EWEB Global X Emerging Markets Internet and E Commerce ETF

Euroweb International Corp. (NasdaqSC:EWEB) today announced its results for the year ended December 31, 2005. On December 19, 2005, Euroweb entered into a Share Purchase agreement for the sale of its two Internet- and Telecom-related operating subsidiaries, Euroweb Internet Szolgaltato Rt. ("Euroweb Hungary") and Euroweb Romania S.A. ("Euroweb Romania"), for a purchase price of $30,000,000. On October 7, 2005, Euroweb acquired all of the outstanding shares of Navigator, a Hungary-based provider of IT outsourcing, applications development and IT consulting services. Consideration paid of $10,760,772 consisted of $8,500,000 in cash and 441,566 shares of Euroweb common stock valued at $1,752,134 excluding registration cost, and $508,638 in transaction costs (consisting primarily of professional fees incurred related to attorneys, accountants and valuation advisors). On December 16, 2004, Euroweb sold all of its shares in its wholly-owned subsidiary, Euroweb Czech Republic S.r.o ("Euroweb Czech Republic") for cash of $500,000. On April 15, 2005, the Company sold Euroweb Slovakia a.s ("Euroweb Slovakia") for cash of $2,700,000. As a result of the completed sale of Euroweb Czech Republic and Euroweb Slovakia and entering into the agreement to sell Euroweb Hungary and Euroweb Romania, all of these subsidiaries were classified as discontinued operations and Euroweb's revenue for the year ended December 31, 2004 was $-0- and $1,964,998 for the year ended December 31, 2005, which is related to Euroweb's information technology operations through its wholly owned subsidiary Navigator Informatika Rt. acquired on October 7, 2005. Below are the result for Euroweb as of December 31, 2005: -0- *T Year ended ---------------------- December 31 ---------------------- 2005 2004 ---------- Total revenues $1,964,998 $-- Loss from continuing operations (2,018,166)(1,402,766) Income from discontinued operations, net of tax 3,698,461 668,312 Net income (loss) $1,680,295 $(734,454) Loss per share from continuing operations, basic and diluted $(0.37) $(0.28) ====================== Income per share from discontinued operations, basic and diluted $0.68 $0.13 ====================== Net income (loss) per share, basic and diluted $0.31 $( 0.15) ====================== Weighted average number of shares outstanding, diluted 5,445,363 5,043,822 *T The following table shows the details of result of discontinued operation per reporting units as follows: 2005 2004 -0- *T Gain from discontinued Czech operations (including 2004 gain on disposal of $409,314), net of tax $- $364,722 Gain from discontinued Slovakian operations (including the 2005 gain on disposal of $1,701,200), net of tax 1,733,470 313,764 Income (loss) from discontinued Hungarian operations 637,256 (34,273) Income from discontinued Romanian operations 1,327,735 24,099 ---------------------------------------------------------------------- Income from dicountinued operations $3,698,461 $668,312 *T Euroweb International Corp. Consolidated Balance Sheet As of December 31, 2005 Amounts in US dollars -0- *T 2005 ------------ ASSETS Current assets: Cash and cash equivalents $1,568,690 Trade accounts receivable, less allowance for doubtful accounts of $206,518 1 533,855 Prepaid and other current assets 321,315 ------------ Total current assets of continuing operations 3,423,860 ------------ Total assets of discontinued operations 20,371,849 Total current assets 23,795,709 ============ Property and equipment, net 1,071,989 Goodwill 8,150,672 Intangible assets - customer contracts, net 3,132,300 ------------ Total assets $36,150,670 ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable $2,065,333 Current portion of bank loans 269,220 Bank overdrafts 325,409 Other current liabilities 827,703 Accrued expenses 545,964 ------------ Total current liabilities of continuing operations 4,033,629 Total liabilities of discontinued operations 13,783,582 Total current liabilities 17,817,211 Deferred tax liability 501,168 Non-current portion of bank loans 471,134 ------------ Total liabilities 18,789,513 Commitments and contingencies Stockholders' equity Common stock, $.001 par value - Authorized 35,000,000 shares; 6,032,221 shares issued of which 5,784,099 shares are outstanding and 248,122 shares are held in escrow 25,248 Additional paid-in capital 51,538,659 Accumulated deficit (34,302,431) Accumulated other comprehensive income 99,681 ------------ Total stockholders' equity 17,361,157 ------------ Total liabilities and stockholders' equity $36,150,670 ============ *T Euroweb International Corp. Consolidated Statements of Operations and Comprehensive Income / (Loss) Years Ended December 31, 2005 and 2004 Amounts in US dollars -0- *T 2005 2004 ---------------------- Revenues $1,964,998 $- Cost of revenues (exclusive of depreciation and amortization shown separately below) 511,658 - Operating expenses Compensation and related costs 1,054,342 361,809 Consulting, professional and directors fees 1,396,096 463,549 Other selling, general and administrative expenses 703,770 454,514 Depreciation and amortization 509,478 2,048 ---------------------- Total operating expenses 3,663,686 1,281,920 ---------------------- Operating loss (2,210,346)(1,281,920) Interest income 2,512 49,154 Interest expense (38,240) - Other income (expenses) 170,000 (170,000) Loss from continuing operations before income taxes (2,076,074)(1,402,766) Income tax benefit -deferred 57,908 - ---------------------- Income tax benefit 57,908 - Loss from continuing operations (2,018,166)(1,402,766) Income from discontinued operations, net of tax 3,698,461 668,312 Net income (loss) 1,680,295 (734,454) Other comprehensive income (loss) (8,585) 133,768 ---------------------- Comprehensive income (loss) $1,671,710 $(600,686) ====================== Loss per share from continuing operations, basic and diluted (0.37) (0.28) Income per share from discontinued operations, basic and diluted 0.68 0.13 Net income (loss) per share, basic and diluted 0.31 (0.15) Weighted average number of shares outstanding, basic and diluted 5,445,363 5,043,822 *T About Euroweb International Corp. Euroweb International owns and operates Internet and Telecommunication Services Providers and an IT outsourcing company in Hungary and Romania through its wholly owned subsidiaries Euroweb Hungary Rt., Euroweb Romania S.A. and Navigator Informatika Rt. Euroweb's common stock is traded on the Nasdaq SmallCap Market under the symbol "EWEB". For more information about the Company go to: www.euroweb-international.com. "SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This press release contains forward-looking statements that involve risks and uncertainties. The statements in this Release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause Euroweb International Corp's actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.