Intersections Inc. Reports First Quarter 2006 Earnings

Intersections Inc. (Nasdaq:INTX) today announcedfinancial results for the quarter ended March 31, 2006. Revenue forfirst quarter of 2006 was $45.7 million, an increase of 18.4 percentover the same period last year. Net income for the quarter ended March31, 2006 was $3.4 million, compared to $1.8 million for the quarterended March 31, 2005, an increase of over 90 percent. Pre-tax incomefor the first quarter of 2005 included a software impairment charge of$1.5 million. Diluted earnings per share ("EPS") were $0.20 for thefirst quarter of 2006, compared to $0.10 for the first quarter of2005.

"We are pleased with our results in the first quarter of 2006. Ourresults showed subscriber, revenue and earnings levels consistent withour business plan. Additionally, we are progressing positively in thestrategic efforts we previously have outlined," said Chairman andChief Executive Officer, Michael Stanfield.

First Quarter 2006 Financial Highlights:

-- Total subscribers increased to approximately 3.75 million as of March 31, 2006, compared to approximately 3.66 million as of December 31, 2005, an increase of 2.4 percent. Subscriber additions in the first quarter of 2006 were approximately 714,000.

-- Total revenue for the first quarter of 2006 was $45.7 million, including $3.7 million from American Background Information Services, Inc. ("ABI") compared to $43.2 million, including $3.4 million from ABI, for the fourth quarter of 2005 and $38.6 million for the first quarter of 2005, including $2.9 million from ABI.

-- Subscription revenue, net of marketing and commissions associated with subscription revenue, increased to $29.5 million for the first quarter of 2006 from $27.7 million for the fourth quarter of 2005, and from $23.6 million for the first quarter of 2005, an increase of 6.5 percent and 25.1 percent, respectively. Subscription revenue, net of marketing and commissions associated with subscription revenue, is a non-GAAP financial measure that we believe is important to investors and one that we utilize in managing our business as it normalizes the effect of changes in the mix of indirect and direct marketing arrangements.

-- Depreciation and amortization expense for the first quarter of 2006 was $2.1 million compared to $1.8 million for the fourth quarter of 2005 and $1.5 million for the first quarter of 2005.

-- Pre-tax income was $5.6 million or 12.4 percent of revenue, for the first quarter of 2006, compared to $6.3 million, or 14.5 percent of revenue, for the fourth quarter of 2005 and $3.0 million, or 7.8 percent of revenue, for the first quarter of 2005. Pre-tax income for the first quarter of 2005 included a software impairment charge of approximately $1.5 million.

-- Cash flow provided by operations for the quarter ended March 31, 2006, was approximately $3.6 million.

Intersections' quarter end March 31, 2006 results will bediscussed in more detail on May 1, 2006 at 5:00 pm EST viateleconference. A live audio webcast will be available onIntersections' Web site at www.intersections.com orwww.fulldisclosure.com. Participants are encouraged to go to theselected Web site at least 15 minutes in advance to register,download, and install any necessary audio software. This webcast willbe archived and available for replay after the teleconference.Additionally, the call will be available for telephonic replay from7:00 p.m. Monday, May 1, through 11:59 p.m. Wednesday, May 3, 2006, at888.286.8010, or if you are based internationally at, +1-617-801-6888(Passcode: 55915113).

Statements in this press release relating to future plans,results, performance, expectations, achievements and the like areconsidered "forward-looking statements." Those forward-lookingstatements involve known and unknown risks and are subject to changebased on various factors and uncertainties that may cause actualresults to differ materially from those expressed or implied by thosestatements, including without limitation the effect of new subscriberadditions. Factors and uncertainties that may cause actual results todiffer include but are not limited to the risks disclosed in theCompany's filings with the U.S. Securities and Exchange Commission.The Company undertakes no obligation to revise or update anyforward-looking statements.

About Intersections Inc.

Intersections Inc. is a leading provider of branded andfully-customized identity management solutions. By integrating itstechnology solutions with its comprehensive services, Intersectionssafeguards more than 5 million customers. These customers areprimarily received through marketing partnerships and consumer directmarketing of the company's Identity Guard(R) and SBGuardian(SM)brands. Additionally, Intersections offers pre-employment backgroundscreening through its wholly-owned subsidiary, American BackgroundInformation Services Inc. Learn more about Intersections Inc. atwww.intersections.com.

INTERSECTIONS INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

Three Months Ended
March 31,
-------------------------------------
(in thousands, except per share data)
2006 2005
------------------ ------------------

Revenue $ 45,688 $ 38,587
Operating expenses:
Marketing 5,285 4,791
Commissions 6,143 6,906
Cost of revenue 16,545 13,130
General and administrative 10,428 7,992
Depreciation and amortization 2,087 1,458
Impairment of software
development - 1,515
------------------ ------------------

Total operating expenses 40,488 35,792
------------------ ------------------

Income from operations 5,200 2,795
Interest income, net 443 216
Other income, net 1 (6)
------------------ ------------------

Income before income taxes 5,644 3,005

Income tax expense (2,231) (1,213)
------------------ ------------------

Net income $ 3,413 $ 1,792
================== ==================

Net income per basic share $ 0.20 $ 0.10

Net income per diluted share $ 0.20 $ 0.10

Weighted average common shares
outstanding 16,704 17,390
Dilutive effect of common stock
equivalents 531 1,119
------------------ ------------------
Weighted average common shares
outstanding - assuming dilution 17,235 18,509
================== ==================


INTERSECTIONS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

March 31, December 31,
2006 2005
------------ ------------
(in thousands)
ASSETS

CURRENT ASSETS:
Cash and cash equivalents $ 19,185 $ 17,555
Short-term investments 34,030 34,087
Accounts receivable, net 16,576 14,746
Prepaid expenses and other current assets 3,093 3,071
Deferred subscription solicitation costs 8,131 8,818
------------ ------------
Total current assets 81,015 78,277

PROPERTY AND EQUIPMENT--Net 20,902 20,653
GOODWILL 16,741 16,741
INTANGIBLE ASSETS 1,239 1,325
OTHER ASSETS 7,268 6,191
------------ ------------
TOTAL ASSETS $ 127,165 $ 123,187
============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable $ 3,157 $ 3,863
Accrued expenses and other current
liabilities 9,342 8,480
Accrued payroll and employee benefits 2,733 3,094
Commissions payable 1,979 1,966
Deferred revenue 4,741 3,888
Current obligations under capital leases 1,255 1,370
Deferred tax liability 2,007 2,007
Income tax payable 1,284 1,116
------------ ------------
Total current liabilities 26,498 25,784
------------ ------------

OBLIGATIONS UNDER CAPITAL LEASES--Less
current portion 2,497 2,797
OTHER LONG-TERM LIABILITIES 409 292
DEFERRED TAX LIABILITY 1,370 1,370

STOCKHOLDERS' EQUITY:

Common stock 177 176
Deferred compensation (5) (10)
Additional paid-in capital 93,396 93,367
Treasury stock, 965,000 shares at cost in
2005 (8,600) (8,600)
Retained earnings 11,423 8,011
------------ ------------

Total stockholders' equity 96,391 92,944
------------ ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 127,165 $ 123,187
============ ============


INTERSECTIONS INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)

Three Months Ended
March 31,
2006 2005
-------- --------
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 3,413 $ 1,792
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 2,111 1,458
Amortization of gain from sale leaseback (24) -
Loss on disposal of fixed asset 20 -
Increase in allowance for doubtful accounts (2) -
Deferred compensation 5 5
Stock based compensation 7 -
Deferred income tax - 113
Impairment of software development costs - 1,515
Amortization of deferred subscription
solicitation costs 5,140 5,390

Changes in assets and liabilities:
Accounts receivable (1,830) (1,356)
Prepaid expenses and other current assets (39) 5
Deferred subscription solicitation costs (4,453) (5,741)
Other assets (1,077) (5,769)
Accounts payable (708) (877)
Accrued expenses and other current
liabilities 413 387
Accrued payroll and employee benefits (361) (828)
Commissions payable 14 122
Income tax payable 168 832
Deferred revenue 853 (18)
Other long-term liabilities (8) 1
-------- --------

Net cash provided by (used in) operating
activities 3,642 (2,969)
-------- --------

NET CASH USED IN INVESTING ACTIVITIES:
Investments 57 605
Acquisition of property and equipment (1,677) (2,676)
-------- --------

Net cash used in investing activities (1,620) (2,071)
-------- --------

NET CASH (USED IN) PROVIDED BY FINANCING
ACTIVITIES:
Options exercised 23 975
Capital lease payments (415) (354)
-------- --------

Net cash (used in) provided by financing
activities (392) 621
-------- --------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,630 (4,419)
CASH AND CASH EQUIVALENTS--Beginning of period 17,555 12,026
-------- --------
CASH AND CASH EQUIVALENTS--End of period $19,185 $ 7,607
======== ========


INTERSECTIONS INC.
OTHER DATA
(Unaudited)

Three Months Ended
March 31,
----------------------
(dollars in thousands)

2006 2005
---------- ----------

Subscribers at beginning of period 3,659,975 2,885,223
New subscribers - indirect 571,969 419,289
New subscribers - direct 142,133 194,481
Cancelled subscribers within first 90 days of
subscription 250,780 198,703
Cancelled subscribers after first 90 days of
subscription 374,083 320,408
---------- ----------
Subscribers at end of period 3,749,214 2,979,882
========== ==========

Indirect subscribers 68.2% 61.3%
Direct subscribers 31.8 38.7
---------- ----------
Subscribers at end of period 100.0% 100.0%
========== ==========

Percentage of revenue from indirect marketing
arrangements to total subscription revenue 40.3% 30.7%

Percentage of revenue from direct marketing
arrangements to total subscription revenue 59.7 69.3
---------- ----------

Total subscription revenue 100.0% 100.0%
========== ==========

Total revenue $ 45,688 $ 38,587
Revenue from transactional sales (4,756) (3,349)
Revenue from lost/stolen credit card registry (20) (12)
---------- ----------
Subscription revenue 40,912 35,226
========== ==========

Marketing and commissions 11,428 11,697
Commissions paid on transactional sales (11) (37)
Commissions paid on lost/stolen credit card
registry (8) (17)
---------- ----------
Marketing and commissions associated with
subscription revenue 11,409 11,643
========== ==========

Subscription revenue, net of marketing and
commissions associated with subscription
revenue $29,503 $23,583
========== ==========