IPIX Security Receives Significant Order for Video Surveillance Products; UK Distributor Expands Territory

Business Wire, July 26, 2004

OAK RIDGE, Tenn. -- IPIX Security, a premium supplier of video surveillance technology, announced today it has received an order for the purchase of $3 million of its CommandView(TM) video surveillance cameras from its UK distributor. IPIX(TM) expects that the cameras from this order will ship over the next few quarters.

"Our demonstrations over the past several months of the IPIX video surveillance products have been met with enthusiasm across multiple government and commercial market segments because CommandView systems provide greater situational awareness than traditional video surveillance systems," said Paul Lyon, Managing Director of the UK distributor. "This order reflects the demand for initial installations in our region."

"Our UK distributor has seen strong demand for IPIX security systems in commercial segments such as retail, warehousing and transportation in the United Kingdom and elsewhere," said Jim Griffin, general manager of IPIX Security. "Accordingly, we have expanded their territory to include Spain, Portugal, Italy, Switzerland and the Benelux region."

About IPIX Security

IPIX Security is a premium supplier of Full-360 degree video surveillance technology for critical government and commercial security applications. IPIX Security, using its patent protected technology, offers digital video surveillance systems that provide complete and continuous situational awareness by allowing users to see everything at the same time. Users can navigate within a live or recorded video scene in all directions using pan-tilt-zoom with no moving parts. IPIX Security video surveillance cameras provide superior image quality through the use of high-resolution multi-megapixel sensors operating at full video frame rates. IPIX Security is a business unit of IPIX Corporation (Nasdaq:IPIX). IPIX Corporation offers mission critical imaging where visual content is required for the protection of life and property and eCommerce. Learn more about IPIX's three business units (IPIX Security, IPIX AdMission and IPIX InfoMedia) at www.ipix.com.

IPIX and CommandView are registered trademarks of IPIX Corporation.

This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbors under those sections. In some cases, you can identify forward-looking statements by terminology such as "expect," "believe," "may," "will," "plans" and "anticipate," or the negative of such terms or comparable terminology. Forward-looking statements appearing herein include statements concerning operating and profitability plans and goals and restructuring efforts, and are based on current expectations. Actual results may differ materially from those projected in the forward-looking statements based upon a number of factors including: our loss of existing, or an inability to attract new customers; changes in the demand for our products and services; our rate of revenue growth; our ability to control or affect reductions in costs; our ability to design, manufacture and deliver high quality products in a timely fashion; a distributor's default on its obligations under a distribution agreement or cancellation of a order; our default on our obligations under a distribution agreement; our third-party supplier's ability to deliver high quality components to us in a timely fashion; technological changes; general economic, financial or market changes or developments; and the conversion of our Series B Preferred Stock into common stock. The matters discussed in this press release also involve risks and uncertainties described from time to time in documents filed with the Securities and Exchange Commission, including but not limited to Form 10-Ks, Form 10-K/As, Form 10-Qs, Form S-3s and Form 8-Ks (www.sec.gov).