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New ITXC VoIPLinkTM Service Facilitates Carrier Migration to VoIP

[February 06, 2004]

New ITXC VoIPLinkTM Service Facilitates Carrier Migration to VoIP

ITXC Corp.® [NASDAQ:ITXC] today announced the general availability of its VoIPLink(tm) service. A rapidly growing number of carriers with voice over IP (VoIP) networks are already using an early release of VoIPLink to reach ITXC.net® which provides cost effective, high quality connectivity to every traditional and IP phone in the world.

ITXC.net is the largest international VoIP-based network in the world and one of the largest international networks of any kind based on minutes of traffic carried. ITXC's VoIPLink service provides VoIP-based carriers capital and operating cost savings for their international calls while also dramatically reducing the time required to add capacity and new destinations. VoIPLink service also represents the fastest and most cost-effective way for suppliers to receive traffic from any traditional or VoIP origination source on ITXC.net.

Replacing the difficult, custom-engineered VoIP connections of the past, ITXC's VoIPLink makes VoIP internetworking practical for carriers by increasing speed of deployment, lowering the technical burden of establishing and maintaining VoIP-to-VoIP network interconnections and offering a significantly expanded range of interoperability between otherwise incompatible VoIP gateways, softswitches, and customer-premise equipment.

"VoIP as an enabling technology is now changing not only the carrier landscape but is causing an enormous shift in the way enterprises and consumers make calls," said ITXC Chairman and CEO Tom Evslin. "Over the last several years, VoIP has proven itself to be a reliable and cost-effective means for carrying high quality international calls between traditional phones and has established a large and growing share of these carrier-class calls.

"Today VoIP is also enabling emerging VoIP-based service providers to win retail customers from incumbents. At the same time, VoIP is driving down the total cost of ownership for rapidly growing numbers of enterprises and traditional carriers. These trends are all being driven by the cost, speed and scale advantages of VoIP. Service providers of all types are now rushing to achieve the benefits of VoIP for themselves and for their customers. Over the past 6 years, we've built the ideal international off-net, ITXC.net. Today we're making the benefit of direct VoIP interconnect to ITXC.net even more broadly available to the new and traditional carriers we serve."

Approximately 160 carriers are already directly connected through VoIPLink, including Business Sviaz Holdings in Russia who uses ITXC.net to carry international traffic for their retail customers. "Given the rapid growth of our retail customer base, we are very pleased to be able to use VoIPLink and ITXC.net as a reliable and cost effective means to complete our international traffic," said Victor Belov, Director of Business Development for Business Sviaz Holdings. "VoIPLink allows us to scale our global termination capacity and access new markets and carriers instantly with lower risk, less complexity and lower costs as compared to carriers using traditional networks. With ITXC and VoIPLink, we can offer our customers high quality long distance calling to anywhere in the world, at the right price."

VoIPLink has been in development with increasing amounts of production traffic for several months. ITXC has been working with the leading VoIP equipment and software providers to engineer, test and certify interoperability. Today VoIPLink supports pre-engineered interfaces with ten different SIP or H.323 VoIP infrastructure vendors and dozens of different equipment, software and network configurations. ITXC continues to work collaboratively with vendors as they roll out new products. Crucial to ITXC's carrier customers and suppliers is that VoIPLink provides a clean and safe demarcation between VoIP networks.

Raj Sharma, Co-founder and President of NexTone, one of the key vendors helping to support VoIPLink, said, "ITXC has always been a leader in carrier-grade VoIP and we are delighted to have so successfully supported them to enable 'off the shelf' carrier-class VoIP internetworking for their customers and suppliers. Nextone has gained valuable input on customer needs covering a wide range of applications and segments through our work with ITXC."

"VoIP is on its way to becoming a mainstream technology," said Elka Popova, VoIP Services Program Leader for Frost & Sullivan. "New forms of VoIP networks are emerging and the competitive landscape of traditional and new generation service providers to serve consumers and enterprises is becoming increasingly diverse. A common need of all the VoIP networks that serve retail users is to provide long distance service as well-- which entails traffic exchange with other networks. Given that by 2007, we estimate that almost 70% of total North American about 85-90% of total international long distance traffic will include a VoIP component, the trend will be for retail VoIP networks to exchange long distance traffic as VoIP. VoIPLink from ITXC is a leading example of this, enabling diverse VoIP networks based on a wide range of protocols and vendor equipment to connect easily with ITXC.net for international calling."

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