IP Applications Announces Annual Financial Results

VANCOUVER, Aug. 5 /CNW/ - IP Applications Corp. (TSX.V: IPX) today
announced its consolidated financial and operating results for the fiscal year
and quarter ended March 31, 2005.
Total revenues for the fiscal year ended March 31, 2005 were $5,332,235
representing an increase of 42% over the $3,764,341 of revenue recorded in the
previous fiscal year. This increase in revenue was driven by organic growth
and the strategic acquisition of the business of Voyus (Canada) Ltd. and Voyus
Remote Services Inc. (collectively 'Voyus'). Net loss for the fiscal year
ended March 31, 2005 totaled $2,265,712 or $0.28 per share compared to
$1,317,220 or $0.22 per share recorded in the previous fiscal year.
Total revenue for the fourth fiscal quarter ended March 31, 2005 was
$1,559,819, a 91% increase over the $817,807 realized in the same period of
the previous financial year. Net loss for the fourth fiscal quarter ended
March 31, 2005 was $574,209 or $0.06 per share compared to $522,114 or $0.08
per share in the previous fiscal year.
"Fiscal 2005 was an exciting and transitional year for us. We rebuilt and
solidified the foundations of the Company by investing in our technology
infrastructure and strengthening our management and operations personnel. We
look forward to leveraging this past fiscal year's accomplishments to increase
market penetration in Broadband over Power Lines (BPL) and to add new IP-based
services for existing markets. We will continue to drive revenues organically
and by acquisition in order to reach profitability while streamlining
operations for increased efficiency" said Mark Sampson, President and CEO of
IP Applications.

Operational highlights for the fiscal year ended March 31, 2005 include:

-  Another record year of revenue growth, up 42% over fiscal 2004
   to $5.3 million

-  The strategic acquisition of the business and assets of leading
   remote technical services provider, Voyus, adding 24/7 multilingual
   Help Desk capabilities to IP Applications

-  A multi-year service agreement with premiere Competitive Local
   Exchange Carrier, Sage Telecom, located in Texas

-  The launching of Canada's first market trial of Broadband over Power
   Lines (BPL) with PUC Telecom of Ontario

-  The migration of our IP Applications' technology to a carrier-class
   technology platform using Sun Microsystems and Network Appliance
   Systems

The Company also announces that it has entered into a banking arrangement
with the Royal Bank of Canada under which the Company obtained credit
facilities in the total amount of $650,000, including a $250,000 operating
line of credit. As security for the credit facilities, the Company and its
operating subsidiary, IP Applications Canada Corp., granted the bank a general
security agreement over their assets. As part of the banking arrangement,
Pender Financial Group Corporation ("Pender") provided a $200,000 guarantee to
the Royal Bank. As compensation for providing the guarantee, the Company
issued a warrant to Pender entitling it to purchase 100,000 common shares of
the Company during a period of five years from the date of issue at a price of
$0.53 per share in the first two years, $0.58 per share in the third year,
$0.64 per share in the fourth year, and $0.70 per share in the fifth year. The
issuance of the warrant is subject to Exchange approval.

About IP Applications

IP Applications partners with companies who offer IP (Internet-based)
services, providing the applications, systems, and support, necessary to run
their business. The combination of carrier-class facilities, mass provisioning
capabilities, and dedicated technical and sales professionals makes IP
Applications a trusted strategic partner to service providers in the
Telecommunications, Wireless and Power Utility (specifically Broadband over
Power Line) markets. The 24/7 multilingual Help Desk offers clients and their
end users a value-added complement to a wide variety of Internet-based
services. www.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
or accuracy of this release.

Signed, "Shay Prasad"
Shay Prasad CFO