IP Applications Signs Long Term Services Agreement with Sage Telecom, A Leading US Competitive Local Exchange Carrier

IP Applications Signs Long Term Services Agreement with Sage Telecom, A Leading US Competitive Local Exchange Carrier

VANCOUVER, Dec. 13 /PRNewswire-FirstCall/ -- IP Applications Corp. (TSX- Venture: IAP), a leading provider of outsourced Internet services, today announced a multi-year services contract with Sage Telecom, Inc., one of the largest privately held competitive local exchange carriers (CLECs) in the US.

Sage Telecom, based in suburban Dallas, Texas, provides local voice services to residential and small business customers primarily in rural and suburban communities outside major metropolitan areas. Sage recently signed an historic, seven-year wholesale agreement with SBC Communications Inc. (NYSE:SBC), a Fortune 50 company with annual revenues in excess of US$40 billion.

Sage is now expanding into data services and will introduce high-speed Internet service to many of its rural markets, using IP Applications' technology as a core component of their back office provisioning and support.

Dennis M. Houlihan, Sage Telecom CEO, said, "Moving into residential data services is a very important step for Sage, so we needed to partner with the very best in the industry. After extensive due diligence, we chose IP Applications. IP Applications' services will add significant value to our offerings and further enhance our competitiveness in the 11 states where we operate."

IP Applications' President and CEO Mark Sampson said, "We are delighted to be selected as the service provider of choice for Sage's suite of Internet Services. Sage was very thorough and diligent throughout the selection process. Having chosen us is validation that we can provide the level of service and functionality required by large progressive carriers across North America."

"Sage Telecom is emerging as a pre-eminent player within a market that continues to redefine itself. CLECs are looking to grow their businesses by expanding their service offering and turning to service providers such as IP Applications to get to market quickly with a competitive solution."

Since inception in 1997, Sage Telecom has experienced explosive growth and is certified to provide local telephone service in 11 traditional Southwestern Bell, PacBell and Ameritech states. With over 550 employees, Sage is privately held and is one of a few profitable competitive local exchange carriers in the country.

In addition to offering service in Texas, Oklahoma, Arkansas, Missouri, California and Kansas, Sage recently initiated service in Indiana, Wisconsin, Michigan, Ohio and Illinois. Providing innovative, lower cost alternatives to consumers and responsive customer service have been central to Sage's success.

About Sage Telecom

Sage Telecom provides bundled local exchange, long distance, and other enhanced services to residential and small business customers in 11 states. More information about Sage is available on the Company's website www.sagetelecom.net.

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, Melaleuca, Quixtar, 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.

Contacts:

Shay Prasad, CFO (Investor Relations)
TF 1.877.604.7277 x 127
D 604.523.2567
E sprasad@ipapp.com

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



Source: IP Applications Corp.

CONTACT: Shay Prasad, CFO (Investor Relations),
TF 1-877-604-7277 x 127, D (604) 523-2567, E sprasad@ipapp.com


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