Outlook for the First Quarter and Full Year 2006

The Company's guidance for the first quarter of 2006 is as follows:

* GAAP revenue of $36.4 to $37.4 million;

* Stock-based compensation expense of approximately $2.2 million;

* GAAP net loss of approximately ($700,000) to GAAP net loss of ($200,000), resulting in GAAP net loss per diluted share of approximately ($0.02) to ($0.01) per share, which is based on an estimated 29.7 million diluted shares and an effective tax rate of 33.0 percent; and

* Cash net income of approximately $1.8 to $2.2 million, which excludes amortization of intangibles, stock-based compensation expense, and the associated tax impact, resulting in cash net income per diluted share of approximately $0.06 to $0.08 per share based on an estimated 29.7 million diluted shares and an effective tax rate of 39.5 percent.

The Company's guidance for the full year of 2006 is as follows:

* GAAP revenue of approximately $167.0 to $171.0 million;

* Stock-based compensation expense of approximately $10.6 million;

* GAAP net loss of approximately ($17.4) to ($15.7) million, resulting in GAAP net loss per diluted share of approximately ($0.58) to ($0.52) per share, which is based on an estimated 30.1 million diluted shares and an effective tax rate of 33.0 percent; and

* Cash net income of approximately $900,000 to $2.5 million, which excludes amortization of intangibles, stock-based compensation expense, and the associated tax impact, resulting in cash net income per diluted share of approximately $0.03 to $0.08 per share based on an estimated 30.1 million diluted shares and an effective tax rate of 39.5 percent.

Preliminary Guidance for the Full Year of 2007

* GAAP revenue of approximately $224 to $230 million;

* Stock-based compensation expense of approximately $15 million;

* GAAP net income of approximately $10 to $12 million, resulting in GAAP net income per diluted share of approximately $0.31 to $0.38 per share, which is based on an estimated 31.5 million diluted shares; and

* Cash net income of approximately $32 to $34 million, which excludes amortization of intangibles, stock-based compensation expense, and the associated tax impact, resulting in cash net income per diluted share of approximately $1.01 to $1.09 per share based on an estimated 31.5 million diluted shares.

Non-GAAP Financial Measures

This release includes forecasts of the Company's cash net income which is a non-GAAP financial measure. Management believes that cash net income, which excludes amortization of intangibles, stock-based compensation expense, and the associated tax impact, provides useful information to investors regarding the Company's ongoing financial condition and results of operations. In addition, management believes that cash net income is useful to investors because it provides an additional basis for measuring the Company's financial condition against other periods. Since the Company has historically reported non-GAAP results to the investment community, management also believes the inclusion of non-GAAP measure provides consistency in its financial reporting. However, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In addition to the information contained in this release, investors should also review information contained in the Company's Form 10-K dated February 15, 2006, as well as other filings with the Securities and Exchange Commission when assessing the Company's financial condition and results of operations.

About Blackboard Inc: Blackboard Inc. (NASDAQ:BBBB) is a leading provider of enterprise software applications and related services to the education industry. Founded in 1997, Blackboard enables educational innovations everywhere by connecting people and technology. With two product suites, the Blackboard Academic Suite (TM) and the Blackboard Commerce Suite (TM), Blackboard is used by millions of people at academic institutions around the globe, including colleges, universities, K-12 schools and other education providers, as well as textbook publishers and student-focused merchants that serve education providers and their students. Blackboard is headquartered in Washington, D.C., with offices in North America, Europe and Asia.