PowerLinx Update on IP Network Camera Product Line.

ST. PETERSBURG, Fla. -- PowerLinx, Inc. (OTCBB: PWNX), a leading developer, manufacturer, and seller of power line communication products, today announced details regarding the next of several innovative product upgrades and new product launches scheduled for 2006.

New for 2006 will be an IP Netcam product line that transmits digital video over the existing electrical lines. This product allows the consumer to install an IP camera anywhere in their home or small office without running any additional wiring. In addition, these IP Network Cameras can be accessed remotely from anywhere using a computer with broadband Internet service.

PowerLinx IP Network Camera technology has several major advantages over existing camera technology. First, the power line technology is significantly easier and quicker to install than existing hard-wired camera alternatives. Second, power line technology offers several competitive advantages against Radio Frequency (RF) wireless camera systems. Power line technology is much more secure and reliable than RF wireless camera systems, with RF wireless camera signals being relatively easy to intercept. In addition, the RF signal is frequently blocked/distorted by walls of a typical home or office or from the RF emissions of appliances like hair dryers or microwave ovens.

The IP Camera technology from PowerLinx has been designed to address the greatest barrier to entry associated with IP cameras - on-site installation. Typical IP camera systems require the user to manually set the IP address and synchronize the subnet mask between the camera and the computer - a task that is very difficult for the average computer user. Traditional IP Camera setups that include broadband access offer even more installation challenges for consumers. PowerLinx IP Camera technology has been designed and engineered to install itself with no user intervention.

An additional feature of PowerLinx IP camera technology is the user's easy access to viewing their IP cameras from other locations using a high speed internet connection and a PC. Other IP cameras require the user to make complicated changes to multiple computer settings for outside access, often requiring professional assistance. PowerLinx technology requires no changes to computer settings by the user.

PowerLinx is introducing their new IP Camera product in three popular designs; a traditional video "surveillance" camera, a wall camera and a desk camera. The traditional look will appeal to users who want a camera that is a visible deterrent. The wall cam and desk cam will appeal to users who want a more decorative, less intrusive IP camera solution.

The video surveillance industry is undergoing a fundamental change. Video technology is at the beginning stages of transitioning from standalone analog video output with tape storage, to networked digital video, revolutionizing the manner in which video information is analyzed, archived, distributed, and managed. The market for networked video surveillance (IP surveillance) hardware is currently experiencing explosive growth. According to IMS Research, revenues for networked cameras are expected to grow at 28.4% (CAGR).

"IP Network Cameras are projected to grow at over 25% annually. This new PowerLinx IP Camera technology addresses concerns expressed by big retailers and their customers about existing IP Cameras," said PowerLinx President and CEO, Mike Tomlinson. "We've learned that customers want an IP Camera product that is easy to set up and offers very easy access to off-site viewing. Our new PowerLinx IP Cameras will give buyers exactly what they are looking for regarding IP Camera solutions."

As part of a company-wide initiative, these new PowerLinx IP cameras are being designed to operate on both domestic and international electrical systems.

Moving forward, PowerLinx Executives intend to focus on penetrating targeted markets utilizing both licensing and direct sales strategies, depending on market structure and targeted customers in each segment. PowerLinx is currently reviewing requests from potential licensing partners for all product lines. For their direct sales strategy, the Company has outsourced manufacturing to Intracom Asia in order to increase manufacturing supply chain efficiency. These changes have reduced costs and allowed PowerLinx to concentrate on their core competency of developing the highest quality power line communication technology and products in the industry.

About PowerLinx, Inc.: PowerLinx, Inc., www.power-linx.com, develops, manufactures, and markets products and applications that transmit voice, video, audio and data either individually or in any and all combinations over power lines, twisted-pair wires and coax in AC and DC power environments, on any and all power grids. The Company has also developed, manufactured, and marketed different kinds of underwater video cameras, lights and accessories for the marine, commercial and consumer retail markets.

Web site: www.power-linx.com

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This press release may contain "forward-looking statements" that involve risks and uncertainties, including statements regarding our plans, future events, objectives, expectations, forecasts, or assumptions. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and in some cases, words such as "believe," "estimate," "project," "expect," "intend," "may," "anticipate," "plans," "seeks," and similar expressions identify forward-looking statements. These statements involve risks and uncertainties that could cause actual outcomes and results to differ materially from the anticipated outcomes or result, and undue reliance should not be placed on these statements. These risks and uncertainties may include: the adoption of our new products by customers; our ability to identify, develop, and commercialize new applications for our products; the ability to manage our anticipated growth; scaling-up our manufacturing capabilities; protecting our intellectual property; and other risks and uncertainties discussed in filings made with the Securities and Exchange Commission (including risks described in subsequent reports on Form 10-Q, Form 10-K, Form 8-K, and other filings). PowerLinx, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.