SOURCE: IPtimize, Inc.

September 04, 2007 10:27 ET

IPtimize Agrees to First Major Acquisition and Provides Pro Forma Full Year 2007 Revenue Guidance

Acquisition Could Grow Year End 2007 Revenue Run-Rate to Approximately $9.2 Million

Announcement Ushers in Potential High Growth-Through-Consolidation Future

DENVER, CO--(Marketwire - September 4, 2007) - IPtimize, Inc. (PINKSHEETS: IPZE) ("IPtimize" or the "Company"), a broadband voice and data service provider, announced today that it has initiated its strategy to aggregate and optimize undervalued broadband services by agreeing to acquire WTI, LLC ("WTI"), a privately owned Washington limited liability corporation. WTI is an operating competitive local exchange carrier (CLEC) in the States of Washington and Oregon and serves approximately 8,200 customers.

WTI reported 2006 revenue of approximately $7.0 million. IPtimize expects WTI to record approximately $8.0 million in revenue in 2007; once completed, the acquisition could grow the Company's year end revenue run-rate from approximately $1.0 million to approximately $9.0 million -- an 800% increase.

In even more dramatic fashion, WTI's approximately 8,200 customers served will grow IPtimize's total customer base from 250 to 8,445, a 3,278% increase.

"The WTI acquisition is the first of many major milestones we intend to achieve and report in the coming months," stated IPtimize President Clint Wilson. "This significant addition, combined with our established broadband voice and data service, forms the optimal platform upon which to grow quickly through strategic acquisition. As a public company with increasingly national presence and economies of scale, IPtimize seeks to purchase regional providers to rapidly grow revenue and achieve multiples consistent with our comparable peer group. The WTI acquisition marks the launching point for IPtimize as we begin to create real and immediate shareholder value."

IPtimize will acquire WTI through a combination of cash and restricted common stock.

About IPtimize, Inc.

IPtimize is a Denver-based broadband voice and data service provider that provides a simplified, best of breed and cost-effective turnkey solution to small and medium businesses (SMBs) and select industry channels. IPtimize distinguishes itself from both conventional Telco's and discount Voice over Internet Protocol (VoIP) retailers by delivering managed, business grade service -- agnostic of broadband provider or equipment. The Company possesses a portfolio of VoIP-based communications solutions -- including Hosted VoIP (Voice Pilot(SM)), Telephone Line Replacement (VoIP Connect(SM)) and VoIP business communication systems -- that help customers improve productivity, reduce costs and minimize risks. Please visit: www.iptimize.com

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements, including statements that include the words "believes," "expects," "anticipate," or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of the Company to differ materially from those expressed or implied by such forward-looking statements. Factors that may affect these forward-looking statements include, among others, our ability to raise capital, the decisions of third parties over which we have no control, the state of the telecommunications industry, technological changes and other factors set forth from time to time in our public statements. This news release speaks as of the date first set forth above and the Company assumes no responsibility to update the information included herein for events occurring after the date of this news release.

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