SPIRIT DSP Announces Strong Expansion with Asia Mobile OEMs in 2006.

MOSCOW -- SPIRIT DSP, the world's leading provider of award-winning TeamSpirit[R] family of embedded voice, audio and video engines announces today its strong traction with Asian mobile OEMs in 2006, the key channel to global VoIP, audio and video over WiFi and 3G markets.

In 2006 SPIRIT has signed over 50 new deals with the leading telecom and mobile hardware OEMs and software vendors. Currently SPIRIT counts among its customers Adobe, Agere, ARM, Atmel, Compal, Flextronics, Ericsson, HP, HTC, Interwise, Kyocera, LG, Marconi, MediaRing, Microsoft, National Semiconductor, NEC, Nortel Networks, Oracle, Paltalk, Panasonic, Philips Semiconductor, Plustek, Polycom, Quanta, Radvision, Samsung, Siemens, Texas Instruments, Toshiba, Trinity Convergence and 200+ other communication OEMs and software vendors.

SPIRIT has proved its technical and service excellence again in 2006 by extending licensing contracts with many of its old customers such as Adobe, Compal, HTC, Oracle and Siemens, as well as by signing new contracts with global leaders including ARM, Interwise, Microsoft, Quanta, Plustek, Radvision and 50+ other key players in the embedded voice, audio and video market. There are also several major deals SPIRIT signed in 2006 with global names, where customers do not allow SPIRIT to announce their names publicly.

In 2006 SPIRIT became the global and preferred strategic software partner to ARM. This partnership has already led to major deals signed by SPIRIT this year with leading mobile and personal media player OEMs on the ARM platform in both Asia and the US.

SPIRIT stays focused on voice, audio and video processing market. SPIRIT products are now used in 80 countries, and SPIRIT is constantly hiring new technical and sales talents. The growing popularity of SPIRIT voice, audio and video products in 2006 has attracted new business partners who joined SPIRIT success and amplified it further by active promotion of SPIRIT products and services. In 2006 almost a dozen of new sales partners were added to SPIRIT partner network in Asia alone, enabling SPIRIT to get closer to the Chinese, Taiwanese, Korean and Japanese mobile and personal media player OEMs. The extensive network of new Asian partners is the key channel to deliver award-winning SPIRIT voice, audio and video engines to the world, thus enabling low-cost and low-power consuming VoIP, audio and video over WiFi and 3G networks.

SPIRIT's extremely low-power- and MIPS-effective software products that SPIRIT competitors cannot match, enable even sub-$300 mobile devices with VoIP functionality over WiFi and 3G, and open new global market opportunities for feature-phone, smart-phone and personal media player equipment makers.

"The major global communication market players trust SPIRIT by integrating our products and bringing new customers to us by recommendation and reference," said Slava Borilin, VP Products at SPIRIT. "We have extremely aggressive goals to meet for the next two years. Embedded and mobile voice and audio markets have been SPIRIT's core strength for the last 10 years, and we are the global leader here, as clearly evidenced by our OEM customers and sales partners traction in 2006. As a result of our 10 years experience, today SPIRIT software powers 100M+ voice channels embedded in hardware, and this is far more than any of our competitors can show, without counting free PC voice channels. SPIRIT delivers unique embedded voice experience."

About SPIRIT DSP

SPIRIT DSP (www.spiritDSP.com) employs 140 professionals, has been in the international software licensing business since 1992. A bootstrap company, SPIRIT has been profitable for 14 years. For the last 10 years SPIRIT's focus has been voice, audio, video and data communication software products. SPIRIT counts among its customers Adobe, Agere, ARM, Atmel, Compal, Flextronics, Ericsson, HP, HTC, Interwise, Kyocera, LG, MediaRing, Microsoft, National Semiconductor, NEC, Nortel Networks, Oracle, Paltalk, Panasonic, Philips Semiconductor, Polycom, Radvision, Samsung, Siemens, Texas Instruments, Toshiba and Trinity Convergence, among 200+ other communication OEMs and software vendors. SPIRIT communication software is used in over 80 countries and powers more than 100 million embedded voice channels. SPIRIT DSP is a member of voice-related developer communities, including Intel[R] Developer Network, ARM[R] Connected Community, Philips Nexperia Partnership, TI Third Party Network, TI OMAP Developer Network for Wireless handsets and PDAs. SeeStorm is SPIRIT affiliate for synthetic video conferencing.