PR Newswire

  Coveted Gigapixel Camera Patent Rights, Other Intellectual Property Plus
                   Tangible Assets Go to Highest Bidders

    FAIRFAX, Va., Dec. 1 /PRNewswire/ -- Worldwide interest in the
bankruptcy filing of IPIX Corporation and advertised October solicitation
of bids for assets including valuable intellectual property resulted in two
high bidders who - unless other interested parties intervene - will grab
and own the proverbial brass rings this December.
    Two auctions are scheduled for December 12 and 20 to respectively
determine the winning bidders for IPIX tangible assets plus one of the most
coveted prizes: provisional patents for IPIX's Gigapixel camera technology.
Both will be held at the U.S. Bankruptcy Court for the Eastern District of
Virginia, Alexandria Division's 200 Washington Street location, with
motions to approve the sales to the highest bidders made immediately after
the auctions' conclusions, according to Donald F. King, the court-appointed
Chapter 7 trustee.
    IPIX earned an international reputation for the quality of its high-
resolution digital 360-degree video cameras and immersive still photography
business. Its patented technology has the ability to provide complete video
coverage -- ideal for homeland security purposes -- including airport
surveillance, U.S. border management and military operations.
    Headquartered in Reston, VA, IPIX filed a voluntary petition for relief
under Chapter 7 of the United States Bankruptcy Code on July 31 (Case No.
06- 10856) and was granted the right to resume limited operations on
September 27 to generate revenue again from sources including
ipixstore.com.
    The December 12 auction - slated for 10:00 a.m. - is focused on the
sale of IPIX equipment and furniture. Those assets will be sold in bulk and
are physically housed in IPIX Reston and in storage facilities in
Chantilly, VA, and Tennessee.
    December 20th's auction of the Gigapixel provisional patents is
scheduled for 10:30 a.m. The company's Gigapixel camera technology was
developed in conjunction with the Defense Advanced Research Projects Agency
(DARPA), a Pentagon-funded agency that specializes in developing new
technologies for military applications. This technology has undergone some
testing and was in the process of being enhanced with night-vision
capabilities when IPIX filed bankruptcy.
    Prior to the bankruptcy filing, IPIX had a $30 million contract
opportunity with the U.S. Defense Department for this Gigapixel technology.
    According to King, "Even though the technology is in the developmental
stage, it has a vast number of potential applications. It's also supported
by a provisional patent due to expire mid-February of next year. The
potential for the buyer that develops and patents this technology is
staggering."
    When asked about the sale of more than 30 more patents owned by IPIX,
including its core 360-degree software technology, King said he expects to
announce the auction date of those assets "very soon," with a potential
sale date as early as mid-January 2007. The 360-degree software technology
supports the widely used IPIX Still and Video businesses.
    According to Stephen Karbelk, sales agent for the trustee and the
auction process, "There are still many more assets to be sold, including
the OMNIview(TM) dewarping technology and an entire inventory of cameras
and lenses located in Winston-Salem, NC."
    King is based in Fairfax, VA, and a principal with Odin, Feldman &
Pittleman where he heads the Bankruptcy & Creditors' Rights practice group.
King's practice primarily involves representation of debtors, creditors and
committees in Chapter 11 reorganizations, but he also represents other
types of debtors and creditors, particularly businesses and institutional
lenders, in all phases of the bankruptcy process including workouts. Since
1991, he has served as a Chapter 7 trustee in bankruptcy for the Eastern
District of Virginia. In addition, King is listed in The Best Lawyers in
America and in 2006 was designated as a Virginia Super Lawyer in the
Bankruptcy & Creditor/Debtor Rights section by Law & Politics magazine.
    Karbelk is based in Fairfax, VA, and is the regional president,
Washington/Baltimore for Tranzon Fox, an affiliate of the national auction
organization, Tranzon, L.L.C. Tranzon Fox is a full-service real estate
auction company and a member company of Tranzon, L.L.C., which is based in
Richmond, VA. Founded in 2001, Tranzon, L.L.C. has 14 independently owned
and operated member auction companies that collectively have more than 20
offices coast-to-coast. The professionals working at Tranzon member
companies specialize in providing real estate, business asset and
liquidation auction and accelerated marketing services to corporations,
financial institutions, trustees, individuals and estates throughout the
U.S.
    Interested bidders may contact Stephen Karbelk at Tranzon Fox at
703-539-8622 or download the available asset auction information at
http://www.tranzon.com.