ICG Announces Formation of Premier On-Demand Meetings Management Company Through Combination of Partner Company, StarCite, and OnVantage

Internet Capital Group, Inc. (Nasdaq:ICGE) todayannounced that its partner company, StarCite, Inc., and OnVantage,Inc. have entered into an agreement to merge. This merger of equalswill result in the largest on-demand meetings management company inthe global marketplace for meetings and events. ICG expects to ownapproximately 27 percent of the combined company. Additionally, ICGwill designate three of the combined company's seven board seats. Thetransaction is expected to close in the fourth quarter, subject tocustomary closing conditions and regulatory approval.

The merged company will operate under the StarCite name and bebased in Philadelphia. Mike Boult, the current CEO of StarCite, willbe the CEO of the combined company. The merger creates a clear leaderin the on-demand meetings management space. Together these companiesoffer a global solution that drives savings and control for clients byautomating the complex workflow process inherent in meetingsmanagement.

"This merger brings together two parallel on-demand platformsproviding a best practices approach to meetings management," said DougAlexander, Managing Director of Internet Capital Group. "StarCite andOnVantage have been separately focused on driving change in thecorporate meetings and events industry, and now, together, have theopportunity to accelerate market adoption by several years in a vastand largely untapped market. At the ICG level, we view this as anexciting opportunity and important stepping stone to building andrealizing significant value for our stockholders through an on-demandbusiness that fits directly in the bull's eye of our model."

For 2006, on a pro forma basis the combined company expects toprocess over 2.5 million attendee registrations on behalf ofcorporations, an annual increase of 50% over 2005. Pro forma revenuesfor the combined company are growing at an annual run rate of over40%, excluding any necessary adjustments for purchase accounting.

"As the largest on-demand meetings management company, the newStarCite is distinctly positioned to address the sizeable marketopportunity for managing corporate meeting spend," said Michael Boult,president and CEO of StarCite. "Driven by our combined vision andresources, we look forward to proliferating innovative solutionsthroughout the global corporate meetings and events industry."

About Internet Capital Group

Internet Capital Group (www.internetcapital.com) owns and buildsInternet software companies that drive business productivity andreduce transaction costs between firms. Founded in 1996, ICG devotesits expertise and capital to maximizing the success of these platformcompanies that are delivering on-demand software and serviceapplications to customers worldwide.

About StarCite

StarCite, Inc. is a provider of On Demand Global MeetingSolutions(TM). StarCite optimizes global investments in corporatemeetings and events delivering visibility, savings and control.StarCite provides process efficiency, enabling technology and provenadoption management support to drive significant cost reduction tobuyers and enhanced revenues to suppliers. StarCite is based inPhiladelphia, PA. Investors in StarCite include Internet Capital Group(NASDAQ:ICGE), Maritz Travel Company, Seaport Capital, and TLVentures. For more information about StarCite, or its technologies andservices, please visit www.starcite.com.

About OnVantage

OnVantage(TM), Inc., headquartered in Santa Clara, Calif., is atechnology provider for the $300 billion global market for theprofessional meetings and events industry. OnVantage offers flexiblesolutions to help corporations save time and money by automating theplanning and procurement of large and small meetings withunprecedented cost control and spend visibility. OnVantage also makesit easy for meeting suppliers to grow their groups and meetingsbusiness by offering increased visibility with Fortune 1000 meetingplanners as well as helping them efficiently manage and track the RFPprocess. A global corporation, OnVantage has sales and customerservice operations in the US, UK, Germany and Hong Kong.

OnVantage and OnVantage Marketplace for Meetings are trademarks ofOnVantage, Inc. All other names, brands, or products may be trademarksor registered trademarks of their respective owners.

Safe Harbor Statement under Private Securities Litigation ReformAct of 1995

The statements contained in this press release that are nothistorical facts are forward-looking statements that involve certainrisks and uncertainties including but not limited to risks associatedwith the uncertainty of future performance of our partner companies,acquisitions or dispositions of interests in partner companies, theeffect of economic conditions generally, capital spending by customersand development of the e-commerce and information technology markets,and uncertainties detailed in the Company's filings with theSecurities and Exchange Commission. These and other factors may causeactual results to differ materially from those projected.