Shift Networks Inc.

Shift Networks Inc.

April 10, 2006 08:45 ET

Shift Announces First Quarter Subscriber Growth & Proposed Share Consolidation

CALGARY, ALBERTA--(CCNMatthews - April 10, 2006) - Shift Networks Inc. (TSX VENTURE:SHF) announced today it signed over one thousand new subscribers in the first quarter 2006. Shift subscribers sign a minimum 36 month service agreement and purchase IP phones, Voice gateway and voice broadband access on Shift's managed "VoiceWAN" (Voice Wide Area Network).

"We exceeded our subscriber target for the first quarter and booked over one million dollars in contracted revenues in a quarter for the first time. We've also launched Shift in our third major western market, Vancouver, western Canada's largest market. Vancouver just opened in late March and over 10% of our new subscribers signed this quarter are Vancouver clients," comments Trent Johnsen, Shift President and CEO.

Shift also announces it has mailed an information circular for a special meeting of shareholders to be held May 4, 2006 (the "Meeting"). Subject to shareholder approval at the Meeting, the articles of Shift will be amended to consolidate all issued and outstanding common shares of the Corporation on the basis of one (1) new share for any number up to ten (10) issued and outstanding common shares (the "Consolidation"), such final number to be determined by the board of directors.

The board of directors believes that the Consolidation should lead to increased interest by a wider audience of potential investors resulting in a more efficient market for the common shares. There can be no assurances however that the market price of the common shares will increase as a result of the Consolidation.

"Shift is executing on its opportunity to become the leading national provider of a new generation of business communications services. The board believes a consolidated capital structure will help facilitate access to appropriate growth financing for the company," comments Trent Johnsen.

Following the effective date of the Articles of Amendment giving effect to the Consolidation, letters of transmittal will be sent by mail to all holders of common shares then issued and outstanding advising them that the Articles of Amendment implementing the Consolidation have been issued and instructing them to surrender their certificates evidencing their common shares for replacement certificates in new form representing the number of common shares to which they are entitled as a result of the Consolidation. The Consolidation is subject to the approval of the TSX Venture Exchange.

Shift closed a previously announced (March 9, 2006) non-brokered private placement. The subscribers of the private placement were Shift CTO Erik Lagerway and Shift Vancouver Business Development Manager Matthew Campbell.

Shift Networks is a leader in next generation Voice over IP and related "On Demand" IP communications services for small-to-medium businesses. Shift trades on the TSX Venture Exchange under the symbol "SHF". Please visit our website at

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

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