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Island Pacific (Pink Sheets:IPIN) announced today that they have completed the spin-off of their OnePointe Point of Sale (POS) division to Applied Retail Solutions, Inc. (ARS). ARS is a wholly owned subsidiary of 3Q Holdings Limited (ASX:TQH) based in Australia. OnePointe is a store-based POS solution for North American retailers in market segments such as apparel, footwear, entertainment, discount and variety. OnePointe has been installed in over 20,000 lanes since 1987. Through the strategic acquisition of Retail Technologies International in 2004, Island Pacific acquired Retail Pro(R); a Store Operations and Merchandising solution localized in 18 languages and fiscally localized for business in 73 countries. Retail Pro(R) is deployed in nearly 35,000 store locations around the world -- via 9,500 company customers. It is distributed and supported by a global network of retail industry focused Business Partners. Darren Williams, Island Pacific, COO, stated, "Divesting OnePointe now will allow us to better focus our Store Operations and POS business around Retail Pro(R), our robust product suite and drive accelerated revenue, growth and profits." Williams added that ARS would continue to maintain a close relationship with Island Pacific as both an independent Development Partner and a Business Partner. ARS CEO Davy Rosen stated, "We are excited about the opportunity to chart our own course and dedicate our efforts to OnePointe." Rosen has been closely involved in the development and implementation of retail software systems since 1981, including the OnePointe application. Williams concluded, "Both Island Pacific and ARS remain fully committed to supporting our mutual customers and continuing our good working relationship." About 3Q Holdings (TQH) 3Q Holdings is an Australian company listed on the Australian Stock Exchange (ASX). Since 1981 TQH has embraced the motto "Empowering retailers through technology". They are a software solutions provider servicing the retail market through various subsidiaries and offices in Australia, New Zealand, South Africa and the United States. TQH software products encompass Point of Sale, Central Retail Management Systems, Wholesale and Distribution and Clothing Production. They provide vertical end-to-end services that support the entire lifecycle including software design, implementation, systems integration and infrastructure support. For more information about TQH contact Alan Treisman at alan@threeq.com.au. About Island Pacific/Retail Pro(R) IP/Retail Pro(R) is a global leader in retail Merchandising, Store Operations, Planning, and Multi-channel software solutions. For more than 25 years, IP/Retail Pro(R) has developed a reputation for delivering high-quality, high-value, high-reliability software to the retail industry. As a result, IP/Retail Pro(R) is the definitive resource for scalable, flexible and affordable solutions for retailers around the world. IP/Retail Pro(R) software solutions manage billions of transactions annually in more than 35,000 store locations worldwide, in 73 countries, and 18 different languages. The company is headquartered in Irvine, California, has offices in the United States and the United Kingdom, and is represented by Business Partners in over 30 countries. For more information, please visit www.islandpacific.com. Certain statements contained in this news release regarding matters that are not historical facts are forward-looking statements. These statements relate to future events or the Company's future performance. These statements are only predictions. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors listed in the Company's Form 10-KA for the fiscal year ended March 31, 2004 and other risk factors identified from time to time in the Company's filings with the Securities and Exchange Commission. IPI undertakes no obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events. TRADEMARKS Island Pacific, Retail Pro(R) and Synaro are registered trademarks of Island Pacific, Inc., and may not be used without expressed, written permission.