STERLING, VA--(Marketwire - Jul 17, 2012) - IceWEB™, Inc. (OTCBB: [ IWEB ]), [ www.IceWEB.com ], a leading provider of Unified Data Storage appliances for cloud and virtual environments, today announced a strategic shift in focus from primarily R&D in the first half of 2012 to sales & marketing in the second half of the year. 

2012 has yielded numerous major product development advancements for IceWEB. In line with his vision to evolve IceWEB into a formidable challenger product company against a landscape of large, longstanding players, IceWEB's CEO John Signorello placed several initiatives in motion up until his untimely passing in late May. These initiatives include:

• Release of the IceSTORM Operating System -- IceWEB's feature-rich interface providing mid-market organizations with enterprise scale storage functionality at no additional cost.
• IceWEB 7000 Product Release -- High availability system for mission critical environments scales to 1.8 petabytes and supports SATA, SAS and SSD drives for maximum flexibility, performance and storage optimization.
• Appointing Gaurang Mehta as IceWEB's CTO -- 20+ year technology veteran bringing storage industry experience from LefHand Networks (acquired by HP), Promark Technology and more.
• Microsoft Active Directory Integration -- The first and only searchable and dynamic native Active Directory integration on unified systems streamlines share rights management and authentication.
• IceSTORM Version 2.7 Release -- With one-click configuration of Fibre Channel and Fibre Channel over Ethernet (FCoE) storage provisioning within the IceSTORM interface, Bolstered security, increased data integrity and alerting, enhanced speed and performance with IP multipathing capabilities, and more than 50 minor enhancements.
• Application for VMware Ready Certification on ESXi 5 -- as a VMware TAP Elite partner, IceWEB is committed to maintaining tight integration with VMware's latest market-leading virtualization technology, IceWEB is in the process of obtaining VMware Ready product certification on VMware ESXi 5.

These developments have garnered much unbiased, third-party acclaim for IceWEB, setting the stage for IceWEB to implement its channel sales and marketing strategy in the second half of calendar year 2012. Key components of IceWEB's go-to-market strategy to drive revenue for the company include:

• Channel Training -- IceWEB is conducting technical training for qualified channel partners to transfer knowledge out into the field to address customers technical requirements on a larger scale.
• Channel Engagement -- IceWEB's team of inside sales representatives is immediately developing qualified sales opportunities for key IceWEB channel partners such as DataSpan, Emergent Systems Exchange and others.
• Channel Expansion-- IceWEB is aggressively recruiting new channel partners on a nationwide scale, leveraging its partnership with Promark Technology and its network of 7,000+ reseller partners.

"As a challenger brand with relatively limited resources in an established market, it's critical that IceWEB's technology is bullet-proof and highly differentiated," said Hal Compton, IceWEB's Chairman and CEO. "John did a great job assembling the product building blocks and team to take IceWEB to the next level -- from a product and sales perspective. Now that the product is where it needs to be in terms of technology, quality and leadership, we are in a solid position to execute the company's sales and marketing strategy. We feel that that the level of product focus we exerted in the first half of the year has put us in a strong position to pursue our sales strategy moving forward."

"The recent market adjustment of IceWEB's stock price bears no reflection to the company's position of strength and long term sustainability, growth, and success," Mr. Compton added. "The company is relentlessly focused on driving sales, growing revenue, and demonstrating undeniable corporate value to its shareholders. Any absence of news should be interpreted as nothing less than 'all hands on deck' to move sales forward and realize the potential this company has developed, and that our investors have justifiably come to expect."

About IceWEB, Inc.
Headquartered just outside of Washington, D.C., IceWEB manufactures award-winning, high performance unified data storage appliances with enterprise storage management capabilities at a fraction of the price of traditional providers. Through thin provisioning, target deduplication and inline compression, IceWEB's unified storage arrays enable standardization, consolidation and optimized storage utilization for virtual and cloud environments, saving up to 90% of storage costs, while reducing space, power and cooling requirements and simplifying storage management. For more information please call 800-465-4637 or visit [ www.IceWEB.com ].

This press release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases you can identify those so-called "forward-looking statements" by words such as "may," "will," "should," "expects," "plans," "targets," "believes," "anticipates," "estimates," "predicts," "potential," or "continue" or the negative of those words and other comparable words. These forward-looking statements are subject to risks and uncertainties, product tests, commercialization risks, availability of financing and results of financing efforts that could cause actual results to differ materially from historical results or those anticipated. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC, which are available on its website at: [ http://www.sec.gov ]. We assume no obligation to update or alter our forward-looking statements made in this release or in any periodic report filed by us under the Securities Exchange Act of 1934, as amended, or any other document, whether as a result of new information, future events or otherwise, except as otherwise required by applicable federal securities laws.