On October 27, 2005, the Company, Tdsoft and shareholders of Tdsoft entered into a Share Sale and Purchase Agreement. The consummation of the transaction is subject to, among other matters, approval by the Company’s shareholders. The Company’s shareholders are scheduled to vote on the transaction on November 24, 2005.

About Tdsoft Ltd.

Tdsoft is a leading global provider of voice-over-IP (VoIP) gateways for carriers. At the forefront of gateway development for over a decade, Tdsoft’s solutions enable telecommunications service providers to leverage existing infrastructure while migrating smoothly to the new public network. Deployed worldwide by dozens of major carriers seeking best-of-breed solutions, Tdsoft’s standards-based VoIP gateways are interoperable with leading Class 5 legacy switches and softswitches. Tdsoft is privately owned with strong investor backing from prominent US and international venture capital firms and corporations.

www.tdsoft.com

About VocalTec Communications Ltd.

VocalTec is a telecom equipment provider offering next generation network (NGN) VoIP carrier class call control and hosted telephony platforms. Our customer base includes Deutsche Telekom, Intelcom San Marino (a subsidiary of Telecom Italia Sparkle), RomTelecom and Hanoi Telecom. The company’s flagship Essentra(R) Softswitch Platform offers carriers a rich set of residential and enterprise telephony services, supporting both legacy and advanced IP based multimedia devices. VocalTec’s products provide carriers with call control, interface to legacy telephone systems as well as peering with other NGN. Being first to the VoIP market, VocalTec continues to offer most innovative and advanced telecommunication solutions for carriers and service providers who migrate from legacy TDM to NGN.

www.vocaltec.com

NOTE: VocalTec is a registered trademark of VocalTec Communications Ltd. Other trademarks are the property of their respective holders. Certain statements contained in this release may contain “forward-looking” statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations of VocalTec Communications’ management and are naturally subject to uncertainty and changes in circumstances. The forward-looking statements contained herein include information with respect to plans, projections or the future performance of VocalTec Communications or any of its subsidiaries or businesses or any of its customers, the occurrence of which involves certain risks and uncertainties, including, but not limited to, product and market acceptance risks, the impact of competitive pricing, competitive products, implementation of cost reduction plans, fluctuations in market demand, product development, commercialization and technological difficulties, and other risks detailed in the Company’s reports filed from time to time with the Securities and Exchange Commission. VocalTec Communications is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

With the I-Gate 4000 EDGE gateway’s VoIP trunking capabilities, carriers can accelerate their move to an all IP transport network for both voice and data — enjoying the cost-efficiencies of converged IP transport, prior to undertaking a full-fledged legacy voice switch network migration. Its interoperability with multiple softswitch platforms allows carriers to smoothly evolve from a VoIP trunking infrastructure to a switched VoIP networking infrastructure, while protecting their existing network investments in the process.

“This compact, yet powerful, media gateway makes it affordable for carriers to deliver toll quality voice to even the smallest Points of Presence,” said Doug Sabella CEO of Veraz Networks. “It’s a perfect complement to our product portfolio, extending the reach of our industry-leading voice quality and compression equipment.”

The I-Gate 4000 EDGE provides the same Toll quality voice and high availability features of the higher density systems in the I-Gate 4000 family required by carriers. It offers a modular, compact package for sites requiring up to 500 concurrent calls while efficiently scaling down to sites requiring less than 100 concurrent calls. The I-Gate 4000 EDGE can be leveraged for diverse compression, switching, and enhanced service applications including VoIP Trunking, Softswitch-based Toll/Tandem Switching, legacy PBX Access, Mobile Network Compression and Switching.

It enables carriers to implement both compressed backhaul and local switching applications with the ability to transport compressed voice, fax, SS7, and ISDN-PRI signaling information over IP networks. With unique compressed TDM bearer capabilities, even existing leased TDM links can benefit from up to 1000% capacity increase. Carriers create a more efficient and cost-effective network architecture with distributed media and centralized call control and signaling resources in a few strategic locations.

Fully consistent with the IMS and other NGN architectures, the I-Gate 4000 EDGE interoperates with any standards-compliant packet telephony network element and enables carriers to select best-of-breed components for each segment of their network.

About Veraz Networks, Inc.

Veraz (www.veraznetworks.com) is the leading global provider of softswitch-based, toll-quality packet telephony solutions for traditional and next-generation communications networks. Built on a rich heritage of delivering carrier-grade products to over 700 customers in 140 countries, Veraz offers complete solutions to both established and greenfield carriers worldwide through its softswitch, media gateway, and digital compression products. Leveraging open, best-of-breed components and a global support and service infrastructure, Veraz partners with carriers to design and deploy carrier-grade next-generation networks tailored to meet their business objectives. By combining industry-leading, standards-based softswitch and media gateway platforms with robust management systems, Veraz offers unmatched flexibility to carriers — a best-in-class integrated packet telephony solution as well as the freedom to choose best-of-breed individual products to match their unique network needs. Veraz solutions address a wide range of carrier applications such as tandem switching, domestic & international long distance, IP trunking, IP Centrex, as well as new voice-data services.

Veraz is privately funded by Norwest Venture Partners, ECI Telecom (Nasdaq:ECIL), Argonaut Private Equity, Battery Ventures, Kleiner Perkins Caufield & Byers, and Levensohn Venture Partners. The company is headquartered in San Jose, CA, with offices throughout the world.

This new 3G, SIP-based, video telephony service, enables subscribers to use both wireless and wireline connections for their interactive video communications. In delivering this service, Acme Packet’s Net-Net session border controllers support subscriber access. They provide a comprehensive set of security functions including access control, network topology hiding and DoS protection against both signaling and media attacks and overloads. To maximize the numbers of subscribers reachable by the service, the adaptive NAT traversal feature enables the video calls to cross existing data firewalls at the customer premise over a broadband connection from a secure network element managed by Telefonica Moviles Espana.

“Telefonica Moviles Espana is taking the lead among the major wireless providers to actually deliver innovative interactive communication services,” declared Andy Ory, president and CEO, Acme Packet. “This deployment with Telefonica Moviles Espana also significantly extends our relationship with Group Telefonica from wireline hosted business and residential VoIP services to wireless.”

About Acme Packet

Acme Packet, the leader in session border control solutions, enables service providers to deliver premium, interactive communications - voice, video and multimedia sessions - across IP network borders. Our Net-Net family has been selected by over 160 service providers, including 20 of the top 25 providers in the world, to satisfy critical security, service assurance and regulatory requirements in wireline, cable and wireless networks. These deployments support all applications - from VoIP trunking to hosted enterprise and residential services; all protocols - SIP, H.323, MGCP/NCS and H.248; and all border points - interconnect, access network and data center. For more information, contact us at +1 781.328.4400, or visit www.acmepacket.com.

Third Quarter 2005 Highlights

Net revenues for the third quarter were $9,233,430 compared to $9,347,427 in the year ago period. The decrease in net revenues was due to the company’s shift in product focus from its traditional motherboard business to a more diverse product base that includes broadband VoIP, computer peripherals and consumer electronics.

Quarterly net loss was $362,192 compared to a loss of $814,161 in the year ago period.

Working capital increased to $975,483, compared to a deficit of $4,256,906 ended at Dec. 31, 2004, an increase of more than $5 million.

Quarterly gross margin was $206,771 or 2.2%, compared to the gross margin of $307,513 or 3.3% in the year ago period. The decrease in the gross margin as a percentage of sales can be attributed entirely to the company’s new product lines. The company began doing business with several high-volume, low-margin accounts in the quarter, such as Shop at Home network. These accounts will prove to be profitable over time, but the company discounted prices to allow the products to be sold through these channels. The company expects gross margins to continue to improve as the company focuses more on higher margin and higher growth business.

Ming Chok, chief executive officer of SOYO, commented, “This was another strong quarter for us. We continue to execute on our business plan and remain focused on our three key segments: communications; computing; and consumer electronics. Our sales and marketing efforts resulted in a series of big wins for us in the quarter including, D&H, Amazon.com, Office Depot, Shop At Home and SamTack, among others. These are all major retailers and distributor partners and will all help further raise visibility for SOYO and drive sales of our products. Our broadband offerings continue to be received well by the market and are growing as a percentage of sales. We were recently named to TechLiving Magazine’s ‘Hot List - 50 Products That Simplify Your Life’ for 2005.

“Separately, during the quarter, we successfully launched SAGECard, a pre-paid calling card, which is designed to provide a cost-effective, convenient alternative for making long distance and international calls, and VoIP phone adapter, an easy and immediate solution to the critical e911 problem facing the VoIP industry in the quarter. We expect sales of these new products to increase in the rest of 2005. We are well positioned to benefit from the expected growth and will continue to roll out products to capitalize on VoIP demand worldwide.

“We also appointed four additional independent directors to its board with strong industry and financial backgrounds. These highly experienced directors will be significant assets to SOYO as we continue to grow our business and work to further increase shareholder value,” Chok continued, “As we transit from a board-level company to a provider of a broader range of computer, telecommunications and consumer electronics products, it is important to further enhance our management team to guide SOYO. Our Board expansion reflects our commitment to implementing corporate governance best practices of the leading U.S. companies, which will further increase our market share as well as our shareholder value. Overall, we remain positive in our outlook and expect to achieve continued improvements in both our sales and profitability.”

About SOYO Group Inc.

SOYO Group Inc. is a leading global provider of computer, consumer electronics, and broadband telecommunications products and services. Headquartered in Ontario, Calif., with sales offices in South America, SOYO Group sells its products through an extensive network of authorized distributors, resellers, system integrators, VARs, retailers, mail-order catalogs and e-tailers, including Walmart.com, eCost.com, Fry’s, PC Mall, Tiger Direct, Amazon.com, Office Depot, Shop at Home and Samtack, among others. For more information about the company and its products, please call 909-292-2500 or visit our Web site at http://www.soyogroup.com.

Safe Harbor Act Notice

This information contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the “Act”). In particular, when used in the preceding discussion, the words “plan,” “confident that,” “believe,” “scheduled,” “expect” or “intend to,” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the company’s products, general acceptance of the company’s products and technologies, competitive factors, timing, and other risks described in the company’s SEC reports and filings. Third-party statements contained herein and information contained on any third-party Web site are not endorsed by or adopted by SOYO, nor has their accuracy been verified by SOYO.

SOYO Group Inc. and Subsidiary
Condensed Consolidated Balance Sheets

Sept. 30, Dec. 31,
2005 2004
————- ———–
(Unaudited)

ASSETS

CURRENT
Cash and cash equivalents $463,193 $1,288,351
Accounts receivable, net of
allowance for doubtful accounts
of $451,458 and $1,074,550 at
Sept. 30, 2005 and Dec. 31,
2004, respectively 5,825,983 2,076,882
Inventories, including $0
and $1,893,442 purchased from
SOYO Computer Inc. at Sept. 30,
2005 and Dec. 31, 2004,
respectively 4,366,478 3,861,911
Prepaid expenses 19,458 25,416
Income tax refund receivable 47,000 47,000
————- ———–
10,722,111 7,300,560
————- ———–

Property and equipment 209,218 245,153
Less: accumulated depreciation
and amortization (106,827) (80,087)
————- ———–
102,391 165,066
————- ———–

Deposits 33,141 34,811
————- ———–
$10,857,644 $7,500,437
============= ===========

LIABILITIES

CURRENT
Accounts payable -
SOYO Computer Inc. $0 $1,314,910
Other 9,029,563 8,259,762
Accrued liabilities 492,065 829,043
Advances from officer,
director and major
shareholder 25,000 240,000
Short Term Loan 200,000 0
Note payable 0 913,750
————- ————
9,746,628 11,557,465
————- ————

NON-CURRENT
Long-term payable - SOYO
Computer Inc. - -
————- ————

SHAREHOLDERS’ DEFICIENCY
Preferred stock, $0.001 par value
Authorized - 10,000,000 shares
Issued and outstanding -
1,000,000 shares of Class A
Convertible Preferred Stock,
$1.00 per share stated
liquidation value
($1,000,000 aggregate
liquidation value) 1,000 1,000
2,653,408 shares of Class B
Convertible Preferred Stock,
$1.00 per share stated
liquidation value
($2,500,000 aggregate
liquidation value) 1,609,404 1,527,733
Common stock, $0.001 par value
Authorized - 75,000,000 shares
Issued and outstanding -
47,461,999 shares 47,462 40,000
Additional paid-in capital 16,226,957 11,155,000
Accumulated deficit (16,773,807) (16,780,761)
————- ————
1,111,016 (4,057,028)
————- ————
$10,857,644 $7,500,437
============= ============

SOYO Group Inc. and Subsidiary
Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended Sept. 30,
—————————-
2005 2004
—- —-

Net revenues $9,233,430 $9,347,427
Cost of revenues, including
inventories purchased from SOYO
Computer Inc. of $0
and $3,772,301 in 2005 and
2004, respectively 9,026,659 9,039,914
———– ———–
Gross margin 206,771 307,513
———– ———–
Costs and expenses:
Sales and marketing 256,259 227,523
General and administrative 886,500 876,265
Provision for doubtful accounts 0 0
Depreciation and amortization 8,653 13,141
———– ———–
Total costs and expenses 1,151,412 1,116,929
———– ———–
Income from operations (944,641) (809,416)
———– ———–
Other income (expense):
Interest income 1,202 -
Interest expense (36,353) (4,745)
Miscellaneous revenue 600,000 -
State Tax Refund 17,600 -
———– ———–
Other expense, net 582,449 (4,745)
———– ———–
Income before provision for
income taxes (362,192) (814,161)
Provision for income taxes - -
———– ———–
Net income $(362,192) $(814,161)
=========== ===========
Less: Dividends on Class B
Convertible Preferred Stock (42,935) (74,220)
Net Income attributable to
Common Shareholders $(405,127) $(888,381)
Net income per common share -
Basic ($0.01) $(0.02)
Diluted ($0.01) $(0.02)

Weighted average number of
common shares outstanding -
Basic 47,461,999 40,000,000
Diluted 51,785,230 40,000,000

SOYO Group Inc. and Subsidiary
Condensed Consolidated Statements of Operations (Unaudited)

Nine Months Ended Sept. 30,
—————————–
2005 2004
—- —-

Net revenues $21,690,260 $28,136,117
Cost of revenues, including
inventories purchased from SOYO
Computer Inc. of $0
and $9,953,689 in 2005 and
2004, respectively 20,206,584 26,316,464
————- ————
Gross margin 1,483,676 1,819,653
————- ————
Costs and expenses:
Sales and marketing 619,753 526,811
General and administrative 2,701,828 2,713,845
Bad debt expense 34,513 196,335
Depreciation and amortization 26,740 21,409
————- ————
Total costs and expenses 3,382,834 3,458,400
————- ————
Income from operations (1,899,158) (1,638,747)
————- ————
Other income (expense):
Interest income 1,202 -
Interest expense (59,731) (9,490)
Miscellaneous revenue 2,066,688 -
State Tax Refund 17,600 -
————- ————
Other income (expense), net 2,025,759 9,490
————- ————
Income before provision for
income taxes 126,601 (1,648,237)
Provision for income taxes - -
————- ————
Net income $126,601 $(1,648,237)
============= ============
Less: Dividends on Class B
Convertible Preferred Stock 119,648 145,993
Net Income attributable to
Common Shareholders $6,953 (1,794,230)
Net income per common share -
Basic $0.00 $(0.04)
Diluted $0.00 $(0.04)

Weighted average number of
common shares outstanding -
Basic 47,461,999 40,000,000
Diluted 51,785,230 40,000,000

Revenues for the third quarter of 2005 were $0.6 million, compared with $1.4 million in the second quarter of 2005 and $1.2 million in the third quarter of 2004. According to U.S. GAAP, net loss in the third quarter of 2005 was $1.0 million, or $0.07 per share, compared with net loss of $2.4 million, or $0.16 per share in the second quarter of 2005, and compared with a net loss of $2.9 million, or $0.19 per share, in the third quarter of 2004. The decrease in the net loss for the third quarter of 2005 compared to the net loss for the second quarter of 2005 is partially attributed to a tax refund due in the fourth quarter of 2005 amounting to approximately $1.1 million.

Gross margin was 56% in the third quarter of 2005, compared to 52% in the second quarter of 2005 and 31% in the third quarter of 2004. Operating expenses were $2.3 million in the third quarter of 2005, compared to $3.2 million in the second quarter of 2005 and $3.2 million in the third quarter of 2004. The operating loss was $2.0 million in the third quarter of 2005, compared to $2.5 million in the second quarter of 2005 and $2.9 million in the third quarter of 2004.

At the end of the third quarter of 2005, cash, cash equivalents and short-term investments totaled $0.7 million (after receipt of the $1.0 million loan received in July 2005 from Deutsche Telekom), compared with $1.7 million at the end of the second quarter of 2005.

About VocalTec Communications Ltd.

VocalTec is a telecom equipment provider offering next generation network (NGN) VoIP carrier class call control and hosted telephony platforms. Our customer base includes Deutsche Telekom, Intelcom San Marino (a subsidiary of Telecom Italia Sparkle), RomTelecom and Hanoi Telecom. The company’s flagship Essentra(R) Softswitch Platform offers carriers a rich set of residential and enterprise telephony services, supporting both legacy and advanced IP based multimedia devices. VocalTec’s products provide carriers with call control, interface to legacy telephone systems as well as peering with other NGN. Being first to the VoIP market, VocalTec continues to offer most innovative and advanced telecommunication solutions for carriers and service providers who migrate from legacy TDM to NGN. www.vocaltec.com

NOTE: VocalTec is a registered trademark of VocalTec Communications Ltd. Other trademarks are the property of their respective holders. Certain statements contained in this release may contain “forward-looking” statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations of VocalTec Communications’ management and are naturally subject to uncertainty and changes in circumstances. The forward-looking statements contained herein include information with respect to plans, projections or the future performance of VocalTec Communications or any of its subsidiaries or businesses or any of its customers, the occurrence of which involves certain risks and uncertainties, including, but not limited to, product and market acceptance risks, the impact of competitive pricing, competitive products, implementation of cost reduction plans, fluctuations in market demand, product development, commercialization and technological difficulties, and other risks detailed in the Company’s reports filed from time to time with the Securities and Exchange Commission. VocalTec Communications is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

VOCALTEC COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
All data in thousands of U.S. dollars

Three months ended Nine months ended
September 30 September 30
——————- ——————-
2005 2004 2005 2004
——— ——— ——— ———
Unaudited Unaudited Unaudited Unaudited
Sales
Products 128 703 1,404 2,620
Services 491 498 1,688 1,705
——— ——— ——— ———
619 1,201 3,092 4,325
——— ——— ——— ———
Cost of Sales
Products 74 456 606 1,563
Services 196 372 924 1,202
——— ——— ——— ———
270 828 1,530 2,765
——— ——— ——— ———
Gross profit 349 373 1,562 1,560
——— ——— ——— ———

Operating Expenses:
Research and development, net 690 936 3,120 3,261
Selling and Marketing 971 1,653 3,605 5,833
General and administrative 675 660 1,878 2,231
——— ——— ——— ———
Total Operating Expenses 2,336 3,249 8,603 11,325
——— ——— ——— ———
Operating loss (1,987) (2,876) (7,041) (9,765)
——— ——— ——— ———

Other income (expense), net 88 18 386 52
Financial income (expense), net (12) (15) (19) 106
——— ——— ——— ———

Loss before tax benefit
(income taxes) (1,911) (2,873) (6,674) (9,607)
Tax benefit (income taxes) 925 (56) 1,096 (120)
——— ——— ——— ———
Net loss (986) (2,929) (5,578) (9,727)
========= ========= ========= =========
Basic and diluted net loss per
ordinary share:

Basic and diluted net loss (0.07) (0.19) (0.37) (0.68)
========= ========= ========= =========
Weighted average number of
ordinary shares used in
computing basic and diluted
net loss per share amounts
(in thousands) 15,087 15,024 15,086 14,353
========= ========= ========= =========

VOCALTEC COMMUNICATIONS LTD.
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars except share data)

September 30 December 31
2005 2004
————- ————-
Unaudited

Current Assets
Cash, cash equivalents and short term
investments 664 7,886
Trade receivables, net 237 175
Other receivables 1,494 982
Severance pay funds 784 0
Inventories 529 471
————- ————-
Total Current Assets 3,708 9,514
————- ————-
Severance pay funds 482 2,113
————- ————-
Equipment, Net 765 1,070
————- ————-

Total Assets 4,955 12,697
============= =============

Current Liabilities
Trade payables 964 1,133
Accrued expenses and other liabilities 1,938 3,011
Accrued severance pay 1,068 0
Loan from shareholder 1,000 0
Deferred revenues 253 886
————- ————-
5,223 5,030
————- ————-

Long Term Liabilities
Accrued severance pay 511 2,871
————- ————-
511 2,871
————- ————-

Total Liabilities 5,734 7,901
————- ————-

Shareholders’ Equity
Share capital
Ordinary shares of NIS 0.01 par
value: Authorized - 50,000,000
shares; Issued and outstanding
- 15,086,523 as of September 30,
2005 and 15,081,523 as of
December 31, 2004 42 42
Additional paid-in capital 106,903 106,900
Accumulated deficit (107,724) (102,146)
————- ————-
Total Shareholders’ Equity (779) 4,796
————- ————-

Total Liabilities and
Shareholders’ Equity 4,955 12,697
============= =============

“Voice over IP (VoIP) equipment sales have accelerated over the past six months as more service providers are implementing packet voice to expand or modernize their core trunking networks,” said Steve Raab, Director IP Telephony Research at Dell’Oro Group. “In addition, sales of subscriber access solutions for Voice-over-Broadband and traditional residential services are expanding.”

Worldwide IP Telephony Carrier Market Leaders (Revenue)
(Softswitch + Media Gateway + Hybrid Media Gateway Softswitch)

Total Revenues 3Q05
————————- ————–
Manufacturers’ Revenue $686 million

Vendor Rank
————————- ————–
Siemens 1
Nortel 2
Huawei 3
Cisco 4
Ericsson 5

About the Report

The Dell’Oro Group IP Telephony Carrier Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, license/channel shipments for softswitches and media gateways. The report also includes breakouts of high density, medium density, and low density media gateways. To purchase this report, call +1.650.622.9400 x225 or email Margaret@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.DellOro.com.

HUNTSVILLE, Ala. & LAS VEGAS, Nev. –Nov. 16, 2005–Digium Inc., the creator of Asterisk(R) and pioneer of open source telephony, announced Asterisk 1.2, today at the IP.4.IT conference in Las Vegas, Nevada. Asterisk 1.2 is the first major revision to Asterisk since the release of Asterisk 1.0 in September 2004, and includes over 3,000 feature additions and improvements to the overall performance and efficiency of memory usage. Asterisk, the world’s first open source PBX, offers a strategic, highly cost-effective approach to voice and data transport over TDM, IP and other architectures.

“We have been working very hard with the support of the Asterisk community to release version 1.2 of Asterisk,” said Mark Spencer, president of Digium and creator of Asterisk. “As Asterisk plays an ever expanding role in the telecommunications industry, it’s important to support the rapid development model of open source software - quickly moving features from concept to product while retaining software quality and architectural integrity.”

A significant number of changes have been made to the core of Asterisk including code formatting, simplification and documentation. The Asterisk developer community extends all over the world, and the new changes incorporated in Asterisk 1.2 make it easier for new developers to get involved. New features include:

– Improved voicemail features

– Addition of the DUNDi (Distributed Universal Number Discovery) protocol

– Easier Asterisk configuration

– Creation of a Realtime Database Configuration Storage Engine

– More power added to the Asterisk Dialplan

– Introduction of Asterisk Extension Logic, a new, flexible method for configuring the dialplan

– New interface for dynamic IVR flow control

– Configurable access to general call features

– Improved SIP protocol support

– New features for the IAX (Inter-Asterisk eXchange) protocol

– Use of sound files for native music-on-hold

– Customized CDR Support

– PRI support improvements

Support and Availability

Asterisk 1.2 will be available for download from Digium’s website (www.digium.com), FTP and CVS servers after 5:00PM Pacific Standard Time on November 16th.

About Digium

Digium is the creator and primary developer of Asterisk, the industry’s first Open Source PBX and Asterisk Business Edition, the professional-grade version of Asterisk. Used in combination with Digium’s PCI telephony interface cards, Asterisk offers a strategic, highly cost-effective approach to voice and data transport over IP, TDM, switched and Ethernet architectures.

Digium solutions reduce the costs of traditional TDM and VoIP implementations through open source, standards-based software and innovative hardware solutions, including legacy PBX, IVR, auto attendant, and next generation gateways, media servers, and application servers. Digium hardware supports traditional voice and data protocols, and packet protocols such as IAX(TM) (Inter-Asterisk eXchange), and SIP VoIP.

Digium provides a highly refined selection of quality hardware and software products, developed and implemented using innovative engineering techniques (primarily open source development). A full range of professional services complement these product lines, including consulting, technical support, and customer software development services. The open source communications revolution is here, and Digium is leading the way.

About Asterisk

Code for Asterisk, originally written by Mark Spencer of Digium Inc., has been contributed from open source software engineers around the world. It supports a wide range of TDM protocols for the handling and transmission of voice over traditional telephony interfaces. It also supports US and European standard signaling types used in standard business phone systems, allowing it to bridge between next-generation voice-data integrated networks and existing infrastructure. Using the IAX Voice over IP protocol, Asterisk merges voice and data traffic seamlessly across disparate networks. Asterisk is available as open source under the GPL, and from Digium in the professional Asterisk Business Edition package, or under commercial license terms.

The Digium logo, Digium, Asterisk, and the Asterisk logo are trademarks of Digium Inc. All other trademarks are property of their respected owners.

Initially targeted toward Cable and Telco VoIP deployments, the combination of the QoVox Network Assurance System with the iGLASS Status Monitoring service will enable VoIP providers to routinely test call quality, ensure call connectivity and proactively detect and identify failures within the cable and telco networks.

The deployment of new IP-based network services, like VoIP, can be problematic. A major issue for service providers is maintaining high-quality services while minimizing the need to dispatch technicians to investigate and troubleshoot problems, commonly called “a truck roll,” an often costly proposition. Therefore, service providers need a VoIP monitoring solution that enables them to continually, and actively, measure and monitor their networks. They seek to proactively identify and fix problems without having to send technicians. With the joint iGLASS and QoVox solution, service providers can now characterize the performance of their voice services and proactively identify and isolate problems.

“Service providers look for three things in a VoIP monitoring solution: detection, troubleshooting along with trending and optimization analysis. Together, these capabilities enable carriers to learn to resolve and prevent problems - preferably before the customer discovers their telephone service is not working,” said Jessy Cavazos, Manager of the Communications Test & Measurement program at Frost & Sullivan. “Service providers will embrace a VoIP monitoring solution that replaces expensive truck rolls with the ability to identify problems with VoIP services without sending technicians to the site. QoVox’s new partnership with iGLASS targets all of these demands effectively.”

The iGLASS monitoring solution encompasses network elements from the digital head-end to the customer premises equipment in order to help cable operators reduce their Mean Time to Repair (MTTR), decrease customer churn, and increase revenue. iGLASS helps prevent outages while immediately notifying network operators when outages do occur.

The QoVox NAS-6131 is used to actively test, measure, and fault isolate voice networks while measuring end-to-end voice quality. The NAS-6131 makes test calls from multiple access points on the network - analog, digital, or packet - across multiple global VoIP and PSTN network segments to effectively detect and isolate network faults. Both call connection signaling and voice paths are tested, ensuring both network integrity and high quality voice services are being provided.

Key features of the integrated solution, providing customers with unmatched value, are the ability of iGLASS to collect, analyze and report on massive amounts of data matched with QoVox’s NAS-6131 capabilities to verify connectivity and measure voice quality. The integrated solution turns raw data into actionable information, allowing providers to deliver and ensure world-class VoIP services.

About iGLASS Networks

iGLASS provides outsourced status monitoring services for HFC networks, customer premises equipment (CPE) and Video on Demand systems. iGLASS is Internet-based with all administration, maintenance and monitoring handled from a central NOC, eliminating the need for dedicated programming, IT analyst and monitoring staff. iGLASS currently monitors in excess of 10,000 network points and 4.9 million CPE devices.

For more information, please visit www.iglass.net or call (888) YOUR-NOC.

About QoVox

QoVox Corporation is pioneering the development of network monitoring and fault isolation tools and services for next generation network services. QoVox’s solutions include network-wide fault identification, fault isolation and voice quality assurance products and services. With QoVox, service providers can deliver new applications, such as VoIP, with the reliability and quality that end-users have grown to expect from traditional circuit-switched telephony. QoVox is a wholly-owned subsidiary of Datameg Corporation and is headquartered in Raleigh, North Carolina. For more information, please visit www.qovox.com.

Although IP telephony promises significant cost savings and new productivity, corporate adoption has been slower than predicted because realtime IP communications currently suffer from Quality of Service (QoS) problems caused by packet delay, jitter, latency, insufficient network capacity, and competition for bandwidth between data and realtime applications. XelorRate Service Quality Manager is the first effective solution for overcoming these QoS problems that degrade IP telephony.

XelorRate is a Linux application for the Red Hat operating system that provides exceptional voice quality without user intervention or complex maintenance procedures. The software automatically integrates with IP telephony systems and leverages industry standards for QoS to deliver simplified network configuration, dynamic bandwidth allocation and automated packet prioritization.

“Network QoS is key for IP network transport of realtime traffic, but its implementation complexities combined with the average dynamics of an organization’s IP network makes effective QoS an overly complex, time consuming process,” said John Bartlett, vice president of NetForecast, a widely known and respected industry consulting firm. “XelorRate software automates QoS configuration and bandwidth management dynamically, which introduces new reliability for enterprise networks. For example, in Cisco-based environments, XelorRate makes QoS a simplified operational process rather than a burdensome network engineering task.”

With XelorRate software, an enterprise can easily ensure the reliability, performance and quality of its realtime IP communications traffic by unleashing its data network investment, enforcing its QoS policy end-to-end, and controlling its network resources on a proactive basis.

XelorRate software unleashes an enterprise’s network investments by using SNMP, including RFCs 1213, 1493 and 2674 for bridging and routing MIBs, to automatically discover network elements and topology and then configure these elements for QoS according to industry best practices and the network equipment provider’s reference manual for QoS.

XelorRate software configures Class of Service (CoS) for VLANs and Layer 2 (as defined by IEEE standard 802.1 p/q) and Differentiated Services for Layer 3 (or Diffserv, as defined by RFCs 2474 and 2475) mappings and queues, establishes trust on trunk port interfaces, and defines service priority on egress port interfaces.

By leveraging an organization’s existing investment in networking equipment, XelorRate software provides a lower cost approach to enterprise QoS than buying and administering new hardware devices.

After the initial QoS configuration, XelorRate software enforces the QoS policy end-to-end by interfacing to the IP telephony system to obtain call events, including inbound and outbound calls, internal and external calls, transfers, and multi-party conferences. For each new call, XelorRate uses its Service Admission Control (SAC) algorithm to evaluate available bandwidth and delay bounds along the end-to-end path of the call.

When XelorRate SAC returns a favorable response, XelorRate software can control network resources proactively by assigning the appropriate bandwidth allocation and flow treatment with Access Control List (ACL) entries on the access ports closest to the source and destination of the call. The ACL entries mark the IP packets for CoS Type 5 and Expedited Forwarding (EF) — the highest priority treatment and the appropriate service classes for VoIP traffic. Finally, XelorRate clears the ACL entry on call tear-down, re-sets the ports to the untrusted state and updates the network resource database to reflect the newly available bandwidth.

Controlling resources proactively is the alternative to “set and forget” methodologies that mark all IP realtime communications packets for EF regardless of the current state of the network or traffic queues. With “set and forget” strategies it is easy to degrade the performance of realtime communications by overwhelming the EF queues as network traffic increases. In contrast to “set and forget” methodologies, XelorRate software assigns bandwidth on a call-by-call basis, proactively isolates voice calls from non-realtime data traffic and protects existing calls when congestion occurs.

When the XelorRate SAC returns an unfavorable response, the call proceeds but with the default Best Effort (BE) prioritization as opposed to the higher EF prioritization. This key capability maintains high voice quality, because a congested EF queue can create unwanted packet delay, jitter and loss.

Throughout the provisioning and control process, the XelorRate Administration System serves as an interface to a wide collection of data about the network, the network infrastructure configurations, and the results of the realtime SAC calculations. These reports give the network administrator a central view without having to visit each element to look at the class and policy maps that have been established.

Specifications, Availability and Pricing

Xelor Software supports the two leading IP PBXs with XelorRate for Avaya Communication Manager and XelorRate for Cisco CallManager. XelorRate software runs on an off-the-shelf Linux server with 2.4Ghz or faster Intel Pentium 4 processor, 1G or more RAM, 50G or larger hard drive and Red Hat Enterprise Server 4.0.

XelorRate software is currently available for purchase. Typical configurations and pricing range from $14,700 for an organization with 200 seats to $61,000 for an organization with 1500 seats. Enterprises should contact Xelor Software for addition details and pricing for their particular configuration.

About Xelor Software

Xelor Software Inc., headquartered in Salem, N.H., is the developer of the first proactive solutions for service quality management (SQM) for enterprises deploying IP telephony systems. The software is the only SQM solution that unleashes the power of an enterprise’s existing networking infrastructure, enforces service quality policy end-to-end, and controls network resources for realtime IP communications on a proactive basis. More information on Xelor Software is available at http://www.xelorsoftware.com.

Xelor Software, Xelor and XelorRate are trademarks of Xelor Software Inc. All other products or services referenced may be trademarks or service marks of their respective companies or organizations.

Mindspeed Technologies Inc. (NASDAQ:MSPD), a leading supplier of semiconductor solutions for network infrastructure applications, and Jungo Ltd., a leading provider of small office/home office (SOHO) and server message block (SMB) gateway software platforms, today announced that the two companies have integrated Jungo’s OpenSMB application running on Mindspeed’s Comcerto 800 voice and data processor. Mindspeed and Jungo have teamed together to allow original equipment manufacturers (OEMs) to simplify development cycles and accelerate time-to-market for IP-PBX and VPN router equipment.

Jungo’s OpenSMB provides a complete platform for the creation of advanced SMB networking devices such as business firewall and virtual private network (VPN) routers, converged voice and data gateways and enterprise IP-PBX systems. Jungo will demonstrate the OpenSMB solution on the Comcerto 800 processor in booth C-26 at the Embedded Technology Show, Nov. 16-18, in Yokohama, Japan.

“We are excited to have completed a scalable SMB platform using Mindspeed’s Comcerto processors. Jungo’s OpenSMB is a fully featured software platform that complements Mindspeed’s carrier-class voice quality and scaleability,” said Udi Yujtman, Jungo’s vice president of business development.

“Mindspeed is focused on reducing time-to-market and execution risk for our customers,” said Steve McClure, executive director of marketing for Mindspeed. “Jungo is a leading developer of Linux-based residential and business gateway software platforms. Working with Jungo enables our customers to develop complete enterprise-class integrated service routers supporting NIST-certified VPN, wirespeed routing and carrier-class voice, fax, and point-of-sale modems for small business and enterprise applications.”

The Comcerto 800 offers a unique architecture which partitions data and voice real-time processing from non-real-time host applications providing industry-leading quality of service for mixed-media applications. This fundamental QoS structure allows OEMs to develop Comcerto 800-based VPN routing platforms supporting from four to a full T1/E1 of G.729 voice channels while maintaining Mindspeed’s industry-leading carrier-class voice quality. The Comcerto 800 supports AES, DES, 3DES, SHA-1, MMH and is NIST-certified.

Mindspeed’s OpenMind program helps to facilitate the new standards-based VoIP development model using the company’s single-chip Comcerto processing platform, which integrates an application control and signaling processor with a real-time media-stream processor to provide a deterministic architecture capable of scaling from data-only applications to full packet telephony capabilities operating on hundreds of voice channels.

About Mindspeed Technologies(R)

With headquarters in Newport Beach, Mindspeed Technologies Inc. designs, develops and sells semiconductor networking solutions for communications applications in enterprise, access, metropolitan and wide area networks.

The company’s three key product families include high-performance analog transmission and switching solutions, multiservice access products designed to support voice and data services across wireline and wireless networks, and WAN communications solutions including T/E carrier physical-layer and link-layer devices, as well as ATM/MPLS network processors.

Mindspeed’s products are used in a wide variety of network infrastructure equipment including voice and media gateways, high-speed routers, switches, access multiplexers, cross-connect systems, add-drop multiplexers and digital loop carrier equipment.

To learn more, visit the company at www.mindspeed.com.

About Jungo

Jungo Software Technologies is a leading provider of residential and business gateway software platform. Jungo offers integrated reference designs for home, SOHO and SMB gateways, storage devices, wireless, IP-PBX and VoIP gateways enabling customers to simplify development cycles and provide the most innovative and cost-effective home and office networking equipment. Jungo is a privately held company with corporate offices in San Jose, Calif., sales and support offices in Taiwan, USA and U.K. and an R&D center in Israel. Founded in 1998, Jungo’s investors include Conexant Systems, Infineon Ventures, Intel Communications Fund, Partech International and Telesoft Partners. Find out more at www.jungo.com.

Safe Harbor Statement

This press release contains statements relating to Mindspeed, and our future results, including certain projections and business trends, that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Actual results, and actual events that occur, may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: market demand for our new and existing products and our ability to increase our revenues; our ability to maintain operating expenses within anticipated levels; our ability to reduce our cash consumption; availability and terms of capital needed for our business; the ability to attract and retain qualified personnel; successful development and introduction of new products; obtaining design wins and developing revenues from them; pricing pressures and other competitive factors; order and shipment uncertainty; fluctuations in manufacturing yields; product defects; and intellectual property infringement claims by others and the ability to protect our intellectual property, as well as other risks and uncertainties, including those detailed from time to time in our Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.