IP synaro Software Suite Chosen by MotoSport Outlet

IRVINE, Calif.--Jan. 5, 2004--Island Pacific (AMEX:IPI) announced today that MotoSport Outlet, Inc. (MotoSport), a leading retail cataloger and direct merchant of competition motocross parts and accessories, has chosen its software suite of products to manage orders and support the company's rapid growth. The products to be implemented are offered by Page Digital, Island Pacific's alliance partner and a leading developer of multi-channel retail software applications.

The MotoSport order management and fulfillment system being replaced by IP was limiting its growth and lacked significant features and functionality required by today's multi-channel retailer. The IP synaro(R) Select Software Suite will give MotoSport the ability to increase market share, order value, and volumes due to the scalability of the software. Additionally, the software will allow MotoSport to negotiate better terms with its current drop ship vendors, help in identifying its best customers, and enable it to control its own technology direction. Key components include assisting in resolving customer service issues, simplifying warehouse management/shipping, and managing the order fulfillment process.

"Price and scalability were the two key decision factors for MotoSport," said Steve Beck, president and chief operating officer of Island Pacific. "We continue to execute on our mission to provide affordable, flexible and scalable solutions. Alliances, like the one we have with Page Digital, are an important part of our strategy to quickly and cost-effectively deliver on this commitment we have made to our customers. In the case of MotoSport, integration of all channels into a single database utilizing the IP synaro(R) Select Software Suite will enable it to meet its goals without worrying about the performance of its software solution."

About MotoSport Outlet

MotoSport Outlet (Blue Ribbon Motoring) is the world's price leader for all things motocross including everything from competition bike accessories to clothing to safety gear. All items are sold through its retail store, interactive e-Commerce site (www.motosport.com) and direct mail catalog.

About Page Digital Inc.

Page is a top-tier provider of proven multi-channel software applications designed to enable effective operational diversity. IP synaro(R) Software enhances business productivity and customer loyalty by providing seamless interaction with clients across all touch points including catalog, online, and brick-and-mortar. Existing technology investments are leveraged as IP synaro(R) enables seamless best-of-breed system components. Companies including Lands' End, IBM, Michaels Stores, FAO Schwarz, and Hershey Foods depend on IP synaro(R) to provide systems support for eCommerce, marketing, call centers, fulfillment, workflow, Email Response Management (ERM), forecasting, data mining, logistics, assembly, financials and more. For more information, visit www.synaro.com or call 1-800-569-1122.

About Island Pacific

For more than 25 years, Island Pacific has developed a reputation for delivering high-quality, high-reliability software to the retail industry. Recently, the company has transformed itself into the low-cost, high-value provider of retail enterprise solutions by developing breakthrough technologies, and by partnering with leading consulting organizations to provide next-generation services. In addition, Island Pacific leverages its years of experience with emerging and established retailers to craft creative solutions tailored for each customer's needs. As a result, Island Pacific is the definitive resource for scalable, flexible and affordable solutions for retailers around the world.

With nearly 200 customers, Island Pacific and its solutions are represented in more than 30,000 stores worldwide, and manage more than 1.5 billion transactions annually. Founded in 1978, the company is headquartered in Irvine, California, and has offices in the United States and the United Kingdom. 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 (SVI) Form 10-KA for the fiscal year ended March 31, 2003 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.

Editor's Note: Contact Ken Sgro, CEOCast, at 212-732-4300 or Ron Both, Liolios Group, at 949-574-3860 for investor relations information.