IP Applications Sets a New Performance Standard by Partnering with Sun Microsystems and Network Appliance

VANCOUVER, -- Oct. 12, 2004 -- IP Applications (TSX Venture: IAP), a leading provider of outsourced Internet services, today announced the expansion of its production data and disaster recovery centres with industry leaders Sun Microsystems ('Sun') (NASDAQ: SUNW) and Network Appliance ('NetApp'). Entrusted by customers including AOL Canada and Excel Telecommunications to deliver, manage and monitor their Internet services, IP Applications continues to increase capacity and performance to exceed customer requirements and meet the ever increasing demand for their services.

"We have consistently delivered in excess of 99.98% uptime in the past and are now taking the necessary steps to improve our availability yet again," said Mark Sampson President and CEO of IP Applications. "Our Quality of Service (QoS) standards are equivalent to the largest, most sophisticated carriers and service providers anywhere in the world."

Richard Wafer, VP Operations for IP Applications, said "We needed to ensure our capacity was sufficient to meet projected growth and we recognized that a capacity review also created an opportunity to improve our operational efficiencies by consolidating onto a single hardware platform."

"We selected Sun's AMD Opteron/Solaris OS/SunFire architecture after extensive testing of our systems on that platform. At the same time, we significantly increased our storage capability by implementing new NetApp storage arrays. Our tests of this configuration showed that the capacity of the new production centre will be well in excess of twice our current requirements, while reliability and performance will continue to be assured."

Wafer continued "Although our current production data centre is fully redundant internally, we have also invested in a secure geographically remote disaster recovery site, which is fully configured to process the same workload as the production site. While it is unlikely we will ever need to rely on the disaster site, we feel it is prudent to be prepared for the extreme worst case thereby giving our customers the added assurance."

About IP Applications

IP Applications provides comprehensive outsourcing solutions that enable service providers to deliver high quality Internet services. A leading provider in the industry, IP Applications has an enviable customer list, providing secure Internet outsourcing solutions to AOL Canada, Sprint, Telus, Excel Telecommunications, Skycable and Navigata.

IP Applications meets Internet service providers' needs by combining its customer-branded web-based provisioning, management and billing platform with a full range of subscriber services including: authentication, email, personal web hosting, spam blocking, content filtering, email virus scanning, network acceleration, information portal, North American network and call center coverage. A single point of contact and trusted supplier, IP Applications backs every services contract with an industry leading Quality of Service guarantee written into every Service Level Agreement. Customers are provided around-the-clock access to a team of experts and all of IP Applications solutions are monitored 24 hours a day, 365 days a year, from its Carrier Class Data and Network Operations Center.

About Sun Microsystems, Inc.

Since its inception in 1982, a singular vision -- "The Network Is The Computer" -- has propelled Sun Microsystems, Inc. (NASDAQ: SUNW) to its position as a leading provider of industrial-strength hardware, software and services that make the Net work. Sun can be found in more than 100 countries and on the World Wide Web at http://sun.com.

About Network Appliance

Network Appliance is the leader in advanced network storage solutions for today's data-intensive enterprise. Since its inception in 1992, Network Appliance has delivered technology, product, and partner firsts that continue to drive "The evolution of storage"(TM). Information about Network Appliance(TM) solutions and services is available at http://www.netapp.com.