CounterPath Provides Update on Market Activity

Vancouver, BC, Canada — August 2, 2006 —

CounterPath Solutions, Inc. (OTCBB: CTPS), a leading provider of VoIP (Voice over IP) and Video over IP SIP softphones, provided an update to current market activity.

The company's stock price saw significant downward pressure during yesterday's trading session, management knows of no reason for the fall. As reflected in our recent annual filing of results which show an increase in revenues, customers and product launches, these all indicate that CounterPath may represent good value at current levels.

Additionally, the VoIP market is expected to grow for some time to come. CounterPath management reiterates its revenue forecast for fiscal 2007 of meeting or exceeding $10M in revenue, through a realization of deployments of softphone licenses and services against our existing contracts and a conservative funnel conversion rate on near term opportunities. CounterPath's recent price decline may be a reasonable entry opportunity.

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.