BT Conferencing Signs $50 Million Contract with Octave Communications to Resell Octave Conferencing Equipment Globally.

Business/Technology Editors

NASHUA, N.H.--(BUSINESS WIRE)--Dec. 19, 2001

"Largest Single Order in Audio Conferencing Industry History"; Enables

BT Conferencing and Octave to Continue Aggressive Growth Strategy

throughout World

BT Conferencing, part of the BT Retail division of BT Group plc, the UK-based communications group, has signed a four-year, follow-on contract to purchase $50 million of Octave Communications(R) conferencing systems according to Octave Communications, a leader in audio conferencing and instant group conversation technology. This new contract enables BT Conferencing to meet the dramatically increasing demand among large enterprise customers throughout the world who are signing up for the BT conference call MeetMe(TM) service, which is based on the Octave platform.

"We believe this to be the single largest order in audio conferencing history," said Senior Analyst & Partner, Andy Nilssen, with Wainhouse Research, Brookline, Massachusetts. "This demonstrates both the accelerating growth of the market and the leadership roles Octave and BT Conferencing are playing."

BT Conferencing standardized its MeetMe offerings on Octave's reservationless conferencing technology when it placed an initial $20 million order with the company in December, 2000. The successful completion of that order and today's follow-on announcement points out the dramatic rise in demand for new conferencing systems from a growing number of businesses. With this contract in place, BT Conferencing can continue to extend its customer base by offering a host of new, next-generation conferencing services to additional enterprise businesses throughout the world.

"BT Conferencing is experiencing significant growth worldwide for its MeetMe services," said David Sales, director of BT Conferencing. "We have enjoyed a very successful working relationship with Octave since first signing the original contract. We continue to standardize on the Octave platform because Octave shares our technology vision for enhanced services and has consistently met our expectations by delivering quality products."

"We have proven the capabilities of our technology in what may be the world's most demanding telecommunications environments," said Rob Scott, chairman and co-founder, Octave Communications. "This new contract extends our conferencing-based product offerings and provides BT Conferencing with a range of services that are unmatched anywhere. This order reflects Octave's continued commitment to develop next-generation technology so companies like BT Conferencing can meet their aggressive worldwide growth strategies."

This contract comes at a time of tremendous growth for both companies. BT Conferencing has recently expanded it presence into nine countries, including the United States with an office in Braintree, Massachusetts, in order to take advantage of the developing market. According to a new report from Wainhouse Research, the market for unattended audio conferencing services will grow at over 30 percent a year, with the total audio conferencing services market topping $5.6 billion in 2005.

Octave has recently completed a $17 million financing round that is enabling it to build out its technology in order to increase revenue and satisfy growing customer requirements for reservationless conferencing and new wireless group conversation solutions. Additionally, the company has expanded its U.S.-based presence, and has focused on opening offices throughout Europe and the Pacific Rim. The magnitude of this order will enable both BT Conferencing and Octave to meet aggressive worldwide growth targets.

About Octave Communications

Octave is pioneering next-generation infrastructure technology that enables wireless carriers and service providers to deliver dynamic conferencing applications for instant group conversation. Privately held and headquartered in Nashua, New Hampshire, the company leverages a cross section of communications technologies: voice conferencing, mobility, presence, speech recognition, and voice over IP (VoIP). With Octave's innovative hardware platform and software applications, service providers can deliver new and differentiated group conversation services that increase carrier revenue and impact the way people communicate. Octave products are available through a worldwide direct sales force and resellers. For more information on the company and its products, visit its web site at www.octavecomm.com, email us at [e-mail], or call 603/459-5200.

About BT Conferencing

BT Conferencing is a world leader in the development and provision of phone, video and e-conferencing products and services. It is the largest European phone-conferencing supplier and the fifth largest in the world. It has an established reputation as a provider of high-quality teleconferencing products and services and is renowned for its customer service. BT Conferencing is one of the fastest growing businesses within BT Group plc, one of the largest telecommunications groups in the world, with a market capitalisation of around (pound)22.4 billion. For further information, visit www.conferencing.bt.com.

Note to reporters: photos available upon request or by visiting the Octave Communications' online press kit located at www.octavecomm.com.