3P Networks, Inc.

3P Networks, Inc.

October 17, 2006 10:56 ET

3P Networks Inc. Acquires Controlling Interest in Service & Network Application Provider

VANCOUVER, BRITISH COLUMBIA and LOS ANGELES, CALIFORNIA--(CCNMatthews - Oct. 17, 2006) - 3P Networks Inc. (PINK SHEETS:TPNW) an emerging global provider of integrated telecommunications services offering IPTV, Voice and Data (triple play telecommunications) services, for the multi-family dwelling (MDU), hotel, resort and health care markets announced today that it has acquired controlling interest in Data Fortress Systems Group (DFSG), a Vancouver based Service & Network Application Provider (SNAP). The purchase of controlling interest was done through a combination of cash and shares in 3P Networks. Michael Chong, CEO and President of Data Fortress and key staff members will remain with the group.

The Data Fortress SNAP model entails the company building and deploying high-end network connectivity to medium and large enterprises, combined with selling services and applications over the internet. The majority of its products are billed on a recurring monthly basis giving the company the ability to sell once and bill regularly on a per client basis and retain long-term relationships and predictable cash flow.

Data Fortress provides a suite of services such as high-speed networking, data warehousing, data security, metropolitan area networks, Internet connectivity, remote data storage, streaming servers, co-location and managed services to a range of clients. Data Fortress owns a redundant 3.2-kilometer fiber optic ring in the financial district of downtown Vancouver which passes 280 high-density buildings with over 14,000 businesses in its footprint. With the acquisition, 3P Networks will have its own downtown fiber optic data loop which will provide a significant competitive advantage and creates immediate ancillary business opportunities for the Company and position 3P Networks to become a market leader in providing Voice, Data, Video and other Network Services.

The Data Fortress Group provides a suite of services such as;
1. Co-location
2. Managed Services
3. Video Streaming (through its wholly owned subsidiary IPFlix Inc.)
4. Web and Database Services
5. Data and Network Security
6. Internet connectivity (Bandwidth)
7. Video Streaming and IPTV Services
8. Metropolitan Area Networks (MAN)

Dr. John Tydeman, Chairman of 3P Network said, "We are extremely pleased with the acquisition of a controlling interest in the Data Fortress Group and we look forward to working with Michael Chong and his team to accelerate the growth of the companies business plan. Our immediate plan is to incorporate DFG's IPFlix IPTV technology into our triple play (Voice, Video and Data) for Multi Unit Dwellings (MDU's)."

About 3P Networks

3P Networks www.3pnetworks.com is a complete end-to-end communications solutions provider offering services to multi-unit environments such as hotels, resorts, apartment buildings, condominiums, planned communities and healthcare suites where it is possible to acquire large clusters of subscribers in multi-year contracts on a cost effective basis. Our building-centric model is expected to achieve economies of scale within each property that will allow 3P Networks to offer many services per customer at an infrastructure cost and monthly price point that cannot be offered in other environments.

Certain statements in this document constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of 3P Networks Inc. ("the Company"), or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its plan of operations when needed; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors.

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