iMPath Networks Acquires Digital Video Networking Company
Combines Major Strengths in Video Networking

Ottawa, Ontario - January 22, 2001 - iMPath Networks Inc. and AMG Systems Limited, leading providers of video networking solutions, today jointly announced that iMPath Networks will acquire AMG Systems. AMG is a leading provider of digital video networking equipment in the European market, with fibre optic video transmission systems deployed throughout Europe, the Middle East, and the Asia Pacific region.

"iMPath is aggressively pursuing the market for digital video networking solutions," said Mick Chawner, President & CEO of iMPath Networks. "The acquisition of AMG Systems accelerates our growth by broadening our video access product line while extending our geographic reach, both of which are significant components of our near term objectives."

AMG will continue its operations as a wholly owned subsidiary of iMPath Networks and will continue to be based at its facilities in the U.K. AMG co-founder Dr. Alan Hayes will continue to play a key role in the Company. He will hold ongoing product planning and management responsibilities for the AMG product line.

"The AMG team is very pleased to be joining iMPath Networks," stated Dr. Hayes. "We had been looking for a strategic partner who could help us continue to aggressively exploit our video and fibre optic technologies and enter new international markets. iMPath is a great fit for us; we expect 2001 to be a very successful year."

Only 6 months ago, iMPath acquired MultiDev Communications of Hull, Quebec. Specializing in the development of video compression technology, MultiDev's expertise has helped accelerate iMPath Networks' introduction of Video over IP technology to its digital video networking products. iMPath's Video over IP access technology enables the transmission of high quality video signals over standard SONET/SDH, ATM, and Ethernet networks for a variety of applications, including video surveillance, event multicasting, and video conferencing applications.

AMG Systems is a world leading, ISO 9001 accredited manufacturer of optical fibre transmission links for CCTV surveillance, transportation and data communications. The Company's products have been used by systems integrators around the world for applications in venues that include correctional facilities, entertainment complexes, town centres, deep-sea submersibles, road and rail systems, and research institutes. Headquartered in Bedfordshire, AMG staff are able to support installations throughout the UK and Europe directly, while working with its agents throughout Europe, North America and the Asia Pacific region to provide universally rapid and reliable service in its core geographic markets.

iMPath Networks Inc. is a leading provider of video networking products that include leading-edge technologies such as Video over IP and Optical FDM. The Company's systems have been deployed in a wide variety of markets including Intelligent Transportation Systems (ITS), Airport Security and Access Control, Light Rail and Rapid Transit Systems, High-end Security Surveillance, and Municipal Networks. The Company was recognized by the Ottawa-Carleton Board of Trade as the 1997 New Business of the Year for its outstanding success. In 1998, iMPath Networks was identified nationally as one of the top 25 up-and-coming information technology companies by the Branham Consulting Group. In 1999, the Company completed one of the largest private equity financings ever by a technology company in the Ottawa area.