iPerceptions - Customer Satisfaction Measurement

MONTREAL, QC – (Marketwire – October 26, 2007) - iPerceptions Inc. (TSX.V: IPE)
today reported that it completed its restatement of its financial statements and
filed today on SEDAR (www.sedar.com) its financial statements for the year-ending December 31, 2006.

On August 28, 2007, iPerceptions announced that upon the recommendation of its
newly appointed CFO and Audit Committee and with the concurrence of its independent
public accountants, its management has decided to delay the release of 2nd quarter
2007 interim consolidated financial statements and would restate its previously
issued financial statements for the fiscal year ending December 31, 2006, initially
issued within Demcap Investments Inc. Filing Statement for a Qualifying Transaction
dated May 30, 2007 and available on SEDAR.

The decision to restate and delay arose from management’s review of applicable
accounting principles applied in the past with regards to revenue recognition
and deferred revenues and has no bearing on the Corporation’s cash flows. As
part of the Company’s review of these transactions, certain other adjustments
were identified, including an adjustment of the foreign exchange gain and to the
contributed surplus related to the reorganization described in notes 11 and 18
of the Revised Consolidated Financial Statements.

The impact of management’s review resulted in the following adjustments to the
financial statements for the year ending December 31, 2006:

Review of revenue recognition accounting policy and deferred commissions

Management decided to adopt a new revenue recognition policy as at January 1,
2006. Prior to 2006, the Corporation was selling its offerings as a one-time service.
In late 2005, the Corporation started to offer its service on an annual subscription
basis with real-time online tools. The revised policy reflects the new business
model of the Corporation and it has the effect of shifting subscription revenues
from the period in which they were previously reported to subsequent periods.

In the previously issued December 31, 2006 financial statements, the application
subscription and quarterly or monthly updates revenue was recognized ratably over
the life of the application agreement, based on their relative fair value and
revenue associated with the initial in-depth report was recognized at the time
of delivery based on its relative fair value. Based on review of the facts, management
concluded that revenue associated with in-depth initial reports is inseparable
from the subscription revenue and quarterly or monthly reports and should be recognized
ratably over the term of the contracts.

iPerceptions’ revenues primarily now come from renewable annual contracts that
generate recurring revenues for the Corporation. Revenue is generally comprised
of subscription fees from customers accessing our applications as well as initial
in-depth report and quarterly or monthly update reporting.

Management reviewed the customers’ contracts for the year 2005 and concluded
that the previous revenue recognition policy was adequate and has not found any
related material error as at December 31, 2005.

Deferred commissions are the incremental costs that are directly associated with
non-cancelable subscription contracts with customers and consist of sales commissions
paid to the Corporation’s direct sales force. The commissions are deferred as
prepaid expenses and amortized on the same basis as related revenue. Sales commissions
are paid at the time of collection of the customer account receivable and are
recoverable in the event the customer terminates the service.

As a result of the adjustment to revenues, commission expenses were also adjusted
as they are deferred and amortized on the same basis as revenue. In addition,
management has changed the presentation of deferred commissions on the balance
sheet. The deferred commissions expenses are now presented as part of the prepaid
account on the balance sheet, where previously they were netted against commissions
due as part of accounts payable.

The impact of the change in revenue accounting policy resulted in a net overstatement
of revenues previously reported for the year 2006 of $492,378, and a net understatement
of deferred revenues previously reported for the year 2006 of $458,003. Substantially
all of this amount will be recognized in revenues in 2007.

The impact of the adjustments to deferred commissions resulted in an overstatement
of expenses previously reported for the year 2006 of $117,948. Substantially
all of this amount will be recognized in expenses in 2007.

In the aggregate, the impact of these adjustments resulted in a net overstatement
of $335,519 in consolidated earnings previously reported for the year ending December
31, 2006. Substantially all of this amount will be recognized in net earnings
in 2007. This restatement only impacts the timing of revenue recognized and does
not call into question the validity of the underlying transactions or cash flows.

Reorganization

The Corporation also revised the transactions related to the reorganization.
The contributed surplus and the foreign exchange have been adjusted to properly
account for foreign currency exchange rates as part of the reorganization on December
31, 2006 described in notes 11 and 18. The impact of this correction is an overstatement
of gain on foreign exchange previously reported for the year 2006 of $365,702.
The effect on the balance sheet is a reclassification from deficit to contributed
surplus of $365,702. The net effect of this adjustment on the shareholders’ Deficiency
is nil.

Review of financial statements presentation

Starting with the financial statements for the period ending June 30, 2007, management
has adopted a new presentation of the Consolidated Statement of Earnings which
is more comparable to financial presentation adopted by other publicly traded
companies operating under a Software As A Service business model.

Conclusion

"Our financial review process was thorough and comprehensive," said Martin Faucher,
appointed to the position of Chief Financial Officer of iPerceptions on June 5th,
2007. "The review covered two years of customer contracts. It required documentation
involving individual contracts and their revenue recognition and foreign currency
exchange impact. In addition, other adjustments were identified, investigated
and corrected. There is no change on the Corporation’s business potential and
the strength of current customer adoption, but in essence a misallocation of revenues
between reported periods," said Martin Faucher. "These restatements involve complex
software revenue recognition practices. The restatement is not a reflection on
our core business, but an indication of our commitment to address past accounting
issues and correct them. We reviewed the previous year’s financial statements
to ensure facts were properly taken into account and properly recorded," Mr. Faucher
added.

The Q1 2007 interim financial statements previously filed on SEDAR on July 9,
2007 will also be adjusted and filed on SEDAR shortly. The Q2 2007 interim financial
statements were filed on SEDAR as at the date hereof.

Our business continues to grow and management continues to focus on the execution
of our strategy and on profitable opportunities.

About iPerceptions

iPerceptions is one of North America’s leading web-focused attitudinal analytics
providers. Its webValidator Continuous Listening solution and its Proprietary
Satisfaction Index (iPSI) turn thousands of data points into easy-to-understand
strategic and tactical decision support for website marketers. iPerceptions’ clients
include such well known brands as InterContinental Hotels, General Motors, Dell
Computers, Hyundai, CompUSA, LG Electronics, Toshiba, Choice Hotels International,
BMW and Hilton Hotels. iPerceptions has offices in New York, Toronto and Montreal.

Forward-Looking Statements And Caution

Securities laws encourage companies to present forward-looking information to
provide investors with a better understanding of the Corporation’s future prospects
and to help them make informed decisions. The present press release of iPerceptions
contains forward-looking statements about the Corporation’s objectives, strategies,
financial position, results of operations, cash flows and activities, which are
based on Management’s current expectations, estimates and assumptions about the
markets in which it operates.

Statements based on Management’s current expectations contain known and unknown
risks and uncertainties. Forward-looking statements may include verbs such as
"believe," "anticipate," "estimate," "expect," "target" and "assess" or related
expressions. These statements represent iPerceptions’ intentions, plans, expectations
or beliefs and are subject to risks, uncertainties and other factors, many of
which are beyond the Corporation’s control. Actual results may vary materially
from forecasts. The reader is cautioned not to place undue faith in any forward-looking
statement. Please note that the forward-looking statements contained in this press
release describe our expectations as at October 26, 2007.

Additional information on the risk factors to which the Corporation is exposed
is available in the Risks Factors section of the Filing Statement dated May 30,
2007, which is available on SEDAR. This section addresses the risks, uncertainties
and other factors that could affect financial results. Forward-looking statements
do not take into account the effect that transactions or non-recurring or other
special items announced or occurring after the statements are made may have on
our activities. We disclaim any intention and assume no obligation to update any
forward-looking statements even if new information becomes available as a result
of future events or for any other reason unless required to do so by applicable
securities regulations.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy
of this press release.

Media Information

Jonathan Levitt
Vice President Marketing
iPerceptions Inc.
Tel: 514-488-3600
Fax: 514-484-2600

Investor information

Jerry Tarasofsky
Chief Executive Officer
iPerceptions Inc.
Tel: 514-488-3600
Fax: 514-484-2600

Martin Faucher
Chief Financial Officer
iPerceptions Inc.
Tel: 514-488-3600
Fax: 514-484-2600