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Exhibit 99.1
 FOR IMMEDIATE RELEASE
 Innuity, Inc. Issues 1 st Quarter 2006 Financial Results
 
 Internet Technology Company Reports Significant Revenue Increase
Related to Internet Marketing and Point of Sale Acquisitions, Plus InnuityDirect Launch
 REDMOND, Wash. (May 15, 2006)
     About Innuity  www.innuity.com




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Media contact:      bsilver@mww.com
 IR contact:     laurie@shareholder-relations.net




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INNUITY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 March 31,
    
    
    December 31,2006
    
    
    2005(Unaudited)ASSETSCurrent AssetsCash and cash equivalents
    
    $
    180,817
    
    
    $
    696,997Settlement deposits
    
    
    713,633
    
    
    
    529,900Settlement receivable, net of allowance for doubtful accounts
    
    
    448,172
    
    
    
    254,499Trade accounts receivable, net of allowance for doubtful accounts
    
    
    2,431,167
    
    
    
    1,848,819Inventories, net of allowance for obsolete inventory
    
    
    529,366
    
    
    
    522,600Prepaid royalty
    
    
    831,498
    
    
    
    1,247,246Other current assets
    
    
    240,781
    
    
    
    209,813Total Current Assets
    
    
    5,375,434
    
    
    
    5,309,874Property and equipment, net
    
    
    349,367
    
    
    
    347,724Intangible Assets, net
    
    
    2,116,619
    
    
    
    2,370,714Goodwill
    
    
    1,833,220
    
    
    
    1,833,220Total Assets
    
    $
    9,674,640
    
    
    $
    9,861,532LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)Current LiabilitiesTrade accounts payable
    
    $
    1,792,671
    
    
    $
    1,595,272Accrued salaries and wages
    
    
    534,020
    
    
    
    406,036Merchant settlement payable
    
    
    1,242,927
    
    
    
    774,975Accrued liabilities
    
    
    942,309
    
    
    
    777,190Deferred revenues
    
    
    1,913,696
    
    
    
    1,575,442Line of credit
    
    
    599,515
    
    
    
    489,515Related party notes payable, current portion, net of discount
    
    
    658,106
    
    
    
    658,106Long-term debt, current portion
    
    
    1,200,000
    
    
    
    1,215,000Capital lease obligations, current portion
    
    
    50,579
    
    
    
    36,420Total Current Liabilities
    
    
    8,933,823
    
    
    
    7,527,956Long-Term LiabilitiesRelated party notes payable, net of discount
    
    
    397,109
    
    
    
    1,470,867Long-term debt, net of discount
    
    
    
    
    
    
    3,397,563Capital lease obligations
    
    
    75,399
    
    
    
    52,102Total Long-Term Liabilities
    
    
    472,508
    
    
    
    4,920,532Total Liabilities
    
    
    9,406,331
    
    
    
    12,448,488Stockholders Equity (Deficit)
    
    
    268,309
    
    
    
    (2,586,956
    )Total Liabilities and Stockholders Equity (Deficit)
    
    $
    9,674,640
    
    
    $
    9,861,532




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INNUITY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
 Three Months Ended March 31,2006
    
    
    2005RevenuesProduct sales
    
    $
    1,899,841
    
    
    $
    Services
    
    
    3,058,030
    
    
    
    1,202,583Total revenues
    
    
    4,957,871
    
    
    
    1,202,583Operating expensesCost of product sales
    
    
    1,560,053
    
    
    
    Cost of services
    
    
    1,711,945
    
    
    
    342,211General and administrative
    
    
    1,483,060
    
    
    
    2,961,395Selling and marketing
    
    
    1,352,186
    
    
    
    498,023Research and development
    
    
    364,445
    
    
    
    296,165Royalty expense
    
    
    415,748
    
    
    
    415,749Amortization expense
    
    
    254,336
    
    
    
    37,618Loss from operations
    
    
    (2,183,902
    )
    
    
    (3,348,578
    )Other income/expenseInterest expense
    
    
    (339,842
    )
    
    
    (28,588
    )Other income
    
    
    67,387
    
    
    
    Net Loss
    
    $
    (2,456,357
    )
    
    $
    (3,377,166
    )Basic and Diluted Loss
Per Common Share
    
    $
    (0.13
    )
    
    $
    (0.82
    )Basic and Diluted Weighted-Average
Common Shares Outstanding
    
    
    18,291,089
    
    
    
    4,097,753