Tucows Reports Results for Fourth Quarter

February 12, 2003

Company reports fifth consecutive quarter of positive cash flow from operations

Summary Financial Results

Tucows Inc.

(Numbers in Thousands, Except Per Share Data)

TORONTO, CANADA, February 12, 2003 – Tucows Inc. (OTCBB: TCOW), a leading provider of outsourced Internet services to ISPs and web hosting companies worldwide, today reported its results for the fourth quarter and year ended December 31, 2002. The Company demonstrated strong operational and financial performance for both the quarter and year ended December 31, 2002, achieving:

For the quarter ended December 31, 2002:

• net revenue of $8.8 million;
• positive cash flow from operations of $410,000; and
• net income of $1.4 million.

For the year ended December 31, 2002:

• year-over-year revenue growth of 17%;
• year-over-year deferred revenue growth of 7%;
• positive cash flow from operations of $3.4 million; and
• net income of $1.9 million.

"The fourth quarter marked a solid finish to a year in which our operational successes and financial discipline resulted in strong revenue growth and positive operating cash flow," said Elliot Noss, president and chief executive officer, Tucows Inc. "Tucows has built a recognized and trusted brand in doing what we do best – simplifying complex business processes and managing data for ISPs and web hosting companies. Having achieved our short-term financial goals and strengthened our balance sheet, we are now focused on leveraging our business model to provide our customers with additional high value service offerings and to deliver sustained profitability and value for our shareholders."

For the fourth quarter of fiscal 2002, net revenue was $8.8 million compared to $8.0 million (excluding $1.8 million in revenue from products and services that were disposed of in fiscal 2002), for the fourth quarter of fiscal 2001.

Net income (on a U.S. GAAP basis) for the quarter was $1.4 million, or $0.02 per share, compared to a net loss of $2.7 million, or a net loss of $0.04 per share, for the same quarter last year. Net income for the current quarter includes $1.1 million ($1.8 million for the year), being a gain on the disposition of eLibrary subscription assets, as well as a gain of $140,000 (net loss of $260,000 for the year) due to the change in fair value of forward contracts.

For the year ended December 31, 2002, revenue was $37.0 million, an increase of 17% from $31.6 million for the year ended December 31, 2001. Net income (on a U.S. GAAP basis) for fiscal 2002 was $1.9 million, or $0.03 per share, compared to a net loss of $13.4 million, or a net loss of $0.24 per share, for fiscal 2001.

Deferred revenue at December 31, 2002, was $24.4 million, an increase of 7% from $22.7 million at December 31, 2001 (which included deferred revenue of $2.4 million from lines of business that were disposed of in fiscal 2002); relatively unchanged from $24.2 million at the end of the third quarter of fiscal 2002.

Cash and restricted cash at the end of the fiscal year increased to $9.8 million from $8.5 million at the end of the third quarter of this year. This increase in cash and restricted cash is primarily the result of positive cash flow from operations of $410,000 and proceeds from the disposal of eLibrary subscription assets of approximately $1.1 million for the quarter ($1.8 million for the year).

Domain names registered, renewed and transferred-in for the fourth quarter totaled approximately 661,000. Total active domain names under management at the end of the fourth quarter increased by approximately 82,000 to 3.43 million.