PNO Path 1 Netwk Tech

SAN DIEGO, Dec. 8 /PRNewswire-FirstCall/ -- Path 1 Network Technologies (AMEX:PNO), a leading provider of video networking products that enable the transmission of broadcast-quality video over IP networks, today announced that it has completed a $2.1 million financing with Laurus Master Fund, Ltd. (Laurus), a New York-based fund that specializes in providing funding to small cap companies. "Our blue chip customers along with our superior products developed over the last several years have distinguished Path 1 as a leading provider of video over IP network gear," said Tom Tullie, President and CEO of Path 1. "This financing allows Path 1 to continue to move forward with our top priorities of further expanding our customer base and continuing to deliver cutting-edge products and services to the emerging video over IP marketplace." The financing consists of a $2.1 million Secured Convertible Term Note which has a 3-year term and bears interest at a rate equal to prime plus 2.5% per annum, payable monthly beginning 90 days after closing of the financing in (certain circumstances) registered for resale stock or cash. The Note is convertible into shares of Path 1's common stock at $2.6316 per share. In connection with the financing, Laurus was also issued a seven-year Warrant to purchase up to 181,362 shares of Path 1 common stock at an exercise price of $2.89 per share. Path 1 will file a registration statement with the Securities and Exchange Commission for the Company's common stock underlying the Note and Warrants. About Path 1 Network Technologies Inc. Path 1 Network Technologies Inc. is the pioneer and leading provider of video gateway products that enable the conversion and distribution of real- time, broadcast-quality video over Internet Protocol (IP) through both public and private networks. From the delivery of live MPEG-2, MPEG-4, and VC-1 standard definition and high definition (HD) broadcasts to Video on Demand (VOD), Path 1's video infrastructure platforms allow broadcasters, cable, telco, satellite and mobile operators to transmit high-quality point-to-point, multipoint and multiplexed video across town or around the world. To find out more about Path 1 Network Technologies Inc., visit our website at http://www.path1.com/ or call 877/ONE-PATH (663-7284). This news release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results or strategies and are generally preceded by words such as "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements, including the risks that Path 1 will require additional financing, that our products might not achieve customer or market acceptance, that our products might not perform as expected, that customer trials might not lead to future sales, that our sales and gross profits might fluctuate between reporting periods, and other risks identified in our annual report on Form 10-K and other filings with the SEC. You should consider these factors in evaluating the forward-looking statements included herein and not place undue reliance on such statements. The forward- looking statements are made as of the date hereof, and Path 1 undertakes no obligation to update such statements. For Further Information: MEDIA: Alice Borda Sterling Communications (408) 395-5500 AT FINANCIAL RELATIONS BOARD: Lasse Glassen General Information (310) 854-8313 Amy Cozamanis Investor/Analyst Information (310) 854-8314 DATASOURCE: Path 1 Network Technologies CONTACT: Alice Borda of Sterling Communications, +1-408-395-5500, , for Path 1 Network Technologies; or Lasse Glassen, General Information, +1-310-854-8313, , or Amy Cozamanis, Investor/Analyst Information, +1-310-854-8314, , both of Financial Relations Board, for Path 1 Network Technologies Web site: http://www.path1.com/

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