May 19, 2006
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May 19, 2006

FOR IMMEDIATE RELEASE


Innuity, Inc. Helps Overstock.com Auctions™ Introduce Stores for Small Business Auction Sellers

Innuity to Provide Private Label Technology and Services to Overstock.com Auctions


REDMOND, Wash. (May 19, 2006) – Innuity, Inc. (OTCBB: INNU.OB), an Internet technology company dedicated to helping small businesses succeed, announced today that Overstock.com Auctions™ has selected Innuity’s private label technology, services and expertise to help expand Overstock.com Auctions’ offerings to its small business auction sellers.

Overstock.com Auctions plans to introduce fixed-price stores that will allow sellers to create their own stores and embed their stores inside Overstock.com Auctions. Innuity has agreed to provide the private label technology that would enable sellers to customize their stores’ look and feel, as well as deliver reliable transaction processing capabilities. Overstock.com Auctions currently plans to launch the product’s beta version in early summer 2006, with full customer availability scheduled for late summer or early fall 2006.

“We aligned ourselves with Innuity to open up this new sales channel for our auction community,” said JT Stephens, assistant vice president of Overstock.com Auctions. “We are committed to the success of our auction sellers and to building the best online marketplace.”

Innuity has a suite of applications, services and technology that help small business owners get online, promote their business and transact with customers, and has a number of strategic relationships with Fortune 500 companies who “private label” Innuity’s technology and services and market them under their own brand. (For more information on Innuity’s private label partnerships, go to www.innuity.com.)

“Innuity’s private label partnerships are a strategic channel to building our small business customer base and providing more small businesses with end-to-end technology solutions,” said Jim Crisera, president of Innuity’s Promotion division. “We look forward to developing additional opportunities to work with Overstock that can help more small businesses cost effectively grow their revenues, reach and serve customers and run everyday operations.”

About Innuity

Headquartered in Redmond, WA, Innuity is an Internet technology company that designs, acquires and integrates applications to deliver solutions for small business. The company’s Internet technology is based on an affordable, on-demand model that allows small businesses to simply interact with customers, business partners, and vendors and efficiently manage their businesses. Innuity delivers its on-demand applications through its Internet technology platform, Innuity Velocity™.  The Velocity technology platform enables use-based pricing, provides the opportunity to choose applications individually or as an integrated suite and ensures minimum start-up costs and maintenance.  For more information on Innuity, go to www.innuity.com.

This press release contains statements and information about management’s view of Innuity’s future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.  These statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those described, including risks and uncertainties associated with general economic conditions, Innuity’s inability to sufficiently anticipate market needs and develop products and enhancements that achieve market acceptance, higher than anticipated expenses in future quarters, and Innuity’s working capital deficit and its ability to continue as a going concern.  In addition, Innuity’s target small business market is very fragmented and difficult to reach, and it has therefore chosen to rely on the business relationships that large companies already have with large numbers of small businesses in order to reach its target market.  Innuity does not have any long-term contracts with any of its existing customer-acquisition partners, nor does it anticipate entering into long-term contracts with any of these partners, which are generally not restricted from working with Innuity’s competitors. Accordingly, Innuity’s success will depend upon the willingness of these organizations to continue their distribution arrangements with Innuity. If any of its private label distribution arrangements are terminated or otherwise fail, or if it is unable to enter into additional private label distribution arrangements, Innuity could be required to devote substantial additional resources to the development of alternative internal resources or external channels for the direct sale and marketing of its Internet technology solutions.

About Overstock.com Auctions:

Launched in October 2004, Overstock Auctions is an online community of auction buyers and sellers. The site offers sellers low fees, a simple listing process and the Trusted Merchant Program™, which enables customers to bid with confidence. For more information about Overstock.com’s online auctions site, visit http://auctions.overstock.com.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding the features and benefits of the Inuity services for Overstock.com Auctions sellers and such other risks as identified in our Form 10-K for the year ended December 31, 2005, and all our subsequent filings with the Securities and Exchange Commission, which contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.

Overstock.com is a registered trademark and Overstock.com Auctions is a trademark of Overstock.com, Inc.  All other trademarks are the property of their respective owners.

Media contact:
Ty Rogers
MWW Group for Innuity
206-689-8505 (office)
206-595-9609 (cell)
trogers@mww.com

IR contact:
Laurie S. Roop
Shareholder Relations
435-652-3884 (direct)
laurie@shareholder-relations.net