Court Grants ITXC Motion Dismissing Some Hercules Claims.

Business Editors/Hi-Tech Writers

PRINCETON, N.J.--(BUSINESS WIRE)--Dec. 11, 2001

ITXC Corp. (Nasdaq:ITXC) On Friday, December 7, 2001, the Virginia Circuit Court ruled on ITXC's demurrer in a lawsuit brought by Hercules Communications, LLP. Contrary to a press release issued by Hercules, the Court granted ITXC's motion in part and overruled it in part.

A demurrer is a motion brought by a defendant before answering a complaint, stating that the plaintiff's complaint is deficient on its face even assuming its facts are true. No evidence is provided to the Court by either side.

At this early stage of the case the Court agreed with ITXC that Virginia law applied to the case, granted ITXC's motion to dismiss claims based on the legal doctrine known as promissory estoppel, and granted ITXC's motion to dismiss the fraud claims. While the Court did permit the case to proceed past the filing stage on the breach of contract claims, which means that ITXC will be required to answer the complaint in those respects, the Court expressly noted that its ruling did not mean that Hercules would ever be able to prove a breach of contract case. The Court also will permit Hercules to try to overcome the defects in its fraud claim by filing a new complaint on this issue, if Hercules decides to do so.

Theodore M. Weitz, ITXC's General Counsel, stated that he "...was encouraged by the Court's recognition that many of the claims presented by Hercules are defective on their face. As the case proceeds, ITXC will have the opportunity to engage in discovery and present evidence on what remains of Hercules allegations."

About ITXC Corp.:

In just four years of operation, ITXC Corp. (NASDAQ:ITXC) has become the largest global carrier based in the US dedicated exclusively to carrying voice calls on behalf of other carriers. ITXC has permanently changed the economics of international long distance by establishing and operating ITXC.net(SM), the company's Internet-based voice network of over 727 PoPs in 365 cities and 139 countries, which delivers carrier-grade voice quality. ITXC's patented and patent pending BestValue Routing(TM) technology provides such high voice quality that tier one carriers use ITXC for worldwide phone-to-phone traffic without needing to tell their customers that the calls are actually traveling over the Internet. Customers include almost all major carriers and most RBOCs in the US, many major traditional carriers worldwide, new competitive carriers in deregulating countries including local exchange operators (LECs) who outsource their new domestic and international long distance services to ITXC and Internet-based Web-to-phone providers. For more information, visit www.itxc.com.