News
Issue #2002 - 37 (September 2002)
(Updated October 2, 2002)

MERGERS, ACQUISITIONS, INVESTMENTS and AGREEMENTS 

Global Path Inc. Acquires IPSH - an SMS Infrastructure Startup 

San Francisco, CA – Global Path Inc. announced last week the signing of a definitive agreement to acquire IPSH.NET of San Francisco, a technical leader in the $6.5 billion wireless Short Messaging Service (SMS) market. SMS is the most pervasive communication protocol for transferring data to cellular phones, reaching over 95% of mobile devices.

Global Mobility Inc., a wholly owned subsidiary of the Company, will acquire 100 percent of the assets of IPSH.NET including its technology and personnel in return for 3 million Global Path Inc. shares plus a royalty stream based on the future revenues of Global Mobility. This transaction will close upon the completion of audits of IPSH.NET’s financial statements.

IPSH.net is a scalable wireless messaging and technical services provider which has developed and is currently deploying a unique software-based solution that enables large enterprises to easily and cost effectively access, manage and deploy SMS to their targeted end-users’ wireless devices. IPSH.NET’s current client list includes such Fortune 500 companies as Warner Bros and Universal Music.

The new Global Mobility service acquired from IPSH.net allows enterprises, government organizations and Life Sciences groups to quickly and efficiently transmit information to cellular phones regardless of the device or carrier supporting the end customer. The Global Mobility technology will be available to customers in a hosting or ASP (application service provisioning) format or by way of license agreement direct to the customer so that the technology can be controlled inside the customers own environment.

Robert Kubbernus, CEO and President of Global Path stated, “The acquisition of IPSH and the emergence of the SMS market will provide significant growth opportunities for Global Path for many years to come. The global market for mobile SMS estimated to be worth more than $6.5 billion by 2003 and global SMS traffic expected to grow from 20 billion messages per month in the year 2000 to over 82 billion messages per month by 2003. Global Path will be well positioned to become a major player in this emerging industry.”

“The need to deliver critical information to thousands and potentially millions of geographically dispersed individuals has become a priority,” Mr. Kubbernus continued. “From homeland security issues to missing children, medical alerts and hurricane warnings, SMS is clearly the only solution that can achieve the speed, accuracy and reach required to meet the needs of the audience and the organization.” IPSH.Net’s service is unique in that messages can be sent to any cellular phone, regardless of the network protocol the carrier operates on. This SMS solution addresses the current interoperability weaknesses in North America cellular infrastructure.”

Nihal Mehta, CEO of IPSH.NET, added, “Our transition to Global Mobility and ownership by Global Path comes at a perfect time, when our company is gearing up for tremendous growth and needs the structure and resources an entity such as Global Path is able to provide. We are looking forward to doing great things with our technology under Global Path’s umbrella. Our technology is infinitely scalable, and ready to be injected with the appropriate resources to become a dominant player in the SMS and mobile marketplace. “

About Global Path

Global Path Inc., is a strategic holding company that acquires Information Technology Security companies with the goal of making them a market success. Global Path provides strategic, financial and business resources to position its portfolio companies as industry leaders.

About IPSH.NET

IPSH.NET is a wireless messaging and technical service provider which has developed a unique software-based solution that enable customers to broadcast a short messaging service to their targeted end-users cellular phone number. This message may be transmitted regardless of which cellular provider they employ.

For more information: http://www.ipsh.net  or Global Path Inc. at http://www.globalpathinc.com

MobileInfo Comments and Advisory:  SMS market has only one direction to go in North America i.e. up. SMS startups can expect good market potential but it is also relatively easy market to enter. This is not really an acquisition of technological-synergistic companies because Global Path is an investment company. IPSH will have to convince rather tough-minded and technological-knowledgeable carriers to use its software. On the enterprise front, it has to sell to IT executives.

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.