Broadband Revenues Represent 50% of Total Revenues; Broadband, Software and Service Fee Represent 76% of Total Revenues

"Our continued shift to a balanced revenue model gained greater traction,showing the strength of business, as broadband, software and service feerevenues increased 38% over the prior year quarter," said Ken Denman,Chairman and CEO of iPass. "A full 76% of our total revenues in the quarterwere from these growth businesses, compared to 57% for the same period lastyear as we transition beyond our legacy dial business."

In the first quarter iPass exceeded its cost reduction goals, reducingcombined non-stock compensation network operations, R&D and SG&A operatingexpenses by $3.5 million. Also in the first quarter, the company launchedits iPassConnect(TM) mobility service that allows U.S. businesspeople topurchase global Wi-Fi and 3G access combined into a single service directfrom iPass. The company also added 10 new Forbes Global 2000 customers toits rolls, and now claims 427 of these highly-coveted companies as users ofits services.

Financial Highlights                              Q1'08    Q4'07    Q1'07(In millions, except per share amounts)          -------  -------  -------
Total Revenues                                   $  48.1  $  49.5* $  46.9
Broadband Revenues                               $  24.1  $  22.1  $  15.4
Software and Service Fee Revenues                $  12.5  $  14.0* $  11.1
Dial Revenues                                    $  11.5  $  13.4  $  20.3
Operating loss                                   $  (2.2) $  (4.6) $  (3.3)
Non-GAAP Operating Income (loss)                 $   0.2  $   0.4  $  (1.0)
GAAP Net loss                                    $  (1.4) $ (30.4) $  (0.5)
GAAP Diluted EPS (loss)                          $ (0.02) $ (0.49) $ (0.01)
Non-GAAP Net Income (loss)                       $   1.0  $   1.5  $   0.3
Non-GAAP Diluted EPS (loss)                      $  0.02  $  0.02  $  0.00
Cash and Short Term Investments                  $    70  $    75  $    88
*Total revenues from the fourth quarter 2007 included $2.3 million of additional software and service fee revenues relating to a change in estimate for the recognition of minimum commitment billings.
Key User, Footprint and Customer Metrics                                                Q1'08     Q4'07     Q1'07                                              --------- --------- ---------
iPass On-Network Users                          547,000   576,000   671,000iPass Off-Network Users                         538,000   500,000   329,000                                              --------- --------- ---------Total iPassConnect Software Users             1,085,000 1,076,000 1,000,000
Broadband Users                                 295,000   274,000   204,000Dial Users                                      252,000   302,000   467,000                                              --------- --------- ---------Total iPass On-Network Users                    547,000   576,000   671,000
Broadband Venues                                 98,000    95,000    80,000
Total Forbes Global 2000 Customers                  427       417       386

During the first quarter, iPass added key broadband venues in Japan, India,Argentina and Brazil to its global broadband network. iPass users now haveaccess to broadband coverage in 84 of the world's top 100 airports, andcoverage in a total of 559 airports worldwide. iPass has the world'slargest multi-technology virtual network which now has more than 100,000active broadband roaming locations (Wi-Fi hotspots and hotel Ethernet) aswell as support for 3.5G, 3G and 2.5G mobile broadband in the U.S., Europeand Asia, and dial-up in more than 160 countries.

"Our gross margins were 57 percent during the quarter, reflecting thedecline in higher-margin dial revenues, the effects of a weaker U.S. dollarwhich impact our network access charges priced in local currencies, and anincrease in end-user usage on networks that are either lower margin or donot yet benefit from volume pricing. We are actively working to addresseach of the issues affecting gross margin," said Denman.

Share Repurchase Program - The company's board of directors approved a $30million share repurchase plan in February 2008. During the period January1, 2008 through March 31, 2008, the company repurchased approximately $3.2million of its common stock, representing approximately 1.1 million sharesat an average cost of $2.90 per share.

Company Outlook

The following statements are based on information available to iPass today,and iPass does not assume any duty to update these numbers at any timeduring the quarter or thereafter. These statements are forward looking, andactual results may differ materially.

For the quarter ending June 30, 2008, iPass projects revenue ofapproximately $47 million to $50 million, fully diluted GAAP earnings(loss) per share of approximately ($0.01) to ($0.04) and fully dilutednon-GAAP earnings per share of approximately $0.00 to $0.03. The differencebetween the projected fully diluted GAAP loss per share and the projectedfully diluted non-GAAP earnings per share of approximately $0.04 is basedon expected FAS 123R stock-based compensation of $1.5 million dollars andthe expected amortization of intangibles of $1.1 million in the secondquarter of 2008 which, when divided by an expected 62 million fully dilutedshares outstanding, results in the $0.04 difference.

Conference Call

iPass will host a public conference call today to discuss this announcementat 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time).The call will be webcast on iPass' web site at http://investor.ipass.com,and a replay of the webcast will be available on iPass' web site untiliPass reports its second quarter 2008 financial results. A taped replaywill also be available for two weeks following the date of the call. Thedial-in numbers for the taped replay are 1-888-286-8010 (U.S. and Canada)and 1-617-801-6888 (international). The ID number for the replay call is14124248.

Cautionary Statements

iPass' projections of its second quarter 2008 financial results under thecaption "Company Outlook," and in this press release are forward-lookingstatements. Actual results may differ materially from the expectationscontained in these statements due to a number of risks and uncertainties,including: the rate of decline in use of narrowband/dial technology as ameans of enterprise connectivity may be faster than iPass predicts; therisk that iPass will not be able to generate broadband revenues in themanner expected; rapidly emerging changes in the nature of markets servedby iPass, which may not be compatible with iPass' services; increasedcompetition, which may cause pricing pressure on the fees iPass charges;iPass could unexpectedly lose current integrated broadband access points ifone or more current broadband access point providers perceive iPass'services to be competing with the provider's services in a manner thatrenders the relationship with iPass detrimental to the provider; iPass maynot be able to establish additional relationships with broadband accesspoint providers, including providers of 2.5G/3G Mobile Data, at the leveliPass expects if it is unable to negotiate such relationships on termsacceptable to both iPass and the providers on the timeframe iPass currentlyexpects for any number of reasons, including perceived competition with theproviders; if bookings or sales are greater than iPass expects, thenresulting sales commissions and/or other sales related expenses could causeiPass' non-stock compensation expenses in the second quarter to be greaterthan currently expected; and iPass may not be able to generate revenuefrom new services if market acceptance of those new services is not asiPass expects. Detailed information about potential factors that couldpotentially affect iPass' business, financial condition and results ofoperations is included in iPass' Annual Report on Form 10-K under thecaption "Item 1A Risk Factors" in that report, filed with the Securitiesand Exchange Commission (the "SEC") on March 17, 2008 and available at theSEC's Web site at www.sec.gov. iPass undertakes no responsibility to updatethe information in this press release if any forward-looking statementlater turns out to be inaccurate.

Information Regarding Non-GAAP Financial Measures

This press release contains financial measures that are not calculated inaccordance with U.S. generally accepted accounting principles (GAAP). iPassmanagement evaluates and makes operating decisions using variousperformance measures. In addition to iPass' GAAP results, the company alsoconsiders non-GAAP net income (loss). iPass further considers variouscomponents of non-GAAP net income (loss) such as non-GAAP earnings (loss)per share and non-GAAP operating income (loss). Non-GAAP net income (loss)is generally based on the revenues, network access expenses, networkoperations, research and development, sales and marketing and general andadministrative expenses management considers in evaluating the company'songoing core operating performance. Non-GAAP net income (loss) consists ofnet income (loss) excluding equity plan-related compensation expenses,restructuring charges, amortization of intangible assets, the cumulativeeffect of change in accounting principle, and valuation allowance fordeferred tax assets which are charges and gains which management does notconsider reflective of the company's core operating business.