VANCOUVER, April 20 /CNW/ - IP Applications Corp. (TSX-Venture: IPX) is pleased to provide this business update to inform shareholders about progress at the company. In the first three months of the year, IP Applications won six new client contracts, renewed two existing client contracts and amended two existing client contracts. In January and February, the company performed as predicted with recurring revenue of approximately $800,000 per month. With service delivery for these new and amended contracts beginning in the second quarter of the year, the company expects to add more than $75,000 to monthly recurring revenue by the end of June 2006. The company is also pleased to report that it retained all of its existing client contracts and that erosion in some revenue streams were offset by growth in others. The company continued to improve operational efficiency in the first two months of the year, keeping operating expenses in line with revenue. The company operated through the quarter with cash on hand and did not use its bank borrowing facilities. With the new business noted above, IP Applications remains on track to be cash self-sufficient on operations in 2006 and does not expect to need to raise additional equity capital to finance operations. John Jacobson, President and CEO of IP Applications Corp., said "In the first quarter, our goals were to streamline the new client setup process and ensure that the existing business was functioning smoothly. We bid on a number of new contracts and I'm pleased to report that we were successful and we're endeavoring to bring them on-line in the second quarter. We are financially stable and - with a solid customer base - we are positioned to grow." The Company further announces that one Director of the Board and one officer of the company have been granted options to purchase an aggregate of 100,000 common shares of the company at $0.34 per share for a period of five years. The grant is subject to regulatory approval. About IP Applications IP Applications Corp. is uniquely positioned to serve companies that are bringing online products, services, content, and internet access to market. IP Applications provides a flexible combination of technology, systems and expertise for customers who have identified channels and products but who lack the delivery and support capabilities. IP Applications' integrated Operational Support System, Help Desk and Network Monitoring Systems dramatically reduce the cost, complexity and time to market for online products and services. 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. Signed, Richard Topham Chief Financial Officer, IP Applications Corporation