IP Applications Reports Strong Growth in Second Quarter

IP Applications Reports Strong Growth in Second Quarter

VANCOUVER, Nov. 30 /PRNewswire-FirstCall/ -- IP Applications Corp. (TSX- Venture: IAP), a leading provider of outsourced Internet services, today announced results for its second fiscal quarter ended September 30, 2004.

Revenue for the second fiscal quarter ended September 30, 2004 ("Q2") was $1,201,290 an increase of 24.0% from $968,662 recorded in the previous quarter June 30, 2004. This Q2 revenue achievement represents a 21% increase over the $993,240 of revenue realized in the second fiscal quarter ended September 30, 2003. Revenue for the six month period ended September 30, 2004 was $2,169,952, a 3.1% increase over the $2,103,815 realized in the six month period ended September 30, 2003.

Mark Sampson, President and CEO said, "We have continued to meet or exceed our targets for revenue growth, operational excellence and cost control and continue to search for investment partners to further fund our growth. On a year to date basis we have exceeded our revenue forecast and met our projected losses".

Net loss for the second fiscal quarter ended September 30, 2004 including one time costs of $64,750 was $478,647 compared to a net loss of $510,085 recorded in the previous fiscal quarter ended June 30, 2004. Net loss for the six month period ended September 30, 2004, including one time costs of $201,450, amounted to $988,733 or $0.03 per share compared to a net loss of $381,458 or $0.01 per share for the six month period ended September 30, 2003.

Sampson said that during the six month period ended September 30, 2004, the Company had continued to make great progress in both organic sales growth and growth by acquisition.

"We focused our energies on building a solid monthly recurring revenue (MRR) business increasing MRR from $255,000 in March 2004 to $525,000 in September 2004," Sampson said. "This included revenue of $171,000 from customers acquired with the business of Voyus Remote Services in September 2004."

Operational highlights for six month period ended September 30, 2004 include:

- The effective integration of Soft Tracks staff, technology and
facilities, a reduction in overhead and the creation of a profitable
business unit.

- The June 2004 signing of a service contract with Excel
Telecommunications Canada, resulting in an increase in IP
Applications' MRR by CDN$50,000.

- The September 2004 signing of a services contract with Sourcenet
Telecom to provide services for Quixtar resulting in an increase in
IP Applications' MRR by an additional CDN$55,000.

- The signing of lease agreements with Sun Microsystems and Network
Appliance to upgrade our production data centre, increase capacity
two fold and improve reliability, performance and throughput.

- Commenced implementation of a disaster recovery facility to further
increase our network and systems redundancy and ensure IP
Applications customers will not experience any discontinuation of
service in the event of a physical site disaster.

- The successful integration of the staff, technology and operations of
Voyus Remote Services.

- Entered into a lease agreement with Cygnal Technologies to install a
new Avaya phone switch to improve customer service levels with the
Remote Services business.



On September 7, 2004, the Company announced that it had entered into a letter of intent to acquire the business of a US based company and continues to carry out its due diligence and to negotiate terms with the target company.

The Company continues to pursue financing alternatives, including the private placement announced on September 7, 2004.

About IP Applications

IP Applications provides comprehensive outsourcing solutions that enable service providers to deliver high quality Internet services. A leading provider in the industry, IP Applications has an enviable customer list, providing secure Internet outsourcing solutions to AOL Canada, Sprint, Telus, Excel Telecommunications, Skycable and Navigata.

IP Applications meets Internet service providers' needs by combining its customer-branded web-based account management, provisioning, billing and support platform with a full range of end user services including: authentication, email, personal web hosting, spam blocking, content filtering, email virus scanning, network acceleration, information portal, North American network and call center coverage. A single point of contact and trusted supplier, IP Applications backs every services contract with an industry leading Quality of Service guarantee written into every Service Level Agreement. Customers are provided around-the-clock access to a team of experts and all of IP Applications solutions are monitored 24 hours a day, 365 days a year, from its Carrier Class Data and Network Operations Center.

Forward Looking Statements

The press release may contain forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties. Forward-looking statements are based on management's estimates, beliefs and opinions. The company assumes no obligation to update forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy and accuracy of this release.

Signed:

"Shay Prasad"

Shay Prasad
Chief Financial Officer

Investor Relations Contact: Shay Prasad, CFO
Toll Free: 1-877-604-7277 ext. 127 or Direct: (604) 523-2567
Email: sprasad@ipapp.com


Source: IP Applications Corp.

CONTACT: Investor Relations Contact: Shay Prasad, CFO,
Toll Free: 1-877-604-7277 ext. 127 or Direct: (604) 523-2567, Email:
sprasad@ipapp.com


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