April 5, 2007
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April 5, 2007

Innuity, Inc. Enters Into a Material Definitive Agreement for Funding

Innuity Signs Deal with Global Micro-Cap Fund Investing in High-Growth Companies

REDMOND, Wash. (April 5, 2007) – Innuity, Inc. (INNU.OB), a Software as a Service (SaaS) company that designs, acquires and integrates affordable solutions for small business, today announced that it has entered into a definitive investment agreement to issue shares to the global micro-cap fund, Antares Trading Fund Mercatech SA.

Under the terms of the agreement, Innuity will issue Antares an aggregate of 7,400,000 shares of Innuity common stock through a Restricted Equity Purchase Agreement (REPA) with Mercatus & Partners, Limited. The REPA transaction is a private placement of Innuity’s common stock at a discount to market with no preferences, warrants, or options and no registration rights for two years.  Further agreement details can be found in the current report on Form 8-K Innuity filed with the Securities and Exchange Commission in conjunction with this announcement.

“Innuity is on a rapid growth track as evidenced by our 2006 results, and we believe Antares’ investment in us will add fuel to our 2007 customer, product and distribution expansion initiatives,” said John Wall, Innuity chairman and CEO.  “In addition to providing us capital to continue ramping our small business offerings for our current and future customers, this financing should prove to be a positive for investors in Innuity based on the terms of the transaction when compared with the current micro cap market conditions.”

About Innuity

Headquartered in Redmond, WA, Innuity is a Software as a Service (SaaS) company that designs, acquires and integrates applications to deliver solutions for small business. Innuity’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.

About Antares

Antares Trading Fund Mercatech SP is a unique, newly formed global equity fund specializing in early-stage and mid-stage domestic small cap companies in the emerging technologies and service industries.  With offices in Rome, Italy and the Cayman Islands, Antares is  focused on working with companies that are pursuing capital for growth and expansion.

Forward-Looking Statements
This release contains 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. Actual results may differ materially from those indicated by these forward-looking statements as a result of a variety of factors, including, but not limited to, risks and uncertainties associated with our ability to complete the financing transaction.  Under terms of the REPA, we agreed to deliver the shares to a custodian financial institution within five days of the execution of the agreement and the purchaser agreed to pay the purchase price within 30 days of the delivery of the shares of common stock to the custodian.  If we do not receive the purchase price within 30 days of the delivery of the shares to the custodian, we may, at our discretion, demand recall of the shares, issue a stop transfer order on the sale and delivery of any of the shares, and terminate the agreement.  As a result, we may not be able to close the financing.  Even if we are able to close the financing, we may be required to raise additional funds through the issuance of debt or equity securities or other sources of financing in 2007.  Additional risks and uncertainties include those described in our quarterly reports on Form 10-QSB, our annual report on Form 10-KSB, and other documents we file periodically with the Securities and Exchange Commission.

Jordan Silverstein or Christine Berni
The Investor Relations Group
212-825-3120 (office)