IP Applications Closes Purchase of Technology Assets and Private Placement Financing

VANCOUVER, June 14 /CNW/ - IP Applications Corp. (TSX-Venture: IPX), a
trusted partner to providers of IP-based services, today announced it has
closed the previously announced transactions with each of SourceNet Telecom of
Portland, Oregon and PacificNet of Calabasas, California for the purchase of
key customer contracts and other technology related assets.
The purchase price for the SourceNet Telecom was US$338,800, which was
paid with US$175,000 in cash and 455,000 common shares of the Company. The
common shares issued to SourceNet Telecom are subject to a four-month hold
period in Canada expiring on October 10, 2005 and applicable U.S. resale
restrictions. The purchase price for the PacificNet transaction was US$550,000
in cash.
IP Applications Corp., also today announced that it has closed a      
non-brokered private placement offering with B.C. Advantage Funds (VCC) Ltd.,
and Pender Growth Fund (VCC) Inc., raising gross proceeds of CDN$900,000 of
which $500,000 was purchased by BC Advantage (VCC) and the balance by Pender
Growth Fund (VCC). Each unit offered under the private placement consisted of
one common share at CDN$0.45 of IP Applications Corp., plus one-half of one
warrant. Each whole warrant entitles the holder to purchase one additional
common share at CDN$0.50 per share for a period of 12 months from the closing
and at CDN$0.55 per share for the period 12 to 24 months from closing. The
common shares issued under the offering will be subject to a four month hold
period expiring on October 10, 2005. The net proceeds from the financing will
be used to replace working capital that was used to finance the SourceNet
Telecom and PacificNet transactions mentioned above.

About IP Applications
IP Applications partners with companies who offer services delivered over
IP networks, providing the applications, systems, and support necessary to run
their business. The combined strength of IP Applications' management and
support systems, carrier-class facilities and dedicated professionals makes us
a trusted strategic partner to a growing list of companies (Telecom, Wireless
and BPL providers as well as Enterprises) eager to capitalize on the
efficiencies and revenue opportunities that are available over today's
Internet. www.ipapp.com

About Pender Growth Fund (VCC) Inc.
Pender Growth Fund is an established, diversified venture capital fund
focused on later stage investments in the information technology and
communications sectors. Pender Growth Fund is the first fund in BC to focus
specifically on expansion and restructuring opportunities that have the
potential for early liquidity through existing public listings or near term
liquidity events. The Fund offers investors a 30% cash-back tax credit to
participate in the recovery and growth of the BC technology sector. As of
December 2004, the Fund had assets of approximately $16 million.
www.penderfund.com

About B.C. Advantage Funds (VCC) Ltd.
Advantage is a life sciences and technology fund that offers everyone in
BC the opportunity to participate in returns from some of our Province's most
promising young technology and life science companies. Investors receive a 30%
refundable tax credit from the BC Government on investments of up to $200,000
per year. Advantage was co-founded by Dr. Don Rix, Chairman of the Board;
Frank Holler, CEO and Fund Manager; Jim Heppell, President and Fund Manager;
Dr. Basil Peters, BC Tech Fund Manager; and David Raffa, COO and Fund Manager.
www.bcadvantage.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