SOURCE: IPtimize, Inc.

July 11, 2007 09:45 ET

IPtimize Provides Shareholder Update

DENVER, CO--(Marketwire - July 11, 2007) - IPtimize, Inc. (PINKSHEETS: IPZE), a VoIP provider of composite applications of data, voice and wireless components for business communications, provides financial and operating results for the year ended December 31, 2006.

As evidenced by the attached selected financial data, 2006 was a successful year for IPtimize as the company increased recurring revenues from operations by $198,862, on an unaudited basis, or approximately 62 percent. Organic growth of IP addresses under management in 2006 grew at a rate of 54 percent and the company's strategy to improve margins by managing its product and service mix began to show progress in 2006. In addition, IPtimize increased its VoIP market share, while developing its non-organic model of acquiring VoIP clients through database purchases and VoIP customer procurements.

IPtimize recurring revenues are derived from VoIP services: Voice Pilot services, VoIP Connect services, agency services, monthly network commissions, tech support services, and VoIP brand licensing. Sales of hardware include VoIP telephones and IP appliances. Revenues for fiscal 2006 were $926,021, of which 44 percent were generated from the sales of products and 56 percent were generated from VoIP services.

In 2006, there were several significant events that solidified the company's business:

--   The depth of the management team was increased with the addition of
     Clay Storer as Vice President of Sales and Marketing. Clay brings
     over 20 years of front-line experience in building and developing
     top-performing sales teams.

--   The Company partnered with DecisionOne, a technology support services
     firm, which serves as the certified installer of our systems
     and services.

"We have made significant progress during 2006 and I would like to share with our shareholders and members of the financial community some of the important accomplishments made during the first six months of 2007," commented IPtimize President Clinton J. Wilson.

--   Ron Pitcock joined the Company as Chief Executive Officer and Chairman
     of the Board of Directors, on a consulting basis pending his potential
     engagement.  Ron has over 30 years of management experience in the
     broadband communications field in both private and public companies.

--   Adam Nichols joined the Company as Vice President and Chief Financial
     Officer, on a consulting basis pending his potential engagement. Adam
     has nineteen years of corporate finance and accounting experience,
     including nine years in the telecommunications industry.

--   The Company entered into a Business Development Agreement with
     Denver-based First Capital Business Development, LLC to assist and
     advise management in the following areas:

       - Reorganization of operations and capital structure;
       - Capital formation; and
       - Merger and acquisition planning and structuring.

--   The Company has identified a number of acquisition candidates that,
     if acquired, would enhance its products and services and expand its
     geographical reach.  Management recently signed non-binding letters of
     intent with two acquisition candidates and are in the process of
     concluding due diligence.

--   In an effort to raise capital for the company's acquisition and
     expansion plans, management has initiated discussions with a number of
     investment banking firms experienced in working with micro-cap
     companies and knowledgeable of the telecom industry.

--   The company has initiated design improvements to all of its products
     and services, including VoicePilot and VoIPConnect.

--   To support the company's efforts for a private capital raise to
     sustain operations, pending the completion of its proposed round of
     permanent financing, the company withdrew its pending registration
     statement with the SEC.

--   IPtimize has conducted a Special Meeting of Stockholders to set the
     stage for the proposed permanent financing, with shareholder approval
     of the following actions:

       - Reincorporating into Delaware
       - Up to a one-for-12 reverse split of the company's issued and
         outstanding shares of common stock
       - Creating a stock option plan and reserving two million shares for
         issuance

Operating and Financial Plans for the Remainder of 2007:

--   Focus on strengthening the company's existing partnerships and direct
     markets to increase revenue and improve operations while expanding
     its facilities-based broadband infrastructure to lower
     cost-of-service delivery.

--   Realize sustainable organic growth and increase recurring revenue.

--   Finalize one or more acquisitions of accretive companies positioned
     to provide geographic diversity.

--   Utilize management's industry expertise and technological leadership
     to take advantage of the opportunity for accelerated growth
     in a fragmented industry.

"This is an exciting time for IPtimize as we add depth to our management team and strive to expand our product line and geographical reach," said Wilson. "We expect to improve our lines of communications with our shareholders and gain additional exposure within the financial community over the next six months," added Wilson.

About IPtimize

Founded in 2003, IPtimize is headquartered in Denver, Colorado and serves clients around the world. IPtimize is a managed VoIP Solutions Provider and 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 that may, 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.

Selected Financial Information

The following selected financial data has been derived from the Company's audited financial statements for the two fiscal years ended December 31, 2005 and from its reviewed financial statements for the twelve months ended December 31, 2006, pending final auditor review and approval. In the opinion of the Company's management, the unaudited financial statements include all adjustments, consisting only of normal, recurring adjustments that management considers necessary for a fair statement of the results of that period. The Company's historical results are not necessarily indicative of the results to be expected in any future period.

                                           2004       2005        2006
                                         Audited     Audited   Unaudited(1)
                                        ----------  ----------  ----------

Statement of Operations Data

Operating income                        $  288,700  $  790,056  $  410,871
Operating expenses
  Non-cash Stock Compensation              901,229   1,865,889   1,009,569
  Research & Development                   762,742           0           0
  Impairment of Fixed Assets                     0      25,000           0
  General and administrative             1,552,102   2,157,873   1,657,416
  Depreciation & Amortization               39,528      41,760      22,514
Net Operating (Loss)                    (2,966,901) (3,300,466) (2,278,628)
Other (Expense)
  Interest Expense                         (28,103)    (49,726)   (352,758)
Net (loss)                              (2,995,004) (3,350,192) (2,631,386)
Weighted average shares outstanding     16,877,757  15,021,955  23,694,181
Net (loss) per share                         (0.18)      (0.22)      (0.11)

 Balance Sheet Data--At Period End

Cash and equivalents                    $   89,250  $   23,078  $        0
Current assets                             264,610     130,740      53,262
Fixed assets                               132,945      66,185      46,555
Other assets                                 4,021      10,321     267,521
Total assets                               490,826     230,324     367,338
Current liabilities                      1,797,553   1,216,091   2,517,648
Long term debt                              43,613      17,601           0
Total liabilities                        1,841,166   1,233,692   2,517,648

Total stockholders' (deficit)           (1,350,340) (1,003,368) (2,150,310)
Total liabilities and equity               490,826     230,324     367,338

(1) Comprised of reviewed statements for the 12 months ended December 31, 2006 pending final audit review and approval.

Contact Information

  • Contact
    Financial and Investor Relations
    McCloud Communications
    Marty Tullio
    949.553.9748
    Email Contact

    IPtimize
    Clint Wilson
    President and CEO
    303.268.3600
    Email Contact