IP Applications Reports First Quarter Results

VANCOUVER, Aug. 29 /CNW/ - IP Applications Corp. (TSX-Venture: IPX), a
leading IP solutions provider, today announced results for its first fiscal
quarter (Fiscal Q1) ended June 30, 2005. Revenue for the first fiscal quarter
ended June 30, 2005 was $1,721,109 an increase of 78% from $968,662 recorded
in the same quarter ended June 30, 2004. This Q1 revenue achievement
represents a 10% increase over the $1,559,819 of revenue realized in the last
fiscal quarter ended March 31, 2005. In June 2005, the Company completed the
acquisition of the business and assets of PacificNet and a customer contract
from SourceNet. The revenue and costs realized in the month of June 2005
related to the acquisitions are included in the first fiscal quarter ended
June 30, 2005.
Mark Sampson, President and CEO said, "In Q1 we continued to execute on
our strategy of building the business to reach operational self sufficiency.
While we have been successful of late in identifying and integrating accretive
acquisitions, we continue to see strong organic growth in our core services
and a significant increase in demand for new service offerings."
Net loss for the first fiscal quarter ended June 30, 2005 was $465,520 or
$0.04 per share, which included amortization and non-cash expenditures
totaling $371,324. The loss for the comparative quarter ended June 30, 2004
was $510,085 or $0.07 per share, which included amortization and non-cash
expenditures totaling $48,686.

Operational highlights for first fiscal quarter ended June 30, 2005
include:

-  Acquisition of net assets of US competitor DAPAC LLC dba PacificNet
-  Purchase of large client contract from SourceNet Telecom
-  Completion of two non-brokered private placements for gross proceeds
   of $1,700,000.

The Company also reports that at its Annual General Meeting held on
August 22, 2005, the shareholders approved to elect David Roberts, Garry
Rasmussen, Kelly Edmison and Mark Sampson as directors of the Company for the
ensuing year. Additionally, PricewaterhouseCoopers was appointed as the
Company's auditor.
The Company also announces that the board of directors approved a change
in fiscal year end of the Company from March 31 to December 31. This change is
made to bring the Company's year end in line with the traditional calendar
year which allows for better financial comparability with other technology
companies. The Company will complete its current fiscal year end on   
December 31, 2005.

About IP Applications
IP Applications partners with companies who deliver services over the
Web, providing the systems, expertise, 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 BPL markets. The 24/7 multilingual help desk
offers clients and their end users a value-added complement to a wide variety
of IP products and 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
and accuracy of this release.

Signed:
"Shay Prasad"
Shay Prasad, Chief Financial Officer