Exhibit 99.1


TUCOWS REPORTS THIRTEENTH CONSECUTIVE QUARTER OF PROFITABILITY AND
SIXTEENTH CONSECUTIVE QUARTER OF POSITIVE CASH FLOW FROM OPERATIONS

- Third Quarter Results Reflect Continued Momentum in Business -

TORONTO - November 8, 2005 - Tucows Inc. (AMEX : TCX, TSC : TC) today reported continued strong results for the third quarter of fiscal 2005, ended September 30, 2005.

Highlights for the third quarter included:
 
•
A 7% year-over-year increase in net revenue to a record $12.1 million (excluding the impact of the one-time accounting transaction in the third quarter of fiscal 2004)
 
•
Income from operations of $0.7 million;
 
•
Net income of $0.8 million, the Company’s thirteenth consecutive quarter of profitability;
 
•
Cash flow from operations of $0.8 million, the Company’s sixteenth consecutive quarter of positive cash flow from operations;
 
•
A 15% year-over-year increase in deferred revenue to a record $37.3 million.

“Our strong third quarter performance in our first quarter of operation on the AMEX and TSX exchanges continues our history of profitability, cash generation and growth. As always, this is driven by our position as the preferred supplier to web hosting companies and Internet service providers,” said Elliot Noss, President and Chief Executive Officer. “As we move forward, we are firmly focused on growing the contribution from services like blogware and messaging to both revenue and gross margin. At the same time, we are continuing to pursue growth in our core domain business.”

Summary Financial Results
(Numbers in Thousands, Except Per Share Data) 
                   
   
Three Months
Ended
Sept. 30, 2005
  
Three Months
Ended
Sept. 30, 2004*
  
Nine Months
Ended
Sept. 30, 2005
  
Nine Months
Ended
Sept. 30, 2004
  
Net Revenue
    
12,055
   
12,381
   
35,859
    
33,195
  
Income from Operations
    
665
    
614
    
1,290
   
1,349
  
Net Income
    
788
    
821
   
1,739
    
1,635
  
Net Income/Share - basic
    
0.01
    
0.01
    
0.03
    
0.02
  
Net Income/Share - fully diluted
    
0.01
    
0.01
    
0.02
    
0.02
  
Cash Flow from Operations
    
792
    
1,127
   
2,922
   
3,090
  
 
* includes the recognition of deferred domain name revenue of approximately $1.1 million that was recognized as a result of one of our resellers becoming an accredited registrar and transferring all of its domain names from our tag to its own tag with the result that Tucows was no longer accountable for those transactions. Included in cost of revenue is $0.8 million previously deferred against these names in prepaid domain name registry fees.

Net revenue for the third quarter of fiscal 2005 was $12.1 million compared with $12.4 million for the third quarter of fiscal 2004. Revenue for the third quarter of fiscal 2004 includes the recognition of deferred domain name revenue of approximately $1.1 million that was recognized as a result of one of our resellers becoming an accredited registrar and transferring all of its


domain names from our tag to its own tag with the result that Tucows was no longer accountable for those transactions. Excluding this amount, revenue for the third quarter of fiscal 2005 increased 7% from the corresponding quarter of last year. The increase was the result of a higher number of domain transactions as well as higher revenue from ancillary services. The increase was partially offset by lower revenue from domain names and lower revenue from our content business due to the short-term impact of the relaunch of our web site.

Income from operations for the third quarter of fiscal 2005 increased to $0.7 million compared with $0.6 million for the corresponding quarter of last year. Income from operations for the third quarter of fiscal 2005 included an increase in the gain on foreign exchange of $140,000 compared with the third quarter of fiscal 2004. Net income for the third quarter of fiscal 2005 was $0.8 million, or $0.01 per share, compared with $0.8 million, or $0.01 per share, for the third quarter of fiscal 2004.

Deferred revenue at the end of the third quarter of fiscal 2005 was $37.3 million, an increase of 15% from $32.5 million at the end of the third quarter of fiscal 2004 and an increase of 2% from $36.6 million at the end of the second quarter of fiscal 2005.

Cash, short-term investments and restricted cash at the end of the third quarter of fiscal 2005 was $18.4 million compared to $13.3 million at the end of the third quarter of fiscal 2004 and $15.8 million at the end of the second quarter of fiscal 2005. The increase compared to the second quarter of fiscal 2005 is the result of proceeds of $1.6 million generated by the equity financing completed in August, as well as positive cash flow from operations for the third quarter of this year of $0.8 million.

Conference Call
 
Tucows will host a conference call today, Tuesday, November 8, 2005, at 5:00 p.m. (ET) to discuss the company's third quarter fiscal 2005 results. To access the conference call via the Internet go to www.tucowsinc.com, and click on "Investor Relations."
 
For those unable to join the conference call at the scheduled time, it will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 1-800-408-3053 or 416-695-5800 and enter the pass code 3166193 followed by the pound key. The telephone replay will be available until Tuesday, November 15, 2005, at midnight. To access the archived conference call via the Internet, go to www.tucowsinc.com and click on "Investor Relations."

About Tucows

Tucows Inc. provides Internet services and downloadable software through a global distribution network of more than 6,000 service providers. These service providers primarily consist of web hosting companies, Internet service providers and providers of other services over the Internet. Tucows' services include domain registration services, digital certificates, billing, provisioning and customer care software solutions, email and anti-spam services, Blogware and website building tools. Tucows is an accredited registrar with the Internet Corporation for Assigned names and Numbers, or ICANN, and generates revenue primarily through the provision of domain registration and other Internet services to service providers who offer such services to their own customers in a process known as wholesale distribution.
 
For more information, please visit: www.tucowsinc.com

Contact:
Hilda Kelly
Investor Relations
Tucows Inc.
416-538-5493
ir@tucows.com

TUCOWS is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.


Tucows Inc.
Consolidated Balance Sheets
(Dollar amounts in U.S. dollars)

   
September 30,
  
December 31,
  
   
2005
  
2004
  
Assets
              
Current assets:
              
    Cash and cash equivalents
  
$
10,315,332
  
$
13,914,988
  
    Short-term investments
    
7,771,453
    
-
  
    Restricted cash (note 1)
    
300,000
    
460,398
  
    Interest receivable
    
115,739
    
-
  
    Accounts receivable
    
1,362,887
    
1,111,082
  
    Prepaid expenses and deposits
    
1,687,766
    
2,156,702
  
    Prepaid domain name registry and ancillary services fees, current portion
    
18,001,418
    
15,601,786
  
    Deferred tax asset, current portion
    
1,000,000
    
1,000,000
  
        Total current assets
    
40,554,595
    
34,244,956
  
Prepaid domain name registry and ancillary services fees, long-term portion
    
7,445,536
    
6,471,916
  
Property and equipment
    
1,412,753
    
1,017,237
  
Deferred tax asset, long-term portion
    
2,000,000
    
2,000,000
  
Intangible assets
    
1,065,120
    
1,242,240
  
Goodwill
    
1,951,067
    
964,467
  
Investment
    
353,737
    
353,737
  
Cash held in escrow
    
619,082
    
1,009,650
  
    Total assets
  
$
55,401,890
  
$
47,304,203
  
Liabilities and Stockholders' Equity
              
Current liabilities:
              
    Accounts payable
  
$
1,715,409
  
$
1,483,543
  
    Accrued liabilities
    
1,743,843
    
2,688,738
  
    Customer deposits
    
2,169,890
    
2,247,262
  
    Deferred revenue, current portion
    
26,561,381
    
23,648,381
  
    Accreditation fees payable, current portion
    
366,143
    
144,483
  
        Total current liabilities
    
32,556,666
    
30,212,407
  
Deferred revenue, long-term portion
    
10,758,080
    
9,602,599
  
Accreditation fees payable, long-term portion
    
78,212
    
31,816
  
Stockholders' equity:
              
    Preferred stock - no par value, 1,250,000 shares authorized; none issued and outstanding
    
-
    
-
  
Common stock - no par value, 250,000,000 shares authorized; 71,840,267 shares issued and outstanding at September 30, 2005 and 66,817,250 shares issued and outstanding at December 31, 2004
    
12,354,168
    
9,541,277
  
    Additional paid-in capital
    
50,061,866
    
50,061,866
  
    Deficit
    
(50,407,102
)
  
(52,145,762
)
        Total stockholders' equity
    
12,008,932
    
7,457,381
  
Total liabilities and stockholders' equity
  
$
55,401,890
  
$
47,304,203
  

Note 1:
The restricted cash of $300,000 represents margin security against a series of forward exchange contracts.



Tucows Inc.
Consolidated Statements of Operations
(Dollar amounts in U.S. dollars)
 
   
Three months ended September 30,
  
Nine months ended September 30,
  
   
2005
  
2004
  
2005
  
2004
  
Net revenues
  
$
12,054,796
  
$
12,381,326
  
$
35,858,640
  
$
33,195,200
  
Cost of revenues
    
7,676,713
    
7,654,475
    
22,484,530
    
20,658,200
  
Gross profit
    
4,378,083
    
4,726,851
    
13,374,110
    
12,537,000
  
Operating expenses:
                          
    Sales and marketing (*)
    
1,150,674
    
1,370,932
    
3,669,185
    
3,716,192
  
    Technical operations and development
    
1,468,624
    
1,107,590
    
4,147,467
    
3,259,882
  
    General and administrative (*)
    
820,860
    
1,388,421
    
3,358,347
    
3,295,996
  
    Depreciation of property and equipment
    
213,422
    
187,158
    
732,165
    
817,475
  
    Amortization of intangible assets
    
59,040
    
59,040
    
177,120
    
98,720
  
        Total operating expenses
    
3,712,620
    
4,113,141
    
12,084,284
    
11,188,265
  
Income from operations
    
665,463
    
613,710
    
1,289,826
    
1,348,735
  
Other income:
                          
    Interest income, net
    
122,755
    
56,549
    
296,859
    
136,285
  
        Total other income
    
122,755
    
56,549
    
296,859
    
136,285
  
Income before provision for income taxes
    
788,218
    
670,259
    
1,586,685
    
1,485,020
  
Provision for (recovery of) income taxes
    
-
    
(150,432
)
  
(151,975
)
  
(150,432
)
Net income for the period
  
$
788,218
  
$
820,691
  
$
1,738,660
  
$
1,635,452
  
Basic earnings per common share
  
$
0.01
  
$
0.01
  
$
0.03
  
$
0.02
  
Shares used in computing basic earnings per common share
    
69,602,723
    
66,800,369
    
68,126,691
    
65,831,258
  
Diluted earnings per common share
  
$
0.01
  
$
0.01
  
$
0.02
  
$
0.02
  
Shares used in computing diluted earnings per common share
    
73,145,627
    
68,458,596
    
72,243,523
    
68,099,907
  
(*) Stock-based compensation has been included in operating expenses as follows:
                          
Sales and marketing
  
$
-
  
$
-
  
$
-
  
$
16,834
  
General and administrative
  
$
-
  
$
-
  
$
-
  
$
3,759
  




Tucows Inc.
Consolidated Statements of Cash Flows
(Dollar amounts in U.S. dollars)

   
Three months ended September 30,
  
Nine months ended September 30,
  
   
2005
  
2004
  
2005
  
2004
  
Cash provided by (used in):
                          
Operating activities:
                          
    Net income for the period
  
$
788,218
  
$
820,691
  
$
1,738,660
  
$
1,635,362
  
    Items not involving cash:
                          
        Depreciation of property and equipment
    
213,422
    
187,158
    
732,165
    
817,475
  
        Amortization of intangible assets
    
59,040
    
59,040
    
177,120
    
98,720
  
        Unrealized change in the fair value of forward contracts
    
(290,177
)
  
(97,512
)
  
(182,549
)
  
(188,775
)
        Stock-based compensation
    
-
    
-
    
-
    
20,593
  
    Change in non-cash operating working capital:
                          
        Interest receivable
    
(115,739
)
  
-
    
(115,739
)
  
-
  
        Accounts receivable
    
(91,828
)
  
(382,631
)
  
(251,805
)
  
(456,915
)
        Prepaid expenses and deposits
    
240,682
    
68,578
    
651,485
    
179,193
  
        Prepaid domain name registry and ancillary services fees
    
(535,643
)
  
369,522
    
(3,373,252
)
  
(2,926,678
)
        Accounts payable
    
292,579
    
61,324
    
231,866
    
(287,933
)
        Accrued liabilities
    
(269,556
)
  
668,181
    
(944,895
)
  
445,699
  
        Customer deposits
    
31,497
    
(167,189
)
  
(77,372
)
  
(163,589
)
        Deferred revenue
    
674,016
    
(460,375
)
  
4,068,481
    
3,916,585
  
        Accreditation fees payable
    
(204,296
)
  
-
    
268,056
    
-
  
    Cash provided by operating activities
    
792,215
    
1,126,787
    
2,922,221
    
3,089,737
  
Financing activities:
                          
    Proceeds received on exercise of stock options
    
65,177
    
81,581
    
251,616
    
726,050
  
    Net proceeds received on issuance of common stock, net of issue costs
    
2,024,025
    
-
    
1,574,675
    
-
  
    Cash provided by financing activities
    
2,089,202
    
81,581
    
1,826,291
    
726,050
  
Investing activities:
                          
    Additions to property and equipment
    
(301,604
)
  
(143,239
)
  
(1,127,681
)
  
(496,489
)
    Investment in short-term investments
    
-
    
-
    
(7,771,453
)
  
-
  
Decrease (increase) in restricted cash - being margin security against forward exchange contracts
    
(300,000
)
  
148,750
    
160,398
    
(80,000
)
    Acquisition of Boardtown Corporation, net of cash acquired
    
-
    
-
    
-
    
(2,019,510
)
    Decrease (increase) in cash held in escrow
    
(2,320
)
  
-
    
390,568
    
(1,000,000
)
    Cash (used in) provided by investing activities
    
(603,924
)
  
5,511
    
(8,348,168
)
  
(3,595,999
)
Increase (decrease) in cash and cash equivalents
    
2,277,493
    
1,213,879
    
(3,599,656
)
  
219,788
  
Cash and cash equivalents, beginning of period
    
8,037,839
    
11,918,720
    
13,914,988
    
12,912,811
  
Cash and cash equivalents, end of period
  
$
10,315,332
  
$
13,132,599
  
$
10,315,332
  
$
13,132,599
  
Supplemental cash flow information:
                          
    Interest paid
  
$
-
  
$
113
  
$
300
  
$
166
  
Supplemental disclosure of non-cash investing and financing activities:
                          
    Common stock issued on the acquisition of Boardtown Corporation
  
$
285,238
  
$
-
  
$
986,601
  
$
274,540