                                           ---------------------------
                                               2006            2005
                                              -------         -------
 Free Cash Flow(4)
 Net cash provided by operating activities    $14,239         $31,685
 Add (deduct):
   Capital expenditures                        (7,061)         (3,455)
   Excess tax benefits from stock-based
    compensation(a)                            1,414              --
                                              -------         -------
 Free cash flow                               $ 8,592         $28,230
                                              =======         =======
 ---------------------------------------------------------------------
 (a) In accordance with FAS 123R, certain tax benefits from
     exercised stock options that were previously reflected in the
     operating section of the statement of cash flows are now
     presented in the financing section.


                          UNITED ONLINE, INC.
             Supplemental Schedule of Segment Information
                            (in thousands)

                             Three Months Ended March 31, 2006
                   ---------------------------------------------------
                                               Unallocated
                                    Content &   Corporate
                   Communications     Media      Expenses       Total
                   --------------   ---------  ------------   --------

 Billable services       $ 90,659    $ 20,497    $     --     $111,156
 Advertising                9,683       6,493          --       16,176
                         --------    --------    --------     --------
   Total revenues         100,342      26,990          --      127,332
                         --------    --------    --------     --------

 Operating expenses:
  Cost of revenue          25,581       4,072         237       29,890
  Sales and marketing      30,342      12,133         944       43,419
  Product development       8,628       2,722       1,466       12,816
  General and
   administrative           5,160       3,639       7,447       16,246
  Amortization of
   intangible assets          684       3,705          --        4,389
                         --------    --------    --------     --------
   Total operating
    expenses               70,395      26,271      10,094      106,760
                         --------    --------    --------     --------

 Operating income          29,947         719     (10,094)      20,572
                         --------    --------    --------     --------
  Depreciation              2,837       1,870          --        4,707
  Amortization                684       3,705          --        4,389
                         --------    --------    --------     --------
 Operating income before
  depreciation and
  amortization             33,468       6,294     (10,094)      29,668
    Stock-based
     compensation              --          --       4,969        4,969
                         --------    --------    --------     --------
 Adjusted operating
  income before
  depreciation and
  amortization           $ 33,468    $  6,294    $ (5,125)    $ 34,637
                         ========    ========    ========     ========


                             Three Months Ended March 31, 2005
                   ---------------------------------------------------
                                               Unallocated
                                    Content &   Corporate
                   Communications     Media      Expenses       Total
                   --------------   ---------  ------------   --------
 Billable services       $101,156    $ 15,072    $    --      $116,228
 Advertising                8,859       5,444         --        14,303
                         --------    --------    --------     --------
  Total revenues          110,015      20,516         --       130,531
                         --------    --------    --------     --------
 Operating expenses:
  Cost of revenue          23,805       3,949          25       27,779
  Sales and marketing      43,905      10,078         100       54,083
  Product development       7,326       1,717          63        9,106
  General and
   administrative           4,077       3,132       5,391       12,600
  Amortization of
   intangible assets          853       5,125          --        5,978
                         --------    --------    --------     --------
   Total operating
    expenses               79,966      24,001       5,579      109,546
                         --------    --------    --------     --------

 Operating income          30,049      (3,485)     (5,579)      20,985
                         --------    --------    --------     --------
  Depreciation              1,919       1,555          --        3,474
  Amortization                853       5,125          --        5,978
                         --------    --------    --------     --------
 Operating income
  before depreciation
  and amortization         32,821       3,195      (5,579)      30,437
   Stock-based
    compensation               --          --       1,075        1,075
                         --------    --------    --------     --------
 Adjusted operating
  income before
  depreciation and
  amortization           $ 32,821    $  3,195    $ (4,504)    $ 31,512
                         ========    ========    ========     ========


                          UNITED ONLINE, INC.
    Selected Quarterly Historical Financial Data and Key Metrics(a)

                      Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,
                        2006      2005      2005      2005      2005
                      --------  --------  --------  --------  --------
 Revenue
  (in thousands)      $127,332  $130,232  $132,778  $131,520  $130,531
 Net income
  (in thousands)      $ 12,692  $ 12,374  $ 12,594  $ 10,672  $ 11,487
 Net income per
  diluted share       $   0.20  $   0.19  $   0.20  $   0.17  $   0.18
 Pay accounts(2)
  (in thousands)         5,093     5,009     5,040     5,033     4,952
 Active accounts(2)
  (in millions)           18.7      17.6      16.9      16.9      17.0
 Number of
  employees at end
  of period                912       900       868       828       769

 ---------------------------------------------------------------------
 (a) More information on the financial results for these quarters
     can be found in the company's filings with the Securities and
     Exchange Commission.

                          UNITED ONLINE, INC.
                     Analysis of Pay Accounts (2)
                            (in thousands)

                      Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,
                        2006      2005      2005      2005      2005
                      --------  --------  --------  --------  --------
 Communications(a)
   Access                2,751     2,855     2,980     3,078     3,130
   Other                   321       313       301       286       259
                      --------  --------  --------  --------  --------
    Total                3,072     3,168     3,281     3,364     3,389
                      --------  --------  --------  --------  --------

 Content & Media(b)
  Social networking      1,945     1,766     1,686     1,599     1,505
  Other                     76        75        73        70        58
                      --------  --------  --------  --------  --------
   Total                 2,021     1,841     1,759     1,669     1,563
                      --------  --------  --------  --------  --------
    Total pay
     accounts(2)         5,093     5,009     5,040     5,033     4,952
                      ========  ========  ========  ========  ========
 ---------------------------------------------------------------------
 (a) Communications includes Internet access, VoIP, premium
     content, premium email and security suite.
 (b) Content & Media includes social networking, Web hosting and
     photo sharing.


            

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