IPIX WINS $2.4 MILLION DARPA CONTRACT

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Leader in Immersive Imaging to Build High-Resolution Video Cameras for Aerial Reconnaissance

Reston, VA. - June 30, 2005 – IPIX Corporation (NASDAQ: IPIX), a premier supplier of 360-degree, immersive imaging technologies for visual intelligence applications, today announced it secured a $2.4 million research contract from Defense Advanced Research Projects Agency (DARPA) to research and build the world’s highest resolution video camera. The camera will be used for aerial surveillance missions, with applications including border patrol, battle surveillance and forensic intelligence.

The contract win represents the first funding IPIX has received from DARPA.

"This contract from DARPA is validation of our ability to advance the research of high-resolution video camera technology to the next level," says Clara Conti, president and CEO of IPIX. "We are honored to be chosen at this time in our nation's history because our research will directly benefit those on the front lines of military service and homeland defense."

The better camera resolution will generate wide-area, improved acuity views from high altitudes. The DARPA contract enables IPIX cameras to provide increased awareness in a variety of mission-critical situations, including real-time battle. The high-resolution camera will also serve as a sophisticated security and forensic tool.

"East Tennessee continues to produce cutting-edge technologies that will lead the nation to provide the necessary equipment in meeting tomorrow's high-tech demands," said Congressman Zach Wamp (R-Tenn.). "This contract award will not only contribute to the growth of the Oak Ridge community, it shows once again how Oak Ridge enhances our nation's homeland security capabilities."

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About IPIX

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° 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.

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IPIX Media Contact Susan Diegelman IPIX Corporation (703) 287-7816 sdiegelman@sheahedges.com