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Global IP Sound and Nortel Networks Expand Relationship
[June 23, 2004]

Global IP Sound and Nortel Networks Expand Relationship

Proven Performance of Global IP Sound’s Voice Processing Software Leads to Integration with Industry Leading VoIP-Enabled Portfolio

San Francisco – June 23, 2004 – Global IP Sound (GIPS) today announced an expanded licensing agreement with Nortel Networks* [NYSE/TSX: NT]. Under the new licensing arrangement, Nortel Networks will integrate the GIPS VoiceEngine™ and SoundWare™ suite of voice processing software into various Nortel Networks IP-centric communications systems including the Multimedia Communication Server (MCS) 5100 and 5200 platforms.

Integration of GIPS’ proven voice-processing software into various Nortel Networks solutions helps deliver high quality voice performance under all network conditions and reinforces the strong Quality-Of-Service (QOS) that Nortel Networks is known for.

“Like Nortel Networks, Global IP Sound recognizes that bringing IP-based communications into the world’s telecom infrastructure requires innovation at every level of network architecture and equipment design. We know we can rely on GIPS to address crucial voice and sound quality processing requirements, which in turn allows us to focus our resources on accelerating the market adoption and deployment of multimedia communications services across enterprise and consumer markets,” said Jim Dondero, vice president of Wireline Networks marketing, Nortel Networks.


“Nortel Networks has led the way in the telecom industry’s move from proprietary technologies to standards-based networks that provide incredible flexibility and clear advantages over traditional voice-only communications.” said Gary Hermansen, President and CEO of Global IP Sound. “The expanded licensing of GIPS software validates the role that GIPS plays as a strategic supplier to Nortel Networks, and we are very pleased to expand our collaboration to deliver best-in-class sound quality across its carrier and enterprise systems.”

Nortel Networks currently delivers several GIPS-enhanced products, including the Nortel Networks PC- and web-based SIP soft phone clients and the i2004 IP phone. With this new expanded relationship, GIPS will provide its complete suite of voice processing software for implementation in servers, end-user terminals and soft phone clients supporting the leading computer operating systems (i.e., Windows and Windows PocketPC, Macintosh and Linux).

“Nortel Networks continues to lead its competitors in fielding proven technology for carriers and enterprises to deploy feature-rich packet voice systems," said Jon Arnold, VoIP Program Leader with Frost & Sullivan. "With expanded use of voice processing technologies from Global IP Sound, Nortel Networks sets the quality bar even higher. This will accelerate the industry's evolution from simply replacing circuit switched lines with packet voice to truly converged services."

About Global IP Sound
Global IP Sound develops embedded voice processing technologies for real-time communications over packet networks. GIPS SoundWare™ 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® 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.

About Nortel Networks
Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com or www.nortelnetworks.com/media_center.

* Nortel Networks is a trademark of Nortel Networks

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