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NexTone Hits Record Numbers for Q4 2004, Extending the Company's Dominance in the Session Management Market
[January 20, 2005]

NexTone Hits Record Numbers for Q4 2004, Extending the Company's Dominance in the Session Management Market

GAITHERSBURG, Md. --(Business Wire)-- Jan. 20, 2005 -- NexTone Surpasses 200 Customers Worldwide and Introduces Innovative Real-time Session Manager (RSM) Platform

Broadening its leadership position in the scalable session management of real-time IP services, NexTone(TM) Communications today announced a banner quarter for Q4 2004. The company added 27 new carrier customers worldwide, and added new sales offices in Moscow and Sydney to support corporate growth and the explosive demand for voice over IP (VoIP) services. NexTone's sales increased by more than 260 percent over Q4 2003, significantly exceeding company projections. In addition to record sales, NexTone also surpassed a major company milestone by doubling its customer base in 2004, for a total of more than 200 carrier deployments in production and generating revenue.

"This was an exceptional year for NexTone and a particularly strong quarter for us. We increased our carrier customer base by 16 percent in the fourth quarter, bringing our global customer count to over 200. In addition to strong customer traction, we announced our new RSM product and received accolades from some of the industry's most prestigious media and analysts for our vision," said Hank Firey, chief executive officer for NexTone. "We're eager to build upon our Q4 momentum by further broadening our worldwide customer footprint, expanding our partnerships, and continuing to strengthen our position as a market leader in session management technology."

In Q4 2004, NexTone signed new customers across the globe, with tier-one carrier deployments in Latin America, Europe, Asia, and North America. In Asia, NexTone's products were used to support one of the first VoIP interconnects out of China. These deployments represent customers in each of the three high-growth markets for session controller technologies: carrier-to-carrier, carrier-to-enterprise, and carrier-to-consumer applications. In many cases, NexTone enabled its customers to address all three markets, expanding their business and diversifying their revenue flow.

"As countries deregulate, VoIP has exploded across European nations. As one carrier deploys our products in a particular region, all of their competitors follow. For example, in Turkey, NexTone has deployed products with two of the country's largest carriers, and in Greece the company services three of the five top carriers," said John Gillespie, vice president of worldwide sales for NexTone. "Our customers see tremendous value in our ability to support many new and profitable real-time IP services with a single session management solution. This unique flexibility is a key reason why NexTone dominates the market in these regions and others worldwide."

NexTone continued to surpass the competition with innovative product offerings that combined the application flexibility of the IP Multimedia Subsystem (IMS) with PSTN-like reliability, scale and quality. In December, NexTone unveiled a new carrier platform that is the first to combine both transport and application quality of service (QoS) to deliver deterministic performance for real-time services over IMS networks. The new RSM acts as a centralized policy manager and enforcement point to manage network resources and optimize call distribution, while NexTone's Multiprotocol Session Controller (MSC), with enhanced microflow management capabilities, works with multi-protocol label switching (MPLS) devices to enforce QoS policies across the network edge.

About NexTone Communications

NexTone Communications develops carrier-grade products that deliver scalable control of real-time IP services, such as voice over IP (VoIP). NexTone solutions enable carriers, service providers, and enterprises to securely, simply, and cost-effectively interconnect networks for end-to-end control and management of IP traffic. NexTone's real-time IP technology has been installed by more than 200 service providers worldwide to dramatically reduce capital expenditures and deliver ongoing operational efficiencies, such as reduced interconnect "turn-up" time and simplified network operations. For its ability to anticipate the growing need for multiprotocol session control and its impressive market traction, NexTone was awarded the 2004 Frost and Sullivan Market Penetration Leadership Award. The company is headquartered in Gaithersburg, Maryland USA with domestic and International sales offices worldwide. For more information, visit

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