Ignition Point Announces Completion of Subsidiary Refinancing



    VANCOUVER, July 2 /CNW/ - Ignition Point Technologies Corp. (TSX-V: IPN)
(the "Company") announces the completion of its refinancing of its subsidiary,
TeraSpan Networks Inc. ("TeraSpan"), previously announced on June 2 and June
6, 2008.

    
    Pursuant to the refinancing:

    (a) All of TeraSpan's debt, including debt owing to IPN, was converted
        into common shares of TeraSpan, with the result that IPN now owns
        85.7% of TeraSpan's common shares.

    (b) TeraSpan issued $565,000 principal amount secured, subordinate,
        convertible debentures bearing interest at 15% and maturing two years
        from the date of issue. The debentures are convertible into common
        shares of TeraSpan at the option of the holders at any time, and in
        certain circumstances at the option of TeraSpan. If the new
        debentures were converted today, the debenture holders would hold
        38.6% of TeraSpan's common shares and IPN's interest would be reduced
        to 52.6%.

    (c) The board of directors of TeraSpan has been reconstituted such that
        as long as the new debentures are outstanding IPN is entitled to one
        of the 5-7 nominees on the board of TeraSpan.
    

    As a result of the refinancing, TeraSpan's balance sheet has been
dramatically improved. The proceeds of the refinancing will be used to
supplement TeraSpan's working capital and will provide TeraSpan with
additional time to restructure and secure additional financing to support
long-term sustainable operations.
    Ignition Point is currently indebted in the aggregate principal amount of
$2,500,000, with interest at 15%, is in default of its interest payment
obligations under this debt and lacks the liquidity required to make any
further interest payments. The TeraSpan refinancing does not rectify this
default nor address Ignition Point's inability to pay its trade payables. The
holders of the Company's debentures have not taken action to enforce the
debentures, nor have they called a meeting of creditors to enforce them. The
Company is considering its options in relation to its debenture and payables
obligations.

    About Ignition Point

    Ignition Point Technologies Corp. (TSX-V:IPN) is a Vancouver-based
broadband communications company providing innovative solutions to expand
connectivity to public and private networks. Ignition Point's operating
subsidiary is TeraSpan Networks Inc. (www.teraspan.com). For more information,
visit www.ignitionpoint.ca.

    This news release may contain statements that are "forward-looking
statements". Forward looking statements are statements that are not historical
facts and are generally, but not always, identified by the words "expects",
"plans", "anticipates", "believes", "intends", "estimates", "projects",
"potential" and similar expressions, or that events or conditions "will",
"would", "may", "could" or "should" occur. Although Ignition Point believes
the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future realities
and actual realities may differ materially from those in forward looking
statements. Forward looking statements are based on the beliefs, estimates and
opinions of Ignition Point's management on the date the statements are made.
Ignition Point assumes no obligation to update these forward-looking
statements if management's beliefs, estimates or opinions, or other factors,
change, except as required by law.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this news release.

    %SEDAR: 00003149E




For further information:

For further information: Elena Kinakin, Chief Financial Officer,
Ignition Point Technologies Corp., Phone: (604) 638-5484

Organization Profile

IGNITION POINT TECHNOLOGIES CORP.

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