CounterPath Reports Fiscal 2007 Financial Results

Company Delivers Record Annual Revenues and 24% Growth

Vancouver, BC, Canada — July 30, 2007 — CounterPath Solutions, Inc. (OTCBB: CTPS), a leading provider of VoIP (Voice over IP) and Video over IP SIP softphones, today announced its financial and operating results for its fiscal year ended April 30, 2007.

Recent financial and operating highlights include: “Our team continues to deliver exceptional results as evidenced by both our new product announcements and our growing customer and partner list,” said Mark Bruk, Chief Executive Officer of CounterPath. “In fiscal 2008, we will maintain our focus on selling to tier-one carriers and infrastructure manufacturers, both by our direct sales force and via our partner channel. As we integrate our teams and products following our NewHeights Software acquisition, we will add the enterprise market to our focus and we expect that our increased product and service offerings will not only deliver additional revenues from our existing customers, but we will also attract an ever increasing mix of new customers and partners. We will leverage our renewed capital investment and strategic investment partners to continue to deliver on our mission to be the dominant endpoint for fixed, mobile and fixed mobile convergence providers.”

Financial Results

(All amounts in U.S. dollars and in accordance with U.S. GAAP unless otherwise specified. Financial results do not include financial results of NewHeights Software Corp.)

For the year ended April 30, 2007, revenues were $5.7 million compared to $4.6 million for the year ended April 30, 2006, representing an increase of 24%. Software revenues were $4.1 million for the year ended April 30, 2006 compared to $3.5 million in the prior year, representing an increase of 15%. For the year ended April 30, 2007, service revenues were $1.6 million compared to $1.1 million for the year ending April 30, 2006, a 52% increase.

Operating expenses for the year ended April 30, 2007 were $6.9 million compared to $5.3 million for the year ended April 30, 2006, representing an increase of 30%. Increases in operating expenses primarily reflect the addition of personnel and related wages and benefits and include the non-cash fair value of employee stock-based compensation of $880,109, the majority of which CounterPath began expensing this fiscal year. Sales and marketing expenses increased from $802,502 last year to $1.7 million in the 2007 fiscal year, reflecting additional sales and marketing personnel added during the year to assist in selling CounterPath products and services. Research and development expenses grew to $2.7 million in fiscal 2007 from $2.5 million in the previous year, while general and administrative expenses grew to $2.5 million from $2.0 million for the same respective periods.

For the year ended April 30, 2007, CounterPath incurred interest expense of $326,278, offset by interest income of $55,083, compared to interest expense of $64,139 offset by interest income of $19,590 for the comparable period last year. For the year ended April 30, 2007, CounterPath booked a non-cash expense of $289,252 to record the loss on the extinguishment of our convertible debenture which was re-financed during the fiscal year.

The net loss for the year ended April 30, 2007 was $3.4 million, or $(0.09) per share, compared to a net loss of $1.5 million, or $(0.04) per share, recorded for the previous year.

As of April 30, 2007, CounterPath had $1.7 million in cash compared to $2.4 million at April 30, 2006. The company’s working capital was $1.9 million as of April 30, 2007 compared to $2.0 million at April 30, 2006.

Financial tables follow:

2007 Fiscal Results - Image 1

2007 Fiscal Results - Image 2

The Company’s Annual Report on Form 10-KSB for the year ended April 30, 2007 is available for viewing at www.sec.gov.

About CounterPathXYZ

Forward-Looking Statements

This news release contains “forward-looking statements”. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among others, the expectation and/or claim, as applicable, that CounterPath will complete the acquisition of NewHeights Software Corporation.

It is important to note that actual outcomes and CounterPath’s actual results could differ materially from those in such forward-looking statements. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others: (1) the failure to complete the acquisition of NewHeights, (2) the failure to successfully integrate the businesses of CounterPath and NewHeights after completion of the acquisition, (3) the failure to develop new and innovative products using CounterPath’s and NewHeights' technologies, (4) CounterPath’s ability to remain competitive as other parties develop and release competitive products, (5) CounterPath’s ability to retain the employees necessary to continue research and development of current and new products, (6) the success by CounterPath of the sales of its current and new products, (7) the impact of competitive products on the sales of CounterPath’s products, (8) the impact of technology changes on CounterPath’s products and on the VoIP industry, (9) the compatibility of CounterPath’s products with new computer operating systems, (10) the rate of adoption by service providers and the general public of VoIP as a replacement for regular and cellular phone service, (11) general economic conditions as they affect CounterPath and its prospective customers, (12) the ability of CounterPath to control costs operating, general administrative and other expenses, and (13) 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.