GuruNet Announces Second Quarter 2005 Financial Results

GuruNet Announces Second Quarter 2005 Financial Results
Continued Growth in Revenues and Monetization 


NEW YORK, July 28  /PRNewswire-FirstCall/ -- GuruNet Corporation (AMEX: GRU),
creators of Answers.com(TM), the answer-based search engine, today announced
continued growth in its revenues and monetization for the second quarter of
2005. A conference call will be held today at 2:00 PM EDT to further explain
these results.

Revenues for the second quarter of 2005 rose to $424,552, compared to $175,633
in the first quarter of 2005, or 142% sequential growth, and compared with
$44,244, for the second quarter in 2004. The net loss in the second quarter of
2005 was $1,601,986, compared to a net loss of $1,504,924, for the first
quarter of 2005, and compared to a net loss in the second quarter of 2004 of
$1,874,149. The net loss, prior to non-cash charges for stock-based
compensation and costs, in the second quarter of 2005, fell to $1,057,758,
compared to $1,120,303 during the first quarter of 2005, and compared to
$1,858,049 in the second quarter of 2004. Cash and investment securities at
quarter end were approximately $19.4 million, and shareholder equity was
approximately $18.6 million.

"We are very pleased with our revenue growth in the second quarter of 2005,
which resulted from a strong traffic upswing and improved monetization," said
Bob Rosenschein, GuruNet's founder and CEO. "With modest initial marketing,
Answers.com was launched in January 2005, and in the second quarter, queries
averaged approximately 1.8 million queries per day, and that included weekends.
In addition, we are very pleased that traffic has remained fairly stable
throughout the seasonally slow summer months. We expect new momentum and growth
as we enter the strong fall season and school year."

Steve Steinberg, GuruNet's CFO, commented that, "As noted in our last quarterly
report, the company implemented Google's AdSense in March 2005. We have seen a
40% improvement in our June overall monetization rate, as compared to March.
With new initiatives underway, we expect to continue seeing improvement in this
critical metric throughout the rest of 2005 and 2006. We are also actively
working on additional monetization efforts, including the recently implemented
integration with Shopping.com, and we intend, shortly, to institute
impression-based advertising, which we expect to have a positive impact on
monetization."

Mr. Rosenschein added, "Traffic growth continues to be a top priority, as it is
a primary revenue driver. We are delighted with the response to Answers.com at
the National Educational Computing Conference at the end of June. Specifically,
Education appears to be a sector rich in eager, relevant users: students,
teachers, librarians and parents, representing elementary, high school and
college populations. We will aggressively market our value proposition, which
is simple and appealing - a reliable, free, timesaving search/reference
resource. We hope to see widespread adoption as the school year begins."

The company previously announced that its application for listing on NASDAQ's
National Market System was approved and that it plans to change its corporate
name to Answers Corporation, subject to stockholder approval. Further to such
announcement, the company today confirmed that its Common Stock would begin
trading on the NASDAQ National Market under the symbol "ANSW", effective at the
opening of trading on Tuesday, August 2, 2005. GuruNet's Common Stock will
continue trading on the American Stock Exchange under the symbol "GRU" through
August 1, 2005.

GuruNet will host a conference call today, Thursday, July 28th, 2005, at 2:00
PM EDT, to discuss the results of its second quarter ended June 30, 2005, as
well as to elaborate on recent events/announcements and company progress and
highlight next steps. Bob Rosenschein, GuruNet's chairman and CEO, and Steve
Steinberg, GuruNet's CFO, will be making the presentation, which will be
followed by a question and answer session. Investors will have the opportunity
to listen to the conference call and the replay over the Internet through
GuruNet's Website, within its Investor Relations page at
http://www.gurunet.com/ir. To listen to the live call via webcast, please go to
our Website at least 10 minutes early to connect and register. To dial in to
listen and/or submit a question, please dial 888-889-2497 and request the
GuruNet call. For those unable to listen to the live broadcast, a replay will
be available on the site shortly after the call, and will remain available on
the site for a period of one week following the call.

About GuruNet

GuruNet Corporation (AMEX:GRU) operates Answers.com(TM), a leading answer-based
search engine, http://www.answers.com/. Founded in 1999 by Bob Rosenschein,
GuruNet Corporation provides patented technology and software tools to access
concise information on demand. More information on GuruNet is available at
http://www.gurunet.com/. Answers.com and GuruNet are trademarks of GuruNet
Corporation.

Cautionary Statement

Some of the statements included in this press release are forward-looking
statements that involve a number of risks and uncertainties. For those
statements, we claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995.
Important factors may cause our actual results to differ materially, including
our inability to increase the number of persons who use our products and the
number of partners who will generate increased traffic to our sites, and other
risk factors identified from time to time in our SEC reports, including, but
not limited to, our registration statement on Form SB-2 filed in April 2005.
Any forward-looking statements set forth in this news release speak only as of
the date of this news release. We do not intend to update any of these
forward-looking statements to reflect events or circumstances that occur after
the date hereof. This press release and prior releases are available at
http://www.gurunet.com/. The information in GuruNet's website is not
incorporated by reference into this press release and is included as an
inactive textual reference only.

  (Tables to follow)

  Contacts:

  Steve Steinberg
  CFO
  GuruNet Corporation
  [phone]

  Jay Bailey
  Director, Communications
  GuruNet Corporation
  [phone]

  GuruNet Investor Relations:
  BPC Financial Marketing
  John Baldissera
  [phone]

  Selected Consolidated Financial Data (Unaudited)
  Statements of Operations:

                               Three months ended        Six months ended
                                          June 30
                                                                  June 30
                                 2005        2004        2005        2004
                                    $           $           $           $
                          (Unaudited) (Unaudited) (Unaudited) (Unaudited)

  Revenue                      424,552      44,244     600,185      63,875
  Costs and expenses:
  Cost of revenue              231,416     119,231     439,959     275,758
  Research and development(1)  397,853     254,685     728,322     518,473
  Sales and marketing (1)      450,970     221,556     812,430     540,485
  General and                1,078,960     202,123   1,930,575     414,530
  administrative(1)
  Total costs and expenses   2,159,199     797,595   3,911,286   1,749,246
  Operating loss           (1,734,647)   (753,351) (3,311,101) (1,685,371)
  Interest income (expense),
  net                          144,687 (1,113,418)     230,594 (1,850,452)
  Other income (expense),     (21,010)     (8,347)    (20,728)     (4,025)
  net
  Loss before income taxes (1,610,970) (1,875,116) (3,101,235) (3,539,848)

  Income tax benefits            8,984         967     (5,675)    (27,013)
  (expenses)   Net loss    (1,601,986) (1,874,149) (3,106,910) (3,566,861)
  Basic and diluted net loss
  per
  common share                  (0.23)      (1.08)      (0.48)      (2.38)
  Weighted average shares
  used in computing basic
  and diluted
  net loss per common share  6,986,768   1,727,373   6,512,508   1,498,698

  (1) Statements of operations includes stock
  based compensation and costs, as follows:

  Research and development      29,319         944      30,263       1,888
  Sales and marketing          106,701       5,236     213,956      10,472
  General and administrative   408,208       9,920     685,574      21,442
                               544,288      16,100     929,793      33,802

  Balance Sheets:
  The following table summarizes our balance sheet data:

                                    June 30,   December 31,
                                                       2004
                                        2005
                                 (Unaudited)      (Audited)
  Cash and investment securities $19,430,378     $7,415,415
  Working capital                $18,448,191     $6,688,721
  Total assets                   $21,280,754     $8,907,183
  Long-term liabilities           $1,105,295     $1,078,548
  Total stockholders' equity     $18,608,662     $6,824,122


DATASOURCE: GuruNet Corporation



CONTACT:  Steve Steinberg, CFO, GuruNet Corporation, [phone]; Jay

Bailey, Director, Communications, GuruNet Corporation,

[phone]; GuruNet Investor Relations: BPC Financial

Marketing, John Baldissera, [phone]

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