Open Letter to IPIX Corporation Shareholders

    Business Editors/Technology Writers/Financial Analysts

    VIENNA, Va.--(BUSINESS WIRE)--March 18, 2005--IPIX Corporation (NASDAQ:IPIX), a premier supplier of 360-degree, immersive imaging technologies for visual intelligence applications, today announced the release of the following letter to IPIX shareholders:

IPIX Shareholders:

Much speculation and inquiry has recently been made regarding our filing of Form 12b-25 relating to the filing of our Annual Report on Form 10-K and the reporting of our financial results for the fourth quarter and fiscal year ended December 31, 2004. Shareholder concerns are very important to our company, myself in particular, and with that in mind, I wanted to highlight our reasoning for filing the Form 12b-25 filing and seeking the extension to file our Form 10-K Annual Report.

As an accelerated filer, IPIX's date for filing its fourth quarter and fiscal year end results is set by the U.S. Securities and Exchange Commission (SEC), with this year's filing date being March 16, 2005. As with the filing of all financial requirements, IPIX makes every effort to not only meet the official deadlines set forth by the SEC, but to also make certain that the details and information included in such filings is accurate and complete. IPIX not only certifies financial results internally, but has all results audited by an independent audit firm.

Such thorough examination and certification can be a time-consuming and labor-intensive affair, even for the most routine filings. In recognizing that companies often face unexpected or late-developing situations that may affect the reporting of both quarterly and year-end results, the SEC has made available Form 12b-25 (Notification of Late Filing), which grants companies a filing extension "if the subject report could not be filed without unreasonable effort or expense."

Similar in function to an individual tax-payer extension, Form 12b-25 grants companies a 15-day window in which to file all requisite documents. Our new filing deadline is March 31, 2005. As outlined in the Form 12b-25 filing, IPIX requested this extension in order to complete its financial reporting and audit, which was not possible to complete by the March 16, 2005 deadline without unreasonable effort or expense.

This delay stemmed from the effects of the recent sale of IPIX's AdMission business unit and the requirement to account for the AdMission information as a discontinuation of operations.

On Feb. 11, 2005, IPIX Corporation finalized the transaction on the asset purchase agreement with AdMission Corporation for the sale of its AdMission business unit. As a result, the assets and liabilities of the AdMission business unit were considered held for sale as of December 31, 2004, and operations of this business unit were considered discontinued operations for the purposes of 2004 year-end filing.

As a discontinued operation, AdMission's operating results had to be reclassified, and the financial details of that business unit had to be extracted from IPIX's overall 2004 (and prior year's) financial reports. The additional time required to complete these reviews, prepare the necessary financial statements and complete the audit resulted in IPIX being unable to complete these tasks by the initial filing deadline. Despite the complications created by the sale of the AdMission business unit, we made every effort to meet the March 16th filing deadline.

IPIX is committed to focusing our efforts on our core immersive imaging technologies and building market share in both government and commercial realms. To that end we are building significant relationships with leading-edge technology partners, distributors and systems integrators throughout the world. We thank our shareholders for their continued confidence and commitment to our company.

Sincerely,

Clara Conti IPIX President and CEO

    About IPIX Corporation

    IPIX Corporation ("IPIX") is a premium provider of immersive imaging products for government and commercial applications. We combine experience, patented technology and strategic partnerships to deliver visual intelligence solutions worldwide. Our immersive, 360-degree imaging technology has been used to create high-resolution digital still photography and video products for surveillance, visual documentation and forensic analysis. www.ipix.com

    This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbors under those sections. In some cases, you can identify forward-looking statements by terminology such as "expect," "believe," "may," "will," "plans" and "anticipate," or the negative of such terms or comparable terminology. Forward-looking statements appearing herein include statements concerning operating and profitability plans and goals and restructuring efforts, and are based on current expectations.

--30--JM/ph*

CONTACT: IPIX Corporation Jean Watterson, 703-847-3676 Jean.Watterson@ipix.com

KEYWORD: VIRGINIA INDUSTRY KEYWORD: HARDWARE GOVERNMENT BANKING NETWORKING EARNINGS SOURCE: IPIX Corporation

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