IncrediMail (NASDAQ: MAIL), a software company specializing in consumer products and services on the Internet, has announced it acquired BizChord Ltd., a transaction processing company that has provided IncrediMail with processing services since 1999.

Yaron Adler, CEO of IncrediMail said, ?BizChord's software products and services enable real-time billing, processing, tracking and fraud protection and are an important pillar for our future growth. We've learned to value BizChord's stellar processing record, and by bringing the online transaction process in-house we will improve user experience, reduce costs and enhance profitability.?

Michael Fainshtein and Eugene Volkov, founders of BizChord, will be joining the IncrediMail subsidiary formed for this purpose, as will four other employees of BizChord.

As per terms of the agreement, IncrediMail will pay a total of $750,000 for BizChord, including $525,000 in cash and the balance in shares, based upon the price of IncrediMail stock at the time of the grant, in accordance with the terms of the purchase agreement.

In addition to handling IncrediMail's processing, BizChord, under the IncrediMail umbrella, will also continue to work with its other clients and pursue new business opportunities as well.

Mr. Adler added, ?While IncrediMail is excited about this recent acquisition, possible future acquisitions are not limited to business suppliers. With ample cash reserves and higher than IPO share price, IncrediMail continues to evaluate strategic acquisitions it believes will enhance user experience, reduce time to market for its new products and reach new audiences.?

About BizChord.

BizChord based in Tel-Aviv, has developed a ?Gateway? system comprised of the following components: Cisco router with firewall option, firewall server, registration authorization server (i.e., RAS) or AAA server, mail server, web server, database server, fraud scrubbing server and card processor gateway. These components provide for a most comprehensive and efficient solution. The system has the following functionalities and features; real-time authorization, full data site replication' online and automated reporting, merchant processing profiles, merchant support, reconciliation and settlement, "Virtual Terminal" for offline merchants, registration code distribution, coupon distribution, product list profiles and real time multi-currency database feed with inbuilt GUI.

About IncrediMail Ltd.

IncrediMail designs and markets an integrated suite of customized and entertaining email software products for the consumer market, offering users the ability to design highly personalized email presentations with our large collection of multimedia content for email communication. Our products include: IncrediMail Xe, which allows users to personalize email messages with creative features and is offered free of charge; IncrediMail Premium, an enhanced version of IncrediMail Xe; IncrediMail Letter Creator, which enables further personalization of backgrounds; The Gold Gallery, a content database of additional backgrounds, animation and notifiers; JunkFilter Plus, an anti-spam solution; and the recently introduced Magentic, a solution offering desktop Wallpapers and Screensavers. IncrediMail generates revenue by the sale of these products and services; licensing and co-branding the Incredi brand to operators of third party websites; and selling paid advertising and sponsored links on its website and email client. For more information about IncrediMail, visit www.incredimail-corp.com.

Forward-Looking Statements

This press release contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of the Company. The words "believe," "expect," "intend," "plan," "should" and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of the Company with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in the markets in which the Company operates and in general economic and business conditions, loss of key customers and unpredictable sales cycles, competitive pressures, market acceptance of new products, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this press release. Various risks and uncertainties may affect the Company and its results of operations, as described in reports filed by the Company with the Securities and Exchange Commission from time to time. The Company does not assume any obligation to update these forward-looking statements.