Makati City, Philippines -- IPVG Corp. (IPVG) disclosed today that it has entered into a Memorandum of Understanding (MOU) with AO Capital Partners Ltd. (AO Capital), a leading independent international investment house to create a special purpose vehicle ("SPV") in an effort to submit a proposal to acquire a majority stake in NASDAQ listed PeopleSupport, Inc., one of the top contact center companies with majority of its operations in the Philippines. Both IPVG and AO Capital have agreed to infuse and raise necessary debt and equity funding from internal and 3rd parties. PeopleSupport, Inc has more than 8,000 seats mostly in the Philippines.

In pursuit of this, IPVG and AO Capital submitted a letter-proposal today to the Board of Directors of Peop! leSupport, Inc. to acquire, through an all-cash offer, a majority stake of the outstanding capital stock of PeopleSupport, Inc.  The target valuation of PeopleSupport, Inc. is $15.00 per share or a valuation of US$355 million, which represents a 28% premium over PeopleSupport, Inc.’s 60-day weighted average closing price of $11.72 as of November 29, 2007.  The proposal-letter is attached for reference.

Authority and approval to submit the proposal-letter was given by the Board of Directors of IPVG in a special meeting held today.

This proposed acquisition is timely given IPVG’s disclosed plans on making several strategic acquisitions in the communications and BPO space after a successful round of raising equity and debt financing from various financial institutions. IPVG has a strong track record in creating value through acquisitions and operational execution in these sectors.

Enrique Gonzalez, CE O of IPVG stated: “This offer is in line with our strategic acquisition road-map in growing and taking our bpo business to the next level. Similar to other target firms in our pipeline, we see PeopleSupport as a good acquisition given its scale, position in the marketplace and heavy concentration in the Philippines. We believe IPVG can add significant value to the operation given our fully integrated presence in the Philippines.”

Gonzalez added: “Expect us to continue making bold moves in this space as we aim to become one of the top BPO companies in the region.”

Martin Lichauco, Managing Director of AO Capital said: “AO Capital has been an active advisor to IPVG since its inception. The creation of this SPV serves as a foundation of our commitment to IPVG to provide resources not just for this acquisition, but also become a strategic partner of IPVG as it embarks on becomi! ng one of the world’s leading providers of business process outsourcing services.”  

IPVG currently owns IP-Contact Center Outsourcing, Inc. IPCCO is a wholly owned subsidiary of IPVG and provides support on the aspects of local talent pool and facilities to enable PCCW Teleservices to extend its contact center and telecommunications solutions in the Philippines to service North American clients. IPCCO acquired the assets of GLOBAL STRIDE, a contact center operation located in IBM Plaza, Eastwood City, Libis, earlier this year.

IPVG is extremely bullish about the future of the BPO industry in the Philippines as demand for BPO services will continue to grow at a double digit pace over the next several years as the overall Philippine BPO market is expected to grow to US$11 billion with over 500,000 seats by 2010 from US$2.1 billion and 200,000 seats in 2006.

IPVG is one of the few Philippine listed companies! that ar e making significant investments in this sector.

About PeopleSupport, Inc (www.peoplesupport.com)

 
About AO Capital Partners Ltd.

AO Capital Partners Ltd. is a member-company of the American Orient Capital Partners Group  (“AOCP Group”). The AOCP Group provides high value added advisory services for the private placement of debt and equity capital, corporate restructuring, mergers & acquisition, and project finance. 

In addition, the AOCP Group is involved in managing private equity funds for investments in Asian based companies and has been involved as an adviser and/or investor in over 100 major transactions valued in excess of US$10 billion in Asia. The senior management team! of the AOCP Group has over 120 years of cumulative professional experience throughout the region.  Along with its head office in Hong Kong, the AOCP Group maintains full service offices in the Philippines, Singapore and in India.

About IPVG

IPVG is publicly listed on the Philippine Stock Exchange (PSE Ticker Symbol: IPVG) and engaged in the information technology and communications space in South East Asia. IPVG owns three operating subsidiaries in: (i) Information Technology and Telecommunications (IT&T); (ii) on-line gaming, and (iii) Business Process Outsourcing (BPO) with presence in the Philippines, Singapore, Vietnam, Hong Kong and India.