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|FOR IMMEDIATE RELEASE
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|August 12, 2005      

IPEC Holdings Inc. Reports Second Quarter 2005 Financial Results; Announces Plans to Deregister its
Common Stock with the SEC

NEW CASTLE, PA, August 12, 2005. IPEC Holdings Inc. (IPEC or the Company) (OTCBB:
IPEC) today announced its results for the second quarter ended June 30, 2005 and its intention to
file a Form 15 with the Securities and Exchange Commission to terminate its reporting obligations
under the Securities and Exchange Act of 1934 (Exchange Act).

2005 SECOND QUARTER FINANCIAL HIGHLIGHTS:

| |  | The Company reported net income of $479,896 or $0.05 per diluted common share, compared to $590,287
or $0.06 per diluted common share in the second quarter of 2004. The decrease in net income of $110,391
is primarily attributable to certain one-time pre-tax charges totaling $183,000 related to a raw
material adjustment at its fabrication division and the write-off of certain capping equipment used
by a foreign customer which is in bankruptcy, combined with continued market pricing pressures. Offsetting
these charges were lower selling and interest expense.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | Operating income for the second quarter of 2005 was $848,753; which is $271,092 lower than the operating
income of $1,119,845 recorded by the Company for the second quarter of 2004.                                                                                                                                                                                                                                                                                                                                                                                             
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | Sales increased to $6.5 million compared to $6.3 million for the comparable 2004 quarter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | The Company remains financially sound with borrowing capacity plus cash on hand at over $3.6 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

CAPITAL SPENDING

Capital spending for continuing operations totaled $0.2 million for the quarter ended June 30, 2005,
as compared to $0.6 million for the quarter ended June 30, 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 second 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 $0.4 million with an additional $0.5 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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DEREGISTRATION

On August 8, 2005, a Special Committee comprised of members of the Companys Board of Directors
voted unanimously to approve deregistration of the Companys securities and terminate its reporting
obligations under the Securities and Exchange Act of 1934 (Exchange Act). In an effort to explain
the implications of this decision to its shareholders, the Company is providing the following answers
to some common questions that may arise.

1. What are the requirements for deregistration?

Generally, a Company can elect to deregister each class of securities if it has i) fewer than 300 holders
of record or ii) fewer than 500 holders of record and the Companys total assets have not exceeded
$10 million on the last day of each of the Companys three most recent fiscal years. The Company
has less than 50  holders of record.

2. What process will the Company follow to complete its deregistration?

The Company anticipates filing a Form 15 this afternoon. Upon filing of the Form 15, the Companys
reporting obligations under Section 12(g) of the Exchange Act will be suspended. The suspension will
remain intact for 90 days, after which time the Company expects deregistration to become effective.

3. Why did the Company elect to deregister?

The Company formed a Special Committee of its Board of Directors to determine if deregistration was
in the best interest of its shareholders. Among the factors considered by the Special Committee in
rendering their decision were:

| |  | The substantial increase in costs that IPEC would incur in 2006 and thereafter to remain in compliance
with the reporting obligations of the Exchange Act, including Section 404 of the Sarbanes-Oxley Act;
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| |   |                                                                                                                                                                                                            
| |  | The lack of analyst coverage and minimal liquidity for the Companys common stock;                                                                                                                         
| |   |                                                                                                                                                                                                            
| |  | The additional need to use available resources on strategic business initiatives to potentially increase
shareholder value rather than to comply with regulatory requirements; and                         
| |   |                                                                                                                                                                                                            
| |  | In light of the current financial position of the Company and the existing capital market conditions,
there exists no foreseeable need for additional public equity.                                       

4.  What effect will deregistration have on the trading of IPECs common stock?

After the filing of the Form 15, IPEC will not be required to file documents under the Exchange Act.
Accordingly, its shareholders will likely not have the same amount of information regarding IPEC
that they have access to currently. It remains uncertain what will happen to the trading of IPEC
stock. IPEC is traded in the Over the Counter Bulletin Board (OTCBB) through certain market makers.
Upon deregistration, its stock will no longer be traded through the OTCBB. If the brokers elect to
do so, it is possible that IPEC will still be traded by these same market makers in the future through
the Pink Sheets (www.pinksheets.com). There can be no assurance that any brokerage firms will continue
to make a market in IPECs common stock after it ceases trading through the OTCBB.



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COMPANY COMMENTS

After giving consideration to certain one-time charges, the quarter results were consistent with
those of the previous year. Although we did not achieve a significant level of sales growth this
quarter, we are currently experiencing a more active market in terms of sales opportunities and remain
optimistic on our long-term growth initiatives, commented Joseph Giordano, Jr., the Companys
President. With respect to deregistration, we gave careful consideration
to all relevant factors. We took this action because the disadvantages to our
shareholders of continuing as a public company far outweigh the advantages to remaining status quo.

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 issue quarterly earnings projections.

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. Fabry
Chief Financial Officer

185 Northgate Circle
  New Castle, PA 16105
  Website: www.ipec.biz
  Phone: (800) 377-4732 x235
  Fax: (724) 658-3054

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

|                                         | Q2 05 |            | Q2 04 |   | YTD 05     |   | YTD 04 |           
|---------------------------------------- | ----- | ---------- | ----- | - | ---------- | - | ------ | ----------
|                                         |       |            |       |   |            |   |        |           
|                                         |       |            |       |   |            |   |        |           
|Sales                                    | $     | 6,445,176  |       | $ | 6,319,511  |   | $      | 11,762,585
|                                         |       |            |       |   |            |   |        |           
|                                         |       |            |       |   |            |   |        |           
|Operating expenses:                      |       |            |       |   |            |   |        |           
|Cost of goods sold                       |       | 4,899,270  |       |   | 4,377,949  |   |        | 8,687,283 
|Selling                                  |       | 181,739    |       |   | 348,676    |   |        | 411,381   
|General and administrative               |       | 515,414    |       |   | 473,041    |   |        | 1,006,328 
|                                         |       |            |       |   |            |   |        |           
|Operating expenses                       |       | 5,596,423  |       |   | 5,199,666  |   |        | 10,104,992
|                                         |       |            |       |   |            |   |        |           
|                                         |       |            |       |   |            |   |        |           
|Operating income                         |       | 848,753    |       |   | 1,119,845  |   |        | 1,657,593 
|                                         |       |            |       |   |            |   |        |           
|                                         |       |            |       |   |            |   |        |           
|Non-operating expense:                   |       |            |       |   |            |   |        |           
|Interest expense                         |       | 76,816     |       |   | 116,834    |   |        | 159,273   
|Other expense (income)                   |       | (2,088     | )     |   | 18,967     |   |        | (30,608   
|                                         |       |            |       |   |            |   |        |           
|                                         |       |            |       |   |            |   |        |           
|Non-operating expense                    |       | 74,728     |       |   | 135,801    |   |        | 128,665   
|                                         |       |            |       |   |            |   |        |           
|                                         |       |            |       |   |            |   |        |           
|Income before taxes                      |       | 774,025    |       |   | 984,044    |   |        | 1,528,928 
|Income taxes                             |       | 294,129    |       |   | 393,757    |   |        | 580,992   
|                                         |       |            |       |   |            |   |        |           
|                                         |       |            |       |   |            |   |        |           
|Net income                               | $     | 479,896    |       | $ | 590,287    |   | $      | 947,936   
|                                         |       |            |       |   |            |   |        |           
|                                         |       |            |       |   |            |   |        |           
|Average Shares of Common Stock - Basic   |       | 9,972,912  |       |   | 9,972,912  |   |        | 9,972,912 
|                                         |       |            |       |   |            |   |        |           
|                                         |       |            |       |   |            |   |        |           
|Average Shares of Common Stock - Diluted |       | 10,644,659 |       |   | 10,098,205 |   |        | 10,580,671
|                                         |       |            |       |   |            |   |        |           
|                                         |       |            |       |   |            |   |        |           
|Basic Income Per Share                   | $     | 0.05       |       | $ | 0.06       |   | $      | 0.10      
|                                         |       |            |       |   |            |   |        |           
|                                         |       |            |       |   |            |   |        |           
|Diluted Income Per Share                 | $     | 0.05       |       | $ | 0.06       |   | $      | 0.09      
|                                         |       |            |       |   |            |   |        |           
|                                         |       |            |       |   |            |   |        |           
|Net Income Plus:                         |       |            |       |   |            |   |        |           
|Interest Expense                         |       | 76,816     |       |   | 116,834    |   |        | 128,665   
|Income Taxes                             |       | 294,129    |       |   | 393,757    |   |        | 580,992   
|Dep. & amortization expense              |       | 448,509    |       |   | 422,896    |   |        | 889,454   
|                                         |       |            |       |   |            |   |        |           
|EBITDA (a) (b)                           | $     | 1,299,350  |       | $ | 1,523,774  |   | $      | 2,547,047 
|EBITDA % (a) (b) (d)                     |       | 20         | %     |   | 24         | % |        | 22        
|                                         |       |            |       |   |            |   |        |           
|Adjustments to EBITDA:                   |       |            |       |   |            |   |        |           
|One-time charges (c)                     |       | 183,000    |       |   |           |   |        | 183,000   
|                                         |       |            |       |   |            |   |        |           
|Adjusted EBITDA (a) (b)                  | $     | 1,483,350  |       | $ | 1,523,774  |   | $      | 2,730,047 
|Adjusted EBITDA % (a) (b) (d)            |       | 23         | %     |   | 24         | % |        | 23        
|                                         |       |            |       |   |            |   |        |           

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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 one-time charges are comprised of two separate components related to a raw material adjustment
at the Companys fabrication division and a write-off of certain capping equipment for a foreign
customer currently in bankruptcy. The Company does not believe these charges to be indicative of
ongoing operations in its normal course of business activities.

(d) Percentages are calculated as a percentage of sales.

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