ITXC Announces Carrier-Class VoIP Internetworking Capability to Accommodate Growing Demand for VoIP Network Peering.

Business Editors/High-Tech Writers

PRINCETON, N.J.--(BUSINESS WIRE)--Aug. 14, 2003

ITXC.net Now Utilizing Cisco's Multiservice IP-to-IP Gateway To Enable Robust, Secure, and Scaleable VoIP Interconnects

ITXC Corp. (NASDAQ:ITXC), one of the world's leading international voice carriers, today announced that the company's global voice over IP (VoIP) network, ITXC.net(R), is now utilizing the new Cisco Multiservice IP-to-IP Gateway to deliver a secure, reliable, scaleable, and unambiguous demarcation between VoIP networks for media, control, and management. This improved demarcation is required for the high-volume bilateral exchange of VoIP traffic between carriers, and has enabled ITXC.net to quickly establish over a dozen new direct carrier-class VoIP connections capable of two-way traffic, with many more connections pending. ITXC.net is now exchanging approximately 85 million minutes per month with internetworked VoIP carriers, including earlier generation VoIP connections that are currently being upgraded to this new carrier-class model.

ITXC.net is the world's largest international VoIP network, capable of reaching every phone in the world through direct traffic relationships with hundreds of local, national and global carriers in over 175 countries. VoIP internetworking with ITXC.net provides carriers who are either migrating their networks from circuit-based to VoIP or who are building new networks with VoIP technology, significant savings in capital and operating expenses, while dramatically reducing the time and costs required to add capacity and new destinations.

Previously, carriers with VoIP networks have generally converted back to circuit-switched for inter-carrier connections. Earlier generation VoIP to VoIP interconnections required case-by-case custom engineering because of equipment vendor and call control differences and also involved an ongoing technical interdependency that limited independent and secure evolution of each individual network. With ITXC's strengthened VoIP internetworking capability, carriers using VoIP are able to easily exchange traffic directly with ITXC.net, independently of the VoIP vendor or call control protocol used.

With the number of VoIP-based networks beginning to gain widespread acceptance, such scaleable VoIP interconnections are becoming a market imperative. In a recent survey of 81 global wireline and wireless carriers, the Yankee Group found that 73% of wireline and 31% of wireless carriers have implemented or were testing VoIP network infrastructure. According to Christin Flynn, Yankee Group's Director, Communications Network Infrastructure, "Our research indicates that the deployment of VoIP-based architectures in all types of service provider networks around the world has begun in earnest and will continue in an irreversible trend."

In February 2003, Stratecast Partners (a division of Frost and Sullivan) forecasted that from 2002 to 2005, VoIP traffic will grow from 24 billion to 265 billion minutes in wholesale (transit) networks and from 47 billion to 880 billion minutes in the retail (consumer and enterprise) networks that the wholesale networks serve. ITXC is meeting this growing market need by establishing a standard, robust and secure IP demarcation between ITXC.net and wholesale and retail carriers' VoIP networks, using the Cisco IP-to-IP Gateway as one key element.

The Cisco Multiservice IP-to-IP Gateway currently provides ITXC.net with an easy and cost-effective production network-to-network interface, or demarcation point, between ITXC's wholesale VoIP network and wholesale and retail carriers worldwide, with support for each carrier's independent call accounting and secure settlement, network privacy and routing. ITXC is also exploring how to use the Cisco Multiservice IP-to-IP Gateway for its ability to enable packet-based interconnection between ITXC.net and the broad installed base of Cisco AVVID enterprise networks, serving as an IP demarcation point between service providers and Cisco CallManager IP telephony solutions.

"Interconnection between VoIP networks is increasing as the adoption of packet voice and IP communications grows," said Kelly Ahuja, Vice President of Marketing at Cisco Systems Inc. "We are pleased to partner with ITXC to help establish the foundation for direct VoIP traffic exchange between carriers with leadership innovation in VoIP internetworking."

"VoIP networks are nearing an inflection point in their evolution," said John Landau, ITXC Executive Vice President of Marketing. "To date, companies utilizing VoIP technology in their networks have essentially been islands in a sea of circuit switched networks. As VoIP adoption accelerates in networks around the world, they will increasingly interconnect directly via IP. Between now and 2008, I believe that VoIP networks will become the sea, with circuit switched networks becoming the islands. ITXC.net will lead and accelerate this process by serving as a universal interconnect amongst PSTN and VoIP networks of every kind--regardless of equipment vendor, call control protocol or other local network variations."

With its more robust VoIP internetworking capability supported by Cisco Multiservice IP-to-IP Gateways, ITXC now provides lower costs and dramatically better scalability and flexibility for global connectivity to the rapidly growing ranks of VoIP-based carrier networks worldwide. "The global market for native VoIP traffic exchange is expanding rapidly, and competition between international carriers for a piece of this is correspondingly intensifying," said Brian Cotton, Vice President of Consulting for the ICT Practice of Frost & Sullivan. "ITXC has already earned a leading role in the market by virtue of applying leading edge VoIP technology to its forward-looking business model. The carrier's continuing ability to lead in deploying advanced infrastructure enables it to turn the corner ahead of the rest of the pack."

ITXC.net leverages the Internet as its backbone and is built with the Cisco Voice Infrastructure and Applications (VIA) solution and ITXC's patented BestValue Routing(TM) technology, providing carrier-class voice services over the Internet to both PSTN and VoIP carriers. ITXC.net is configured to maximize one of the core benefits of the Internet - ubiquitous reach. This gives ITXC.net a unique advantage: the ability to interface directly to any carrier's or service provider's circuit or VoIP network, anywhere in the world.

About ITXC:

ITXC Corp. is one of the world's leading carriers based on minutes of international traffic carried. As a carriers' carrier, ITXC serves all major carriers in the US; many incumbent carriers worldwide including China Telecom, PLDT, Telkom South Africa, Telecom Colombia, Telenor, Telia, and VSNL; and emerging and competitive carriers including Intelig in Brazil, Vietel in Vietnam and Data Access in India. ITXC also serves a growing number of mobile carriers including China Mobile and Smart Communications, leading mobile carriers in their respective markets.

ITXC is the global market share leader in VoIP international calling with approximately 20% of the market, according to TeleGeography 2003. ITXC was also the Fastest Growing Technology Company in North America according to the 2002 Deloitte & Touche Technology Fast 500 ranking.

For more information about ITXC, please visit www.itxc.com.

Forward-looking statements

ITXC has included in this press release "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including all statements listed as guidance and all statements of anticipated or expected results for the current quarter and any future periods.

Actual results could differ materially from those projected in the Company's forward-looking statements due to numerous known and unknown risks and uncertainties, including, among other things, the volatile and competitive environment for Internet telephony and telecommunications; changes in domestic and foreign economic, market, and regulatory conditions; the inherent uncertainty of financial estimates and projections; uncertainty related to the CEO search ITXC has recently announced; uncertainty inherent in litigation; unanticipated technological difficulties; the creditworthiness of our customers; future transactions; and other considerations described as "Risk Factors" in Exhibit 99 to the Company's Annual Report on Form 10-K for the year ended December 31, 2002 and in other filings by the Company with the SEC.

All such forward-looking statements are current only as of the date on which such statements were made. ITXC does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.