CounterPath Reports First Quarter Fiscal 2011 Financial Results

VANCOUVER, Sept. 14 /PRNewswire-FirstCall/ - CounterPath Corporation ("CounterPath" or the "Company") (OTCBB: CPAH; TSX-V: CCV), a leading provider of desktop and mobile VoIP software products and solutions, today announced financial and operating results for the first quarter of fiscal year 2011.

The first quarter of $2

- Revenue for the first quarter of $2.2 million compared to revenue of $2.1 million for the quarter ended July 31, 2009. - A net loss for the first quarter of $1.4 million ($0.04 per share) compared to a net loss of $1.2 million ($0.04 per share) for quarter ended July 31, 2009. - The launching of Bria iPhone Edition for Apple's iPhone, iPad and iPod Touch. Bria iPhone Edition is a highly secure, standards-based VoIP softphone that works over both 3G and Wi-Fi networks and supports Apple's new iOS 4 with multitasking support. - The entering into of an agreement with a significant Original Equipment Manufacturer (OEM) providing for sale of our softphone suite and server software suite for desktop and mobile applications. - The launching of a retail version of the Bria for Linux softphone and the deployment of the enterprise version by two Fortune 500 customers. Bria for Linux gives enterprises a new option for extending VoIP across multiple operating systems and enabling them to reduce communications and travel costs, while improving productivity and responsiveness. - The announcement of Bria for Genesys with the first release targeted for a major airline and entertainment company leveraging CounterPath's voice and video capabilities with Genesys' Contact Center Solution.

"We are pleased with the progress made this quarter highlighted by improving revenue, new product introductions and strong customer traction," stated Donovan Jones, President and CEO, CounterPath. "Our revenue grew 8% over the same quarter last year buoyed by strong desktop softphone sales through our OEM channels. We've expanded our revenue opportunities with new product launches such as Bria for the iPhone and Bria for the Linux operating system and expect to announce further product offerings in the near future. Our efforts to leverage our internal sales team with external distribution channels is starting to provide significant revenues as enterprises seek to leverage the Internet to save money on communications costs while improving their productivity with our solutions," continued Jones.

Leading provider of innovative desktop

CounterPath Corporation is a leading provider of innovative desktop and mobile VoIP software products and solutions. The Company's product suite includes SIP-based softphones, server applications and Fixed Mobile Convergence (FMC) solutions that enable service providers, enterprises and Original Equipment Manufacturers (OEM) to cost-effectively integrate voice, video, presence and Instant Messaging (IM) applications into their VoIP offerings and extend functionality across both fixed and mobile networks.

CounterPath's customers include some of the world's largest telecommunications service providers and network equipment providers including AT&T, Verizon, BT (British Telecommunications PLC), Deutsche Telekom, Cisco Systems, Mitel and Nortel.

This news release contains "non-GAAP financial measures". The non-GAAP financial measures in this news release consist of non-GAAP operating expenses and non-GAAP operating losses, which exclude non-cash stock-based compensation, amortization and impairment of intangible asset charges relative to operating expenses and operating losses calculated in accordance with GAAP. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. CounterPath utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. CounterPath believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors' understanding of CounterPath's core operating results and trends.

This news release contains "forward-looking statements". Statements in this news release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, such as the following: (1) We've expanded our revenue opportunities with new product launches such as Bria for the iPhone and Bria for the Linux operating system and expect to announce further product offerings in the near future.

It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others: (1) the failure to develop new and innovative products using the Company's technologies, (2) the Company's ability to remain competitive as other parties develop and release competitive products, (3) the Company's ability to retain the employees necessary to continue research and development of current and new products, (4) the success by the Company of the sales of its current and new products, (5) the impact of technology changes on the Company's products and on the VoIP industry, (6) the compatibility of the Company's products with new computer operating systems, (7) the rate of adoption by service providers and the general public of VoIP as a replacement for regular and cellular phone service, (8) general economic conditions as they affect CounterPath and its current and prospective customers, including a continued downturn in general economic conditions internationally, (9) the ability of the Company to control costs operating, general administrative and other expenses, and (10) insufficient investor interest in the Company's securities which may impact on the Company's ability to raise additional financing as required. Readers should also refer to the risk disclosures outlined in the Company's quarterly reports on Form 10-Q, annual reports on Form 10-K and the Company's other disclosure documents filed from time-to-time with the Securities and Exchange Commission at www.sec.gov and the Company's interim and annual filings and other disclosure documents filed from time-to-time on SEDAR at www.sedar.com.