|FOR IMMEDIATE RELEASE
|---------------------
|                     
|May 11, 2005         

IPEC Holdings Inc. Reports First Quarter 2005 Financial Results

NEW CASTLE, PA, May 11, 2005. IPEC Holdings Inc. (IPEC or the Company) (OTCBB:
IPEC) today announced its results for the first quarter ended March 31, 2005.

2005 FIRST QUARTER FINANCIAL HIGHLIGHTS:

| |  | The Company reported net income of $468,040 or $0.04 per diluted common share, compared to $151,849
or $0.01 per diluted common share in the first quarter of 2004. The increase in net income of $316,191
is primarily attributable to the continued expansion of the Companys customer base, along with
the implementation and execution of certain cost containment and process improvement initiatives
that the Company commenced during 2004.                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | Operating income for the first quarter of 2005 was $808,840; $432,166 higher than the operating income
of $376,674 recorded by the Company for the first quarter of 2004.                                                                                                                                                                                                                                                                                                                                                                                                      
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | Sales increased to $5.3 million compared to $4.4 million for the comparable 2004 quarter, representing
a 21% increase.                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | The Company generated free cash flow of $0.4 million (computed as net cash provided by operating activities
of $0.5 million less capital expenditures of $0.1 million) compared to ($0.8) million used in the
comparable 2004 quarter (computed as net cash used by operating activities of ($0.1) million less
capital expenditures of $0.7 million). The increase in free cash flow combined with enhanced financial
flexibility obtained through the Companys debt refinancing package consummated during the quarter
permitted the Company to retire $0.6 million of debt.
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | The Company remains financially sound with borrowing capacity plus cash on hand at over $3.0 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

CAPITAL SPENDING

Capital spending for continuing operations totaled $0.1 million for the quarter ended March 31, 2005,
as compared to $0.7 million for the quarter ended March 31, 2004, when the Company made significant
expenditures related to a 30,000 square foot warehouse addition to the Companys Alabama production
facility. The Companys first quarter 2005 capital spending consisted primarily of additional
plant machinery. For the remainder of fiscal 2005, the Company projects maintenance-related capital
spending to be $0.6 million with an additional $0.9 million for growth-related activities. Growth-related
capital spending will ultimately be driven based on the Companys assessment of available market
opportunities and their projected return on investment.

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DEBT REFINANCING

On February 18, 2005, the Company acted in the capacity of Guarantor to consummate a debt refinancing
package between its wholly-owned operating subsidiary, International Plastics and Equipment Corp.,
and Citizens Bank. The consummation of this transaction reduced the average interest rate from that
of the refinanced debt; decreased required term principal debt payments by approximately $0.6 million
over the subsequent twelve-month period, thus providing the Company additional flexibility in the
use of its cash flows from operations for potential new product market entry opportunities; and removed
the obligation of the Company to fund $0.4 million to a reserve fund over a sixty-month period as
security against the Companys $1.8 million letter of credit. The Company estimates that it
will save approximately $0.1 million in interest expense during fiscal 2005 as a result of the refinancing
assuming the existing capitalization structure of the Company remains unchanged.

COMPANY COMMENTS

Significant productivity improvements achieved through our corporate initiatives combined with
solid unit sales growth primarily in our 38mm closure product lines helped us deliver higher earnings
results during the quarter, commented Joseph Giordano, Jr., the Companys President. Looking
ahead, we expect to continue sustaining favorable organic growth rates while keeping our commitment
to develop stronger relationships with, and deliver added value to, our customers.

EARNINGS PROJECTIONS

The Company reaffirms its earnings guidance for 2005. For the year, the Company expects earnings per
diluted common share to be in the range of $0.20 to $0.23 per share, barring the occurrence of any
unforeseen or unusual conditions affecting the industry or IPEC.

Given consideration to various short-term factors including volatility in customer ordering patterns,
the Company believes that annual projections are a more reliable indicator of projected financial
results. Accordingly, the Company does not intend to issue quarterly earnings projections in the
foreseeable future.

ABOUT IPEC HOLDINGS INC.:

IPEC Holdings Inc. manufactures and sells tamper evident plastic closures through its wholly-owned
operating subsidiary, International Plastics and Equipment Corp. These closures are predominantly
used in the bottling of non-carbonated beverages including bottled water, milk and fruit and sports
drinks. The Company also designs and manufactures equipment for the bottling industry. IPECs
customer base primarily consists of dairy and bottled water manufacturers both domestically and internationally.
The Companys two principal manufacturing facilities are located in Pennsylvania and Alabama.

FOR ADDITIONAL INFORMATION CONTACT:

Shawn C. FabryChief Financial Officer

185 Northgate CircleNew Castle, PA 16105Website: www.ipec.bizPhone: (724) 658-3004 x235Fax: (724) 658-3054

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FORWARD-LOOKING STATEMENTS:

This release may be deemed to contain forward-looking statements, which are subject to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements
include, among other things, statements regarding future events and the future financial performance
of IPEC that involve risks and uncertainties. Any statements that refer to the expectations or other
characterizations of future events or circumstances are forward-looking statements. Readers are cautioned
that these forward-looking statements are only predictions and may differ materially from actual
future events or results due to a variety of factors, including: volatile price or shortage of resin
supply, credit risk, consolidation in our customer accounts, lack of synergies or perceived benefits
in any future acquisitions, uninsured operating conditions, adverse weather patterns, volatile and
low trading volume in Company stock, loss of key personnel, debt service and compliance concerns,
competitor or industry technological developments, contamination or defects with our products and
other factors discussed in IPECs most recent reports on Form 10-KSB, 10-QSB and 8-K. The financial
information contained in this release should be read in conjunction with the consolidated financial
statements and notes thereto included in IPECs most recent reports on Form 10-KSB and Form
10-QSB, each as it may be amended from time to time. Any projections in this release are based on
limited information currently available to IPEC, which is subject to change. Although such projections
and the factors influencing them will likely change, IPEC will not necessarily update the information,
since IPEC will only provide guidance at certain points during the year. Such information speaks
only as of the date of this release.

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IPEC HOLDINGS INC.UNAUDITED FINANCIAL RESULTS

|                                          | Q1 05 |            | Q1 04 |  
|----------------------------------------- | ----- | ---------- | ----- | -
|                                          |       |            |       |  
|                                          |       |            |       |  
|Sales                                     | $     | 5,317,409  |       | $
|                                          |       |            |       |  
|                                         
|Operating expenses:                      
|Cost of goods sold                        |       | 3,788,013  |       |  
|Selling and service                       |       | 229,642    |       |  
|General and administrative                |       | 490,914    |       |  
|                                          |       |            |       |  
|Operating expenses                        |       | 4,508,569  |       |  
|                                          |       |            |       |  
|                                          |       |            |       |  
|Operating income                          |       | 808,840    |       |  
|                                          |       |           
|                                          |       |            |       |  
|                                         
|Non-operating expense (income):          
|Interest expense                          |       | 82,457     |       |  
|                                          |       |           
|Other income                              |       | (28,520    | )     |  
|                                          |       |            |       |  
|                                          |       |           
|                                          |       |            |       |  
|Non-operating expenses                    |       | 53,937     |       |  
|                                          |       |            |       |  
|                                          |       |            |       |  
|Income before taxes                       |       | 754,903    |       |  
|Income taxes                              |       | 286,863    |       |  
|                                          |       |            |       |  
|                                          |       |            |       |  
|Net income                                | $     | 468,040    |       | $
|                                          |       |            |       |  
|                                          |       |           
|                                          |       |            |       |  
|Average Shares of Common Stock - Basic    |       | 9,972,912  |       |  
|                                          |       |            |       |  
|Average Shares of Common Stock - Diluted  |       | 10,499,586 |       |  
|                                          |       |            |       |  
|Basic Income Per Share                    | $     | 0.05       |       | $
|                                          |       |           
|                                          |       |            |       |  
|Diluted Income Per Share                  | $     | 0.04       |       | $
|                                          |       |           
|                                          |       |            |       |  
|                                         
|NON-GAAP MEASURES                        
|                                         
|EBITDA (a) (b):                          
|Net Income                                |       | 468,040    |       |  
|                                          |       |           
|Interest Expense                          |       | 82,457     |       |  
|Income Taxes                              |       | 286,863    |       |  
|Dep. & amortization expense               |       | 447,442    |       |  
|                                          |       |            |       |  
|EBITDA (a) (b)                            | $     | 1,284,802  |       | $
|                                          |       |            |       |  
|EBITDA as a % of Sales (a) (b)            |       | 24         | %     |  
|                                          |       |            |       |  
|                                         
|Free Cash Flow (c):                      
|Net cash provided by operating activities |       | 524,984    |       |  
|Purchase of property, plant and equipment |       | (94,548    | )     |  
|                                          |       |            |       |  
|Free Cash Flow (c)                        | $     | 430,436    |       | $
|                                          |       |            |       |  

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(a) EBITDA represents, for any relevant period, income (loss) before income taxes, depreciation of
property, plant and equipment, interest expense (including amortization of debt issuance costs) and
amortization of intangible assets.

(b) EBITDA is not intended to represent and should not be considered more meaningful than, or an alternative
to, net income (loss), cash flow or other measures of performance in accordance with generally accepted
accounting principles. EBITDA data is included because the Company understands that such information
is used by certain investors and Company analysts.

(c) The Company defines free cash flow as net cash provided by operating activities less purchases
of property, plant and equipment. It should not be inferred that the entire free cash flow amount
is available for discretionary expenditures. The Company believes that free cash flow is a useful
measure of performance and uses this measure as an indication of the strength of the Company and
its ability to generate cash.

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