[August 09, 2004] Global IP Sound Issues Share Purchase Warrants to Nortel Networks; Strategic Supplier Relationship Affirmed With Agreement for Nortel Networks to Invest in Global IP Sound AB SAN FRANCISCO --(Business Wire)-- Aug. 9, 2004 -- Global IP Sound (GIPS) today announced that Nortel Networks(1) (NYSE:NT)(TSX:NT) has been granted 2,669,503 warrants to purchase shares of GIPS common stock, at a formula exercise price of approximately SEK 3.10 per share. The warrant issue, following the expanded licensing agreement announced by the companies on June 21, affirms GIPS' role as a strategic supplier of voice processing software for Nortel Networks IP-centric communications systems. The warrant issue represents five percent of the fully diluted value of Global IP Sound and is exercisable after five years. Nortel Networks may accelerate its exercise rights based on achieving fee payment thresholds related to shipments of GIPS-enhanced systems. Integration of the GIPS software on its IP-centric communications systems helps Nortel Networks customers deliver high quality voice performance under various network conditions. The company has licensed the GIPS VoiceEngine(TM) and SoundWare(TM) suite of embedded voice processing software for use in multiple products, including Nortel Networks PC- and web-based SIP soft phone clients, Nortel Networks i2004 IP phone, and Nortel Networks Multimedia Communication Server (MCS) 5100 and 5200 platforms. "Global IP Sound's expertise in voice processing software helps to address key Quality-of-Service criteria for VoIP systems, accelerating the transformation of today's network infrastructure to leverage the power of packet-based communications," said Sue Spradley, president, Wireline Networks, Nortel Networks. "By securing warrants to invest in GIPS, we strengthen its position as a supplier to the industry. This translates into benefits for Nortel Networks customers as more points of access to the network are enhanced with GIPS software." "The two year collaboration between GIPS and Nortel Networks to bring the best possible Quality-of-Service to IP-based communications has demonstrated our mutual commitment to delivering carrier-class VoIP," said Gary Hermansen, president and CEO of Global IP Sound. "The investment agreement, combined with the growing deployment of GIPS software across the product lines of the industry's leading carrier and enterprise VoIP supplier, validates the capabilities we bring to VoIP systems and will help us to further expand our role in this market." About Global IP Sound Global IP Sound develops embedded voice processing technologies for real-time communications over packet networks. GIPS SoundWare(TM) provides better than PSTN voice quality and fidelity in end-to-end IP communications with robustness against packet loss. Global IP Sound's world-renowned speech processing and IP telephony experts deliver these solutions to applications developers, gateway and chip manufacturers. Companies using GIPS SoundWare products include Nortel Networks, Skype, WebEx, Marratech, and other key players in the VoIP market. Global IP Sound is a member of the Intel(R) PCA Developer Network, the Motorola Design Alliance, and Texas Instruments' third party developer network. Global IP Sound has headquarters in Stockholm and San Francisco. More information is available at www.globalipsound.com. Global IP Sound, GIPS, SoundWare, VoiceEngine, NetEQ, iPCM-wb, Enhanced G.711, and associated design marks and logos are trademarks owned or used under license by Global IP Sound AB, and may be registered in the United States and other countries. (1) Nortel Networks is a trademark of Nortel Networks. [ Back To TMCnet.com's Homepage ]