Sale of patents

    02 July 2008

                                 ZONE-IP LTD.                                  

                         ("ZONE-IP" or the "Company")                          

                                Sale of patents                                

Zone-IP announces that its subsidiary, Emblaze-VCON Ltd ("Emblaze-VCON"), a
leading provider of video communications technologies and conferencing
solutions for government agencies, operators, broadcasters and corporate
enterprise markets over IP networks, has entered into an agreement to sell
certain patents and applications to Handheld Devices & Co., L.L.C ("Handheld
Devices") a company registered in Delaware.

Emblaze-VCON owns certain provisional patent applications, patent applications,
patents and/or related foreign patents and applications which the directors of
Emblaze-VCON believe are outdated, not used or only partially used in the
current Emblaze-VCON product lines.

Emblaze-VCON has entered into an agreement to sell the patents to Handheld
Devices. Handheld Devices has paid Emblaze-VCON US$3,200,000 in cash. Of the
proceeds, Emblaze-VCON has received US$1,623,000, net of payments to the Office
of the Chief Scientist of the Ministry of Industry and commissions' payable to
a firm of patent attorneys, which introduced the buyer to Emblaze-VCON, and
associated legal fees. The net proceeds of the sale of the patents will be
recorded in Emblaze-VCON's accounts as a capital gain and will be reflected in
the results of the financial period ended 30 June 2008. The net proceeds will
be used to enhance the working capital of the Company and its subsidiaries.

Under the terms of the agreement, Handheld Devices has granted Emblaze a
perpetual royalty-free license over all of the patents.

Enquiries:

ZONE-IP                                                                      
                                                                             
Hagit Gal, David Amir                          [phone]/ [phone]
                                                                             
John East & Partners Limited                                                 
                                                                             
Simon Clements                                            [phone]

Note to Editors:

About Emblaze-VCON

Emblaze-VCON, a subsidiary of ZONE-IP Ltd., is a world leader in the
development and deployment of Video over-IP Conferencing Solutions, enabling
enterprises of all sizes to optimize their productivity and efficiency through
enhanced interaction and communication. The Company designs, develops,
manufactures and markets high-performance, feature-rich desktop and group
videoconferencing systems designed for a variety of networks, including those
based on the Internet Protocol as well as infrastructure servers to manage the
video network and services.

More information is available at www.emblaze-vcon.com



END