VANCOUVER, Sep 1, 2004 /PRNewswire-FirstCall via COMTEX/ -- IP Applications (TSX Venture: IAP), announced today that it is strengthening its solutions offering by agreeing to purchase certain assets of Voyus Canada Inc. and Voyus Remote Services ('Voyus'), a remote IT, help desk and online support provider.

Under the acquisition agreement, IP Applications will acquire customer contracts, proprietary software ('Voyager') and operating assets of Voyus' customer support center, including a complement of key personnel. The Voyus customer contracts currently generate approximately $220,000 CDN in revenue per month.

Mark Sampson, President and CEO of IP Applications, said "This acquisition significantly increases our competitive advantage by enabling us to deliver on our objective of becoming a single point of contact for all our customers. By continuing to build an increasingly more comprehensive suite of services, we can offer a true end-to-end solution and better control the quality of our service delivery. The Voyager software will allow us to better understand the needs of our customers, and the end users they serve, and assist us in developing new IP-based services to meet escalating day-to-day demands of Internet end users."

Ed Shapero, CEO of Voyus, said, "Both IP Applications and Voyus are focused on putting the customer first to ensure a continuum of service exists throughout the transition phase and beyond. We are taking all necessary steps to ensure that our customers are not impacted by this change in ownership structure. By adding Voyus' customer support software and knowledge base to IP Application's comprehensive suite of outsourced Internet solutions, our customers will be able to significantly improve the Internet experience for their end users."

The integration of Voyager software and technical help desk capabilities into its Internet services delivery platform will enable IP Applications to create a fully integrated services delivery, management, billing and support proposition for ISPs, Carriers and CLECs (Competitive Local Exchange Carriers) across North America.

The purchase price of $850,000 CDN, subject to adjustment, is payable in cash and closing is subject to regulatory approval. Transaction completion is anticipated by the end of September 2004.

In conjunction with this transaction and to finance ongoing expansion, IP Applications has arranged a non-brokered private placement by Pender Growth Fund (VCC) Inc. of 3,750,000 common shares at a price of $0.20 per share for proceeds of $750,000. No finder's fee will be payable. The closing of the private placement is subject to the approval of the TSX Venture Exchange. The company currently has cash on hand of approximately $1,100,000 CDN.

About IP Applications


IP Applications provides comprehensive outsourcing solutions that enable service providers to deliver high quality Internet services. A leading provider in the industry, IP Applications has an enviable customer list, providing secure Internet business solutions to Sprint, Telus, Excel Telecom, Skycable, AOL and Navigata.

IP Applications meets Internet service providers' needs by combining its customer-branded web-based provisioning, management and billing software with a full range of end user services including: authentication, email, personal web hosting, spam blocking, content filtering, email virus scanning, network acceleration, information portal, North American network and call center coverage.

A single point of contact and trusted supplier, IP Applications backs every services contract with an industry leading Quality of Service guarantee written into every Service Level Agreement. Customers are provided around-the- clock access to a team of experts and all of IP Applications solutions are monitored 24 hours a day, seven days a week, 365 days a year, from its Carrier Class Data and Network Operations Center. Exclusively focused on responding to the growing requirements of businesses that provide Internet services, and their end users, IP Applications delivers solutions, which are functional, robust, reliable, easy-to-integrate and compatible with other back-office systems.

About Voyus


Voyus provides a complete suite of Managed IT Services, which reduce overall costs and increase productivity for its IT Integrator partners' customers. Voyus' technology completely automates the entire desktop and server management process, simplifying IT management and reducing technical support challenges for its partners. Managed Services include technical Help Desk, 24 x 7 remote monitoring, remote control, online support and on-site support through its partnerships with IT Integrators.

Investor Relations Contact: Shay Prasad, CFO
Toll Free: 1-877-604-7277 ext. 127 or Direct: (604) 523-2567
Email: sprasad@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.


Signed,
"Shay Prasad"
Shay Prasad
Chief Financial Officer

The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.


SOURCE IP Applications Corp.

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