Broadmedia Announces freeTone-DLX Service; Voice-over-IP Service Uses Broadmedia's New G-Phone DLX IP-Phone for Dialup Internet Connections.

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--May 3, 2000

Broadmedia Inc. (www.broadmedia.com) today announced freeTone-DLX, a new Voice-over-IP (VoIP) service. freeTone-DLX enables long distance telephone calls to be made over the Internet to any standard phone in the world. To use freeTone-DLX, the user simply pushes a dedicated button on the G-Phone DLX front panel and the service is automatically invoked.

The G-Phone DLX looks and acts like a regular desktop telephone, but also includes Broadmedia's G-Phone VoIP gateway technology. Unlike other Broadmedia G-Phone gateways, however, the gateway within the G-Phone DLX does not require an "always on" Internet connection such as a T1 or DSL line. It is instead an integrated telephone that connects to the Internet through a dialup PPP connection. A modem, also within the G-Phone DLX enclosure, automatically dials the user's ISP whenever a freeTone VoIP connection is chosen. As a result, the G-Phone DLX IP-phone supplies all-in-one convenience, giving users both standard and VoIP telephone operation without the need for an external gateway, telephone switch, broadband Internet connection, or PC.

"Broadmedia created the G-Phone DLX to fulfill a growing need for a turn-key VoIP solution that would be as easy to use as a standard telephone," said Ting Herh, Broadmedia Chairman, CEO and President. "An integral part of that solution is freeTone-DLX. We set out to create a VoIP service that would be as versatile and easy-to-use as the G-Phone DLX itself."

A G-Phone DLX makes IP-based calls in a direct gateway-to-gateway manner when connecting to another G-Phone DLX (or to any other G-Phone model), for the cost of the user's dialup Internet access. If the long distance IP-based call is destined for a standard telephone, it can be automatically routed over Broadmedia's freeTone-Global network. This enables the G-Phone DLX to reach any phone in the world at cost-cutting VoIP long distance rates.

"Pricing was as important as versatility when we set up the freeTone-DLX service," continues Herh. "Many people use dialup Internet connections instead of DSL, T1 or ISDN simply because dialup is much more affordable. For freeTone-DLX to be successful, we had to make low cost a priority."

The list price for freeTone-DLX service is $19.95 per month, which includes the G-Phone DLX IP-phone and freeTone-Global minutes. If subscribers need additional freeTone-Global minutes, they can purchase them directly from Broadmedia or an authorized reseller. The company is also offering an introductory bonus of $19.00 worth of freeTone-Global minutes per freeTone-DLX subscriber.

"The introductory offer is really just the frosting on the cake," Herh explains. "The real bonus is the service itself, which not only includes the DLX phones, but can reduce long distance and international dialing charges by as much as 90%. The value of that is self evident."

About Broadmedia

Broadmedia Inc. is a privately held corporation offering VoIP equipment and services that allow businesses to use the Internet for simple and inexpensive telecommunications. The company's G-Phone equipment freeTone solution is available in an expanding number of countries throughout the world.

The company also supplies OEM partners with technology to address consumer Internet telephony as well as other Internet markets. Broadmedia has headquarters in Sunnyvale, California, and offices in Hsin-Chu Science Park in Taiwan.