iPhone2 Achieves an Incredible 1,000,000 Downloads of ImagePhone2's Video Soft-Phone.

BOCA RATON, Fla. -- iPhone2, Inc. (Pink Sheets:IPHN), a publicly-traded company which has created a proprietary Video and Voice Internet soft-phone called ImagePhone2(TM), today announced they have reached the 1,000,000th download of ImagePhone2.

iPhone2, http://www.iPhone2.com, is an enhanced service provider marketing a unique broadcast quality (30 frames per second) proprietary Video and Voice Soft-phone utilizing MPEG4 technology. The Company's product, called ImagePhone2, is the Next Generation of Internet Video and Voice Communications. Utilizing its robust redundant carrier grade platform, iPhone2's customers can originate and receive Video and Voice calls both on and off the internet anywhere in the world utilizing their desktop or laptop computer with a standard broadband connection. ImagePhone2's "iOut" feature allows customers to place internet originated calls to conventional phone lines worldwide at extremely competitive rates, 15 to 20% lower than the competition.

ImagePhone2(TM) is software based and not constrained by inventory, stocking or delivery issues that plague hardware-based VoIP providers.

Unlike Vonage, iPhone2's acquisition cost per customer is very minimal and we are turning a profit in month two of customer sign up.

Today's internet leader "Skype" who was recently acquired by eBay.com (NASDAQNM:EBAY) for 2.6 Billion Dollars on projected future revenues, boasts 210 million downloads in a 24 month period.

There are currently 972,828,001 internet users globally as stated and recorded by http://www.internetworldstats.com/stats.htm and growing daily.

"We are extremely pleased and amazed with this number of downloads since coming out of BETA testing the end of September, however I am not surprised," stated Chip Greenberg, iPhone2's, President and CEO. "We should comfortably retain 10 to 15% of these customers."

Our ImagePhone2 product is the most comprehensive Video and Voice soft-phone combination on the market today. Our proprietary technology utilizing MPEG4 is presently the only one of its kind out there, which was designed to be very straight forward and user friendly.

"iPhone2 has been receiving numerous requests to `cross pollinate' ImagePhone2 with various high profile matchmaking services," Chip Greenberg, iPhone2's President and CEO, commented. "If the customer chooses not to subscribe to one of our paid services, they can still enjoy the free unlimited peer-to-peer voice service."

"We're so elated, this just validates our business model and proves our performers are viable and exceeding our expectations," Greenberg further stated. "I am very surprised with the huge amount of interest that ImagePhone2 has generated in the international arena, both consumer and business alike."

iPhone2, Inc., http://www.iPhone2.com, (Pink Sheets:IPHN) is an enhanced service provider that developed and markets a unique Video and Voice soft phone, ImagePhone2(TM). The Company's service is the Next Generation of soft phone technology, allowing customers to originate and receive unlimited peer-to-peer Video and Voice calls from anywhere in the world where there is Internet service, in addition to make and receive calls off the internet via its "iOut" feature. ImagePhone2(TM) was developed to be straightforward and user friendly. It is integrated into a robust carrier grade redundant VoIP Platform for feature rich services and scalability. The service can be easily scaled to large levels with minimum personnel requirements and no constraining end-user hardware.

For more information, please visit http://www.iPhone2.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although iPhone2 believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be correct. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by iPhone2 or any other person that the objective and plans of iPhone2 will be achieved.