Path 1 IPO Yields $13.5M

SAN DIEGO -- Path 1 Network Technologies Inc. announced that its registration statement covering the public sale of units has been declared effective by the Securities and Exchange Commission and that the underwriting agreement related to the offering has been executed by Path 1 and the underwriters. Path 1 expects that trading in the units (PNO.u) and its common stock (PNO) on the American Stock Exchange will begin one hour after market open tomorrow, July 31. The firmly underwritten offering is for 1,250,000 units at $10.80 each. A unit consists of three shares of Path 1's common stock and two warrants, each to purchase one share of Path 1's common stock. In anticipation of the offering, trading was halted Wednesday morning in Path 1's common stock (formerly PNWT) on the Over-the-Counter Bulletin Board. A written prospectus meeting the requirements of Section 10 of the Securities Act may be obtained from the offices of Paulson Investment Company, Inc., 811 S.W. Naito Parkway, Suite 200, Portland, Oregon 97204. This press release shall not constitute an offer to sell any securities or the solicitation of an offer to buy nor shall there be an offer of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

In a separate release:

Path 1 Network Technologies Inc. (Amex: PNO - Common Stock and PNO.u - Units) announced that it effected today its previously announced initial public offering. Paulson Investment Company, Inc. was the lead underwriter. In the IPO, Path 1 sold 1,250,000 units. The units were priced at $10.80 per unit, yielding gross proceeds of $13,500,000. The units began trading today on the American Stock Exchange under the symbol PNO.u, together with the Company's common stock that now trades under the AMEX symbol PNO. Each unit consists of three shares of common stock and two warrants. Each warrant represents the right to buy one share of common stock for an exercise price of $5.40.

"This funding and our move to the American Stock Exchange mark a significant turning point for Path 1," said Fred Cary, chairman and chief executive officer of Path 1 Network Technologies Inc., who added, "The proceeds of the public offering enable us to strengthen our balance sheet and accelerate our product roadmap to meet our customers' needs for broadcast quality video over IP networks around the world."

In a separate release:

The American Stock Exchange(R) (Amex(R)) today listed the common stock of Path 1 Network Technologies, Inc. under the ticker symbol PNO. Path 1 Network Technologies, Inc., founded in 1998 in Delaware, develops products that enable the transportation and distribution of real-time, high-quality video over Internet Protocol (IP) networks. Path 1 Network Technologies provides the technology, equipment and services to merge broadcast quality video transport with IP/Ethernet broadband networks. At the core of the company's capabilities is expertise in IP quality-of-service and global synchronization, backed up by multiple patents, and knowledge of broadcast video.

"We are pleased to welcome Path 1 Network Technologies to the American Stock Exchange," said John McGonegal, vice president of Amex Equities. "Path 1 is a pioneer and industry leader, and we look forward to working with them to continue to enhance their success in the industry." The specialist in Path 1 Network Technologies, Inc. will be Cohen Specialists, L.L.C.

Path 1 Network Technologies Inc.