IPC Reports Fiscal First Quarter 2004 Financial Results.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 10, 2004

IPC Acquisition Corp.

                                                        Quarter ended
                                                         December 31
                                            




				

				
				 
				


            --------------
                                                         2003    2002
                                                        ------ -------
Revenue                                                 $60.2   $48.4
Net loss                                                ($1.8)  ($0.2)

IPC Acquisition Corp. (IPC) today reported its fiscal first quarter financial results for the three months ended December 31, 2003. Revenue for the first quarter of fiscal 2004 was $60.2 million. This includes approximately $7.2 million from the new IPC Network Services division formed from the acquisition of Gains International, as well as increases of approximately $2.9 million and $1.6 million in Trading Systems and ITS respectively, as compared to the same period last year. Net loss for the first quarter of fiscal 2004 was $1.8 million compared to a net loss of $0.2 million for the first quarter of fiscal 2003.

"We are pleased with our first quarter results, but we are even more pleased with our operational accomplishments and progress in expanding IPC's business," said Lance Boxer, CEO. "We closed on Gains Asia in the days after quarter end and thus completed the last piece of the Gains acquisition. We also completed the design and rollout of significant service enhancements during the first quarter resulting in the general availability this week of Advanced Fault Management, our enhanced suite of services for mission-critical trading floor communications.

"Despite the prevalent and continuing themes on spending restrictions and budgetary pressures, we believe these new value-added services will provide improved cost efficiencies and increased trader productivity and will continue to be embraced by the markets," Boxer said.

                         IPC Acquisition Corp.
                 Condensed Consolidated Balance Sheets
            (Unaudited, In Thousands Except Share Amounts)

                                           December 31,  September 30,
                                               2003          2003
                                          ------------- --------------
                     Assets
Assets:
 Cash                                        $  13,288      $  25,800
 Accounts receivable, net of allowance of
  $1,966 and $1,103, respectively               42,960         60,201
 Inventories, net                               31,563         30,396
 Prepaid and other current assets                4,920          5,523
                                          ------------- --------------
     Total current assets                       92,731        121,920

 Property, plant and equipment, net             24,251         24,419
 Goodwill                                       84,927         83,079
 Intangible assets, net                        198,904        200,085
 Deferred financing costs, net                  13,682         14,146
 Other assets                                    7,197          1,261
                                          ------------- --------------
     Total assets                            $ 421,692      $ 444,910
                                          ============= ==============

      Liabilities and Stockholders' Equity
Liabilities:
 Current portion of long term debt           $     550      $     550
 Accounts payable                                3,267          2,787
 Accrued expenses and other current
  liabilities                                   24,602         28,541
 Income taxes payable                            4,091          4,208
 Customer advances on installation
  contracts                                     26,375         18,989
 Deferred revenue on maintenance contracts       8,928         13,128
 Current portion of guarantees on former
  parent obligations                             1,353          1,353
 Deferred purchase consideration                    --          6,722
                                          ------------- --------------
     Total current liabilities                  69,166         76,278

 Term loan                                      54,313         54,450
 Senior subordinated notes                     150,000        150,000
 Deferred taxes, net                            13,056         12,182
 Deferred compensation                           2,909          2,936
 Guarantees on former parent obligations         1,614          1,885
                                          ------------- --------------
     Total liabilities                         291,058        297,731
                                          ------------- --------------

Commitments and Contingencies

Stockholders' equity:
 Common stock, $0.01 par value, 25,000,000
  shares authorized; 14,724,380 shares
  issued and outstanding at December 31,
  2003 and September 30, 2003,
  respectively                                     147            147
 Paid in capital                               145,846        145,846
 Notes receivable for purchases of common
  stock                                           (324)          (393)
 Accumulated deficit                           (24,889)        (5,161)
 Accumulated other comprehensive income          9,854          6,740
                                          ------------- --------------
     Total stockholders' equity                130,634        147,179
                                          ------------- --------------
     Total liabilities and stockholders'
      equity                                 $ 421,692      $ 444,910
                                          ============= ==============


                         IPC Acquisition Corp.
            Condensed Consolidated Statements Of Operations
                       (Unaudited, In Thousands)

                                                 Three Months Ended
                                                    December 31,
                                                2003           2002
                                             ----------     ----------

Revenue:
 Product sales and installations             $  28,104      $  23,751
 Service                                        32,063         24,632
                                             ----------     ----------
                                                60,167         48,383
                                             ----------     ----------

Cost of goods sold (depreciation shown
 separately):
 Product sales and installations                17,267         12,254
 Service                                        16,726         13,035
 Depreciation and amortization                     742            297
                                             ----------     ----------
                                                34,735         25,586
                                             ----------     ----------

     Gross profit                               25,432         22,797

Research and development                         3,409          2,735
Selling, general and administrative expense     13,288          8,730
Depreciation and amortization                    5,167          4,731
                                             ----------     ----------
     Income from operations                      3,568          6,601

Other income (expense):
 Interest expense, net                          (5,522)        (6,205)
 Other income (expense), net                       447            525
                                             ----------     ----------
     Income (loss) before income taxes          (1,507)           921

Income tax expense                                 257          1,123
                                             ----------     ----------

Net loss                                     $  (1,764)     $    (202)
                                             ==========     ==========

Editor's Note

-- IPC earnings conference call is scheduled for 11:00 a.m. E.T.

Wednesday, February 11, 2004. Dial (913) 981-5524 or (800)

289-0530 with conference code 541372 or access via the Web at

www.ipc.com or

http://www.firstcallevents.com/service/ajwz398746108gf12.html.

-- Conference call replays will be available over the Web through

May 11, 2004 at www.ipc.com.

About IPC

IPC Information Systems, LLC. is the specialist the global financial community depends on for integrated multimedia communications trading floor solutions. With more than 30 years of experience supporting and maintaining trading system equipment to deploying private, secure network connectivity worldwide to delivering a comprehensive set of fully managed services solutions, IPC helps manage the complexities of the trading floor via the recently announced IPC Global Services. IPC's unmatched investment in Voice over IP (VoIP) has most recently yielded the Enterprise feature for its native IP systems, the IQMX trading desktop and the ICMX Intercom module. The Enterprise capability enables practical business continuity planning (BCP) by allowing for geographically dispersed trading operations.

IPC has offices throughout the Americas, Europe, and the Asia Pacific region. For more information, visit www.ipc.com.

Statements made in this news release that state IPC's or its management's intentions, beliefs, expectations, or predictions for the future constitute "forward looking statements" as defined by federal securities laws, which involve significant risks and uncertainties. Many risks and uncertainties are inherent in the telecommunications equipment industry. Others are more specific to our operations. The occurrence of the events described and the achievement of the expected results depend on many factors, some or all of which are not predictable or within our control. Actual results may differ materially from results discussed in these forward-looking statements. Among the factors that could cause actual results, performance or achievement to differ materially from those described or implied in the forward-looking statements, are risks associated with substantial indebtedness, leverage and debt service, risks relating to the performance of our business and future operating results, risks of competition in our existing and future markets, loss or retirement of key executives, risks related to the notes and to high yield securities generally, general business and economic conditions, market acceptance issues, including potential technology changes and the risks inherent in new product and service introductions and the entry into new geographic markets, as well as those risk factors described in our filings with the SEC.

(C)2004 IPC Acquisition Corp. All Rights Reserved. IPC, IQMX, and ICMX are trademarks of IPC. All other trademarks are the property of their respective owners.