NewStep Networks Supports Roll-out of BT Corporate Fusion.

Dual-Mode GSM to Wi-Fi Handoff is Key Element of BT's Corporate Fusion Premise-Based Service Offering, Including NewStep Networks' CSN30 Enterprise-Level Convergence Solution

TORONTO -- NewStep Networks, Inc., the market and technology leader in convergence solutions for service providers and enterprises, today announced that British Telecommunications plc (BT) is rolling out premise-based, fixed-mobile convergence services using NewStep Networks' CSN30, a Fixed-Mobile Convergence (FMC) solution designed for service providers' enterprise customers.

The CSN30 offers an FMC solution with a wide array of advanced features in a compact, industry-standard platform that is ideal for enterprises with large numbers of mobile workers.

NewStep Networks' CSN30 platform supports BT's Corporate Fusion - site (a premise based service), which combines Wi-Fi, cellular, corporate directories and PBX functionality, to offer a converged service for large corporations. BT is currently trialing the platform with a large local government organisation in the U.K., and will shortly announce further trials in the UK and Europe. BT expects to launch the service in the UK initially, followed by a phased roll-out across BT's international footprint.

"Together with NewStep Networks, we are leading the charge to reduce the complexity of today's communications, and at the same time improving employee effectiveness and business productivity," said Rakesh Mahajan, director of mobility, BT Global Services. "BT Corporate Fusion will offer our corporate customers an FMC service that will help increase their efficiency, maximize existing infrastructure, and enable better cost management, and help them to offer better overall customer service."

In addition to Voice Call Continuity (VCC) compliant dual-mode seamless handoff support, the CSN30 provides all the features of the NewStep Networks' FlexConnect Solution, such as One Button Transfer, Single Number Service, Automatic Reconnect, Single Voicemail and Voicemail Intercept. The CSN30 provides PBX extension services, so that a selection of traditional PBX features can be extended to employee mobile devices. CSN30 also offers Optimal Call Routing, which helps enterprises and network operators save on long distance, transfer and roaming charges.

"BT's corporate customers require an integrated converged services solution that will increase productivity for the growing number of mobile workers, while extending PBX benefits to the mobile device," said Neil Baimel, president and CEO for NewStep Networks. "NewStep's enterprise-focused CSN 30 platform will automatically switch calls between cellular and Wi-Fi networks. The CSN 30 is simple and easy to manage, thereby enabling enterprise customers to manage their communications infrastructure to deliver 'any device, any place, any content' FMC services to their employees."

NewStep currently offers its' patented, carrier-class CSN server-based software platform in two versions: CSN30 for enterprises and small carriers, and CSN1000 for large carriers. Both platforms converge services across diverse networks to enable end users to have a single number, single voicemail, simultaneous ringing across multiple phones, and other features like corporate extension dialing, from the mobile phones they use today. By extending traditional desktop PBX phone capabilities to today's mobile phones, and allowing the easy transfer of calls between fixed and mobile phones, end users get a more consistent, simplified communications experience at a lower cost, and service providers are able to deliver a higher value bundle of fixed-mobile services.

About NewStep Networks

NewStep Networks is an award winning provider of fixed-mobile convergence solutions based on its patented CSN platform. NewStep solutions enable enterprises and consumers to have an "any device, any place, any content" communications experience by facilitating the movement of information across access technologies. Currently deployed and handling millions of calls per day, NewStep Networks' platform offers a rich set of features that works with today's technology and devices, as well as those being developed for tomorrow. For more information, visit www.newstep.com.

About BT

BT is one of the world's leading providers of communications solutions and services operating in 170 countries. Its principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2006, BT Group plc's revenue was [pounds sterling]19,514 million with profit before taxation of [pounds sterling]2,040 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York. For more information, visit www.bt.com/aboutbt.

Note to Editors: NewStep Networks, etc., are trademarks of NewStep Networks. All other trademarks are the property of their respective owners.