13 November 2007 (3pm)

Letter to Shareholders, Investors and Investing Public: 

We are pleased to announce to our shareholders and the investing public that record breaking growth has been achieved across all of our businesses. Our communications, online games, and business process outsourcing (BPO) businesses have all achieved substantial growth in the 3rd quarter in line with the company’s forecasts.

Our year to date (YTD) revenues (as of September 30, 2007) have grown by more than 300% from P146.7M to P612.8M. We also generated a record breaking P76M in net income in the 3rd quarter, and P119M YTD. Our growth is driven through solid customer acquisition, provisioning or monetization, and retention. Through continued innovation across our activities, we are able to maintain our unique value proposition to the market which has translated to more customers, and revenues.

Our company is on track in implementing our regional expansion program for our communications, and online games business. IP Converge Data Center, Inc. has approved the acquisition of a carrier neutral, telco-grade internet data center in Singapore, and data center facilities in Hong Kong. With this, IPVG’s communications business is positioned as a regionally integrated data center provider in South East Asia, and capable of satisfying the regional requirements of large multinationals and enterprises.

IPVG will enter the Vietnam Online Games market through Cyberworld Corporation, a fully licensed online games publisher in Vietnam. IPVG will, subject to the approval of the Board, infuse capital into Cyberworld, with the goal of making it one of the leading online game companies in Vietnam. We have secured the licensing rights for RAN ONLINE and O2Jam for the Vietnam market, and expect to replicate the same success that we have achieved in the Philippines with these two (2) market leading products.

Vietnam is comparable to the Philippines in terms of a market size of 88M people, 15M internet users and 4M online gamers. However, Vietnam gamers produced more than double the gaming activity than Filipino gamers. This is an extremely exciting market for us. IPVG has already generated revenues of P60M during the 3rd quarter in licensing deals from overseas markets.

In the Philippines, IP E Games continues to be the clear market leader in the online games space despite an increasingly competitive environment. We have surpassed the 5M registered subscriber mark, and command more than 50% screen share at the internet café level. IP E-Games revenues grew by 27% QoQ from P66M to P84M. We expect to sustain high growth in the 4th quarter due to higher consumer expenditures in the 2nd half of the year.

IP-Contact Center (IPCCO) has successfully taken over the assets of GLOBAL STRIDE, and has managed the turn-around of the 260-seat facility from a loss, to a positive cash flow. IPCCO revenues have grown 322% QoQ from P5.8M in Q2 to P24.7M in Q3. We expect our BPO business to make even bigger strides over the next few months as we complete acquisitions in this space.

Last but not least, we have launched a new subsidiary, I-Pay Commerce Ventures, Inc. focused on providing payment processing services to our communities and clients of IPVG. As the internet is a core part of IPVG’s business model, and we expect e-commerce to outpace overall internet growth in South East Asia over the next few years, we believe our strong competence in technology and service provisioning will allow us to capture substantial business in this space. We are formally launching our 1st card product end of this year.

In closing, your management is focused on implementing IPVG’s 3-Year Growth Plan. We are taking this company regional and as we expand into new markets, we broaden our customer base and generate greater revenues and profits for the company. We recognize that in this hyper-growth mode, we need to ensure that our operations, which form the foundations of our machinery, scale up to match business demands. As a result, we continue to attract top caliber talent into the company, and we make significant investments in improving our infrastructure (equipment, people, and systems).

We are on track, we anticipate a strong 4th quarter, and we are happy to announce to all of you that IPVG is well on its way in becoming a regional company in this very exciting and dynamic IP-space.

Best,

Enrique Y. Gonzalez

Founder & CEO