Convedia Named Market Leader by Industry Research Firm iLocus; VoIP Research Report Shows Convedia Leading the Global IP Media Server Market.

VANCOUVER, British Columbia -- Convedia Corporation today announced it has been ranked as the leading provider of IP Media Servers by iLocus, a market research group focused on the VoIP industry. The "Global VoIP Market 2004" report, published last month, identified Convedia as the global media server leader with 47% market share and projected the media server market would grow to more than 15 million ports by 2009.

This 5th Annual Industry Update examines the service provider market for VOIP equipment including softswitches, media gateways, media servers, session border controllers and IP Centrex solutions. Based on in-depth discussions with more than 100 VoIP service providers and vendors worldwide, the iLocus report provides a cross-sectional view of the entire carrier market identifying market size and forecasts, as well as leaders and their competitors in each sub-category.

"Our research shows that Convedia has emerged as the clear global leader in IP Media Server products," said Jahangir Raina, Managing Director of iLocus. "Convedia's early commitment to, and penetration of the Asian market coupled with strong positions in voice conferencing, prepaid calling card, IP Centrex and voicemail solutions have enabled the company to capture this leadership position. Their strategy and proven ability to deliver a robust, multi-protocol family of media servers with an unparalleled ecosystem of 3rd party applications positions them extremely well for the rapidly growing media server needs of fixed line and wireless service providers globally."

Convedia's media server technology is deployed today in more than 20 countries and is operational in more than 50 in-service networks. The company's products have been deployed in numerous voice conferencing, prepaid calling card, voicemail, call center and IP Centrex services around the globe and are used in two of the largest voice over broadband phone services in North America.

"2004 is shaping up to be the breakout year for Convedia as service providers around the globe recognize the critical importance of deploying an open, application independent service platform based on media server technology," said Peter Briscoe, President and CEO of Convedia. "We are very pleased to be formally recognized by iLocus as the market leader. Our leadership position has resulted from our laser-like focus on media server products and with the help of our OEM and 3rd party VOIP application development partners who have embedded us in their global customer base. Being named market leader is yet another significant milestone in our corporate history of media server leadership."

Convedia's award winning family of carrier class IP Media Servers reduce capital and ongoing operational costs by consolidating the functions of traditional announcement and recording servers, interactive voice response units (IVR/VRU), audio/video conference bridges, voice mail servers, and speech platforms onto a single shared media processing platform. Convedia's media servers are controlled by 3rd party application servers and call agents in softswitch, 2.5G/3G wireless and PacketCable networks through open control protocols such as SIP, VoiceXML, MGCP, MSML, PacketCable NCS, and Megaco/H.248.

About iLocus

iLocus is a market research group focused on VoIP industry. Through open publications and regular surveys, iLocus helps next generation companies in important business decisions. The research which iLocus produces is known for its focus on important market indicators. For more information on iLocus and their Global VoIP Industry Update report, please visit www.ilocus.com.

About Convedia

Convedia(R) Corporation is the leading supplier of next-generation IP media servers that enable telecommunication service providers to reduce service delivery costs and increase revenues through new approaches to enhanced services. Convedia's award-winning family of products includes the CMS-6000 Media Server, a carrier-class media server capable of scaling to 18,000 ports per shelf, and the CMS-1000 Media Server, a low-cost, entry-level media server. Convedia is a privately held company headquartered in Vancouver, Canada, with regional offices in Asia and the United States. For additional information about Convedia, its products, or the role of media servers in Softswitch, Packet Cable, or 2.5 and 3G wireless architectures, visit www.convedia.com.