IPVG Forms Strategic Partnership with CMC Telecom

IT company to offer products and services in Vietnam

Makati City, Philippines -- 09 July 2008 -- Publicly-listed information technology firm IPVG Corp. (PSE: IP) has signed a Memorandum of Understanding (MOU)  to enter into a strategic and commercial partnership with leading Vietnam ICT company CMC Telecommunications Services Corp. (CMC Telecom) for the developing and providing ICT products and services in Vietnam.

CMC Telecom is a telecommunications service provider engaged in the business of telecommunications infrastructure, data services, online content services and business process outsourcing services. It is a member of the Asia Data Center Alliance which was recently formed with the objective of meeting the region's growing demand for data center services.

Tagged by market analysts and economists as one of the potential countries to be "The Next China", the Vietnam market offers an attractive and dynamic business opportunity that must not be overlooked.

"Vietnam is a key component of our regional expansion and our relationship with CMC Telecom gives us access to providing cutting-edge solutions to the growing Vietnamese economy and foreign enterprises that do business there. We are committed to the long-term development of our presence in Vietnam and believe this partnership paves the way for this initiative,” said Enrique Y. Gonzalez, Chief Executive Officer of IPVG Corp.

“As Vietnam becomes a strategic place for many global companies in their investment plan, the development of local IT and telecom market directly affects the business effectiveness of those companies. By signing the MOU of partnership with IPVG Corp., we would like to open new opportunities for both companies in terms of expanding customer base and maintaining its reputation as leading ICT services companies in Vietnam and regional market”., said Pham Anh Chien, Chief Executive Officer of CMC Telecom.     

The partnership between CMC and IPVG will allow the latter, through its subsidiaries and affiliates, to offer the following businesses/services, namely: Business Process Outsourcing  or BPO, for call center operations; Knowledge Process Outsourcing or KPO, for outsourced services for banking and financial institutions; Communications, for information technology and telecommunications services; and Distributed Denial-of-Service (DDoS) mitigation services, as well as regional infrastructure and access to international clients. 

The partnership will have several areas of implementation. For the BPO operations, the parties will enter a lease agreement for the facilities to be used which is owned by CMC Telecom. As for the KPO business, a joint venture company will be created for the delivery of KPO services to domestic and foreign banks using solutions and applications by Credence Analytics, a leading software developer and also a strategic partner of IPVG.

Under the Communications component, IPVG and CMC Telecom will focus on the provisioning of bandwidth and International Private Leased Circuits (IPLC). IPLC are lines used by organizations to communicate between offices that are geographically dispersed globally. These lines can be used for Internet access, business data exchange, video conferencing, and other forms of telecommunications. Capacity on an Intra-Asia Cable System (IACS) will provide capacity to the Asia-Pacific market, permitting potential customers to acquire increased bandwidth, additional route diversity, and broader geographical reach.

Lastly, CMC Telecom shall also market IPVG's DDoS mitigation business, Prolexic. Prolexic Technologies is a wholly-owned subsidiary of IPVG which provides cutting-edge solutions that protect Internet operations from the debilitating service disruptions caused by DDoS attacks.  Prolexic's patent-pending Clean Pipe Virtual Transport® network offers solutions that keep its clients' internet-facing infrastructures free of DDoS traffic. 

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About CMC Telecommunications Services Corp.

Based in Hanoi, CMC Telecom is a telecommunications service provider engaged in telecommunications infrastructure, data services, online content services, and business process outsourcing. CMC Telecom is also the distributor of many world leading IT and telecom solutions and products in Vietnam, and is also a technological transferor and financial investor.

About IPVG Corp.

IPVG is publicly listed on the Philippine Stock Exchange (PSE Ticker Symbol: IP) and engaged in the information technology and communications space in South East Asia. IPVG owns four operating subsidiaries in: (i) Information Technology and Telecommunications (IT&T); (ii) on-line gaming, (iii) Business Process Outsourcing (BPO) and (iv) e-commerce and remittance. It has established presence in the Philippines, Singapore, Hong Kong, Vietnam, India, Panama, United Kingdom and USA.