Shareholder Summary: IPIX Reports Results for Fourth Quarter and Full Year 2004.

VIENNA, Va. -- Please replace the release dated April 8, 2005 with the following corrected version due to multiple revisions.

The corrected release reads:

SHAREHOLDER SUMMARY: IPIX REPORTS RESULTS FOR FOURTH QUARTER AND FULL YEAR 2004

IPIX Corporation (NASDAQ:IPIX), a premier supplier of 360-degree, immersive imaging technologies for visual intelligence applications, released on March 31, 2005, financial results for the quarter and year ended December 31, 2004, and comparable year-ago results:

4th Quarter Ended    Year Ended
                                        Dec. 31           Dec. 31
                                     2003     2004     2003     2004
                                   -------- -------- -------- --------
Revenue                               $499     $909   $2,594   $3,864
Operating expenses                  $2,866   $3,601   $8,856  $11,030
Loss from continuing ops after
 income taxes                      ($1,802) ($3,678) ($4,670) ($9,810)
Income (loss) from discontinued
 ops, net of taxes                  $2,330  ($1,023)  $6,056  ($4,925)
Net income (loss) per common share   $0.01   ($0.22)  ($0.05)  ($0.95)

IPIX completed its fourth quarter and year end with the commencement of the sale of its AdMission business unit. The sale--completed February 11, 2005--is reported as discontinued operations in 2004 (and prior years) to reflect our current business structure. The sale of the AdMission business unit corresponded with our strategic plan for streamlining operations and focusing on the further development and expansion of our patented, immersive imaging technologies for security and commercial applications.

2004 marked the launch of IPIX's award-winning line of 360-degree, immersive surveillance cameras, which were selected for use at the 2004 G8 Summit, as well as the 2005 U.S. Presidential Inauguration. IPIX dedicated considerable resources during 2004 on this product launch, marketplace penetration, and continued research and development. Our entry into this market is marked by rising sales, the establishment of numerous strategic business alliances and expansion of our distribution channels both domestically and internationally. IPIX is positioned to capitalize on these efforts moving forward.

At December 31, 2004, the company had $14.9 million in cash, investments, short term and long term restricted cash and $15.2 million in stockholders' equity. In addition, we believe we will be successful in winning research awards from federal agencies that support research and development of visual intelligence applications.

Our complete 2004 Annual Report on Form 10-K can be found at the U.S. Securities and Exchange Commission's (SEC) Web site at www.sec.gov. Below is summary look at Part 1 of the 2004 Annual Report:

SUMMARY OVERVIEW

2004 was a year of many accomplishments for IPIX. Leveraging our core expertise in immersive image processing, we developed and launched a robust product line of high-resolution cameras for video surveillance applications. Our new products experienced early success within the federal government. Most notably, they were chosen for use at two high-profile, national security events where the need for total situational awareness was critical--the G8 Summit and the Presidential Inauguration; and are currently being used by the Transportation Safety Administration to monitor airport security checkpoints.

2004 also saw a strong realignment of our core competencies with our strategic business goals. The InfoMedia business unit, formerly responsible for the development, marketing, and sales of immersive photography products, was reintegrated into the company. Still photography product teams now work closely with the video product teams, leveraging mature development processes and expertise; and the sales and marketing of both product lines is done as a coordinated effort.

In addition to reintegrating the InfoMedia business unit, we sold the AdMission business unit, which developed and sold products to the online advertising market. In accordance with FAS 144, "Accounting for the Impairment or Disposal of Long-Lived Assets", the assets and liabilities related to the AdMission business unit were classified as held for sale at December 31, 2004, and the operations of this business unit were considered discontinued operations. Both changes have provided focus for our internal operations and a more clear definition of our business to the marketplace.

IPIX is in the process of shifting its business model from a software developer and value-added camera reseller to a visualization systems and solutions development company. As we continue this shift, we must strategically leapfrog in the market from its current position as a point solution provider, to the position of a high-value systems solutions provider. To that end, IPIX is undertaking an aggressive business growth strategy to establish itself as the marketplace solution leader and technical innovator in the immersive image technology and visualization markets. In order to quickly build our capabilities, solidify and strengthen our position in target markets and to achieve operational efficiencies, IPIX plans to aggressively pursue select vertical and product merger and acquisition opportunities.

The Company's independent auditors, Armanino McKenna, included an explanatory paragraph in its Annual Report on Form 10-K for the year ended December 31, 2004, stating concern on the Company's ability to continue as going concern. A similar explanatory paragraph was included in the Company's Annual Report on Form 10-K for the year ended December 31, 2003. The Company has suffered recurring losses and negative cash flow from operations that raises substantial doubt about its ability to continue as a going concern. The Company believes that it can generate sufficient cash flow to fund its operations through the launch and sale of new products in 2005. In addition, management will monitor the Company's cash position carefully and evaluate its future operating cash requirements which affect its strategy, business objectives and performance.

The Company has a limited operating history as it will operate in 2005 and upon which an evaluation of its business and prospects in 2005 may be made. In addition, the Company is subject to generally prevailing economic conditions and, as such, the Company's operating results in 2005 will be dependent upon its ability to provide quality products and services, the success of its customers and the appropriations processes of various commercial and governmental entities. Management believes, however, that the Company has sufficient cash reserves to meet its funding needs for 2005. The Company finished 2004 with approximately $14.9 million in cash reserves (cash and cash equivalents of $12.8 million, short-term restricted investments of $0.6 million, long-term restricted cash of $0.6 million and short-term investments of $0.9 million).

Depending upon the Company's ability to sell its new products, the timeliness of the collection of accounts receivable and other potential working capital needs, as well as the timing and rate of revenue growth and management's ability to control costs, the Company may require additional equity or debt financing to meet future working capital or capital expenditure needs. There can be no assurance that such additional financing will be available or, if available, that such financing can be obtained on terms satisfactory to the Company.

IPIX MARKETS

Based on our market research and the successes that we have attained in the market thus far, IPIX applies immersive technology products to physical security, visual documentation, and training simulation applications. We target customers in both the government and commercial markets. Our major market focus has included the Department of Defense, the Department of Homeland Security, banks, retail stores, critical infrastructure, transportation, healthcare and real estate.

Visual documentation market customers include a broad cross section of public and private organizations that need to document and index places or events. For these customers, our solutions provide a visual documentation format that can simply and quickly capture the complete details of an environment.

We believe the market for immersive still photography content will provide steady, long-term growth as the panoramic imaging marketplace continues to expand and mature. Additionally, ongoing concerns about security, the need to be better prepared in the case of emergency situations and the need to better manage physical assets and infrastructure, have all led to the use of panoramic imaging for visual documentation.

Visual Media Markets

Our traditional immersive still photography markets benefit from the simplicity and ease of use of our two-shot capture process for creating immersive virtual tours. These visual media markets find promotional value in presenting products, places, or events to a wide audience of potential customers. Market segments include:

--Virtual Tour Photography Companies

--Web Developers and Professional Photographers

Observation and Surveillance Market

We believe that the market for observation and surveillance represents an excellent opportunity for IPIX and our immersive and infrastructure offerings. We believe our numerous applications will enable us to penetrate this large and growing segment within the security industry. According to the 2004 Security Industry Annual Report published by Lehman Brothers, the global market size for video equipment and installation has been estimated at $5 - $6 billion, with the United States accounting for $2 - $3 billion. As the market demand for high quality images and reliable cameras increases, we believe IPIX is well positioned to capture a share of this vertical market.

INNOVATIVE TECHNOLOGY

The technical basis of IPIX still and video products is our patented ability to optically capture wide field-of-view images at a location, and to process, store, and replay those images in a manner that recreates the perception of being at that location. IPIX uses a fisheye lens to fully visualize an environment by capturing a full 360-degree field of view from a digital still image or video camera. We then de-warp the image to compensate for distortion errors that are inherent in fisheye images and present the image in a manner that can be easily understood by the viewer. The resulting image can be viewed in any direction, up-down, left-right, and horizon to horizon, with no blind spots. The viewer can easily navigate within the image by moving a cursor inside the image or using the navigation controls.

To continue to be a technology innovator, IPIX is working with leading universities and experts in the fields of visualization and imaging. We have also formed a Research and Development (R&D) team and are actively responding to government solicitations. These government funded projects are designed to transition from R&D, to development, and then to full product commercialization. By attracting the best and brightest in the industry to our R&D group, IPIX is able to raise the bar in immersive imaging products and continue to strengthen its brand.

IPIX COMPETITION

Immersive imaging competition is increasing globally. IPIX is the recognized brand in the immersive imaging industry. Since the early 1990s with the introduction of our first video surveillance product, the OMNIview(TM), through the late 1990s with our focus on digital photography based virtual tours, and through today, with our renewed emphasis on internet protocol enabled digital video cameras, we believe we have set the standard for immersive imaging systems.

In the surveillance markets, IPIX high-resolution immersive video cameras face competition from analog CCTV camera manufacturers, digital camera manufacturers and from immersive video technology providers. In the analog CCTV marketplace, one IPIX camera can replace up to 4 analog cameras. A single IPIX camera can also replace a CCTV camera with a mechanical pan-tilt-zoom mechanism. In both cases, the IPIX camera offers a simpler, more reliable and higher quality solution which provides for a total situational awareness at a location, with a digital pan-tilt-zoom that will not break down. In the digital, Internet (IP) camera marketplace, we believe IPIX offers an attractively priced upgrade that allows a single camera to see an entire environment, unlike competing products with a limited field-of-view. Competing IP cameras with a limited field of view translate into a higher cost solution to achieve the same coverage as an IPIX camera.

Competitors offering immersive technology solutions in the security marketplace have several disadvantages compared to the IPIX fisheye lens based approach to full environment surveillance. The IPIX solution requires either one or two cameras at most to capture a full environment, leading to the most efficient solution possible.

In the visual media and visual documentation markets for immersive still photography, IPIX faces competition from several key competitors. At the most basic level, options for capturing panoramic images are becoming more ubiquitous in the consumer photography marketplace. Wide field-of-view camera options such as the Advance Photo System (APS) and tools for software stitching multiple images taken hand-held offer a very rudimentary solution. This type of panoramic photography is nothing more than a simulation of immersive photography offered by IPIX. The resulting image does not capture a full 360-degree view, and the images captured are not interactively navigable. Most often, these images are used to make hard copy prints. We believe this type of photography is not suitable for surveillance, visual documentation and forensic analysis markets which require visual intelligence.

PRODUCTS

We believe IPIX offers the broadest line of solutions in the immersive technology industry. These solutions include cameras kits, software tools, services, infrastructure and training to support immersive imaging. Camera systems include all of the components necessary to capture high quality immersive still photography or video. Our products enable the creation of immersive or spherical photographic images or video through the use of a wide angle or fisheye lens.

CommandView--The CommandView camera consists of a two mega-pixel sensor, a digital signal processor (DSP) module and a power distribution and communication module. We believe the uses and applications of the CommandView are virtually limitless. The CommandView camera sees everything at the same time and monitors everything in its field of view with no blind spots.

CommandView360--CommandView360 utilizes two camera sub-assemblies, mounted back-to-back, and one fisheye lens on each camera to provide full 360-degree coverage of the area of concern. The dual-lens, fixed spherical optical system integrates an optional off-the-shelf third party mechanical pan-tilt-zoom camera that has an optical zoom capability for long range target identification and tracking. Designed to provide the highest level of reliable operation for continuous situational awareness, the CommandView360 is rugged in construction and small in size making it ideal for fixed, outdoor installations where it is desirable to protect critical infrastructure and key assets.

InSight--InSight is our entry level digital camera system using the camera subassembly that forms the foundation of our entire product portfolio. The two mega-pixel InSight camera is capable of generating high quality, high resolution images at full motion frame rates that range from 15 frames per second to 48 frames per second, depending upon compression settings and number of users on the network. We believe the InSight camera fills a void that currently exists in the security video surveillance market for a fixed, high resolution, network camera that is capable of delivering video at full-motion frame rates.

IPIX Camera Systems Featuring Interactive Studio--IPIX sells complete immersive still photography solutions which include fisheye enabled camera systems and IPIX software, including either the IPIX Interactive Studio, the IPIX(R) GPS Mapping System or IPIX GRIDs System. We also serve the real estate market with a special IPIX Real Estate Wizard and an online virtual tour hosting service Host@IPIX. The products are based on patented technology for capturing a full 360-degree field of view from a digital camera in a manner that is extremely efficient for the user. The IPIX Interactive Studio(TM) is our strategic platform for creating a de facto standard for the creation of immersive photography. The technology underlying the IPIX Interactive Studio is a multi-tiered software platform called the Image Creator Platform ("ICP").

IPIX GPS Mapping System--The IPIX GPS Mapping System and its sister product the IPIX(R) GRIDs Systems (Geo-Referenced Image Documentation System) provides commercial and government customers with a solution for creating immersive image hot-spotted maps. Both products utilize the IPIX Interactive Studio product for immersive image creation, eliminating the need for a separate GeoBuilder tool, and simplifying the workflow associated with creating interactive visual maps.

IPIX(R) Movies--IPIX Movies are made by capturing two back to back scenes using a fisheye lens on one or more video cameras. Each IPIX Movie is processed frame-by-frame for editing, stitching and encoding. Finished movie content can be delivered on DVD's or viewed over the Internet using either the Real Media format (".rm") from Real Networks or our proprietary format and viewer.

IPIX SALES

IPIX currently has sales people located in several states across the United States as well as in Europe. We extend our reach into the market through our channel partners. In the commercial markets, we are continuing to grow our network of manufacturer's representatives (MRs). Our MRs and resellers are experts in providing solutions to a variety of commercial customers. We believe this sales channel will help us penetrate the banking, retail, healthcare, transportation, higher-education, and commercial building markets. We are also licensing our technology to leading digital video recorder, network video recorder and original equipment manufacturers.

Indirect Sales Channel Partners

We are partnering with established system integrators and resellers to help penetrate the government security markets. We are also developing distribution agreements with partners in a wide range of countries that allow us to deploy our technology into regions of the world that would normally require significant time and effort for marketing and development.

Strategic Direct Sales

In addition to our indirect sales channels, IPIX employs a team of sales professionals focused on new business development and strategic direct sales across our target markets. IPIX is also pursuing opportunities to obtain research and development contracts with government research organizations and prime government contractors to provide our technology and engineering services to applications involving unmanned vehicles for the military and intelligent software for object classification and tracking.

Internet and Tele-Email Direct Sales

IPIX still photography products are sold worldwide through a direct sales model. We use a telesales team located in Oak Ridge, Tennessee to handle US and international sales inquiries. We manage an on-line electronic commerce site for execution of sales transactions. The still products are marketed on-line using various keyword sponsored Internet advertising and direct email marketing techniques. We offer our software for download and in the process capture customer information for follow-on marketing. We manage a database of customers from which we run permissions based marketing campaigns.

INTELLECTUAL PROPERTY

We rely on a combination of patent, copyright, trade secret and trademark laws and contractual restrictions to establish and protect proprietary rights in our products. Our patents are intended to protect and support current and future development of our technology. We currently have over 20 U.S. patents. In addition, we hold international counterparts to many of our U.S. patents in selected countries covering various aspects of our products. We have numerous patent applications pending in the United States as well as international counterparts to many of these applications.

IN CLOSING (Statement from IPIX President and CEO Clara Conti)

The establishment of an experienced, innovative leadership group has been a key objective for our company--this effort includes the recent additions of our new chief financial and chief technology officers.

In addition, we are continually working to develop new relationships with leading distributors and technology partners worldwide. Recent partnership successes have included the establishment of sales channels in Russia, Australia and Italy, as well as technology partnerships with companies such as VistaScape, ObjectVideo and PI Vision.

We also continue to dedicate substantial marketing resources towards strengthening our sales channels and brand recognition within targeted markets. This includes recent participation at the Retail Industry Leaders Association's (RILA) Loss Prevention conference in New Orleans, the Global Security Asia show in Singapore and the ISC-West show (April 6-8) in Las Vegas, where we will be showcasing our new Day/Night Camera.

These developments will all play a pivotal role in positioning IPIX as the leader in immersive imaging solutions, now and in the future. Thank you for your continued support.

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.