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CounterPath Delivers New VoIP Softphone Solution with BT

Delivers the Future of Telephony to BT Total Broadband Customers in First Phase of Ongoing Collaboration and Development

Vancouver, BC, Canada — June 27, 2006 —

CounterPath Solutions Inc. (OTCBB CTPS), a leading provider of VoIP (Voice over IP) and Video over IP SIP softphones, has announced a licensing agreement with BT Retail, a division of leading UK-based telecommunications provider BT, to deliver the BT Softphone.

The BT Softphone is a communications tool which allows BT Retail's consumer broadband customers to experience the full benefits of BT's new, enhanced VoIP service, including secure Internet voice calling, and video messaging. It will also form an integral part of BT's plan to roll out additional multi-media features and services in the future.

BT Retail selected CounterPath due to its innovative and pioneering SIP-based softphone solutions, which provide an intuitive, user-friendly interface for VoIP communication, and support high quality audio and video messaging, as well as including comprehensive security capabilities and a wide range of additional features that will enhance BT's overall consumer VoIP proposition.

CounterPath's standards-based approach to softphone development also ensured high levels of interoperability with BT's existing infrastructure. The two companies worked closely together on engineering support and product development in the run-up to launch, ensuring a seamless and intuitive user experience.

"Our aim is to help consumers enjoy a wide range of multimedia information, services and applications, as we move towards a converged communications landscape," said Gavin Patterson, group managing director, consumer, at BT Retail. "The BT Softphone allows consumers to experience all the benefits of VoIP, such as cost-effectiveness and increased flexibility, and CounterPath enabled us to provide an intuitive, user-friendly solution."

"As more consumers experience the benefits of VoIP and Instant Messaging, service providers are looking to maximize the value of IP-based communication for their customers," said Donovan Jones, president and COO at CounterPath. "BT is one of the world's leading telecommunications brands, and a leader in the UK broadband market, so we are excited to be working with the company as part of its commitment to increasing widespread VoIP adoption and to ongoing innovation in this space. The BT Softphone is the first phase of this approach and we look forward to working with BT in the future on the development of new multi-media applications and services."

"This collaboration represents another milestone for CounterPath, as part of our continued focus on developing SIP based multi-media applications for global tier one service providers, infrastructure providers, cable companies and Internet telephony service providers," he continued.

About BT

BT is one of the world's leading providers of communications solutions and services operating in 170 countries. Its principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2006, BT Group's revenue was $19,514 million with profit before taxation of $2,040 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.

For more information, visit www.bt.com/aboutbt

About CounterPath Solutions

CounterPath Solutions 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 120 customers in more than 30 countries, CounterPath technology is deployed in more than 5,400,000 IP endpoints worldwide.