Popular Telephony Appoints Stanley M. Blau to Its Board of Directors; Forms Advisory Board with Dr. David Almagor, Mr. Allan Sulkin and Mr. Christopher Younger as Its Members.

CHICAGO -- Popular Telephony Inc., a telecommunications middleware company, announced today at SuperComm 2004 (BOOTH # 10841), the appointment of Stanley M. Blau to the company's Board of Directors. Blau has an extensive history as a top-level executive for numerous public companies, consistently leading each company to accelerated growth and strategic positioning for securing additional financial backing.

Blau currently serves as a Principal for PS Capital, a strategic and financial services group, providing business management assistance to middle market companies across industry sectors and throughout international markets. Prior to PS Capital, he founded Consolidation Communications Inc. (CCI), a privately held company that initially created the secondary telecommunications equipment market, which subsequently led to the launch of over 3,000 companies in this arena. Formerly, he was the co-founder and CEO of Vodavi Technology Corp. where he led the acquisition of Executone Information Systems and a key merger with Isoetec, creating a $300 million industry leader.

"I am delighted to join the team at Popular Telephony," stated Blau. "Popular Telephony's mission is an incredible one, and its initiatives will certainly alter the industry in a positive way for many years to come. I'm looking forward to providing my expertise to expand the immense potential of the first serverless VoIP platform for peer-to-peer technology, and to being an instrumental part of this revolutionary, exciting endeavor."

Additionally, Blau was the founder and chairman of the board for the Multi Media Telecommunications Association (MMTA), the voice for telecommunications manufacturers and distributors throughout North America. After the MMTA he joined forces with the Telephone Industry Association, he was appointed to the Board of Directors. He is now Vice Chair of the Enterprise Communications Association which promotes convergence to both manufacturers and the channel in the enterprise space.

Currently, he also serves as the Chairman of the Board for the American-Israel Chamber of Commerce and Industry, stimulating and promoting trade between Israel and the United States.

He is a frequent lecturer in Entrepreneurial Studies at the Cornell Graduate School of Business, as well as a member of Cornell's East Asian Advisory Council of the School of Business. He holds a Bachelor of Arts in Economics from Cornell University, and an MBA in Marketing from New York University.

Popular Telephony has also appointed three seasoned business, telecommunications and technology veterans to its Advisory Board, Dr. David Almagor; Allan Sulkin and Christopher J. Younger.

Most recently, Dr. Almagor served as the President, CEO and chairman of Mysticom Semicondutor, a leading fabless network IC provider where he founded the organization in 1997 and led the company through four substantial rounds of financing. David grew the company's 3 product lines and achieved significant revenue while developing supplier relationships with companies including IBM, Texas Instruments, Philips, Infineon, Samsung and NEC. In 2003, he brought on a new CEO and currently serves as an active board member.

Formerly, Dr. Almagor was a Director at National Semiconductor Corporation for its DSP technology group, where he led all central DSP development for the company's numerous product lines.

Currently, Dr. Almagor is a Board Member or Business Adviser with a few companies, both private and public.

Sulkin, currently the president and chief analyst for TEQConsult Group and a member of the Board of Directors of the Enterprise Communications Association (ECA). He holds more than 25 years of telecommunications experience and is globally renowned as the leading PBX systems market/product analyst. He is a contributing editor to Business Communications Review (BCR) where he edits the annual PBX market review.

Additionally, he writes the PBX and KTS/Hybrid sections of the annual Telecommunications Market Review and Forecast, published by the Telecommunications Industry Association (TIA). Sulkin is also the author of 'PBX Systems for IP Telephony,' the definitive textbook for traditional and evolving IP-PBX systems.

Sulkin stated, "The Popular Telephony approach to fully disperse all call processing support across numerous network nodes -- eliminating single points of failure common to yesterday's traditional system design -- appears to be the final step in the evolutionary ladder."

Younger is the former president and chief operating officer of Expanets, which, prior to its acquisition by Avaya Inc., was the nation's largest and leading provider of converged communications solutions to medium-sized businesses. In his role as President and in his previous role as head of strategy and marketing, he directed Expanets' purchase and integration of 26 local communications leaders and Lucent's $1 Billion emerging markets division.

Before Expanets, Younger was a Principal at NorthWestern Growth Corporation, where he gained a great deal of experience in strategic development, private equity investing and mergers & acquisitions. Earlier, he was an attorney with Wilson, Sonsini, Goorich & Rosati, a leading Silicon Valley law firm, where he practiced in the general corporate and securities group. Younger is a graduate of Harvard Law School.

Younger has served as a member of the Board of Directors of Expanets, NorthWestern Growth Corporation, the Multimedia Telecommunications Association and the Telecommunications Industry Association, where he was the vice chairman of the Global Enterprise Market Development Committee. Younger is also the founding chairman and a member of the Board of Directors of the Enterprise Communications Association, an industry trade group dedicated to developing the convergence marketplace.

"Needless to say, the fact that these industry leaders and visionaries have joined Popular Telephony is monumental to our efforts in every way," said Dmitry Goroshevsky, chairman and chief executive officer of Popular Telephony Inc. "They not only bring remarkable management and business track records, but also a true understanding of the technologies and applications tactics crucial to making the Peerio(TM) concept excel and break all the boundaries that it's intended to."

About Popular Telephony

Popular Telephony Inc. is a privately held telecommunications middleware company focused on bringing true peer-to-peer technology to the general market. With a strong patent portfolio and a leadership team led by Internet Telephony industry veterans, the company aims to be the leader in the peer-to-peer telephony sector. Popular Telephony is a U.S. registered corporation, with offices in New York, France and Israel. http://www.populartelephony.com.