PNO Path 1 Netwk Tech

SAN DIEGO, April 26 /PRNewswire-FirstCall/ -- Path 1 Network Technologies Inc. (AMEX:PNO), a leading provider of IP video gateway products that enable the transmission of broadcast-quality video over IP networks, announced today that the Company has secured up to $1.0 million in additional loans from Laurus Master Fund, Ltd. (Laurus), a fund organized in the Cayman Islands that specializes in providing funding to small cap companies. Path 1 drew down $916,000 upon the inception of this credit facility. Laurus also agreed to modify payment terms on its previous term loan agreement executed in with Path 1 in December 2005 which amounts to a payment deferral of $303,000. "Path 1 continues to execute its market repositioning strategy and capitalization plans," said Tom Tullie, President and CEO of Path 1. "As previously announced, we plan to secure additional financing that will enable the firm to realize its full growth potential. This growth will be driven from the leverage of Path 1's unique technology and insights on cost effectively delivering high quality television content over the public internet." The financing consists of a revolving non-convertible secured credit facility of up to $1.0 million, has a 2 year term and bears an interest rate equal to prime plus 2.00% per annum, payable monthly in cash. In connection with the financing, Laurus was also issued a seven year Warrant to purchase up to 662,252 shares of Path 1 common stock at an exercise price of $1.51 per share. Additionally, Laurus has agreed to postpone five months of principal payments totaling $303,000 related to the $2.1 million convertible term note issued in December 2005. Monthly principal payments will resume in September 2006. Path 1 will file a registration statement with the Securities and Exchange Commission for the Company's common stock underlying the Warrants. About Path 1 Network Technologies Inc. Path 1 Network Technologies Inc. is the pioneer and leading provider of video transport products that enable the conversion and distribution of real-time, broadcast-quality video over Internet Protocol (IP) through public and private networks. From the delivery of live MPEG-2, MPEG-4, and VC-1 standard definition (SD) and high definition (HD) broadcasts to video on demand (VOD), Path 1's video gateways allow broadcasters, cable, telco, satellite and mobile operators to transmit high-quality point-to-point, multipoint and multiplexed video across town or around the world. To find out more about Path 1 Network Technologies Inc. (AMEX:PNO) visit our website at http://www.path1.com/ or call 877/ONE-PATH (663-7284). SAFE HARBOR STATEMENT: This news release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future", "plan" or "planned", "will" or "should", "expected", "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements, including the risks that we will require future financing, that our products might not achieve customer or market acceptance or that they might not perform as expected, that customer trials might not lead to future sales, that our sales might fluctuate between reporting periods and other risks identified in our annual report on Form 10-K and other filings with the SEC. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof and Path 1 undertakes no obligation to update such statements. Media Contact: Investor Contact: Alice Borda Amy Cozamanis / Lasse Glassen Sterling Communications Financial Relations Board Office: 408-395-5500 Office: 310-854-8314 DATASOURCE: Path 1 Network Technologies Inc. CONTACT: Media, Alice Borda of Sterling Communications, +1-408-395-5500, , for Path 1 Network Technologies Inc.; or Investors, Amy Cozamanis, , or Lasse Glassen, , both of Financial Relations Board, +1-310-854-8314, for Path 1 Network Technologies Inc. Web site: http://www.path1.com/

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