Advanced Oxygen Technologies, Inc. Acquires IP Service ApS

Advanced Oxygen Technologies, Inc. (NASDAQ: AOXY) today announces the signing of an acquisition agreement with the shareholders of the Danish Company; IP Service ApS ( IP Service), an Internet and Network Security Company. AOXY will purchase One Hundred Percent (100%) of the stock of IP Service for five hundred thousand dollars in a stock swap transaction. The terms of the transaction require AOXY to issue forteen million shares of common stock and 1 share of convertible preferred stock to the shareholders of IP Service. The convertible preferred stock converts in one year to equal to the greater of : a) two hundred and ninety thousand (290,000) divided by the previous ten day closing price of AOXY as quoted on the national exchange and not to exceed twenty million, or b) six million shares. The contracts also includes among other things: an employement contract with IP Service and Kurt Søndergard for a period of four years, a covenant of non-competition between AOXY and the Shareholders of IP Service for a period of Five years, and a consulting agreement between IP Service and Crossfield, Inc., a related entity to Robert E. Wolfe, Chairman and CEO of AOXY for a period of four years.

Advanced Oxygen Technologies, Inc. has appointed Lawrence Donofrio, and Kurt Søndergard as memebers of the Board of Directors to replace Joseph N. Noll.

IP Service has developed a proprietary security tool called Analizt®, a scaleable security early warning solution that can be rapidly deployed across any size of network, either locally or globally.

Analizt® provides a constantly updated database of known weaknesses and vulnerabilities that can be cross-matched against an organization’s Iinformation Technology inventory, highlighting weaknesses in that particular network. The system alerts the relevant personnel or individual as to the nature and risk of the threat and ultimately offers solutions and information in order to deal with these weaknesses to ensure that the systems cannot be exploited.

“We have worked very hard for a long time to finalize the development and testing of our main product Analizt, and as we are now ready for market we find that this acquisition is a very strong move on our part.” says Kurt Søndergaard, the manager and CEO of IP Service. “Analizt has proven to be a very attractive and strong tool in the constant fight to keep strangers out of your company networks, and we expect to market our product worldwide in the security marked” Kurt Søndergaard adds.

Mr. Robert E Wolfe, CEO of AOXY is very pleased with this acquisition. “For some time, we have been looking for the right business to acquire. IP Service with its strong product in the security industry is a very attractive company in the strong and growing business sector of Internet and Network Security. The product is proven and ready for the market and we expect a strong reception in the market place”.

Mr. Kurt Søndergaard will stay as CEO of the Danish company and head the further development of security tools and implementation of Analizt ®. Mr. Søndergaard will further join the board of directors of AOXY Inc.

About IP Service ApS:
IP Service is a Danish based privately owned company. The business was founded in 1998 and incorporated in 2000 as a distributor and developer of e-security software products for global markets. ( www.ipservice.dk )

A family of products, Analizt®, has been developed based on a single core product. Analizt is a powerful Security Early Warning System that provides customer specific security vulnerability information based on the infrastructure in the specific computer network. The updated Analizt database contains ‘smart infrastructure’ and search capability. It is used to identify alerts within the network and provide solutions to these issues.

Except for historical information contained herein, this news release contains forward-looking statements that are dependent on risks and uncertainties including such factors, among others, as the pace at which new markets develop, the impact of competition and the company’s ability to implement timely responses to market conditions.




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