INNOTRAC CORPORATION ANNOUNCES THIRD QUARTER RESULTS

Contact:
Jennifer Sekel Church
Investor Relations
Phone: 678-584-4055
Email: jsekelchurch@innotrac.com

ATLANTA, GA (October 30, 2002) - Innotrac Corporation (NASDAQ: INOC), a full-service provider of customized order fulfillment and call center services, today announced financial results for the third quarter ended September 30, 2002. The Company reported revenues of $17.3 million and a net loss of $3.4 million, or $0.29 per share for the quarter, before a special charge. With the special charge, the net loss was $5.3 million or $0.46 per share. The third quarter special charge was primarily related to the impairment of fixed assets, mainly capitalized software costs and severance costs associated with headcount reductions.

For the nine months ended September 30, 2002, the Company reported revenues of $49.8 million and a net loss of $3.1 million, or $0.26 per share, before the special charges, net of associated credits. With the special charges, the net loss was $4.0 million or $0.35 per share.

"As we previously discussed, in the third quarter we absorbed significant start-up costs associated with the addition of several new clients and IT implementation and conversion costs. A substantial portion of these costs have now been eliminated. Furthermore, we have made considerable progress in our efforts to rationalize our cost structure, the results of which will begin to materialize late in our fourth quarter and continuing into 2003," stated Mr. Scott D. Dorfman, President and Chief Executive Officer.

"Currently, our primary short-term objective is to provide stellar service to our clients during this upcoming Christmas season while simultaneously returning to profitability. We are on track to accomplish both of these goals," continued Mr. Dorfman.

Innotrac Corporation will hold a conference call to discuss this release this afternoon, October 30, at 5:00 PM Eastern Standard Time. The Company may answer questions concerning business and financial trends, and other business and financial matters affecting the Company. Investors can listen to the conference call live by dialing 1-800-291-3901 (Conference ID: 6046344) or logging on to www.innotrac.com and clicking on "Webcasts and Presentations" in the "Company" section.

About Innotrac
Innotrac Corporation, founded in 1984 and based in Atlanta, Georgia, is a full-service provider of customized order fulfillment and call center services. The Company operates fulfillment and call centers in various cities spanning all four time zones across the continental United States. For more information about Innotrac, visit the Innotrac Web site, www.innotrac.com.

Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Innotrac`s operating results, performance or financial condition are competition, the demand for Innotrac`s services, Innotrac`s ability to retain its clients, the state of the telecommunications industry in general, Innotrac`s ability to maintain profit margins in the face of pricing pressures and numerous other factors discussed in Innotrac`s 2001 Annual Report on Form 10-K and other filings on file with the Securities and Exchange Commission.