IP Applications Terminates Acquisition Discussions with US Based Company

IP Applications Terminates Acquisition Discussions with US Based Company

VANCOUVER, Jan. 27 /PRNewswire-FirstCall/ -- IP Applications Corp. (TSX- Venture: IPX), a leading provider of outsourced Internet services, today announced that it will not proceed with the previously announced acquisition of the US based company that was referred to in the press release of September 7, 2004 due to the inability of the parties to negotiate mutually acceptable terms. The strategic relationship between the two companies remains unchanged and commitments to customers are unaffected by this event.

As a result, the company will not be proceeding with the second tranche of financing from Pender Growth Fund as announced on December 8, 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, 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.

About Pender Growth Fund (VCC) Inc.

Pender Growth Fund (VCC) Inc. is an established, diversified venture capital fund that invests in technology companies within the province of British Columbia with the objective of long-term capital appreciation. Pender Growth Fund is now the first fund of its kind in British Columbia to focus specifically on expansion and restructuring opportunities within the technology sector that offer investors the potential for liquidity through either existing public listings or near term liquidity events.

Pender Growth Fund is an investment vehicle with significant tax incentives for retail investors to participate in the recovery and growth of the British Columbia technology sector. The Fund has approximately $13 million of assets under management.

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

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


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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