CONSTANT CONTACT ANNOUNCES FOURTH QUARTER AND FULL YEAR 2008 FINANCIAL RESULTS

Email marketing customer base exceeds 253,400

Waltham, MA - February 12, 2009

Constant Contact®, Inc. (NasdaqGM: CTCT), a leading provider of email marketing and online surveys for small organizations, today announced its financial results for the fourth quarter and full year ended December 31, 2008.

Constant Contact reported total revenue of $25.5 million for the quarter ended December 31, 2008, an increase of 61 percent compared to revenue of $15.9 million for the comparable period in 2007. Constant Contact ended the fourth quarter of 2008 with more than 253,400 email marketing customers, an increase of 54 percent compared to the end of the fourth quarter of 2007.

"Constant Contact's fourth quarter results were better than expected and represented a strong finish to a remarkable year. During the fourth quarter, a record number of new customer additions enabled Constant Contact to pass the 250,000 customer milestone. In addition, rapid growth throughout the year extended Constant Contact's leadership position and drove our annualized revenue run rate to over $100 million," said Gail Goodman, CEO of Constant Contact.

Goodman added, "Solid execution combined with Constant Contact's clear value proposition, affordable price points and intense focus on customer success are driving the company's strong financial performance in the face of a challenging economic environment. We believe these factors, combined with a large and underpenetrated market opportunity, position the company well for 2009 and beyond."

Constant Contact reported an operating loss of $1.7 million for the quarter ended December 31, 2008 as compared to an operating loss of $54,000 for the comparable period in 2007. Constant Contact reported adjusted EBITDA of $878,000 in the fourth quarter of 2008, above the Company's guidance of $550,000 to $750,000 and representing an adjusted EBITDA margin of 3.4%. Adjusted EBITDA was $993,000 for the comparable period in 2007. Adjusted EBITDA is a non-GAAP financial measure that is calculated by taking GAAP net income (loss), adding other expense, depreciation and amortization, and stock-based compensation, and then subtracting net interest income. Adjusted EBITDA margin is equal to adjusted EBITDA divided by revenue. A reconciliation of the most comparable GAAP financial measure to the non-GAAP measure used above is included at the end of this release.

Constant Contact reported a GAAP net loss attributable to common stockholders of $1.6 million for the fourth quarter of 2008 as compared to $1.1 million for the comparable period in 2007. Fourth quarter 2008 GAAP net loss attributable to common stockholders per share was $0.06 as compared to $0.04 for the comparable period in 2007.

Fourth quarter 2008 non-GAAP net loss attributable to common stockholders per share was $0.03 as compared to $0.03 for the same period in 2007. Non-GAAP net income (loss) attributable to common stockholders per share is a non-GAAP financial measure that is calculated by adding back stock-based compensation expense to GAAP net income (loss) attributable to common stockholders and dividing this total by the weighted average shares outstanding. A reconciliation of the most comparable GAAP financial measure to the non-GAAP measure used above is included at the end of this release.

"During 2008, we generated our first full year of adjusted EBITDA profitability and free cash flow," said Steven R. Wasserman, vice president and chief financial officer of Constant Contact. "We demonstrated the operating leverage inherent in our business model, gaining efficiencies in both sales and marketing and research and development, while launching a major new marketing initiative. In addition to driving net customer additions and revenue growth, we remain highly focused on further expanding our adjusted EBITDA margins in 2009."

Other Business and Operational Highlights

During the fourth quarter of 2008, Constant Contact:

• Added over 24,800 net new email marketing customers, bringing its total email marketing customer base to over 253,400.

• Maintained consistency in its key customer metrics. The average email marketing invoice remained in the $33 range, plus or minus $2. The number of customers in the $15 and $30 revenue bands remained at 80%, plus or minus 1%, and the monthly retention rate remained in its range of 97.8% plus or minus 0.5%.

• Achieved a cost of acquisition (COA) of $304 for the full year 2008, consistent with the Company's target of $300. COA is calculated by dividing the annual GAAP sales and marketing expense by annual gross customer additions.

• Grew its ListenUp! Online Survey customer base to approximately 17,500. The Company adopted new pricing for this solution in January 2009 with the goals of further accelerating user adoption and gaining market share.

• Added new franchises to its growing roster of franchise customers, including i9 Sports® and Mad Science®. i9 Sports is the first and fastest growing franchise of youth sports leagues, camps and programs in the United States. Mad Science provides children with fun, interactive and educational programs that instill a clear understanding of what science is really about and how it affects their world.

• Began supporting its customer base on TwitterTM, a free social networking and micro-blogging service. Constant Contact is committed to meeting our customers where they are by supporting customers through a range of communication channels, both online and offline. As the Company proactively reached out to the Twitter community to offer formalized product support and email marketing advice, the number of tweets about Constant Contact increased from approximately 10 per week, to the range of 10 to 20 per day.

Full Year 2008 Results

For the full year 2008, total revenue was $87.3 million, an increase of 73 percent as compared to revenue of $50.5 million in 2007. For the full year 2008, loss from operations was $4.5 million as compared to $5.7 million in 2007. Constant Contact reported a GAAP net loss attributable to common stockholders of $2.1 million, as compared to $9.1 million in 2007, and a GAAP net loss attributable to common stockholders per share of $0.07 as compared to $0.97 in 2007.

Adjusted EBITDA was $3.9 million for the full year 2008, representing a full year adjusted EBITDA margin of 4.5% and an increase from an adjusted EBITDA loss of $2.4 million in 2007. For the full year 2008, non-GAAP net income attributable to common stockholders per share was $0.03 as compared to a loss of $0.90 in 2007.

Business Outlook

Based on information available as of February 12, 2009, Constant Contact is issuing guidance for the first quarter and full year 2009 as follows:

First Quarter 2009: The Company expects first quarter revenue to be in the range of $27.7 million to $27.9 million, adjusted EBITDA to be in the range of $900 thousand to $1.1 million, and non-GAAP net loss attributable to common stockholders per share to be in the range of $0.02 to $0.03 based on weighted average shares outstanding (basic) of 28.1 million shares.

GAAP net loss is expected to be in the range of $1.7 million to $1.9 million, and GAAP net loss per share to be in the range of $0.06 to $0.07. GAAP net loss per share is based on weighted average shares outstanding (basic) of 28.1 million shares and includes an estimated stock-based compensation expense of $1.1 million.

Full Year 2009: The Company expects full year 2009 revenue to be in the range of $125 million to $130 million. The Company expects adjusted EBITDA to be in the range of $10.0 million to $10.4 million, representing an adjusted EBITDA margin of 8%. The Company expects full year 2009 non-GAAP net income attributable to common stockholders per share to be in the range of $0.06 to $0.07 based on weighted average shares outstanding (diluted) of 29.5 million shares.

The Company expects GAAP net loss to be in the range of $2.9 million to $3.3 million, and GAAP net loss per share to be in the range of $0.10 to $0.12. GAAP net loss per share is based on weighted average shares outstanding (basic) of 28.3 million shares and includes an estimated stock-based compensation expense of $5.0 million.

Non-GAAP Financial Measures

This press release contains five non-GAAP financial measures: adjusted EBITDA (loss), adjusted EBITDA margin, non-GAAP net income (loss) attributable to common stockholders, non-GAAP net income (loss) attributable to common stockholders per share and free cash flow. Constant Contact believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Constant Contact's financial condition and results of operations. The Company's management uses these non-GAAP measures to compare the Company's performance to that of prior periods for trend analyses, for purposes of determining executive incentive compensation, and for budgeting and planning purposes. These measures are used in monthly financial reports prepared for management and in quarterly financial reports presented to the Company's board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with other software-as-a-service companies, many of which present similar non-GAAP financial measures to investors.

Management of the Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded from these non-GAAP financial measures.

In order to compensate for these limitations, management of the Company presents its non-GAAP financial measures in connection with its GAAP results. Constant Contact urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing earnings information, including this press release, and not to rely on any single financial measure to evaluate the Company's business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP measures used in this press release are included at the end of this release.

Conference Call Information

What: Constant Contact fourth quarter 2008 financial results conference call
When: Thursday, February 12, 2009
Time: 5:00 p.m. ET
Live Call: (877) 856-1962, domestic (719) 325-4770, international
Replay: (888) 203-1112, passcode 2417232, domestic (719) 457-0820, passcode 2417232, international
Webcast: http://investor.constantcontact.com/ (live and replay)

Constant Contact, Inc.
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Constant Contact, Inc.
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Constant Contact, Inc.
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Please direct all press inquiries to:

Chris Nahil
Constant Contact
781-472-8134
mailto:cnahil@constantcontact.com

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