CounterPath Reports Record Third Quarter 2006 Financial Results

Vancouver, BC, Canada — March 20, 2006 – CounterPath Solutions, Inc. (OTCBB: CTPS), a provider of VoIP (Voice over Internet Protocol), Video over IP, Instant Messaging (IM), and Presence SIP softphones, today announced results for its second third quarter ended October January 31, 2006.

Total revenues for the Quarter ended October January 31, 20065 (FY06-Q32) climbed to a record $1,237,9321,086,101, compared to $1,086,101827,296 for the quarter ended July October 31, 2005 (FY06-Q21), an increase of 31 14 percent quarter-over-quarter. This compared to $677,364928,608 in the quarter ended October January 31, 20054 (FY05-Q32), an increase of 6033 percent compared to the same quarter in the previous year.

Financial Highlights for the Second Third Quarter 2006 (FY06 Q32 vs. FY05 Q32)

• Increase of revenue by 3360% to $1,086,1011,237,932 (3M 2005: $677,364928,608)
• Increase in expenses by 6454% to $1,344,8261,666,872 (3M 2005: $875,6391,017,435)
• Net loss of $258,725428,940 (3M 2005: $198,27588,827)
• Cash Balance of $920,3512,871,396(3M 2005: $1,098,5951,587,150)

As a percentage of revenue our net loss has decreased from 34.2% in fiscal 2005 to 29.7% in fiscal 2006.

Financial Highlights for the First Six Nine Months 2006 (9M FY06 Q1 & Q2 vs. 9M FY05 Q1 & Q2)

• Increase in revenue by 5164% to 1,913,3973,151,329 (96M 2005: $1,164,5152,093,123)
• Increase in expenses by 5961% to $2,481,9264,148,798 (96M 2005: $1,562,4472,579,882)
• Net loss of $568,529997,469 (96M 2005: $397,932478,235)
• Cash Balance of $920,3512,871,396 (6M 2005: $1,098,5951,587,150)

As a company CounterPath continues to commit its efforts to the following four key building blocks:

• assembling the best team
• building the best product
• focusing on the best customers
• creating a culture of innovation

The Company's Quarterly Report on Form 10-QSB including consolidated balance sheet and statement of operations for the quarter ended October January 31, 20065 was filed and is available for viewing at www.sec.gov.

About CounterPath

CounterPath Solutions, Inc., formerly Xten Networks Inc., is a developer of award-winning, high-quality, carrier-grade Voice over IP (VoIP) and Video over IP SIP softphones for service providers, cable operators, Internet telephony service providers, IP PBX manufacturers and OEMs. CounterPath's SIP softphones are available either pre-configured or as a software development kit (SDK) and provide VoIP, Video over IP, instant messaging (IM) and presence functionality. With over 130 customers in more than 30 countries, CounterPath technology is deployed in more than 6,000,000 IP endpoints worldwide. For more information please visit www.counterpath.com.