VANCOUVER, March 6 /CNW/ - IP Applications Corporation (TSX-Venture: IPX) wishes to update shareholders on the progress of the company since October 2005. The company has achieved monthly recurring revenue of approximately $800,000 and has successfully reduced operating expenses to more closely match cash flow. In the past four months, IP Applications has consolidated multiple offices, computer systems and network traffic to reduce operating expenses and leased new capital equipment to improve operational efficiencies with other cost containment strategies now being implemented and predictable organic growth in its customer base, IP Applications expects to be cash self-sufficient on operations in 2006 and does not expect to have to raise equity capital to finance operations. John Jacobson, President and CEO of IP Applications Corporation said "The company has not published an update to investors for some time, yet financial reports of the last two quarters indicated that we needed to focus our energies on driving operational improvements to stabilize the business and position it for growth. I'm pleased to report that most critical improvements are complete and that any outstanding adjustments are identified well under way. Financial reports for the last quarter of 2005 will reflect aspects of this cost rationalization process and we are optimistic that the first quarter results from 2006 will benefit from the improvements we've made. We currently serve over 60 Internet Service Providers who have over 400,000 subscribers throughout Canada and the USA. Our principal objectives for 2006 are to put the company on a solid financial footing and generate cash from operations. What makes IP Applications an interesting opportunity for investors is that we operate in a huge market, we plan to enhance our product offerings to existing clients, and we intend to expand into other parts of the telecom sector." About IP Applications IP Applications delivers back-office support capability to Internet Service Providers including 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 Telecoms, Wireless, and Broadband over Power Line service providers. In addition, IP Applications' 24/7 multilingual Help Desk offers clients and their subscribers a value-added complement to a wide variety of IP-based products and services. For more information about IP Applications, visit www.ipapplications.com. Forward-Looking Statements This 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.