CounterPath Reports Record Fourth Quarter and Fiscal Year 2006 Financial Results

Vancouver, BC, Canada — August 1, 2006 —

CounterPath Solutions, Inc. (OTCBB: CTPS), a leading provider of VoIP (Voice over IP) and Video over IP SIP softphones, today announced results for its fourth fiscal quarter and fiscal year ended April 30, 2006.

Total revenues for the fiscal year ended April 30, 2006 climbed to a record $4,619,179, compared to $3,122,877 for the fiscal year ended April 30, 2005, an increase of 48 percent year-over-year.

Total revenues for the quarter climbed to a record $1,467,850, compared to $1,237,932 for the quarter ended January 31, 2006, an increase of 19 percent quarter-over-quarter. This compared to $1,029,754 in the quarter ended April 30, 2005, an increase of 43 percent compared to the same quarter in the previous year.

“Our results for the fourth quarter exceeded our recent guidance demonstrating continued execution of both our strategic and operational plans,” said Chairman and CEO Mark Bruk. “As we tighten our focus on building SIP based multi-media applications for tier one service providers and infrastructure providers, we will continue to be recognized for delivering superior products, support and services, which our customers have come to expect from us.”

Financial Highlights for the Fiscal 2006 (12M FY06 vs. 12M FY05)

Financial Highlights for the Fourth Quarter 2006 (Q4 FY06 vs. Q4 FY05)

Bruk added, “We are proud of the performance we delivered in the quarter and through the year. We are committed to improving our performance, executing our strategy and capitalizing on the significant opportunities we see across our businesses and in the global markets.”

The Company's Annual Report on Form 10-KSB including consolidated balance sheet and statement of operations for the fiscal year ended April 30, 2006 was filed and is available for viewing at

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.