SOURCE: AccessKey IP, Inc.

August 31, 2007 09:30 ET

AccessKey IP, Inc. Announces Multi-Million Dollar IPTV Set Top Box Development Agreement

ALBUQUERQUE, NM--(Marketwire - August 31, 2007) - AccessKey IP, Inc. (PINKSHEETS: AKYI), the developer, designer and producer of advanced entertainment and communication devices, today announced that it has signed a Letter of Intent (LOI) with a significant U.S. based organization in the IPTV (Internet Protocol Television) sector. According to Rich Lauer, President of AccessKey IP, "This new relationship literally puts AccessKey IP on the map. It provides initially for the co-development and funding of an advanced, exceptionally featured Set Top Box (STB). This next generation device leverages much of AccessKey's existing investment in advanced technology for the IPTV field while also applying a highly targeted and customer-specific set of functional requirements to the design." Lauer continued, "Due to certain significant pending business transactions, this customer has asked us not to disclose their name for the time being. However, we expect to be able to announce more details relative to this transaction in the coming weeks."

Lauer further explained, "The first phase of this new agreement calls for $1.5 million of customer-provided joint development funding. We plan to complete development and begin initial deliveries of this exciting new STB technology in early 2008. Beyond the obvious huge opportunity anticipated from this relationship, we anticipate announcing additional sales and customer commitments in the near future."

George Stevens, Chairman and CEO of AccessKey IP, added, "The worldwide IPTV market is exploding. With a CAGR of 80%, most industry analysts are predicting the market will include over 20 million subscribers and produce revenues exceeding $17 Billion by 2010. While AccessKey IP obviously doesn't have the market presence of industry giants like Motorola or Cisco, we are actually more capable of delivering highly engineered, high value-add solutions for specific customer requirements. In reality, the IPTV market is so large even a small piece can make our firm enormously successful."

About AccessKey IP, Inc.

AccessKey IP, Inc. is a developer of cutting-edge technologies and best-of-breed products tailored to address the market opportunities created by the explosive growth of digital communications, entertainment-related services and specific consumer electronics platforms.

AccessKey IP's AccessKey™ products, powered by the Company's patented technology, provide complete access to the coveted "Triple Play" (voice, video and data) and "Quadruple Play" (voice, video, data and wireless) offerings of cable, telecom, satellite and broadband service providers. The Company's AccessKey Home™ and portable flash drive-sized AccessKey PC™ allow subscribers to "channel surf" streaming "HD Quality" television content (IPtv), navigate the internet, watch Video on Demand (VOD) offerings, play video or internet-based games, listen to music, make phone calls (VoIP), video conference, run a full array of computing applications, securely store data and more, all from a single device and service provider network.

Forward-Looking Statements

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of AccessKeyIP, Inc. and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

FOR INVESTOR INQUIRIES: Please visit the Company's website, or contact: Bruce Palmer, 310-734-4254, ext. 105.

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