**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**





**Form
      10-QSB**





**[
      X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE**


**SECURITIES
      EXCHANGE ACT OF 1934**





For
      the
      quarterly period ended June 30, 2006


or





**[
      ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**


**SECURITIES
      EXCHANGE ACT OF 1934**





For
      the
      transition period from ______ to ______





Commission
      File Number 000-29929





**COMMUNICATE.COM
      INC.**


(Exact
      name of small business as specified in its charter)





Nevada   88-0346310


(State
      or
      other jurisdiction of (IRS Employer


incorporation
      or organization) Identification Number)





#600
      -
      1100 Melville Street, Vancouver, B.C. V6E 4A6


(Address
      of principal executive offices)





(604)
      697-0136


(Issuer's
      telephone number)





Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for
      the past 90 days.


**[
      X ] Yes [ ] No**





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).


**[
       ] Yes [ X ] No**





**APPLICABLE
      ONLY TO CORPORATE ISSUERS**





State
      the
      number of shares outstanding of each of the issuer's classes of common equity,
      as of the latest practicable date.





Common
      Stock  17,756,339 shares
      outstanding


$.001
      Par
      Value  as
      of
      August 11, 2006


Transitional
      Small Business Disclosure Format (Check one): Yes [  ] No [X]





**Page
          - 1**


**** **COMMUNICATE.COM
      INC.**


**REPORT
      ON FORM 10-QSB**


**QUARTER
      ENDED JUNE 30, 2006**


**TABLE
      OF CONTENTS**





**PART
      I.****Financial
      Information**





Item
      1.  Financial
      Statements





Consolidated
      Balance sheets as of June 30, 2006 and December 31,
      2005


Consolidated
      Statements of Operations for the periods ended
      June 30, 2006 and June 30, 2005


Consolidated
      Statements of Cash Flows for the periods ended
      June 30, 2006 and June 30, 2005


Notes
      to the Consolidated Financial Statements





Item
                2.
            Management's
                discussion and analysis of financial condition and results of
                operations





Item
      3.  Controls
      and Procedures.








**PART
      II.****Other
      Information**





Item
      1.  Legal
      Proceedings.





Item
      2.  Unregistered
      Sales of Equity Securities and Use of Proceeds.





Item
      3.  Defaults
      Upon Senior Securities.





Item
      4.  Submission
      of Matters to a Vote of Security Holders.





Item
      5.  Other
      Information.





Item
      6.  Exhibits
      and Reports on Form 8-K.





Signatures





Certifications





**Page
          - 2**


**PART
      I - FINANCIAL INFORMATION**








**Item
      1: Financial Statements.**





The
      response to Item 1 has been submitted as a separate section of this Report
      beginning on page F-1.








**Item
      2: Management’s discussion and analysis of financial condition and results of
      operations** ****





Registrant,
      through its majority-owned subsidiaries, Domain Holdings, Inc. (“DHI”, formerly
      Communicate.com Inc.) and FrequentTraveller.com Inc. (“FrequentTraveller”)
      (together the "Subsidiaries"), is involved in businesses that exploit commercial
      uses of the Internet. DHI markets and licenses a portfolio of domain names,
      a
      number of which generate high amounts of internet traffic because of, among
      other things, their generic description of a specific product or services
      category.





Registrant
      has focused since the beginning of 2001 on developing revenue streams from
      its
      domain names and improving its financial position. Registrant generates revenue
      from leasing domain names, sales commissions from the sale of third-party
      products and services utilizing the Internet, "pay-per-click" revenue and the
      trading of domain name assets. Since May 2003, Registrant has begun selling
      fragrances and beauty and sports products online directly to consumers and
      in
      October 2003 begun selling travel services through its website
      FrequentTraveller.com.





Registrant
      presently employs fifteen full-time employees and three consultants and occupies
      approximately 5,000 square feet of office space in Vancouver, British Columbia
      and Bellingham, Washington.





**(a)**  **Selected
      Financial Data**





The
      following selected financial data was derived from Registrant’s unaudited
      consolidated financial statements. The information set forth below should be
      read in conjunction with Registrant’s financial statements and related notes
      included elsewhere in this report.


**Page
          - 3**





Statements
                of Operations Data
            For
                the Quarters EndedJune
                30, 2006
            June
                30, 2005Domain
                Name Leasing and Advertising
            79,699
            250,143Domain
                Name
            --
            --eCommerce
            1,505,631
            779,912Total
                Sales
            1,585,330
            1,050,055Domain
                Names
            --
            --eCommerce
            1,231,439
            665,743Total
                Cost of Sales
            1,231,439
            665,743Gross
                Profit
            353,891
            384,312Marketing
            77,901
            43,377General
                and Administrative
            96,746
            70,278Management
                Fees and Salaries
            339,866
            210,241Professional
                Fees
            17,592
            21,087Depreciation
            3,999
            2,464Operating
                Income (Loss)
            (182,213)
            36,865Non-Recurring
                Income
            250,000
            --Interest
                Income
            13,951
            --Gain
                on Debt Settlement
            --
            10,168Non-Controlling
                Interest Share of Loss
            --
            42,365Dilution
                Gain in Subsidiary
            --
            26,272Net
                Income (Loss) for the Period
            81,738
            115,670Basic
                Earnings (Loss) per Share
            0.00
            0.01Weighted
                Average Shares Outstanding
            17,756,339
            15,396,065





Balance
                Sheet Data
            As
                at
              June
                30, 2006
            As
                at
              December
                31, 2005Current
                Assets
            $
                1,585,870
            $
                1,952,172Resticted
                Cash
            20,000
            20,000Fixed
                Assets
            52,062
            52,640Intangible
                Assets
            1,723,778
            1,539,678Total
                Assets
            $
                3,381,710
            $
                3,564,490Accounts
                Payable & Accrued Liabilities
            $
                666,153
            $
                934,734Loan
                Advance
            43,180
            --Common
                Stock
            8,766
            8,766Additional
                Paid in Capital
            3,445,751
            3,445,751Accumulated
                Deficit
            (782,140)
            (824,761)Total
                Stockholders’ Equity
            $
                2,672,377
            $
                2,629,756Total
                Liabilities and Stockholders’ Equity
            $
                3,381,710
            $
                3,564,490





**Page
          - 4**


**(b)**  **Results
      of Operations**





REVENUES
      AND COSTS OF REVENUES .





Domain
      Name Leasing and Advertising . In
      the
      second quarter of 2006, Registrant generated domain name leasing and advertising
      revenue of $79,699 as compared to $250,143 in the second quarter of 2005, a
      decrease of 68.1%. While the transfers of body.com and Brazil.com to generate
      eCommerce sales accounted for some of the decrease, advertising revenue has
      been
      adversely affected by changes made by Internet search engines which
      significantly reduced the volume of Internet traffic directed to Registrant’s
      network of advertising sites. While there are signs which begin to show traffic
      improvement, Management expects this line of revenue to remain the same over
      the
      next several quarters. Management has no current plan to convert any additional
      advertising websites into retailing sites.





Domain
      Name Sales .
      In the
      second quarter of 2006, the Registrant did not have any domain name trading
      activity. Proceeds from the prior sales of domain names were used to repay
      a
      note payable and to enhance the Registrant’s financial ratios and liquidity.
      Management has begun acquiring new domain names both individually and as a
      portfolio to replenish its asset base and to increase its advertising revenue.
      While Registrant has no immediate plans to sell any domain names in the near
      future, it will evaluate opportunities as they arise.





eCommerce
      Sales .
      Registrant began converting Internet traffic into customers by directly
      marketing and selling consumable goods. Registrant launched its cologne.com
      and
      perfume.com Internet retail sites in May 2003, its karate.com Internet retail
      site in 2004, and most recently soft-launched its body.com Internet retail
      site
      in March 2006. In the second quarter of 2006, the combined retail sites
      generated sales of $1,505,631 (2005 Q2 - $799,912), or approximately $16,545
      per
      day (2005 Q2 - $8,790 per day), with cost of purchases and shipping totaling
      $1,231,439 (2005 Q2 - $665,743) resulting in gross profit of $274,192 and gross
      profit margin of approximately 18.2% (2005 Q2 - 16.8%). Comparable yearly
      quarter sales have increased by 88.2% while gross profit margin in percentage
      term has increased by 8.3%. While there is an improvement in the margin compared
      to the second quarter in 2005, the second quarter margin in 2006 is below
      Management’s minimum margin target of 20%. Higher shipping costs, in the form of
      fuel surcharges help to crimp profit margin. While Management believes its
      recently implemented heuristic method of vendor selection, based on analyzing
      a
      vendor’s stock selection, calculated margin, past service history and shipping
      costs, has improved margin from the cost side, Management believes there is
      room
      to increase margin by increasing product pricing without adversely affecting
      overall sales. Management will continue to monitor its overall product offerings
      to achieve an acceptable gross profit margin of between 20% to 22% and to grow
      eCommerce sales.





In
      the
      second quarter of 2006, Registrant through its travel business subsidiary
      generated eCommerce service sales of $144,843 at a cost of $114,914 as compared
      to sales of $229,639 at a cost of $195,744 in the second quarter of 2005. The
      travel operation incurred a net loss of $40,755 in the second quarter of 2006
      and an accumulated deficit of $487,306 since inception in October 2002. During
      the second quarter of 2006, the subsidiary has expensed as salaries $30,552
      for
      the development of a new information management system. While Management has
      reduced the monthly overhead by consolidating its base of operation it is
      disappointed that it has not reached its revenue target of $150,000 per month
      and will continue to work to meet this goal. Management continues to build
      its
      travel business by forming affiliations with partners in Southeast Asia and
      in
      Brazil and estimates that the travel business will break-even when sales
      approach $150,000 per month.




**Page
          - 5**





Royalty .
      In the
      second quarter of 2006, Registrant and Manhattan
      Assets agreed to settle all future royalty obligations in exchange for the
      return of call.com which has been recorded at its estimated fair value of
      $250,000 resulting in a non-recurring income of $250,000. No
      royalty revenue is recorded as earned from FrequentTraveller.com for the current
      quarter or for anytime. Management has agreed to waive the minimum royalty
      requirement for FrequentTraveller.com until 2007.





MARKETING.
      Registrant continues to advertise online by paying-for-clicks and
      search-engine-placements and affiliate marketing. In the second quarter of
      2006,
      Registrant recorded marketing expenses of $77,901 or 5.2% of eCommerce sales
      as
      compared to $43,377 or 5.4% of comparable second quarter sales in 2005.
      Marketing expense is in line with expectation, and Management expects marketing
      expenses to increase as sales increase and has planned to spend up to 10% of
      gross product sales for marketing in 2006.





GENERAL
      AND ADMINISTRATIVE. Registrant’s general and administrative expenses consist of
      costs for general and corporate functions, including facility fees, travel,
      telecommunications and investor relations. In the second quarter of 2006,
      Registrant recorded general and administrative expense of $96,746 (5.3% of
      total
      sales) as compared to $70,278 in the second quarter of 2005, an increase of
      37.7%. Much of the increase came from increase in credit card transaction
      processing fees reflecting the increase in comparable quarterly sales.
      Management sees no noticeable chargeback issue in the quarter and believes
      its
      chargeback experience ratio is below industry average and that its
      preauthorization screening process remains effective. Management expects general
      and administrative expenses to increase as total revenue increases but will
      attempt to maintain general and administrative costs below 10% of total
      sales.





MANAGEMENT
      FEES AND SALARIES. In the second quarter of 2006, Registrant incurred management
      fees and staff salaries of $339,866, an increase of 61.7% over the second
      quarter of 2005 of $210,241. The Registrant recorded performance bonuses of
      $100,000 to its two officers during the quarter. Aside from the bonuses, salary
      and wage increases and the strengthening of the Canadian dollar have contributed
      to the increase in expenses. Management expects staff salaries to remain stable
      in the coming quarters as Management assesses staffing level and seasonality
      needs.





PROFESSIONAL
      FEES. Professional fees include legal and auditing fees. During the second
      quarter of 2006, professional fees totaled $17,592 as compared to $21,087 in
      the
      second quarter of 2005, a decrease of 16.6%. In the coming quarter, Management
      expects professional fees to increase as the travel subsidiary will continues
      its effort in filing its Form SB-2 to finance and develop its travel business.
      Other than professional fees related to regulatory compliance and to the travel
      subsidiary’s Form SB-2 filing, Management is unaware of factors which are likely
      to increase professional fees in the coming quarters of 2006.




**Page
          - 6**





**(c)**  **Liquidity
      and Capital Resources**





Registrant
      seeks to generate revenue from (i) leasing domain names to third parties to
      conduct on-line businesses; (ii) selling products and services of both company
      owned inventory and of inventory owned by third parties; (iii) fees resulting
      from Internet traffic click-throughs generated by company owned domain name
      assets; and (iv) trading of domain name assets.





Management’s
      previously stated goal of eliminating the working capital deficiency has been
      achieved in the third quarter of 2004 and maintained into the current quarter.
      At June 30, 2006 Registrant had current assets in excess of current liabilities
      resulting in a positive working capital of $876,537 as compared to a working
      capital of $1,017,438 at the fiscal year ending December 31, 2005. During the
      six-months ended June 30, 2006 Registrant had a net income of $42,621 and a
      decrease in cash of $570,669, compared to net income of $249,142 and an increase
      in cash of $303,321 for the same six-month period of last year. Operating
      activities generated cash outflows of $448,916 after primarily reducing accounts
      payable. During the six months ended June 30, 2006, the Registrant increased
      its
      investment in bonds by $157,545, and borrowed $43,180 in short-term financing
      through its travel subsidiary. From the beginning of the fiscal year to June
      30,
      2006, Registrant has decreased its accumulated deficit from $824,761 to $782,140
      and has stockholders’ equity of $2,672,377.





In
      October 2003, Registrant became a majority shareholder of FrequentTraveller,
      which has developed and is operating travel sale websites utilizing
      non-exclusive access to Registrant’s domain names Vietnam.com, Malaysia.com,
      Indonesia.com, and Brazil.com. Registrant will continue to own the
      aforementioned domain names and to develop businesses other than travel sales
      for them. FrequentTraveller has one manager and is not expected to generate
      sufficient revenue to cover expenses for at least twelve months. Any fund
      shortfall, currently requiring $15,000 per month, will be covered by Registrant
      or by sourcing outside capital. During the first six months of 2006, FT borrowed
      $43,180 from a third party on a non-secured no interest basis. Since inception,
      FT has raised $338,926 in private placement equity, including $120,000 invested
      by the Registrant, and accumulated a deficit of $487,306 with total
      shareholders’ deficit of $148,380. FT plans to raise additional working capital
      by way of private placement equity and to use any proceeds to expand its
      business and as general working capital.





The
      Registrant expects it has sufficient working capital to carry on business for
      the next twelve months. In the event of an adverse operating results or some
      other catastrophic event, Registrant may be required to seek additional capital
      from external sources. Registrant expects to raise any additional funds by
      way
      of equity and/or debt financing, and through the sale of non-strategic domain
      name assets. However, Registrant may not be able to raise the required funds
      from such financings, depending on volatile market conditions and the perception
      by investors of those companies that, like Registrant, engage in e-commerce
      and
      related businesses.





Registrant
      has no current plans to purchase any plant or significant
      equipment.




**Page
          - 7**








|**(d)** | **Recent
              Accounting Pronouncements**
|------- | --------------------------------------------------




In
      February 2006, the FASB issued SFAS No. 155, Accounting for Certain Hybrid
      Financial Instruments-an amendment of FASB Statements No. 133 and 140, to
      simplify and make more consistent the accounting for certain financial
      instruments. SFAS No. 155 amends SFAS No. 133, Accounting for Derivative
      Instruments and Hedging Activities, to permit fair value remeasurement for
      any
      hybrid financial instrument with an embedded derivative that otherwise would
      require bifurcation, provided that the whole instrument is accounted for on
      a
      fair value basis. SFAS No. 155 amends SFAS No. 140, Accounting for the
      Impairment or Disposal of Long-Lived Assets, to allow a qualifying
      special-purpose entity to hold a derivative financial instrument that pertains
      to a beneficial interest other than another derivative financial instrument.
      SFAS No. 155 applies to all financial instruments acquired or issued after
      the
      beginning of an entity's first fiscal year that begins after September 15,
      2006,
      with earlier application allowed. The adoption of SFAS No. 155 on January 1,
      2006 had no impact on our financial statements.





In
      March
      2006, the Financial Accounting Standards Board issued Statement of Financial
      Accounting Standards No. 156 ("SFAS No. 156"), Accounting for Servicing of
      Financial Assets, an amendment of FASB Statement No. 140, Accounting for
      Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.
      SFAS No. 156 requires all separately recognized servicing assets and servicing
      liabilities be initially measured at fair value, if practicable, and permits
      for
      subsequent measurement using either fair value measurement with changes in
      fair
      value reflected in earnings or the amortization and impairment requirements
      of
      Statement No. 140. The subsequent measurement of separately recognized servicing
      assets and servicing liabilities at fair value eliminates the necessity for
      entities that manage the risks inherent in servicing assets and servicing
      liabilities with derivatives to qualify for hedge accounting treatment and
      eliminates the characterization of declines in fair value as impairments or
      direct write-downs. SFAS 156 is effective for an entity's first fiscal year
      beginning after September 15, 2006. The adoption of SFAS No. 156 on January
      1,
      2006 had no impact on Registrant’s financial statements.








**(e)**  **Uncertainties
      Relating to Forward-Looking Statements**





Management’s
      discussion and analysis of Registrant’s financial condition and the results of
      its operations and other sections of this report, contain forward looking
      statements that are based upon the current beliefs and expectations of
      Registrant’s management, as well as assumptions made by, and information
      currently available to, Registrant’s management. Because these statements
      involve risks and uncertainties, actual actions and strategies and the timing
      and expected results may differ materially from those expressed or implied
      by
      the forward-looking statements. As well, Registrant’s future results,
      performance or achievements could differ materially from those expressed in,
      or
      implied by, any forward-looking statements. Future events and actual results
      could differ materially from those set forth in or underlying the
      forward-looking statements.





**Page
          - 8**


**Item
      3: Controls and Procedures.**





**Disclosure
      Controls and Procedures**





David
      M.
      Jeffs, Registrant’s Chief Executive Officer, and J. Cameron Pan, Registrant’s
      Chief Financial Officer have evaluated the effectiveness of Registrant’s
      disclosure controls and procedures (as such term is defined in Rules 13a-15
      and
      15d-15 under the Securities Exchange Act of 1934 (the “Exchange Act” )) as of
      the end of the period covered by this quarterly report (the “Evaluation Date”).
      Based on such evaluation, they have concluded that, as of the Evaluation Date,
      Registrant’s disclosure controls and procedures are effective in alerting
      Registrant on a timely basis to material information required to be included
      in
      its reports filed or submitted under the Exchange Act.





**Changes
      in Internal Controls**





During
      the quarter of the fiscal year covered by this report, there were no changes
      in
      Registrant’s internal controls or, to the Registrant’s knowledge, in other
      factors that have materially affected, or are reasonably likely to materially
      affect, these controls and procedures subsequent to the date Registrant carried
      out this evaluation.







**PART
      II - OTHER INFORMATION**








**Item
      1. Legal Proceedings.**





In
      December 1999, DHI commenced a lawsuit in the Supreme Court of British Columbia
      (No. C996417) against Paul Green, the former chief executive officer of DHI,
      for
      breach of fiduciary duty for wrongfully attempting to appropriate the
      Subsidiary’s business opportunities. DHI is seeking an undetermined amount of
      damages and a declaration that it had just cause to terminate Paul Green as
      the
      CEO in or about June 1999. No decision has been rendered in this case and
      Registrant cannot predict whether DHI will prevail, and if it does, what the
      terms of any judgment may be.





The
      former Chief Executive Officer of DHI, Paul Green, commenced a legal action
      against DHI on March 9, 2000 in the Supreme Court of British Columbia (No.
      S001317) for wrongful dismissal and breach of contract. He is seeking, at a
      minimum, 18.39% of the outstanding shares of DHI, specific performance of his
      contract, special damages in an approximate amount of $30,000, aggravated and
      punitive damages, interest and costs. On June 1, 2000, DHI filed a Defence
      and
      Counterclaim against this individual claiming damages and special damages for
      breach of fiduciary duty and breach of his employment contract. The outcome
      of
      these legal actions is currently not determinable and as such the amount of
      loss, if any, resulting from this litigation is presently not
      determinable.





Registrant
      is not aware of any other pending or threatened material legal
      proceedings.





**Page
          - 9**


**Item
      2. Unregistered Sales of Equity Securities and Use of Proceeds.**





During
      the quarter of the fiscal year covered by this report, (i) Registrant did not
      modify the instruments defining the rights of its shareholders, (ii) no rights
      of any shareholders were limited or qualified by any other class of securities,
      and (iii) Registrant did not sell any unregistered equity
      securities.





**Item
      3. Defaults Upon Senior Securities.**





During
      the quarter of the fiscal year covered by this report, no material default
      has
      occurred with respect to any indebtedness of Registrant. Also, during this
      quarter, no material arrearage in the payment of dividends has
      occurred.





**Item
      4. Submission of Matters to a Vote of Security Holders.**





No
      matter
      was submitted to a vote of security holders, through the solicitation of proxies
      or otherwise, during the three months of the fiscal year covered by this
      report.





**Item
      5. Other Information.**





During
      the quarter of the fiscal year covered by this report, Registrant reported
      all
      information that was required to be disclosed in a report on Form 8-K.





**Item
      6. Exhibits.**





(A)  Index
      to and Description of Exhibits.





EXHIBIT
            DESCRIPTIONF-1
            Financial
                Statements.31
            Section
                302 Certification of Chief Executive Officer and Chief Financial
                Officer32
            Section
                906 Certificate of Chief Executive Office and Chief Financial
                Officer








**Page
          - 10**




**SIGNATURES**





In
      accordance with the requirements of the Exchange Act, Registrant caused this
      report to be signed on its behalf by the undersigned, thereunto duly authorized.






**COMMUNICATE.COM
      INC.**





By:*/s/
      David M. Jeffs*


Name:  **David
      M. Jeffs**


Title **:**  **Director
      and CEO**


Dated:  **August
      14, 2006**








By:*/s/
      J. Cameron Pan*


Name:  **J.
      Cameron Pan**


Title **:**  **CFO**


Dated:  **August
      14, 2006**








**Page
          - 11**







**Exhibit
      31**





**Page
          - 12**


**CERTIFICATIONS**




I,
      David
      M Jeffs, certify that:




1.
      I have
      reviewed this quarterly report on Form 10-QSB of Communicate.com Inc.;




2.
      Based
      on my knowledge, this quarterly report does not contain any untrue statement
      of
      a material fact or omit to state a material fact necessary to make the
      statements made, in light of the circumstances under which such statements
      were
      made, not misleading with respect to the period covered by this report;




3.
      Based
      on my knowledge, the financial statements, and other financial information
      included in this report, fairly present in all material respects the financial
      condition, results of operations and cash flows of the small business issuer
      as
      of, and for, the periods presented in this report;




4.
      The
      small business issuer’s other certifying officer(s) and I are responsible for
      establishing and maintaining disclosure controls and procedures (as defined
      in
      Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
      reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
      small business issuer and have:




(a)
      Designed such disclosure controls and procedures, or caused such disclosure
      controls and procedures to be designed under our supervision, to ensure that
      material information relating to the small business issuer, including its
      consolidated subsidiaries, is made known to us by others within those entities,
      particularly during the period in which this report is being prepared;




(b)
      Designed such internal control over financial reporting, or caused such internal
      control over financial reporting to be designed under our supervision, to
      provide reasonable assurance regarding the reliability of financial reporting
      and the preparation of financial statements for external purposes in accordance
      with generally accepted accounting principles;




(c)
      Evaluated the effectiveness of the small business issuer’s disclosure controls
      and procedures and presented in this report our conclusions about the
      effectiveness of the disclosure controls and procedures, as of the end of the
      period covered by this report based on such evaluation; and




(d)
      Disclosed in this report any change in the small business issuer’s internal
      control over financial reporting that occurred during the small business
      issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal
      quarter in the case of an annual report) that has materially affected, or is
      reasonably likely to materially affect, the small business issuer’s internal
      control over financial reporting; and




5.
      The
      small business issuer’s other certifying officer(s) and I have disclosed, based
      on our most recent evaluation of internal control over financial reporting,
      to
      the small business issuer’s auditors and the audit committee of the small
      business issuer’s board of directors (or persons performing the equivalent
      functions):




(a)
      All
      significant deficiencies and material weaknesses in the design or operation
      of
      internal control over financial reporting which are reasonably likely to
      adversely affect the small business issuer’s ability to record, process,
      summarize and report financial information; and




(b)
      Any
      fraud, whether or not material, that involves management or other employees
      who
      have a significant role in the small business issuer’s internal control over
      financial reporting.







Date:
      August 14, 2006








***/s/
      David M Jeffs***


David
      M
      Jeffs, Director and CEO


**Page
          - 13**


**CERTIFICATIONS**




I,
      J
      Cameron Pan, certify that:




1.
      I have
      reviewed this quarterly report on Form 10-QSB of Communicate.com Inc.;




2.
      Based
      on my knowledge, this quarterly report does not contain any untrue statement
      of
      a material fact or omit to state a material fact necessary to make the
      statements made, in light of the circumstances under which such statements
      were
      made, not misleading with respect to the period covered by this report;




3.
      Based
      on my knowledge, the financial statements, and other financial information
      included in this report, fairly present in all material respects the financial
      condition, results of operations and cash flows of the small business issuer
      as
      of, and for, the periods presented in this report;




4.
      The
      small business issuer’s other certifying officer(s) and I are responsible for
      establishing and maintaining disclosure controls and procedures (as defined
      in
      Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
      reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
      small business issuer and have:




(a)
      Designed such disclosure controls and procedures, or caused such disclosure
      controls and procedures to be designed under our supervision, to ensure that
      material information relating to the small business issuer, including its
      consolidated subsidiaries, is made known to us by others within those entities,
      particularly during the period in which this report is being prepared;




(b)
      Designed such internal control over financial reporting, or caused such internal
      control over financial reporting to be designed under our supervision, to
      provide reasonable assurance regarding the reliability of financial reporting
      and the preparation of financial statements for external purposes in accordance
      with generally accepted accounting principles;




(c)
      Evaluated the effectiveness of the small business issuer’s disclosure controls
      and procedures and presented in this report our conclusions about the
      effectiveness of the disclosure controls and procedures, as of the end of the
      period covered by this report based on such evaluation; and




(d)
      Disclosed in this report any change in the small business issuer’s internal
      control over financial reporting that occurred during the small business
      issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal
      quarter in the case of an annual report) that has materially affected, or is
      reasonably likely to materially affect, the small business issuer’s internal
      control over financial reporting; and




5.
      The
      small business issuer’s other certifying officer(s) and I have disclosed, based
      on our most recent evaluation of internal control over financial reporting,
      to
      the small business issuer’s auditors and the audit committee of the small
      business issuer’s board of directors (or persons performing the equivalent
      functions):




(a)
      All
      significant deficiencies and material weaknesses in the design or operation
      of
      internal control over financial reporting which are reasonably likely to
      adversely affect the small business issuer’s ability to record, process,
      summarize and report financial information; and




(b)
      Any
      fraud, whether or not material, that involves management or other employees
      who
      have a significant role in the small business issuer’s internal control over
      financial reporting.







Date:
      August 14, 2006








***/s/
      J Cameron Pan***


J
      Cameron
      Pan - CFO


**Page
          - 14**







**Exhibit
      32**







**Page
          - 15**




**CERTIFICATION
      PURSUANT TO**


**18
      U.S.C. SECTION 1350,**


**AS
      ADOPTED PURSUANT TO**


**SECTION
      906 OF THE SARBANES-OXLEY ACT OF 2002**






In
      connection with the Quarterly Report of Communicate.com Inc. (“Communicate”) on
      Form 10-QSB for the period ending June 30, 2006 as filed with the Securities
      and
      Exchange Commission on the date hereof (the “Report”), I, David M. Jeffs,
      President, Chief Executive Officer of Communicate and the sole member of the
      Board of Directors, certify, pursuant to s.906 of the Sarbanes-Oxley Act of
      2002, that:






(1)
      The
      Report fully complies with the requirements of section 13(a) or 15(d) of the
      Securities Exchange Act of 1934; and




(2)
      The
      information contained in the Report fairly represents, the financial condition
      and result of operations of Communicate.






*/s/
      David M. Jeffs*


David
      M.
      Jeffs


Chief
      Executive Officer


August
      14, 2006













**CERTIFICATION
      PURSUANT TO**


**18
      U.S.C. SECTION 1350,**


**AS
      ADOPTED PURSUANT TO**


**SECTION
      906 OF THE SARBANES-OXLEY ACT OF 2002**








In
      connection with the Quarterly Report of Communicate.com Inc. (“Communicate”) on
      Form 10-QSB for the period ending June 30s, 2006 as filed with the Securities
      and Exchange Commission on the date hereof (the “Report”), I, J. Cameron Pan,
      Secretary, Treasurer, and Chief Financial Officer of Communicate, certify,
      pursuant to s.906 of the Sarbanes-Oxley Act of 2002, that:




(1)
      The
      Report fully complies with the requirements of section 13(a) or 15(d) of the
      Securities Exchange Act of 1934; and




(2)
      The
      information contained in the Report fairly represents, the financial condition
      and result of operations of Communicate.








*/s/
      J. Cameron Pan*


J.
      Cameron Pan


Chief
      Financial Officer


August
      14, 2006







**Page
          - 16**


**COMMUNICATE.COM
        INC.**
 
 **INTERIM
        CONSOLIDATED FINANCIAL STATEMENTS**
 
 **JUNE
        30, 2006**
 
 
 (UNAUDITED)
 
 
  
 
 
 **CONSOLIDATED
        BALANCE SHEETS**
 
 **CONSOLIDATED
        STATEMENTS OF
        OPERATIONS**
 
 **CONSOLIDATED
        STATEMENTS OF CASH FLOWS**
 
 **NOTES
        TO INTERIM CONSOLIDATED FINANCIAL
        STATEMENTS**
 
  **Page
            - 17**
  **COMMUNICATE.COM
        INC.**
 
 **CONSOLIDATED
        BALANCE SHEETS**
 
 June
                  30,
                2006
              
              December
                  31,
                2005(unaudited)**ASSETS****CURRENT
                  ASSETS**Cash
                  and cash equivalents
              $
              1,165,218
              
              $
              1,735,887Short-term
                  investments
              
              372,103
              
              
              214,558Accounts
                  receivable
              
              6,941
              
              
              1,727Prepaids
              
              41,608
              
              
              -1,585,870
              
              
              1,952,172**RESTRICTED
                  CASH**
              
              20,000
              
              
              20,000**PROPERTY
                  AND EQUIPMENT**,
                  net of accumulated depreciation
              
              52,062
              
              
              52,640**INTANGIBLE
                  ASSETS**
              
              1,723,778
              
              
              1,539,678$
              3,381,710
              
              $
              3,564,490**LIABILITIES
                  AND STOCKHOLDERS’ EQUITY****CURRENT
                  LIABILITIES**Accounts
                  payable and accrued liabilities
              $
              666,153
              
              $
              934,734Loan
                  advance
              
              43,180
              
              
              -709,333
              
              
              934,734**STOCKHOLDERS’
                  EQUITY**Capital
                  stockAuthorized:50,000,000
                  common shares, $0.001 par valueIssued
                  and outstanding:17,756,339
                  common shares (December 31, 2005 - 17,756,339)
              
              8,766
              
              
              8,766Additional
                  paid-in capital
              
              3,445,751
              
              
              3,445,751Accumulated
                  deficit
              
              (782,140
              )
              
              (824,761
              )2,672,377
              
              
              2,629,756$
              3,381,710
              
              $
              3,564,490
 
 The
        accompanying notes are an integral part of these interim consolidated financial
        statements.
 
  **Page
            - 18**
  **COMMUNICATE.COM
        INC.**
 **CONSOLIDATED
        STATEMENTS OF OPERATIONS**
 (unaudited)
 
 Three
                  months ended June 30, 2006
              
              Three
                  months ended June 30, 2005
              
              Six
                  months
                ended
                  June 30, 2006
              
              Six
                  months
                ended
                  June 30, 2005**SALES**Domain
                  name leasing and advertising
              $
              79,699
              
              $
              250,143
              
              $
              168,971
              
              $
              587,480Domain
                  names
              
              -
              
              
              -
              
              
              123,800
              
              
              -eCommerce
              
              1,505,631
              
              
              799,912
              
              
              2,802,832
              
              
              1,440,901Royalty
              
              -
              
              
              -
              
              
              21,673
              
              
              -Total
                  sales
              
              1,585,330
              
              
              1,050,055
              
              
              3,117,276
              
              
              2,028,381**COST
                  OF SALES**Domain
                  names
              
              -
              
              
              -
              
              
              65,900
              
              
              -eCommerce
              
              1,231,439
              
              
              665,743
              
              
              2,326,730
              
              
              1,218,859Total
                  cost of sales
              
              1,231,439
              
              
              665,743
              
              
              2,392,630
              
              
              1,218,859**GROSS
                  PROFIT**
              
              353,891
              
              
              384,312
              
              
              724,646
              
              
              809,522**EXPENSES**Marketing
              
              77,901
              
              
              43,377
              
              
              141,408
              
              
              76,073General
                  and administrative
              
              96,746
              
              
              70,278
              
              
              204,505
              
              
              135,724Management
                  fees and salaries
              
              339,866
              
              
              210,241
              
              
              567,071
              
              
              397,146Professional
                  fees
              
              17,592
              
              
              21,087
              
              
              35,109
              
              
              31,688Depreciation
              
              3,999
              
              
              2,464
              
              
              7,966
              
              
              4,598536,104
              
              
              347,447
              
              
              956,059
              
              
              645,229**INCOME
                  BEFORE OTHER ITEMS**
              
              (182,213
              )
              
              36,865
              
              
              (231,413
              )
              
              164,293**NON
                  RECURRING INCOME(NOTE 9)**
              
              250,000
              
              
              -
              
              
              250,000
              
              
              -**INTEREST
                  INCOME**
              
              13,951
              
              
              -
              
              
              24,034
              
              
              -**GAIN
                  ON DEBT SETTLEMENT**
              
              -
              
              
              10,168
              
              
              -
              
              
              16,212**NON-CONTORLLING
                  INTEREST SHARE OF LOSS IN FT.COM**
              
              -
              
              
              42,365
              
              
              -
              
              
              42,365**DILUTION
                  GAIN IN FREQUENTTRAVELLER.COM**
              
              -
              
              
              26,272
              
              
              -
              
              
              26,272**NET
                  INCOME**
              $
              81,738
              
              $
              115,670
              
              $
              42,621
              
              $
              249,142**BASIC
                  AND DILUTED EARNINGS PER SHARE:**
              $
              0.00
              
              $
              0.01
              
              $
              0.00
              
              $
              0.02**WEIGHTED
                  AVERAGE NUMBER OF COMMON**
                **SHARES
                  OUTSTANDING-BASIC AND**
                **DILUTED:**
              
              17,756,339
              
              
              15,396,065
              
              
              17,756,339
              
              
              15,396,065
 
  The
        accompanying notes are an integral part of these interim consolidated financial
        statements.
 
  **Page
            - 19**
   **COMMUNICATE.COM
        INC.**
 
 **CONSOLIDATED
        STATEMENTS OF CASH FLOWS**
 (Unaudited)
  Six
                  months
                ended
                  June 30, 2006
              
              Six
                  months
                ended
                  June 30, 2005**CASH
                  FLOWS FROM OPERATING ACTIVITIES**Net
                  income (loss)
              $
              42,621
              
              $
              249,142Adjustments
                  to reconcile net income (loss) to net cash
                Used
                  in operating activities-
                  non-controlling interest share of losses
              
              -
              
              
              (42,365
              )-
                  dilution gain in FT.com
              
              -
              
              
              (26,272
              )-
                  non-cash income
              
              (250,000
              )-
                  non-cash cost of domain name sales
              
              65,900
              
              
              --
                  depreciation
              
              7,966
              
              
              4,598-
                  accounts and advances receivable
              
              (5,214
              )
              
              10,972-
                  prepaid expenses
              
              (41,608
              )
              
              --
                  accounts payable and accrued liabilities
              
              (268,581
              )
              
              (176,622
              )**CASH
                  PROVIDED BY (USED IN****)****OPERATING
                  ACTIVITIES**
              
              (448,916
              )
              
              19,453**CASH
                  FLOWS FROM INVESTING ACTIVITIES**-
                  purchases of available for sale securities
              
              (157,545
              )
              
              --
                  purchases of property and equipment
              
              (7,388
              )
              
              (13,232
              )**CASH
                  PROVIDED BY (USED IN) INVESTING ACTIVITIES**
              
              (164,933
              )
              
              (13,232
              )**CASH
                  FLOWS FROM FINANCING ACTIVITIES**-
                  issuance of common stock for share subscriptions
              
              -
              
              
              100,000-
                  issuance of common stock for share subscriptions
              
              -
              
              
              100,000-
                  issuance of common stock for share subscriptions
              
              -
              
              
              97,100-
                  loan proceeds
              
              43,180
              
              
              -**CASH
                  FLOWS PROVIDED BY FINANCING ACTIVITIES**
              
              43,180
              
              
              297,100**NET
                  INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS**
              
              (570,669
              )
              
              303,321**CASH
                  AND CASH EQUIVALENTS, BEGINNING OF PERIOD**
              
              1,735,887
              
              
              1,064,928**CASH
                  AND CASH EQUIVALENTS, END OF PERIOD**
              $
              1,165,218
              
              $
              1,368,249**SUPPLEMENTAL
                  CASH FLOW INFORMATION**(Refer
                  to Note 6)
 
  
 The
        accompanying notes are an integral part of these interim consolidated financial
        statements.
 
 
  **Page
            - 20**
   **COMMUNICATE.COM
        INC.**
 **NOTES
        TO INTERIM CONSOLIDATED FINANCIAL
        STATEMENTS**
 **JUNE
        30, 2006**
 **(Unaudited)**
 
 
 **NOTE
        1 - NATURE OF OPERATIONS**
 
 The
        Company’s subsidiary Domain Holdings Inc. (“DHI”) owns a portfolio of generic
        domain names. DHI’s current business strategy is to develop or to seek partners
        to develop its domain names to include content, commerce and community
        applications. DHI has developed two websites that sell fragrance, beauty
        care
        and sporting goods products to North American consumers.. DHI sells advertising
        services on its domains held for development and seeks to acquire other domains
        to complement its retail and advertising strategy. DHI has an in-house
        development team that develops its corporate and retailing
        websites.
 
 Effective
        December 31, 2005, DHI reorganized by transferring certain domain name assets
        into its 100% owned subsidiary Acadia Management Corp. (“Acadia”), a British
        Columbia, Canada, company incorporated on December 1, 2005.
 
 On
        October 1, 2003 the Company acquired a 71% controlling interest in
        FrequentTraveller.com Inc. (“FT”), a Nevada private company incorporated on
        October 29, 2002. FT is a full service travel agency that caters to
        Internet-based customers seeking tours and other travel services. As at December
        31, 2005, the Company owns 50.4% of the outstanding shares of FT. (Refer
        to Note
        3.)
 
 **Comparative
        figures**
 Certain
        comparative figures have been reclassified in order to conform to the current
        year’s financial statement presentation.
   **NOTE
        2 - BASIS OF PRESENTATION**
   The
        foregoing unaudited interim financial statements have been prepared in
        accordance with generally accepted accounting principles for interim
        consolidated financial information and with the instructions to Form 10-QSB
        and
        Regulation S-B as promulgated by the Securities and Exchange Commission ("SEC").
        Accordingly, these consolidated financial statements do not include all of
        the
        disclosures required by generally accepted accounting principles for complete
        financial statements. These unaudited interim consolidated financial statements
        should be read in conjunction with the audited consolidated financial statements
        for the period ended December 31, 2005. In the opinion of management, the
        unaudited interim consolidated financial statements furnished herein include
        all
        adjustments, all of which are of a normal recurring nature, necessary for
        a fair
        statement of the results for the interim period presented.
   The
        preparation of financial statements in accordance with generally accepted
        accounting principles requires the use of estimates and assumptions that
        affect
        the reported amounts of assets and liabilities, disclosure of contingent
        assets
        and liabilities known to exist as of the date the financial statements are
        published, and the reported amounts of revenues and expenses during the
        reporting period. Uncertainties with respect to such estimates and assumptions
        are inherent in the preparation of the Company's financial statements;
        accordingly, it is possible that the actual results could differ from these
        estimates and assumptions that could have a material effect on the reported
        amounts of the Company's financial position and results of
        operations.
   Operating
        results for the six month period ended June 30, 2006 are not necessarily
        indicative of the results that may be expected for the year ending December
        31,
        2006.
  
 **NOTE
        3 - NON-CONTROLLING INTEREST**
 
 By
        agreement dated October 1, 2003, the Company acquired 350,000 common shares
        of
        FT, representing 71% of the outstanding shares of FT, in consideration for
        settlement of a $35,000 debt owing to the Company by FT for previous consulting
        work provided. Subsequent to October 1, 2003, FT issued 113,637 shares of
        its
        common stock to non-controlling interests for total proceeds of $50,000
        resulting in a gain on dilution of $30,555 in fiscal 2003. In 2004, FT issued
        350,000 shares to the Company in settlement of advances of $35,000 and issued
        334,578 shares to non-controlling interests for total proceeds of $51,726
        resulting in a net gain on dilution of $12,353 in fiscal 2004. On November
        16,
        2004, FT declared a nine share for every one share stock dividend.
 
 **Page
            - 21**
 
 **NOTE
        3 - NON-CONTROLLING INTEREST** (continued)
 
 On
        May 1,
        2005, FT completed a private placement of common shares at $0.05 per common
        share and raised $147,100 of which $50,000 was invested by the Company. FT
        issued 1,000,000 common shares to the Company and 1,942,000 to non-controlling
        interests. The monies were used to recapitalize FT and for working capital
        purposes. The Company recorded a dilution gain of $68,837 and a non-controlling
        interest in FT of $28,463 in 2005. As of June 30, 2006, FT has 15,878,690
        common
        shares issued and outstanding of which the Company owns 8,000,000 common
        shares
        representing 50.4% of FT’s issued and outstanding common shares.
 
 On
        May 5,
        2005, DHI entered into an agreement with FT whereby FT would have the right
        to
        sell travel products on Brazil.com, Indonesia.com, Malaysia.com, Canadian.com
        and GreatBritain.com by agreeing to pay at least a minimum royalty commencing
        2006 of $150,000 per annum. The royalty, which is 5% on the first $20 million
        in
        revenue and decreases by 1% on every subsequent $20 million to a minimum
        of 1%
        on annual sales greater than $80 million, is based on sales of travel products
        by FT. DHI retains the rights to sell other services, including advertising,
        on
        the websites. Beginning in 2007, DHI will earn a minimum annual royalty of
        $150,000 from FT. The agreement expires on December 31, 2010 and may be
        extended by
        FT  in
        increments of 5 years thereafter with the minimum annual royalty recalculated
        based on the average from the previous 5-year period.
 
 On
        July
        19, 2005, FT filed a Form SB-2 registration statement with the U.S, Securities
        and Exchange Commission offering up to 4,000,000 common shares at a price
        of
        $0.50 per common share. The monies to be raised are intended for development
        of
        FT’s business, including call center operations, technology investment and
        working capital. The Company is not obligated to undertake any portion of
        the
        offering, and if the maximum offering is sold by FT the Company’s interest in FT
        will decrease from 50.4% to 40%. While the registration process is continuing,
        the Company cannot estimate when, or if, the Form SB-2 filed by FT will become
        effective and whether the offering will be sold by FT.
 
 **NOTE
        4 - RELATED PARTY TRANSACTIONS**
 
 During
        the three month period ended March 31 2006, consulting fees totalling $54,188
        (2005 - $51,000) were incurred and paid to the two officers of the
        Company.
 
 During
        the quarter ended June 30, 2006, consulting fees totalling $55,188 (2005
        -
        $51,000) were incurred and paid to the two officers of the Company, and
        performance bonuses totalling $100,000 were accrued.
 
 **NOTE
        5 - INCOME TAXES**
 
 The
        Company’s subsidiaries, DHI and Acadia are subject to federal and provincial
        taxes in Canada and the Company and its subsidiary FT are subject to United
        States federal and state taxes.
 
 As
        at
        December 31, 2005, the Company and its subsidiaries have  net
        operating loss carryforwards of approximately $2,430,000 that
        result in deferred tax assets. These loss carryforwards will expire, if not
        utilized, through 2025 with the majority expiring by 2006. The Company’s
        subsidiary DHI also has approximately $1,610,000 in undepreciated capital
        costs
        relating to property and equipment that have not been amortized for tax
        purposes. The Company’s subsidiary Acadia also has approximately $1,800,000 in
        undepreciated capital costs relating to intangible assets that have not been
        amortized for tax purposes. These costs may be amortized in future years
        as
        necessary to reduce taxable income. M anagement
        believes that t he
        realization of the benefits from these deferred tax assets is uncertain and.
        accordingly, a full deferred tax asset valuation allowance has been provided
        and
        no deferred tax asset benefit has been recorded.
 
 **NOTE
        6 - SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS**
 
 Six
                  months ended
                June
                  30,2006
                (unaudited)
              
              Six
                  months ended
                June
                  30, 2005
                (unaudited)Cash
                  paid during the period for:Interest
              $
              -
              
              $
              -Income
                  taxes
              $
              -
              
              $
              -
 
 
 **Page
            - 22**
 
 
 
 **NOTE
        7 - SEGMENTED INFORMATION**
 
 The
        Company’s eCommerce operations are conducted in three business segments, Domain
        Sales, Leasing and Advertising, eCommerce Products and eCommerce Services.
        Revenues, operating profits and net identifiable assets by business segments
        are
        as follows:
 
 For
                  the six months ended June 30, 2006Domain
                  Sales, Advertising and
                Royalty
              
              eCommerce
                Products
              
              eCommerce
                Services
              
              Total$
              $
              
              
              
              
              $
              $Revenue
              
              314,444
              
              
              2,521,563
              
              
              281,269
              
              
              3,117,276Segment
                  Profit (Loss)
              
              32,051
              
              
              (168,788
              )
              
              (94,676
              )
              
              (231,413
              )As
                  at June 30, 2006
              
              
              
              $
              $
              
              
              
              
              $
              $Total
                  Assets
              
              1,471,412
              
              
              1,803,682
              
              
              106,616
              
              
              3,381,710Intangible
                  Assets
              
              1,471,412
              
              
              252,366
              
              
              3,300
              
              
              1,727,078
 
 The
        reconciliation of the segment profit to net income as reported in the financial
        statements is as follows:
 
 Six
                  months ended June 30, 2006Segment
                  Profit (Loss)
              
              $
              (231,413
              )Non-RecurringIncome
              
              
              250,000Interest
                  Income
              
              
              24,034Gain
                  on Debt Settlement
              
              
              -Non-Controlling
                  Interest
              
              
              -Dilution
                  Gain in FrequentTraveller.com
              
              
              -Net
                  Income
              
              $
              42,621
 
 **NOTE
        8 - CONTINGENCIES**
 
 The
        former Chief Executive Officer of DHI commenced a legal action against DHI
        on
        March 9, 2000 for wrongful dismissal and breach of contract. He is seeking,
        at a
        minimum, 18.39% of the outstanding shares of DHI, specific performance of
        his
        contract, special damages in an approximate amount of $30,000, aggravated
        and
        punitive damages, interest and costs. On June 1, 2000, Communicate.com filed
        a
        Defence and Counterclaim against this individual claiming damages and special
        damages for breach of fiduciary duty and breach of his employment contract.
        The
        outcome of these legal actions is currently not determinable and as such
        the
        amount of loss, if any, resulting from this litigation is presently not
        determinable.
 
 **NOTE
        9 - ROYALTY**
  Pursuant
        to agreements entered into on July 3, 2003 with Manhattan Assets Corp., DHI
        sold
        automobile.com, call.com, exercise.com and makeup.com for $1 million and
        retained a perpetual royalty right to the domain names. The royalty is
        calculated and payable monthly as the greater of 5% of net revenues arising
        from
        the sale of products and services marketed on webpages hosted on the domain
        names, or $2,500, commencing 2006. During the first quarter of 2006, DHI
        received royalty payments of $21,673 in aggregate. During the second quarter
        in
        2006, Manhattan Assets and DHI agreed to settle all future royalty obligations
        in exchange for the return of call.com which has been recorded at its estimated
        fair value of $250,000 resulting in a non-recurring income of
        $250,000.
  **NOTE
        10 - SUBSEQUENT EVENT**
  On
        August
        11, 2006, DHI completed the sale and transfer of a sports domain name with
        a
        cost of $125,112 to an arms-length party for cash proceeds of
        $500,000.
 
 **Page
            - 23**