Bezeq International Selects Veraz for Migration to VoIP Based Network; Turnkey Solution Replaces Legacy Switch.

SAN JOSE, Calif. -- Veraz Networks announced that Bezeq International, the Israeli telecommunications service provider, has selected Veraz's comprehensive VoIP solution to replace its switching network, including a legacy switch. Bezeq International chose the Veraz NGN solution for its ability to deploy new services in the shortest period of time. The new network will provide traditional voice services as well as VoIP services to Bezeq International's residential and business customers.

The Veraz NGN solution significantly lowers initial investment and maintenance costs for Bezeq International's network. This open and flexible solution considerably reduces operating costs and manpower. It will also save significant central office space, which has become a scare resource for carriers.

Veraz will provide Bezeq International with its open architecture platform that includes the ControlSwitch, a programmable softswitch that features the Service Introduction Framework, I-Gate 4000 Pro media gateways for converting VoIP packets to traditional telecommunications protocols, and a Veraz Border Gateway Controller to secure the VoIP packet network. In addition, the solution includes an STP (Signaling Transfer Point) system that enables service providers to cost-effectively expand services while migrating to a next generation network.

"Veraz Networks will enable us to offer an aggressive portfolio of services to attract customers and increase revenue," said Ronnie Sadeh VP Technology of Bezeq International. "Veraz's solution enables us to rapidly deliver these services at a much lower cost."

"With the aid of Veraz's VoIP solution, Bezeq International will be able to respond to customer needs and deploy new services on-the-fly," said Douglas A. Sabella, CEO and President of Veraz Networks. "Veraz enables Bezeq to rapidly expand its portfolio of services, which allows it to retain and gain customers."

About Veraz Networks

Veraz Networks (www.veraznetworks.com) is the leading global provider of softswitch-based, toll-quality packet telephony solutions for traditional and next-generation communications networks. Built on a rich heritage of delivering carrier-class products to over 700 customers in 140 countries, Veraz offers complete solutions to established and greenfield carriers, and enhanced service providers worldwide through its softswitch, media gateway, and digital compression products. Leveraging open, best-of-breed components and a global support and service infrastructure, Veraz partners with customers to design and deploy carrier-class next-generation networks tailored to meet their business objectives. By combining industry-leading, standards-based softswitch and media gateway platforms with robust management systems, Veraz offers unmatched flexibility to its customers: a best-in-class integrated packet telephony solution or the freedom to choose best-of-breed individual products to match their unique network needs. Veraz solutions address a wide range of call processing applications such as tandem switching, domestic & international long distance, IP trunking, IP Centrex, as well as new voice-data services.

Veraz Networks is privately funded by ECI Telecom (Nasdaq:ECIL), Argonaut Private Equity, Battery Ventures, Kleiner Perkins Caufield & Byers, Levensohn Venture Partners and Norwest Venture Partners. The company is headquartered in San Jose, CA, with offices throughout the world.

About Bezeq International

Bezeq International Ltd. (BI), the leading International telecommunications company in Israel, was established in 1996 as a wholly owned subsidiary of Bezeq, the Israel Telecommunications Corporation Ltd., and is part of the country's largest telecommunications group. BI is regarded today as pre-eminent in its field, providing comprehensive telecommunications solutions in the fields of International telecommunications, Internet, Data, Hosting and Security, based on the most advanced technology in Israel and throughout the world. BI entered the Internet market in 1999, and today, with approx. 330,000 subscribers, BI is one of Israel's leading Internet Service Providers (ISP), enjoying the highest and most impressive rate of growth. BI also provides approx. 270,000 subscribers per month with International telecommunication services. The company's outstanding efficiency and performance are thanks to its highly skilled personnel, combined with the use of high-speed infrastructures and the utilization of cutting-edge technology. BI's modus operandi focuses on customer needs rather than product type, thus providing the client with comprehensive telecommunication solutions and, more specifically, placing the customer at the center of activity. BI's revenue for 9 months of 2004 was approximately NIS614 million, derived from all its lines of business.