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MOIN











Path 1 Network Technologies Inc. Announces Second
Quarter Results; Leitch`s Strategic Investment
Strengthens Balance Sheet


SAN DIEGO--Aug. 11, 2000--Path 1 Network Technologies Inc.
(OTCBB:PNWK)(Frankfurt:PNT), the developer of TrueCircuit(TM)
technology, today announced the financial results for its second
quarter ending June 30, 2000.
"This has been a significant quarter for Path 1," said Dr. Michael T.
Elliott, chief executive officer. "We have strengthened our balance
sheet, added a significant strategic partner and have dramatically
enhanced our management team. We are now well positioned to
complete our development phase and begin taking our products to
market."
During the quarter Path 1 Network Technologies Inc. formed a
strategic alliance under which Leitch Technology Corp. invested US$10
million and 200,000 shares of Leitch for 1,250,000 newly-issued
shares of Path 1 Class A Common Stock. Leitch obtained the right to
incorporate Path 1`s TrueCircuit(TM) technology into their equipment
for sale to the broadcast industry.
"The strategic relationship with Leitch is a significant step in the
company`s strategy of partnering with strong companies to make
TrueCircuit(TM) technology a defacto standard," said Elliott. "We are
continuing to seek strategic partners to move us into other markets."
The relationship with Leitch is expected to have the effect of
accelerating the distribution of Path 1`s technology to the marketplace
through Leitch`s distribution channel.
During the second quarter, several senior members of management
were added to the company bringing significant depth to the
management team. Elliott joined the company as CEO in April,
Richard B. Slansky joined the company as chief financial officer,
corporate secretary & treasurer in May and Alan Remen joined the
company as vice president of corporate development also in May.
In addition, during the second quarter the company became a
reporting company under the Securities Exchange Act of 1934.
Achieving this status enabled the company`s Class A common stock to
resume trading on the OTC Bulletin Board.
The company recorded no material revenue in the quarter and does
not anticipate any significant revenue to be generated from its
products during this calendar year. For the three months ending June
30, 2000, the company recognized a net loss of US$6.1 million,
bringing the cumulative reported net loss for the six months ending
June 30, 2000 to US$9.1 million.
Over US$3.1 million of the net loss recorded in the second quarter
and over US$4.8 million of the net loss recorded in the first six
months of this year was due to non-cash charges for the grant of
stock options to employees and consultants. The company finished
the quarter ended June 30, 2000 with US$15.2 million in working
capital, which represents a US$15.0 million increase over the
US$200,000 in working capital at Dec. 31, 1999.
Path 1 Network Technologies Inc. was founded in January 1998
with the goal of becoming the world leader in providing "circuit
switched" quality of service (QoS) hardware and software for IP
networks, including the Internet. The company is developing products
to allow telephony/audio/video data to travel on one homogeneous IP
network. Additional information can be obtained from the company`s
Web site, www.path1.net.

This news release contains "forward looking statements"; i.e.,
statements which describe future expectations, plans, results, or
strategies, and are generally preceded by words such as "future,"
"plan" or "planned," "will" or "should," "anticipates" or "projected."
You are cautioned that such statements are subject to a multitude of
risks and uncertainties that could cause future circumstances, events,
or results to differ materially from those projected in the
forward-looking statements, including the risks that product
development will not be completed successfully, competing
technologies which are as good as or better than Path 1`s may arise,
and Path 1 may be unable to find suitable licensees and strategic
allies on suitable terms, as well as other risks identified in Path 1`s
Form 10/A filed with and declared effective by the SEC. You should
consider these factors in evaluating the forward-looking statements
included herein, and not place undue reliance on such statements.
The forward-looking statements are made as of the date hereof, and
Path 1 undertakes no obligation to update such statements.



Path 1 Network Technologies Inc.
Condensed Balance Sheets
(in thousands)

2000 1999
(Unaudited)
ASSETS
Current assets:
Cash and cash
equivalents $12,163 $ 454
Marketable securities,
available for sale
3,515 --
Deposits and prepaid
expenses 54 86

Total current assets 15,732 540

Property and equipment,
net 151 59

Investment in Jyra
Research Inc. 64 113


Total Assets $15,947 $ 712


LIABILITIES AND STOCKHOLDERS` EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $ 490 $ 282

Total current
liabilities 490 282

Commitments and contingencies -- --

Stockholders` equity:
Series A convertible preferred
stock, $0.001 par value; shares -- --
authorized -- 10;
no shares issued or outstanding
at June 30, 2000 and Dec. 31, 1999,
respectively
Common stock, $0.001 par
value; issuable in series: 8 6
Class A -- 20,000,000 shares
authorized; 7,812,651 and
6,087,651 shares issued and
outstanding at June 30, 2000 and
Dec. 31, 1999, respectively
Class B -- 10,000,000 shares
authorized; no shares issued or -- --
outstanding at June 30, 2000
and Dec. 31, 1999, respectively

Additional paid-in capital 35,772 10,264

Deferred compensation (7,747) (3,162)
Accumulated other
comprehensive gain 419 --

Deficit accumulated during
the development stage (12,995) (6,678)

Total stockholders` equity 15,457 430


Total liabilities and
stockholders` equity $ 15,947 $ 712

Path 1 Network Technologies Inc.
Condensed Statements of Operations
(in thousands, except per share amounts)
(unaudited)

Jan. 31,
1998
June 30, June 30, Through
2000 1999 2000 1999 June 30,
2000

Operating
expenses:
Research and
development
costs $ 3,258 $ 112 $ 4,736 $ 653 $ 6,745
Sales and
marketing 1,472 79 2,149 121 2,800

General and
administrative
expenses 1,487 492 2,267 644 6,278

Total operating
expenses (6,217) (683) (9,152) (1,418) (15,823)

Interest income,
net 77 4 95 5 122

Loss on investment
in Jyra
Research Inc. -- -- (49) -- (83)

Net Loss $ (6,140) $ (679) $ (9,106) $ (1,413) $(15,784)

Loss per common
share -- basic
and diluted $ (0.82) $ (0.13) $ (1.33) $ (0.27)

Weighted average
common shares
outstanding 7,513 5,403 6,834 5,207




CONTACT: Path 1 Technologies Inc.
Investor Relations:
Richard B. Slansky, Chief Financial Officer
858/450-4220
[e-mail]


gruß robby.r

[robby.r]

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Tour"

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RIDGELAND, MS -- (INTERNET WIRE) -- 08/10/00 -- pennyPI.com, Inc. (PPI)
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pennyPI.com`s near-term goal is to obtain video tours of the top 1,000 OTCBB,
Pink Sheet, and NasdaqSC companies, such as:

Telemonde, Inc. (OTCBB: TLMD) Path 1 Network Technologies Inc. (OTCBB:
PNWK) e-VideoTV Inc. (OTCBB: EVTV) recordLab(TM) Corporation (OTCBB:
RCLB)

ImmuLogic Pharmaceutical Corporation (OTCBB: IMUL) I-transaction.net
(OTCBB: ITNI) Save The World Air, Inc. (OTC: ZERO) Asante Technologies,
Inc. (OTCBB: ASNT) Capita Research Group, Inc. (OTC Bulletin Board:
CEEG) Cellpoint (OTCBB: CLPT)

mehr info unter www. Bloomberg.com

[robby.r]

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
For the quarterly period ended June 30, 2000.
or

[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
For the transition period from ____________ to____________.

Commission File Number (000-30704)

PATH 1 NETWORK TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)

DELAWARE 13-3989885
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)



3636 NOBEL DRIVE, SUITE 275, SAN DIEGO, CALIFORNIA 92122
[phone]
(Address, including zip code, and telephone number, including
area code, of
principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes [ ] No [X]

The number of shares outstanding of the issuer`s Class A Common Stock, US$.001 par value,
as of July 5, 2000 was 7,937,651. No shares of the issuer`s Class B Common Stock are
outstanding.


TABLE OF CONTENTS

CONDENSED BALANCE SHEETS 3
CONDENSED STATEMENTS OF OPERATIONS 4
CONDENSED STATEMENTS OF CASH FLOWS 5
NOTE 1 - BASIS OF PRESENTATION 6
NOTE 2 - MANAGEMENT ESTIMATES AND ASSUMPTIONS 6
NOTE 3 - NET LOSS PER SHARE 6
NOTE 4 - PRIVATE PLACEMENT OFFERING 6
NOTE 5 - TRANSACTIONS WITH LEITCH TECHNOLOGY CORPORATION 7
NOTE 6 - STOCK OPTIONS 7
ITEM 2. MANAGEMENT`S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS 7
FORWARD LOOKING STATEMENTS 7
OVERVIEW 8
LIQUIDITY AND CAPITAL RESOURCES 9
RESULTS OF OPERATIONS 10
RISK FACTORS THAT MAY AFFECT FUTURE RESULTS 11




ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET

RISK 19
PART II - OTHER INFORMATION 19

ITEM 1. LEGAL PROCEEDINGS 19

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS 19

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 20

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 20
ITEM 5. OTHER INFORMATION 20

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 20
SIGNATURES 21

PATH 1 NETWORK TECHNOLOGIES INC.

CONDENSED BALANCE SHEETS
(in thousands)


June 30,
December 31,
2000 1999
ASSETS (Unaudited) (Audited)
--------- ---------
Current assets:
Cash and cash equivalents.................. $ 12,163 $ 454
Marketable securities, available for sale.. 3,515 -
Deposits and prepaid expenses.............. 54 86
Total current assets..................... 15,732 540

Property and equipment, net................. 151 59

Investment in Jyra Research, Inc............ 64 113

Total Assets................................ $15,947 $ 712



LIABILITIES AND STOCKHOLDERS` EQUITY
Current liabilities:
Accounts payable and accrued liabilities... $ 490 $ 282
Total current liabilities................ 490 282

Commitments and contingencies............... - -

Stockholders` equity:
Series A convertible preferred stock, $0.0001 par - -
value; shares authorized - 10; no shares issued or
outstanding at June 30, 2000 and December 31, 1999,
respectively
Common stock, $0.001 par value; issuable in series: 8 6
Class A - 20,000,000 shares authorized; 7,812,651
and 6,087,651 shares issued and outstanding at
June 30, 2000 and December 31, 1999, respectively
Class B - 10,000,000 shares authorized; no - -
shares issued or outstanding at June 30, 2000
and December 31, 1999, respectively
Additional paid-in capital................. 38,816 10,264
Deferred compensation...................... (8,002) (3,162)
Accumulated other comprehensive gain....... 419 -
Deficit accumulated during the development stage (15,784) (6,678)
Total stockholders` equity.............. 15,457 430

Total liabilities and stockholders` equity.. $ 15,947 $ 712



PATH 1 NETWORK TECHNOLOGIES INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

(unaudited)


Three Months Six Months January 31, 1999
Ended June 30, Ended June 30, through
2000 1999 2000 1999 June 30, 2000
Operating expenses:
Research and development costs.. $3,258 $ 112 $ 4,736 $ 653 $ 6,745
Sales and marketing............. 1,472 79 2,149 121 2,800
General and administrative
expenses...................... 1,487 492 2,267 644 6,278
Total operating expenses..... (6,217) (683) (9,152) (1,418) (15,823)


Interest income, net............. 77 4 95 5 122
Loss on investment in Jyra
Research, Inc................. - - (49) - (83)

Net Loss.........................$(6,140) $(679) $(9,106) $(1,413) $(15,784)

Loss per common share -
basic and diluted.............$ (0.82) $(0.13) $ (1.33) $ (0.27)

Weighted average common shares
outstanding................... 7,513 5,403 6,834 5,207




PATH 1 NETWORK TECHNOLOGIES INC.

CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)

(unaudited)


January 31, 1998
Six Months Ended (inception)
June 30, through
2000 1999 June 30, 2000
Cash flows from operating activities:
Net loss.............................. $ (9,106) $ (1,413) $(15,784)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization......... 62 9 92
Amortization of deferred compensation. 1,608 418 4,327
Common stock issued to employees by
principal stockholders............... - - 330
Common stock options issued for services 3,232 110 330
Loss on investment in Jyra Research, Inc. 49 - 3,617
Changes in assets and liabilities:
Other current assets.................. 32 (5) (54)
Accounts payable and accrued liabilities 208 9 491
Cash used in operating activities.. (3,915) (872) (6,898)

Cash flows from investing activities:
Purchases of property and equipment.... (154) (6) (244)
Cash used in investing activities.. (154) (6) (244)

Cash flows from financing activities:
Issuance of common stock for cash, net 15,778 1,596 19,305
Cash provided by financing activities 15,778 1,596 19,305

Increase in cash and cash equivalents... 11,709 718 12,163




Cash and cash equivalents, beginning of period 454 119 - Cash and cash equivalents, end of
period $12,163 $ 837 12,163

Supplemental disclosure of noncash investing activities:
Issuance of Series A convertible preferred
stock in exchange for investment in Jyra
Research, Inc......................... $ - $ - $ 147
Issuance of common stock for marketable
securities............................ $ 3,096 $ - $ 3,096




NOTE 1 - BASIS OF PRESENTATION

The accompanying condensed balance sheet as of June 30, 2000, the condensed statements of
operations for the three and six month periods ended June 30, 2000 and 1999 and for the
period from January 31, 1998 (inception) to June 30, 2000, and the condensed statements of
cash flows for the six month periods ended June 30, 2000 and 1999 and for the period from
January 31, 1998 (inception) to June 30, 2000 have been prepared by Path 1 Network
Technologies Inc. (the "Company"), and have not been audited. These quarterly financial
statements, in the opinion of management, include all adjustments, consisting only of normal
and recurring adjustments, necessary to state fairly the financial information set forth therein, in
accordance with generally accepted accounting principles. These financial statements should be
read in conjunction with the financial statements and notes thereto for the year ended
December 31, 1999 included in the Company`s Form 10/A filed June 19, 2000. The interim
financial information contained in this filing is not necessarily indicative of the results to be
expected for any other interim period or for the full year ending December 31, 2000.

NOTE 2 - MANAGEMENT ESTIMATES AND ASSUMPTIONS

The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those
estimates.

NOTE 3 - NET LOSS PER SHARE

Basic and diluted net loss per share has been computed in accordance with Statement of
Financial Accounting Standards (SFAS) No. 128, "Earnings Per Share," using the
weighted-average number of shares of common stock outstanding during the period including
any dilutive common stock equivalents. Common stock equivalents for the three and six
months ending June 30, 2000 and 1999 were excluded from the calculation of diluted earnings
per share because of the anti-dilutive effect.

Pursuant to Securities and Exchange Commission Staff Accounting Bulletin No. 98, common
shares, if any, issued in each of the periods presented for nominal consideration would be
included in the per share calculations as if they were outstanding for all periods presented. No
such shares have been issued.

NOTE 4 - PRIVATE PLACEMENT OFFERING

In May 1999, the company authorized a private placement offering of up to 1,250,000 shares
of Class A Common Stock to accredited investors at a price of US$8.00 per share. Between
January 1, 2000 and May 31, 2000, the Company sold 600,000 shares of Class A Common
Stock to accredited investors pursuant to this offering, resulting in net cash proceeds totaling
approximately US$4.6 million. In connection with the offering, the Company granted options
to purchase 30,000 shares of Class A Common Stock at an exercise price of US$8.00 per
share through February 2007 as payment for finder`s fees, and incurred other offering
expenses of US$190,000.

NOTE 5 - TRANSACTIONS WITH LEITCH TECHNOLOGY CORPORATION

In April 2000, the Company sold 1,250,000 shares of its Class A Common Stock in a private
placement to Leitch Technology Corporation ("Leitch") for US$8.00 per share, resulting in
gross proceeds of US$10.0 million. The Company also received 200,000 shares of Leitch
common stock with a fair value at the date of the transaction of US$3.1 million. Leitch`s
common stock is publicly traded on the Toronto Stock Exchange under the symbol "LTV" and
on the NASDAQ National Market under the symbol "LVID". In conjunction with the private
placement, the Company entered into a technology license agreement with Leitch and provided
Leitch a non-exclusive worldwide royalty bearing license (except as to TrueCircuitT
technology in products designed for the professional video market, which is subject to an
exclusive royalty bearing license in favor of Leitch) to utilize the Company`s intellectual
property to develop and sell products which incorporate its proprietary TrueCircuitT
technology. The Class A Common Stock sold to Leitch are subject to Rule 144`s restrictions
on resale as they were unregistered securities purchased in a private transaction.

NOTE 6 - STOCK OPTIONS

During the six month period ended June 30, 2000, the Company granted 2,060,410 stock
options to employees and consultants with vesting periods ranging from immediate to four
years. The options are for the purchase of 46,250 shares of Class A Common Stock at an
exercise price of US$8.00 per share and 2,014,160 shares of Class B Common Stock at an
exercise price of US$4.35 per share. During the six month period ended June 30, 2000, the
Company recorded compensation expense of US$4.8 million related to options outstanding to
employees and consultants.


ITEM 2. MANAGEMENT`S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

FORWARD LOOKING STATEMENTS

This document may contain forward-looking statements. These statements relate to future
events or our future financial performance. In some cases, you can identify forward-looking
statements by terminology such as "may," "will," "should," "except," "plan," "anticipate,"
"believe," "estimate," "predict," "potential" or "continue," the negative of such terms or other
comparable terminology. These statements are only predictions. Actual events or results may
differ materially.

Although we believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
Moreover, neither we nor any other person assumes responsibility for the accuracy and
completeness of the forward-looking statements. We are under no duty to update any of the
forward- looking statements after the date of this report to conform such statements to actual
results or to changes in our expectations. Except to the extent required by federal law, we
disclaim any duty to update any of the forward-looking statements after the date of this report
to conform such statements to actual results or to changes in our expectations.

Readers are also urged to carefully review and consider the various disclosures made by us
which attempt to advise interested parties of the factors which affect our business, including
without limitation the disclosures made under the captions "Management`s Discussion and
Analysis of Financial Condition and Results of Operations" and "Risk Factors" included herein
or in the Company`s Registration Statement on Form 10/A and other reports and filings made
with the Securities and Exchange Commission.

OVERVIEW

Over the next several years we expect a significant increase in the number of audio, video and
telephony transmissions over the Internet, and accordingly that there will be a market for
products, which can enable wired data transmission networks to handle equally adeptly each
of these kinds of transmissions. We plan to position ourselves at the forefront of this movement
through the introduction of products based on our proprietary TrueCircuitT technology. Our
TrueCircuitT technology is capable of enabling the efficient transmission of all communications
over a single network and bringing high-level quality of service (QoS) and real-time audio,
video and telephony capabilities to the Internet and to standard Internet Protocol (IP)
networks. Our intended real-time data delivery product line for business and, ultimately, the
home would have the potential to change the way video content is produced and delivered.
For example, TrueCircuitT would enable the producer of video to transmit the video digitally
over an Ethernet network tousers, who would receive it with negligible latency or jitter. This
allows for the replacement of the current method of using analog video and facilitates a 100%
digital approach to video production, distribution, editing and broadcast. Businesses and
ultimately, homes could then receive digital video over the Internet. In addition, we expect
TrueCircuitT would ensure that a phone call placed over the Internet will be delivered as
reliably as calls made over today`s telephone network by guaranteeing the same end- to-end
quality of service presently provided by existing telephone networks. Among other benefits,
our intended products would also enable improved interaction of computers, telephone
equipment, video equipment and network appliances.

As it operates today, IP (which is simply a common set of procedures, conventions and rules
to link together computers and information across the world) fragments information into
packets of data and automatically routes these packets to their correct destination via
intermediate switching nodes called IP routers. This process, known as "packet-switching",
does not ensure that packets will arrive in the same order in which they were sent, or that they
will arrive at their destinations in a timely manner.

Packet-switching works best for transmission of data, which is tolerant of packet re-ordering
and large variations in transmission time (known as "jitter"). Jitter causes the recipient of an
audio or video transmission to experience a jerky or otherwise imperfect signal. Lengthy
download times are often experienced as packets respectively arrive. In contrast, the
transmission of real-time signals, including audio and video, requires timely, predictable and
consistent delivery. Traditional telephone networks use "circuit-switching" to meet the needs of
real-time audio signals. Circuit-switching ensures that a communications signal always has a
consistent, fixed point- to-point path, or "channel", from source to destination. Because
circuit-switching maintains a constant route, it minimizes end-to- end delays and jitter.
However, traditional circuit-switching is not practical for many of today`s Internet uses due to
its relatively rigid and inflexible structure.

Our technology addresses the inherent deficiencies in the delivery of audio and video data as
applied to transmission of real-time signals by superimposing a circuit-switched infrastructure
on standard IP networking, while maintaining full compatibility with existing IP networks.

LIQUIDITY AND CAPITAL RESOURCES

Since our inception on January 31, 1998 we have financed our operations primarily through
the sale of common equity securities to investors and strategic partners. The funds are currently
invested in U.S. Treasury and government agency obligations and investment-grade corporate
obligations. We also hold stock in two corporate partners, which they issued directly to us.

At June 30, 2000, we had net working capital of US$15.2 million compared to US$258,000
at December 31, 1999. Cash, cash equivalents and marketable securities totaled US$15.7
million at June 30, 2000 compared to US$454,000 at December 31, 1999. For the next
several years, we expect to incur substantial additional expenditures associated with research
and development in addition to increased costs associated with staffing for management and
administration functions. We anticipate that our existing resources will enable us to fund
operations for a minimum of one year.

Cash used for operating activities during the six months ended June 30, 2000 and 1999 was
US$3.9 million and US$900,000, respectively. This increase was primarily the result of an
increase in personnel expenses, promotional and marketing expenses, recruiting fees and other
operating costs.

Cash used for investing activities during the six months ended June 30, 2000 and 1999 was
US$154,000 and US$6,000, respectively. This increase was primarily the result of the
purchase of computers and other equipment.

Cash provided by financing activities during the six months ended June 30, 2000 and 1999
was US$15.8 million and US$1.6 million, respectively. This increase was primarily due to the
proceeds from the private placement with Leitch Technology Corporation and other private
placement issuances.

We have no material commitments other than our operating leases. Our future capital
requirements will depend upon many factors, including the timing of research and product
development efforts and expansion of our general and administrative functions and marketing
efforts. We expect to continue to expend significant amounts on research and development
staffing, infrastructure and computer equipment to support on-going research and development
activities.

In April 2000, we sold 1,250,000 shares of our Class A Common Stock in a private
placement to Leitch for US$8.00 per share, resulting in gross proceeds of US$10,000,000.
We also received 200,000 shares of Leitch common stock with a fair market value at the date
of the transaction of US$3.1 million. In conjunction with the private placement, we entered into
a technology license agreement with Leitch and provided Leitch a non-exclusive worldwide
royalty bearing license (except as to TrueCircuitT technology in products designed for the
professional video market, which is subject to an exclusive royalty bearing license in favor of
Leitch) to utilize our intellectual property to develop and sell products incorporating our
TrueCircuit technology.

We may pursue a number of options to raise additional funds, including borrowings; lease
arrangements; collaborative research and development arrangements with technology
companies; the licensing of product rights to third parties; or additional public and private
financing. There can be no assurance that funds from these sources will be available on
favorable terms, or at all. If we raise additional funds through the issuance of equity securities,
the percentage ownership of our stockholders will be reduced, stockholders may experience
additional dilution or such equity securities may provide for rights, preferences or privileges
senior to those of the holders of our common stock.

RESULTS OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2000 VS. THREE MONTHS ENDED
JUNE 30, 1999

Our revenues were immaterial in both the second quarter of 2000 and the second quarter of
1999.

Our research and development expenses increased from US$112,000 for the quarter ended
June 30, 1999 to US$3.2 million for the quarter ended June 30, 2000. The increase of
US$3.1 million is primarily due to new employees and higher personnel expenses for
engineering staff and US$2.7 million from the recognition of compensation expense associated
with the issuance of stock options below estimated fair value. Increased cash expenditures
were made possible by the receipt of equity financing.

Our sales and marketing expenses increased from US$79,000 for the quarter ended June 30,
1999 to US$1.5 million for the quarter ended June 30, 2000. The increase of $1.3 million is
primarily due to an increase in promotional and product marketing expenses and US$0.6
million from the recognition of compensation expense associated with the issuance of stock
options below estimated fair value. Increased cash expenditures were made possible by the
receipt of equity financing.

Our general and administrative expenses increased from US$492,000 for the quarter ended
June 30, 1999 to US$1.5 million for the quarter ended June 30, 2000. The increase of
US$1.0 million is primarily due to higher consulting and legal expenses.

Our interest income increased from US$4,000 for the quarter ended June 30, 1999 to
US$77,000 for the quarter ended June 30, 2000. This increase was due to higher average
cash balances during the quarter ended June 30, 2000.

SIX MONTHS ENDED JUNE 30, 2000 VS. SIX MONTHS ENDED JUNE 30, 1999

Our revenues were immaterial in both the first six months of 2000 and the first six months of
1999.

Our research and development expenses increased from US$653,000 for the six months
ended June 30, 1999 to US$4.7 million for the six months ended June 30, 2000. The increase
of US$4.0 million is primarily due to higher expenses for consulting, higher engineering staff
headcount and higher expenses for prototype materials and equipment and US$3.3 million
from the recognition of compensation expense associated with the issuance of stock options
below estimated fair value.

Our sales and marketing expenses increased from US$121,000 for the six months ended June
30, 1999 to US$2.1 million for the six months ended June 30, 2000. The increase of US$2.0
million is primarily due to an increase in promotional and product marketing expenses and
US$1.1 million from the recognition of compensation expense associated with the issuance of
stock options below estimated fair value.

Our general and administrative expenses increased from US$644,000 for the six months
ended June 30, 1999 to US$2.3 million for the six months ended June 30, 2000. The increase
of US$1.7 million is primarily due to higher consulting and legal expenses and US$0.4 million
from the recognition of compensation expense associated with the issuance of stock options
below estimated fair value mainly to executive search consultants for recruiting key members of
management.

Our interest income increased from US$5,000 for the six months ended June 30, 1999 to
US$95,000 for the six months ended June 30, 2000. The increase of US$90,000 was due to
higher average cash balances during the six months ended June 30, 2000, which included
proceeds from a private placement with Leitch completed in April of 2000. Cash from this
private placement enabled us to increase our spending in various expense categories in the
2000 period.

Our other expense increased from zero for the six months ended June 30, 1999 to US$49,000
for the six months ended June 30, 2000. The increase of US$49,000 is due to a loss recorded
in conjunction with the decline in the fair market value of our investment in Jyra Research, Inc.,
that was determined to be other than temporary.

RISK FACTORS THAT MAY AFFECT FUTURE RESULTS

YOU SHOULD CAREFULLY CONSIDER THE FOLLOWING RISK FACTORS AND
THE OTHER INFORMATION INCLUDED HEREIN AS WELL AS THE
INFORMATION INCLUDED IN OUR FORM 10/A FILED ON JUNE 19, 2000, AND
OTHER REPORTS AND FILINGS MADE WITH THE SECURITIES AND EXCHANGE
COMMISSION BEFORE INVESTING IN OUR COMMON STOCK. OUR BUSINESS
AND RESULTS OF OPERATIONS COULD BE SERIOUSLY HARMED BY ANY OF
THE FOLLOWING RISKS. THE TRADING PRICE OF OUR COMMON STOCK
COULD DECLINE DUE TO ANY OF THESE RISKS, AND YOU MAY LOSE PART
OR ALL OF YOUR INVESTMENT.

IT IS DIFFICULT TO EVALUATE OUR BUSINESS BECAUSE WE HAVE NOT
YET LAUNCHED ANY PRODUCTS COMMERCIALLY.

We have a relatively brief operating history. We were incorporated in January 1998 and
commenced operations in May 1998. We do not yet have any products in commercial
production. Accordingly, we are subject to all of the risks associated with new business
ventures including, without limitation, those associated with raising capital, acquiring or
developing products which function as intended, arranging for suitable manufacturing facilities,
entering into strategic relationships with other companies, identifying and retaining necessary
personnel, establishing and penetrating markets for our proposed products and achieving
profitable operations.

WE NEED MORE WORKING CAPITAL TO EXPAND OUR BUSINESS, AND OUR
PROSPECTS FOR OBTAINING ADDITIONAL FINANCING ARE UNCERTAIN.

As we are a new business with no sales or revenues to date, we anticipate that we will require
additional financing to fund expansion, to develop new or enhance existing services or
products, to respond to competitive pressures or to acquire complementary products,
businesses or technologies. If additional funds are raised through the issuance of equity or
equity-linked securities, the percentage ownership of our stockholders would be reduced. In
addition, these securities may have rights, preferences or privileges senior to the rights

[robby.r]

PATH 1 NETWORK TECHNOLOGIES INC. LAUNCHES PG1 HIGH-END VIDEO GATEWAY AT IBC
2000



(SAN DIEGO, CA-September 7, 2000) - Path 1 Network Technologies
Inc. (OTC Bulletin Board: PNWK, Frankfurt: PNT) will introduce and
demonstrate its PG1 TrueCircuitä Video Gateway at the International
Broadcasting Convention (IBC) held in Amsterdam September 8-12, 2000. The
demonstration is designed to show three streams of 270 Megabit uncompressed
broadcast-quality video and audio being sent through an IP/Ethernet network
resulting in a single fiber utilization of over 94%. The demonstration will
be viewable in the Leitch Technology Corporation (TSE: LTV; NASDAQ: LVID)
booth.



The PG1 is a TrueCircuitä gateway device which can move
broadcast-quality serial digital video streams to a gigabit IP/Ethernet
network. There are approximately 1,200 broadcast studios that could
potentially benefit from using multiple PG1s in their planned transition to
digital television. The device also allows broadcasters to converge IT
networks with their video networks to reduce overall cost and increase
management effectiveness of their total network solutions.



TrueCircuitä is a proprietary technology that enables time-critical
information to be carried over IP (Internet Protocol) Ethernet with guaranteed
QoS (Quality of Service) levels generally associated with circuit-switched
networks, thereby eliminating the reluctance of studio broadcasters to move to
IP networks. TrueCircuitä technology provides quality of service (QoS)
guarantees for both real-time and non-real-time traffic over an IP network.
The IBC demonstration plans to show TrueCircuitä co-existing with standard
IP/Ethernet switches. TrueCircuitä`s ability to synchronize IP equipment
allows all the video and audio streams to be precisely synchronized, according
to the broadcast industry standards. To Path 1`s knowledge, this will be the
first time any company will have demonstrated multiple, synchronized
broadcast-quality uncompressed video over an IP network using standard Gigabit
Ethernet links.



About Path 1 Network Technologies Inc.


Path 1 Network Technologies Inc. was founded in January 1998 with
the goal of becoming the world leader in providing "circuit switched" quality
of service (QoS) hardware and software for IP networks, including the
Internet. The Company is developing products to allow telephony/audio/video
data to travel on one homogenous IP network. Additional information can be
obtained from the Company`s Web site, www.path1.net.



About TrueCircuitä



TrueCircuit is Path 1`s proprietary technology that automatically
and instantaneously sets-up and tears-down protected virtual channels within
an IP network or Ethernet LAN for satisfying the needs of real-time
applications such as voice over IP and live video.



About Leitch Technology Corporation



Leitch is a leading supplier of products to the broadcast and video industry.
Leitch is based in Toronto, Canada. Its Web site is located at www.leitch.com.




Contact Information for Path 1 Network Technologies Inc.:

Richard B. Slansky

Chief Financial Officer

[phone]

[e-mail]

[robby.r]

Upcoming Events


Products Featured at IBC 2000
9/08/2000 - 9/12/2000

Amsterdam

Leitch Announces Products to be Featured at IBC
2000

Leitch will unveil a number of innovative new products, as
well as demonstrate many industry favorites, at IBC 2000 in
Amsterdam in September.

SERVERS

Further expanding the capabilities of the well-established
Leitch server line is the VR475 MPEG-2 full-featured video
editor, which will be integrated with the recently launched
VR440™ and VR420™ MPEG-2 broadcast video servers.
Leitch was the first company to incorporate high-bandwidth,
centralized Fiber Channel storage, integrated software RAID
technology, and advanced multi-format codec technology
into its servers.

Leitch will demonstrate the original incarnation of VR
Technology™, the VR300™ video server, which features
50 GB Fiber Channel drives and represents a new archiving,
browse and WAN solution for moving data over existing
networks. The new VR420 allows up to 30 simultaneous
channels to have instant access to shared media — without
restrictions or risk. The new high-density VR440 MPEG-2
Transmission Server features four independent, bi-directional
I/O channels in a 4RU frame and is configurable to more
than 40 channels.

SOFTWARE

Along with cutting-edge hardware, Leitch will introduce its
innovative new software technologies, ORCA and BO/S™
(Broadcast Operating System), which allow for full network
control and monitoring of all hardware parameters, utilizing
state-of-the-art architectural techniques for all Leitch
products and third party devices through SMPTE
standardization.

Other introductions include Leitch’s full bandwidth video
over IP solution, utilizing its proprietary TrueCircuit™
technology, which guarantees quality of service over existing
IP infrastructures, without the need for additional buffering.

INTERFACE PRODUCTS

Building on the success of the Monarch™ aspect ratio
converter, which also provides reference-quality 10-bit
encoding and decoding in a 1RU frame, Leitch will show the
new DFS-3005 multiformat synchronizer, which supports an
"anything in, anything out" mode of operation. The
DFS-3005 is designed to meet hybrid conversion and
synchronization applications in the broadcast, production,
mobile, teleport and telco environments.

IBC provides an opportunity for Leitch to showcase the
newest additions to its popular Integrator line of multi-format
routers, with a new AES/EBU synchronous model that
allows mixing of analog or digital signals and offers up to
128x128 in just 8RU. Innovative router configuration
software will also be debuted, along with networked control
over TCP/IP.

Leitch’s unique solution for upgrading existing digital audio
infrastructures to carry multichannel audio, the Diamond
Audio™ compression system, will also be launched at IBC.
Enabling audio compression at 16/20/24-bit resolution and
16/20/24-bit AES transport, the new, higher-resolution
audio compression system will allow users to handle
multilingual broadcasting, 5.1 surround sound, and other
multi-channel applications.

Visitors will find that Leitch’s established ranges of Genesis,
DigiBus®, and 6800 series interfaces have been expanded,
and strong emphasis has been placed on providing
innovative solutions for processing and synchronization.

The SPG-1600 "Sync in the Sky" Master/Slave Sync
Generator creates sync signals (PAL and NTSC
simultaneously), which are locked to GPS/UTC (Global
Positioning System/Universal Time Code).

HDTV PRODUCTS

Leitch will demonstrate its highly successful range of HDTV
equipment at IBC, including the Juno™ Upconverter, which
provides advanced motion-adaptive conversion of SDTV to
HDTV (options include 1080i, 720p and 480p60 formats)
in a 2RU frame. Juno offers comprehensive image
processing, highly sophisticated noise reduction, audio
delay/resynchronization, film detection and delay pulse
output.

DigiBus HD Glue products will also be shown, including
frame synchronizers and logo generators/inserters, as well as
the Opus™ multi-channel, master control switcher, which is
designed to meet all of today’s high- and standard-definition
challenges. Opus incorporates 8:4:4 video processing
throughout for optimum video performance and features
preset-to-program bus transitions including mix, vee,
fade-cut, cut-fade and wipes as standard.

[robby.r]

Upcoming Events


International Shows
8/30/2000 - 12/31/2000

Worldwide


September 8-12, 2000
IBC 2000
International Exhibition & Congress Centre
Amsterdam
Netherlands

September 13-16, 2000
RTNDA
Minneapolis Convention Center
Minneapolis, MN
USA

September 14-15, 2000
Central New York Regional SBE Convention
Turning Stone Resort
Verona, NY
USA

September 22-25, 2000
AES
Los Angeles Convention Center
Los Angeles, CA
USA

October 3-4, 2000
Pittsburgh Regional SBE Convention
Sheraton Inn
Pittsburgh, PA
USA

October 4-5, 2000
Rocky Mountain Film and Video
Hammons Convention Center
Denver, CO
USA

October 11-12, 2000
Electronic Media Expo
Meydenbauer Center
Bellevue, WA
USA

October 17-19, 2000
2000 Broadcasters Clinic
Marriot Madison West
Madison, WI
USA

October 17-20, 2000
CAPER
Buenos Aires
Argentina

October 18-21, 2000
SMPTE Technical Conference & Exhibition
Pasadena Center
Pasadena, CA
USA

November 14, 2000
WABE
Telus Convention Center
Calgary, Alberta
Canada

November 15-17, 2000
InterBee
Nippon Convention Center
Chiba City
Japan

November 29-30, 2000
Government Video Technology Expo
Washington DC Convention Center
Washington D.C.
USA

December 6-8, 2000
DTV 2000
Hyatt Regency
Atlanta, GA
USA

[Checker]

sieht doch ganz gut aus! die arbeiten wirklich was, nicht zu vergleichen mit jyra....

[german]

@robby.r

Danke für Deine Beiträge!

Mir würde der PNWK-Thread im Internet-Board reichen.

Bei zwei Threads in unterschiedlichen Boards kann ich zwar noch locker die Übersicht behalten, würde mir dann jedoch wünschen, Neues zu Path1 in beiden zu lesen. Sonst wird in dem einen Thread mit Bezug auf einen Beitrag in dem anderen was mitgeteilt, es zerfranst sich und wird manchmal mühselig, weil der Kontext fehlt.

Mein Vorschlag ist:

Den Path1-Thread im Internet-Board weiterzuführen und diesen hier zu beenden. Was meinst Du dazu?

Gruß - german

[robby.r]

einverstanden

dieser thread sollte nur zur news sammlung sein,
da man halt in kürze einen besseren überblick hat.

denke mal in naher zukunft wird so einiges auf uns zukommen
wenn man sich den terminkalender ansieht
hoffe natürlich auf positives

bis die tage
gruß robby.r

[german]

Du hast meine Erwartungen übertroffen, robby.r Es war und ist mir jedoch auch wichtig, die Netikette gegenüber dem Thread-Eröffner zu beachten.

Wenn sich die News bei Path1 derart häufen sollten, dass eine Aufteilung in einen Diskussions- und News-Thread Sinn macht, sollten beide aber im selben Board stehen.

Den Optimismus, von Path1 in Zukunft mit ständigen News eingedeckt zu werden, teile ich nicht.

Gruß - german

[robby.r]

OPTIMISMUS ist nun mal das A+O bei mir

weniger ist häufig mehr

so muß nun formel1 schauen