August 2, 2006 -- Pittsburgh, PA: Allin Corporation (OTCBB: ALLN), a Microsoft Gold Certified technology consulting firm, today reported results for the three months and six months ended June 30, 2006.

For the three-month and six-month periods ended June 30, 2006, revenue was $5.6 million and $10.6 million, respectively, compared to $3.8 million and $6.9 million for the three-month and six-month periods ended June 30, 2005, respectively. The Company recorded net income attributable to common shareholders in the amount of $538,000 ($0.05 per share-diluted) and $623,000 ($0.06 per share-diluted) for the three-month and six-month periods ended June 30, 2006, respectively, compared to a net loss attributable to common shareholders of $83,000 ($0.01 per share) and $443,000 ($0.06 per share) for the three-month and six-month periods ended June 30, 2005, respectively.

“Our second quarter revenue number was our strongest since the fourth quarter of 2000, while our earnings per share number was just one cent off of our record number from the fourth quarter of 2002,” stated Rich Talarico, Allin’s chief executive officer. “Strong demand for our interactive media services in the cruise industry and strength in our financial services vertical helped to push revenue and earnings. The recognition our Company received as Microsoft’s East Region Partner of the Year was also supported with very good financial results in our Pittsburgh office for the second quarter.”

Mr. Talarico added, “We have provided guidance that the second quarter of this year would be our strongest and we still expect that to be the case. Due to the timing of initial sailings for a number of newly built cruise ships for our clients, we do not expect to be working on the major portion of any interactive television implementations during the third quarter and expect to record a net loss attributable to common shareholders for that quarter. The results for the fourth quarter are dependent on our success in closing proposals for interactive television implementations that are currently outstanding. Even without considering the potential effect of these outstanding proposals, we continue to expect the full year results to show substantial improvement over 2005.”

Revenue increased 47% comparing the quarter ended June 30, 2006 with the quarter ended June 30, 2005. Systems Integration revenue more than doubled period-to-period driven by the strong demand for the Company’s interactive services. Consulting Services revenue recorded a 44% increase in the three months ended June 30, 2006 over the comparable period of 2005 and continued to be driven primarily by business intelligence and custom application development using tools such as Microsoft .NET, Microsoft Business Scorecard Manager, Microsoft SQL Server 2005 and SharePoint as well as larger and more complex Microsoft Solomon and CRM implementations. Total revenue for the six-month period ended June 30, 2006 increased 54% compared to the six-month period ended June 30, 2005. The Company recorded an increase in gross profit for both the three- and six-month periods ended June 30, 2006, as compared to the same periods of the prior year, due to the higher revenue numbers and to increases in the consolidated gross margin percentage.

The Company’s total selling, general and administrative expenses increased by 17% comparing the quarter ended June 30, 2006 with the quarter ended June 30, 2005, and 24% comparing the six-month periods ended the same dates. The increases were primarily attributable to increased technical head count and increases in depreciation and amortization.

About Allin Corporation
Allin Corporation is a leading provider of solutions-oriented application development and technology infrastructure consulting and systems integration services. Allin specializes in Microsoft-based technologies and interactive media with operations centered on four practice areas: Technology Infrastructure, Collaborative Solutions, Business Process and Interactive Media. Allin leverages its experience in these areas to work with clients through a disciplined project delivery framework to ensure that solutions are delivered on time and on budget. Allin delivers these services through the trade names Allin Consulting, Allin Interactive and the CodeLab Technology Group. The Company maintains offices in Pittsburgh, Pennsylvania; Ft. Lauderdale, Florida; Wakefield, Massachusetts; and San Jose and Walnut Creek, California. For additional information about Allin, visit the Company’s Internet sites on the World Wide Web at http://www.allin.com and http://www.codelabtech.com/.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to the safe harbors created thereby. These forward-looking statements are based on current expectations and projections about future events and financial trends. The words or phrases “anticipate,” “continued strong performance,” “will,” “continued growth,” “will lead to” and similar words or expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations or other characterizations of future events or circumstances are forward-looking statements. The forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including, among other things, a concentration in the Company’s revenue from certain services and clients, a limited backlog, the Company’s ability to expand its markets, limited financial resources, dependence on key personnel, the integration of acquired businesses and competitive market conditions. These are representative of factors which could affect the outcome of the forward-looking statements. In addition, such statements could be affected by general industry and market conditions and growth rates, general domestic and international economic conditions and future incidents of terrorism or other events that may negatively impact the markets where the Company competes. The Company undertakes no obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

ALLIN CORPORATION & SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands, except for per share data)

The selected financial data for each of the periods ended June 30, 2006 and 2005, presented below, have been derived from the consolidated financial statements of the Company.