CounterPath Reports Second Quarter 2006 Financial Results

Vancouver, BC, Canada — September 05, 2014

CounterPath Solutions, Inc. (OTCBB: CTPS), the leading provider of VoIP (Voice over Internet Protocol), Video over IP, Instant Messaging (IM), and Presence SIP softphones, today announced results for its fiscal 2006 second quarter and for the six-month period ended October 31, 2005.

Total revenues for the Quarter ended October 31, 2005 (FY06-Q2) climbed to a record $1,086,101, compared to $827,296 for the quarter ended July 31, 2005 (FY06-Q1), an increase of 31 percent quarter- over-quarter. This compared to $677,364 in the quarter ended October 31, 2004 (FY05-Q2), an increase of 60 percent compared to the same quarter in the previous year.

“We are happy to report that our revenues exceeded our previously released guidance for the quarter,” stated Mark Bruk, Chairman and CEO of CounterPath. “Also, we continue to believe that the market for soft endpoints or softphones is entering a significant growth phase, and that we will continue to expand our leadership position in this market.” *

“I am particularly pleased with the growth in our professional services’ revenue, in line with our strategy of working with our service provider and infrastructure provider customers, aligning our application to meet the requirements of their customer base, in advance of deployments,” continued Bruk.

Financial Highlights for the Second Quarter 2006 (FY06 Q2 vs. FY05 Q2)

• Increase of revenue by 60% to $1,086,101 (3M 2005: $677,364)
• Increase in expenses by 54% to $1,344,826 (3M 2005: $875,639)
• Net loss of $258,725 (3M 2005: $198,275)
• Cash Balance of $920,351(3M 2005: $1,098,595)

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 Months 2006 (FY06 Q1 & Q2 vs. FY05 Q1 & Q2)

• Increase in revenue by 64% to 1,913,397 (6M 2005: $1,164,515)
• Increase in expenses by 59% to $2,481,926 (6M 2005: $1,562,447)
• Net loss of $568,529 (6M 2005: $397,932)
• Cash Balance of $920,351 (6M 2005: $1,098,595)

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, while
• 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 31, 2005 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 VoIP (Voice over IP) 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 (Voice over IP), Video over IP, IM (Instant Messaging), and Presence functionality. eyeBeam – CounterPath’s feature-rich SIP Video over IP softphone with IM and Presence – recently received both Communications Solutions® Magazine’s and INTERNET TELEPHONY® Magazine’s “Product of the Year” Award for 2004. CounterPath’s Pocket PC SIP Softphone was recently named a 2005 Innovation Award winner from INTERNET TELEPHONY® magazine. With over 130 customers in more than 30 countries, CounterPath technology is deployed in more than 5,400,000 IP endpoints worldwide. For more information please visit mrkt-stg.counterpath.com.

Legal Note on Forward-Looking Statements

Statements in this news release, which are not purely historical, are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this news release are marked by an asterisk (*) and include statements regarding management’s belief that: CounterPath expects significant growth in the market for its products and that CounterPath will continue to expand its leadership position in the softphone market. It is important to note that actual outcomes and CounterPath’s actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as CounterPath’s ability to remain competitive as other parties develop and release competitive products, CounterPath’s ability to retain the employees necessary to continue research and development of CounterPath’s software products, the success by CounterPath of the sales of its products, the impact of competitive products on the sales of CounterPath’s products, the impact of technology changes on CounterPath’s software products and on the VoIP industry, the compatibility of CounterPath’s software products with new computer operating systems, the rate of adoption by service providers and the general public of VoIP as a replacement for regular and cellular phone service, general economic conditions as they affect CounterPath’s prospective customers, the ability of CounterPath ‘s to control costs operating, general administrative and other expenses, and insufficient investor interest in CounterPath’s securities which may impact on CounterPath’s ability to raise additional financing as required. Readers should also refer to the risk disclosures outlined in CounterPath’s quarterly reports on Form 10-QSB, annual reports on Form 10-KSB and CounterPath’s other disclosure documents filed from time-to-time with the Securities and Exchange Commission.