AudioCodes Delivers Carrier Grade IP Solution for Call Centers and Messaging; New Offering Will Enable IVR and Recording Customers to Migrate to Packet Network Technologies.

Business Editors

Communications Solutions Show

Booth No. 466

LAS VEGAS--(BUSINESS WIRE)--Dec. 6, 2000

AudioCodes (AUDC) AudioCodes, a leading vendor of Voice over packet enabling technologies, announced today its first milestone in its new IPmedia offering, enabling the migration of IVR applications and call recording solutions onto packet networks.

With this new offering, AudioCodes believes that service providers and application vendors can now take advantage of the global footprint of packet networks to reach their customers cost effectively, using a platform native to voice packet networks to deploy their applications and services.

Based on the latest member of the award-winning CompactPCI TrunkPack family, the TP610, users can now aggregate and record 120 incoming packet streams in one central location using a single board. Playback of announcements and detection of incoming touch tones on the packet stream is also supported.

"This is the first step in our commitment to bring integrated media processing capabilities to voice packet networks," said Shmuel Bachinsky, GM of AudioCodes' IPmedia business center. "In the next several quarters we will allow for deployment of global unified communication solutions, conferencing over packet networks, and speech enabled platforms for the mobile user in new product offerings. AudioCodes is committed to becoming the leader in this space, as we have in enabling open gateway platforms."

The Kelsey Group estimates the market size for speech-enabled enhanced services solutions to grow to US$7 billion by 2005 said Mark Plakias, president of the Kelsey Group.

The recording capabilities added to the TP-610 allow for VoIP (Voice Over Internet Protocol) traffic recording and enable Communication Asps (Application Service Providers) to offer centralized call recording and agent quality monitoring services for contact centers. Using the new IPmedia capabilities, companies that operate multiple contact centers can now utilize a single centralized quality monitoring system with audio delivered over the company's data network. Furthermore, quality monitoring service providers will be able to offer their services to an underserved segment of the market consisting of 20-50 agent centers, without the need to install a system on site. This market segment was unable to afford buying a traditional quality system due to a high price tag compared to the number of agents served. The quality monitoring market is the fastest growing segment in the call recording market, currently accounting for 35% of the call recording market according to Datamonitor. The call recording market is estimated at US$1 billion for 2001 and is expected to grow to US$1.8 billion by 2003 according to Gartner.

Availability for beta customers is expected in the first quarter of 2001. For product inquires contact Greg McQuay, Vice President, IPmedia [phone] [e-mail]

Visit AudioCodes at Communications Solutions, Las Vegas, December 7-8 at booth # 466.

About AudioCodes

Founded in 1993, AudioCodes Ltd. (NASDAQ:AUDC) designs, develops and markets enabling technologies and communication system components for voice over packet networks. The company is a market leader in voice compression technology and the key originator of the ITU G.723.1 standard for the emerging IP Telephony market. AudioCodes' product line includes leading edge VoIP communication boards, VoIP media gateway modules, voice over packet chip processors, media gateway subsystems and communications software. Its customers-the leading global telecom and datacom OEMs including Alcatel S.A., Cisco systems, Inc., Clarent Corporation, Lucent Technologies, Siemens, and Vocaltec Communications-all feature AudioCoded equipment. AudioCodes' international headquarters and R&D facilities are located in Yehud, Israel, with US headquarters in San Jose, California. For more information on AudioCodes, please visit the company Web site at http://www.audiocodes.com

This press release contains forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks include, but are not limited to, market demand for the Company's products, economic and competitive factors, international market conditions, technological developments, the ability to finance operations and other factors which are detailed in the Company's SEC filings.

AudioCodes, the AudioCodes logo, AudioCoded(TM), TrunkPack and IPmedia are trademarks or registered trademarks of AudioCodes, Ltd. All other trademarks are property of their respective owners.