Revenues for the third quarter of 2008 were $9.0 million, an increase ofapproximately 2.3% as compared to $8.8 million in the second quarter of2008 and a decrease of approximately 2.4% as compared to $9.2 million inthe third quarter of 2007. InsWeb reported a net loss for the thirdquarter of 2008 of $552,000, or $0.12 per diluted share. This compares toa net loss in the second quarter of 2008 of $977,000 or $0.21 per dilutedshare, and to net income in the third quarter of 2007 of $464,000, or $0.08per diluted share.

Adjusted EBITDA, a non-GAAP financial measure used by InsWeb's managementand defined below, was a loss of $432,000 in the third quarter of 2008, ascompared to a loss of $518,000 in the second quarter of 2008 and to incomeof $692,000 in the third quarter of 2007.

"While we posted modest gains in revenue and net loss on a sequentialbasis, our strong progress in signing up new agencies and carriers couldnot offset some near-term challenges during the third quarter," statedInsWeb Chairman & CEO Hussein Enan. "On the consumer side, we began toexperience reduced demand, as fewer people bought cars and houses or moved,three primary reasons for shopping for insurance. On the provider side, wefelt the first full quarter impact of ongoing disruptions in lead flow fromcertain carriers undergoing rate revisions or other transitions. At thesame time, we grew our agency base 38% over the comparable period lastyear, expanded our platform with the addition of two new carriers and twonew aggregators, and increased our total number of syndication partnershipsto five. We also made strides in creating new channels to deliver andmonetize traffic more effectively, including the development of a newconsumer-centric insurance-related destination site under theinsurancerates.com domain acquired last quarter, which will launch in thefirst quarter of 2009."

"Given the current dynamics affecting our business and our inability topredict the extent to which they will be balanced by the new carriers,agencies and aggregators we have recently added and continue to add, we areunable to effectively gauge our revenue potential for the seasonally slowerfourth quarter. While we are confident that InsWeb will post double-digitrevenue growth over 2007, it is likely that we will fall short of ourprevious goal of 25% annual revenue growth. We expect to exit the year witha clean and strong balance sheet, a healthy cash position, and no debt. Weremain very excited about the future of our business and the initiatives wehave in place to drive revenues and profits over the long-term," concludedMr. Enan.

Non-GAAP Financial Information

In evaluating InsWeb's business, the Company's management considers anduses Adjusted EBITDA as a supplemental measure of operating performance.Adjusted EBITDA refers to a financial measure that the Company defines asnet income (loss) excluding interest, taxes, depreciation, amortization,share-based compensation, and other non-recurring gains and losses that arenot related to the Company's continuing operations. This measure is anessential component of InsWeb's internal planning process because itfacilitates period-to-period comparisons of the Company's operatingperformance by eliminating potential differences in net income (loss)caused by the existence and timing of non-cash charges and non-recurringgains and losses. Furthermore, Adjusted EBITDA reflects the key revenueand expense items for which InsWeb's operating managers are responsible.

InsWeb Corporation NON-GAAP FINANCIAL MEASURE AND RECONCILIATION (In thousands) (unaudited) Three months Ended September 30, June 30, September 30, ------------ ------- ------------ 2008 2008 2007 ------------ ------- ------------Net income (loss) $ (552) $ (977) $ 464 Less Interest income 47 60 108 Add Income tax benefit (44) (9) - Share-based compensation expense 164 78 264 Depreciation and amortization of property, equipment and intangible assets from continuing operations 47 40 37 Non-recurring expenses - 410 35 ------------ ------- ------------ Adjusted EBITDA from continuing operations $ (432) $ (518) $ 692 ============ ======= ============

Adjusted EBITDA is not a measurement of the Company's financial performanceunder U.S. GAAP and has limitations as an analytical tool. You should notconsider it in isolation or as a substitute for the Company's U.S. GAAP netincome (loss). The principal limitations of this measure are that: 1) itdoes not reflect the Company's actual expenses and may thus have the effectof inflating or reducing the Company's net income (loss) and net income(loss) per share; and 2) it may not be comparable to Adjusted EBITDA asreported by other companies.

Earnings Call Information

The InsWeb third quarter teleconference and webcast is scheduled to beginat 2:00 p.m., Pacific Time, on Thursday, October 23, 2008. To participateon the live call, analysts and investors should dial 800-867-1054 at leastten minutes prior to the call. InsWeb will also offer a live and archivedwebcast of the conference call, accessible from the "Investor Relations"section of the Company's Web site athttp://investor.insweb.com/index.cfm.

About InsWeb

InsWeb (NASDAQ: INSW) enables consumers to compare multiple, actionablequotes for auto, term life, health, homeowners, renters and condominiuminsurance offerings from many of the nation's highly rated insurers. Thetop-rated online insurance marketplace also provides interactive tools andindependent research. Headquartered in Sacramento, Calif., InsWeb isaccessible at www.insweb.com.

For further information regarding InsWeb Corporation, please review theCompany's filings with the Securities and Exchange Commission, includingQuarterly Reports on Form 10-Q and Annual Reports on Form 10-K, and inparticular Management's Discussion and Analysis of Financial Condition andResults of Operations.

This news release contains forward-looking statements reflectingmanagement's current forecast of certain aspects of the Company's future.It is based on current information, which we have assessed, but which byits nature is dynamic and subject to rapid and even abrupt changes.Forward-looking statements include statements expressing the intent, beliefor current expectations of the Company and members of our management teamregarding: projected future revenues, revenue growth, expenses,profitability and financial position; marketing and consumer acquisition;the results of strategic initiatives, including AgentInsider and the AgentDirectory; increased or decreased participation by insurance companies,agents and other purchasers of consumer leads; and product andtechnological implementations. The Company's actual results might differmaterially from those stated or implied by such forward-looking statementsdue to risks and uncertainties associated with the Company's business,which include, but are not limited to: variations in consumer usage of theinternet to shop for and purchase insurance; the willingness and capabilityof insurance companies or other insurance entities to offer their productsor instant quotes on the Company's website or through the Company'slicensed subsidiaries; changes in the Company's relationships with existinginsurance companies or other customers, including, changes due toconsolidation within the insurance industry; changes in the Company'srelationship with strategic and/or marketing partners; the Company'sability to attract and integrate new insurance providers and strategicpartners; implementation of competing Internet strategies by existing andpotential competitors; implementation and consumer acceptance of newproduct or service offerings; the outcome of litigation in which theCompany is a party; insurance and financial services industry regulation;fluctuations in operating results; or other unforeseen factors. Theforward-looking statements should be considered in the context of these andother risk factors disclosed in the Company's filings with the Securitiesand Exchange Commission.

"INSWEB" and "AGENTINSIDER" are registered service marks of InsWebCorporation. All marks above are those of InsWeb Corporation, except forthose of insurance insurers, brokers, agents, industry organizations,financial institutions, online partners, service providers, other mentionedcompanies and educational institutions, which are the marks of theirrespective entities.

INSWEB CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Amounts in thousands, except per share amounts] [unaudited] Three months ended Nine months ended September 30, September 30, ------------------- ------------------- 2008 2007 2008 2007 -------- --------- -------- ---------Revenues: Transactions $ 8,955 $ 9,167 $ 30,677 $ 25,273 Other 55 64 174 197 -------- --------- -------- ---------Total revenues 9,010 9,231 30,851 25,470Operating expenses: Direct marketing 6,497 5,899 22,040 15,024 Sales and marketing 1,505 1,251 4,233 4,056 Technology 774 691 2,401 2,344 General and administrative 877 1,034 3,276 3,259 -------- --------- -------- ---------Total operating expenses 9,653 8,875 31,950 24,683 -------- --------- -------- ---------Income (loss) from operations (643) 356 (1,099) 787 Interest income 47 108 196 287 Other income (expense), net - - - 6 -------- --------- -------- ---------Income (loss) before income taxes (596) 464 (903) 1,080Income tax benefit (44) - (44) - -------- --------- -------- ---------Net income (loss) $ (552) $ 464 $ (859) $ 1,080 ======== ========= ======== =========Net income (loss) per share: Basic $ (0.12) $ 0.10 $ (0.18) $ 0.25 ======== ========= ======== ========= Diluted $ (0.12) $ 0.08 $ (0.18) $ 0.21 ======== ========= ======== =========Weighted average shares used in computing net income (loss) per share: Basic 4,703 4,495 4,677 4,331 ======== ========= ======== ========= Diluted 4,703 5,515 4,677 5,108 ======== ========= ======== ========= INSWEB CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS [Amounts in thousands] [unaudited] September 30, December 31, 2008 2007 ----------- -----------ASSETSCurrent assets: Cash and cash equivalents $ 9,125 $ 10,777 Accounts receivable, net 2,410 2,428 Related party receivables 302 48 Prepaid expenses and other current assets 1,240 548 ----------- ----------- Total current assets 13,077 13,801Property and equipment 284 257Other assets 281 75 ----------- ----------- Total assets $ 13,642 $ 14,133 =========== ===========LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities: Accounts payable $ 2,338 $ 2,118 Accrued expenses 1,107 1,426 Deferred revenue 267 246 ----------- ----------- Total current liabilities 3,712 3,790Commitments and contingenciesShareholders' equity: Common stock 8 8 Paid-in capital 206,655 206,208 Treasury stock (6,334) (6,334) Accumulated deficit (190,399) (189,539) ----------- ----------- Total shareholders' equity 9,930 10,343 ----------- ----------- Total liabilities and shareholders' equity $ 13,642 $ 14,133 =========== ===========The following financial highlights and key metrics are provided as aresource for our investors. Please refer to the Company's filings with theSecurities and Exchange Commission for additional information regarding ourbusiness. Three months Ended ---------------------------------------- September 30, June 30, September 30, ------------ ------------ ------------ 2008 2008 2007 ------------ ------------ ------------Revenues: ------------ ------------ ------------ Auto $ 7,574,000 $ 7,266,000 $ 7,995,000 ------------ ------------ ------------ Home/condo/renters $ 862,000 $ 1,015,000 $ 554,000 ------------ ------------ ------------ Term life $ 377,000 $ 360,000 $ 611,000 ------------ ------------ ------------ Agent Directory $ 134,000 $ 105,000 N/A ------------ ------------ ------------ All other $ 8,000 $ 5,000 $ 7,000 ------------ ------------ ------------ Total transaction fees $ 8,955,000 $ 8,751,000 $ 9,167,000 ------------ ------------ ------------# of Consumers: ------------ ------------ ------------ Auto 2,245,000 2,033,000 1,802,000 ------------ ------------ ------------ Home/condo/renters 212,000 211,000 150,000 ------------ ------------ ------------ Term life 17,000 16,000 14,000 ------------ ------------ ------------ Agent Directory 383,000 478,000 N/A ------------ ------------ ------------ Total 2,857,000 2,738,000 1,966,000 ------------ ------------ ------------ Transaction revenue per consumer: ------------ ------------ ------------ Auto $ 3.37 $ 3.57 $ 4.44 ------------ ------------ ------------ Home/condo/renters $ 4.06 $ 4.81 $ 3.69 ------------ ------------ ------------ ------------ ------------ ------------Auto Segment B revenue per click $ 6.30 $ 6.26 $ 6.49 ------------ ------------ ------------Avg. times lead sold- (auto and home) 3.93 3.66 N/M ------------ ------------ ------------Agent network (auto and home): ------------ ------------ ------------ Agent Insider approved agents 6,775 6,402 4,902 ------------ ------------ ------------ ------------ ------------ ------------Direct marketing costs: $ 6,497,000 $ 6,238,000 $ 5,899,000 ------------ ------------ ------------ ------------ ------------ ------------Marketing costs per consumer: ------------ ------------ ------------ Total $ 2.27 $ 2.28 $ 3.00 ------------ ------------ ------------ Excluding Agent Directory $ 2.59 $ 2.71 $ 3.00 ------------ ------------ ------------Direct marketing costs as a percent of revenues: 72% 71% 64% ------------ ------------ ------------ ------------ ------------ ------------Cash and cash equivalents: $ 9,125,000 $ 10,674,000 $ 8,491,000 ------------ ------------ ------------Accounts receivable: $ 2,410,000 $ 2,360,000 $ 5,104,000 ------------ ------------ ------------Days sales outstanding (DSO): 24 31 43 ------------ ------------ ------------Staffing: 89 84 59 ------------ ------------ ------------Definitions:"# of consumers" Represents consumers acquired from marketing activities"Per consumer information" Represents Revenues earned or marketing costs incurred per consumer who has started a quote form"Segment B" Auto Insurance consumers classified as non-standard (bad driving record, not enough experience, or not permanently insured for 3 years)"Avg. times lead sold" Total # of times a lead is sold, including leads sold by NetQuote on our behalf"Carrier-sponsored agents" Carriers buying leads through InsWeb on behalf of their Agents"AgentInsider approved agents" # of agents approved to buy leads through AgentInsider"Direct marketing costs" Represents expenses incurred by InsWeb to drive the consumers to InsWeb's online insurance marketplace"N/M" Information not meaningful"N/A" Information not available

Investor Relations Contact:Molly PlylerThe Blueshirt Group415-217-7722Email Contact