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IP Applications Strengthens North America

IP Applications (TSX Venture: IAP), announced today that it is strengthening its solutions offering by agreeing to purchase certain assets of Voyus Canada Inc. and Voyus Remote Services (`Voyus`), a remote IT, help desk and online support provider. Under the acquisition agreement, IP Applications will acquire customer contracts, proprietary software (`Voyager`) and operating assets of Voyus` customer support center, including a complement of key personnel. The Voyus customer contracts currently generate approximately $220,000 CDN in revenue per month. Mark Sampson, President and CEO of IP Applications, said ",This acquisition significantly increases our competitive advantage by enabling us to deliver on our objective of becoming a single point of contact for all our customers. By continuing to build an increasingly more comprehensive suite of services, we can offer a true end-to-end solution and better control the quality of our service delivery. The Voyager software will allow us to better understand the needs of our customers, and the end users they serve, and assist us in developing new IP-based services to meet escalating day-to-day demands of Internet end users.", Ed Shapero, CEO of Voyus, said, ",Both IP Applications and Voyus are focused on putting the customer first to ensure a continuum of service exists throughout the transition phase and beyond. We are taking all necessary steps to ensure that our customers are not impacted by this change in ownership structure. By adding Voyus` customer support software and knowledge base to IP Application`s comprehensive suite of outsourced Internet solutions, our customers will be able to significantly improve the Internet experience for their end users.", The integration of Voyager software and technical help desk capabilities into its Internet services delivery platform will enable IP Applications to create a fully integrated services delivery, management, billing and support proposition for ISPs, Carriers and CLECs (Competitive Local Exchange Carriers) across North America. The purchase price of $850,000 CDN, subject to adjustment, is payable in cash and closing is subject to regulatory approval. Transaction completion is anticipated by the end of September 2004. In conjunction with this transaction and to finance ongoing expansion, IP Applications has arranged a non-brokered private placement by Pender Growth Fund (VCC) Inc. of 3,750,000 common shares at a price of $0.20 per share for proceeds of $750,000. No finder`s fee will be payable. The closing of the private placement is subject to the approval of the TSX Venture Exchange. The company currently has cash on hand of approximately $1,100,000 CDN.