Convedia Ranked #1 Media Server Vendor by Infonetics Research.

NEW ORLEANS -- Company Secures Dominant Position in IP Media Server Market for Wireline and Wireless Operators, Capturing over Half of the Global Market in 2004

Convedia Corporation today announced that Infonetics Research, a leading independent market research firm, has named Convedia as the global leader in both market share and revenue for IP media servers in 2004. Media Servers, also known in 3G/mobile networks as Multimedia Resource Function Processors (MRFP), are a key element of the emerging IP Multimedia Subsystem (IMS) architecture and provide a reusable and open voice, video and multimedia processing platform for next generation enhanced service solutions.

In-depth market research conducted by Infonetics concluded that Convedia secured 51% of the global media server ports shipped in 2004 and noted that the media server market grew 89% last year when measured by revenue. The Infonetics research identified media servers as a key element of the voice over IP Infrastructure market, a market which grew 36% in 2004 and which Infonetics projects will reach almost $6 billion by 2008.

"As the leading vendor of media servers, Convedia is well positioned for the explosive growth of VOIP and fixed/mobile convergence that we are seeing globally," said Kevin Mitchell, Directing Analyst at Infonetics Research. "2004 was the breakout year for real VOIP service deployments and our analysis indicates that the migration to voice over IP is in full swing. Convedia has done an admirable job developing a focused product portfolio and establishing strategic partnerships with leading application developers and incumbent network equipment providers. As a result, Convedia has enjoyed significant success in this increasingly important segment of the VOIP infrastructure market."

Since pioneering the IP Media Server market in early 2000, Convedia has secured over 100 customers worldwide and over 20 of the top 50 service providers globally depend on Convedia's media servers and technology today. The company's multi-service platforms provide the foundation for a broad range of traditional network-based services including voice conferencing, prepaid calling card, voicemail, call center and IP Centrex as well as new and exciting services such as custom ringback tones, multiplayer online gaming, and mobile multimedia conferencing and messaging.

"Both fixed and mobile service providers are embracing the IP Multimedia Subsystem (IMS) architecture because of its ability to lower the cost of delivering enhanced services as well as its ability to bring a horizontally layered, Internet-like model of rapid service delivery and innovation to the telecommunications marketplace," said Grant Henderson, co-founder and executive vice president at Convedia. "Studies like those from Infonetics Research show that voice over IP, the engine behind IMS, is growing rapidly and has become the foundation of all next generation network deployments. We are pleased that Infonetics has recognized Convedia's ongoing commercial success and pioneering efforts in the media server market."

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 works closely with leading network equipment providers, application developers, and system integrators to deliver some of the industry's most innovative and cost-effective network and enhanced service solutions for service provider and large enterprise customers.

About Infonetics Research

Infonetics Research (www.infonetics.com) is an international market research and consulting firm covering the data networking and telecommunications industries in North America, Europe, and Asia. Infonetics helps companies develop, market, and sell products and services by providing objective analysis of end-users, service providers, and product manufacturers. Infonetics has offices in Silicon Valley, the Boston Metro Area, and London.

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/IMS wireless architectures, visit www.convedia.com.