iPackets International Inc. (IPKL)

[Californicator]

May 13-20, 2006: The JinCheng and Shanghai Sendy on-site demo, Shanxi, China
During the week of May 13 - 20, 2006, iPackets' CEO and a technical team comprised of iPackets' vice president of engineering, Chief Technology Officer, and two software engineers completed a six-day trip to China and successfully demonstrated the iPMine mine-safety solution to the state-owned Shanxi Jincheng Anthracite Coal Mining Group ("Jincheng"). The iPMine demonstration was conducted at 540 feet (165 meters) below ground in one of Jincheng's six large-scale mines, the Phoenix mine located in Jincheng city, Shanxi province, and was attended by the president of the Phoenix mine, its senior vice presidents, safety managers, and a number of technical staff representing various departments. The Shanxi Jincheng Anthracite Coal Mining Group ("Jincheng") is one of 13 state-owned, large-scale coal operations in China, ranking seventh in terms of production output. The parent of 22 subsidiaries and employing over 50,000 people, Jincheng operates six large-scale mines and in 2005, its raw coal output was 30 million tons with revenues of $US2.2 billion.