NexTone Continues to Dominate the Session Management Market with Record Numbers in Q2 2005.

GAITHERSBURG, Md. -- NexTone Announces 26 New Customers Globally, Introduces IP Multimedia Exchange (IMX) Platform, and Wins SUPERQuest Award for Customer Deployment of Its iView Management System

Continuing its success from 2004, NexTone Communications(R), the leader in scalable session management of real-time IP services such as voice over IP (VoIP), today announced another banner quarter for Q2 2005. This year alone, the company has added 50 new customers in 21 countries worldwide, as well as a new sales office in Amsterdam to support the company's explosive international growth. Over the last four quarters, NexTone has experienced almost 100 percent growth in its business, in large part due to the global demand from carriers looking to deploy VoIP services. To date, NexTone has recorded more than 250 carrier deployments in production networks worldwide.

"NexTone experienced tremendous growth in 2004, and we continue to exceed company goals and successfully grow our business globally in 2005," said Ken Nelson, chief financial officer for NexTone. "In addition to gaining a significant number of new customers, we are also continuing to sell into our established customer-base. Repeat business has increased approximately 40 percent in 2005, as compared to the same period last year."

In Q2 2005, NexTone signed new customers across the globe, with tier-one carrier deployments in Latin America, Europe, Asia, and North America. These deployments represent customers in the high-growth markets for session controller technologies including carrier-to-carrier and carrier-to-enterprise applications. For many of these new customers, the deployment of NexTone's technology has allowed them to expand their services footprint and bring new, revenue-generating VoIP services to market.

"NexTone's continued international success is a testament to the company's understanding of emerging IP technologies and markets and to our ability to provide the solutions carriers need to succeed in their business ventures. We've continued to sign customers that had previously evaluated other session controller technologies and determined our products better suited their needs. These signings are further evidence that we offer not only the best session management products on the market, but also the best customer service in the industry," said John Gillespie, vice president of worldwide sales for NexTone. "The power of NexTone's products, in conjunction with our unmatched customer service, is the reason NexTone dominates the session management market worldwide."

The company's technology leadership was recently showcased when NexTone customer New Global Telecom (NGT), a leading provider of outsourced TDM and IP network management services to carriers and service provider customers worldwide, was honored by SUPERCOMM with a prestigious SUPERQuest Award in the Network Design and Services category for Best Network Infrastructure product. The award was given for NGT's IPartition service, based on NexTone's iView Management System (iVMS).

Also at SUPERCOMM, NexTone introduced another innovative product to its portfolio, the NexTone IP Multimedia Exchange (IMX) platform, designed to enable secure and seamless interconnectivity between 3G mobile networks, VoIP networks, and networks based on the IP Multimedia Subsystems (IMS) service delivery framework. NexTone's IMX provides a cost-effective way to manage the rapid growth of traffic between wireline carriers and 3G mobile operators while enabling new business models for network and service expansion. With NexTone's IMX, wireline VoIP carriers can now transparently exchange minutes with mobile carriers, deliver FMC services, and extend the reach of their networks by peering with mobile operators. The NexTone IMX can also interconnect multiple IMS networks and facilitate the exchange of multimedia traffic between service providers.

About NexTone Communications

NexTone Communications develops carrier-grade products that deliver scalable control of real-time IP services, such as voice over IP (VoIP). NexTone solutions enable carriers, service providers, and enterprises to securely, simply, and cost-effectively interconnect networks for end-to-end control and management of IP traffic. NexTone's real-time IP technology has been installed by more than 200 service providers worldwide to dramatically reduce capital expenditures and deliver ongoing operational efficiencies, such as reduced interconnect "turn-up" time and simplified network operations. For its ability to anticipate the growing need for multiprotocol session control and its impressive market traction, NexTone was awarded the 2004 Frost and Sullivan Market Penetration Leadership Award. The company is headquartered in Gaithersburg, Maryland, USA, with domestic and international sales offices worldwide. For more information, visit www.nextone.com.