iPackets International Inc. (IPKL)

[Californicator]

Technology Enhancements

Over the past few months, we have added a number of features to iPMine, iPackets' real-time two-way wireless communications solution designed to significantly improve the safety of miners and equipment in virtually any size mine. In June 2006, we announced the future availability of the iPMine-880MV multi-view monitoring station. The 880MV station raises the bar in the mine-safety arena by providing a consolidated source of tracking, monitoring, and communicating with miners and managing disasters effectively.

Also in June 2006, we announced the future availability of the iPMine-810C compact tracking device. The 810C will be targeted to miners who do not require user-interface interaction (LCD screen and keypad) with control centers, but need to be instantly tracked and monitored for their safety. This product was borne as a result of our recent trip to China where we demonstrated our mine-safety product to China's seventh largest coal operation. They suggested that team leaders, supervisors, and mine managers should be outfitted with the current iPMine-M8 810A advanced model. With the new 810C compact model, we believe we are better positioned to sell more devices to our customers, thereby generating additional revenues.