Sylantro and Alcatel Deploy Large-Scale IP Centrex Service to China Unicom.

CAMPBELL, Calif. & PARIS -- Sylantro Systems Corporation announced today that together with Alcatel it has delivered an integrated NGN solution to China United Telecommunications Corporation Ltd. (China Unicom). The solution combines Sylantro's application feature servers with Alcatel's 5020 Call Session Controller, enabling China Unicom to provide advanced broadband services for the Shanghai Metropolitan area and customers in 8 provinces. The project was conducted through Alcatel Shanghai Bell, Alcatel's Chinese flagship company.

China Unicom's next-generation network is based upon the Alcatel 5020 Softswitch, which has extended the IP Multimedia Subsystem (IMS) model beyond mobile communications to the fixed IP network -- allowing user-centric services with multimedia applications such as video phones. The Sylantro application feature servers are deployed using IMS architecture to deliver a highly advanced and flexible set of business voice services and capabilities such as find me/follow me, single-number service and click-to-call with customized, localized browser-based portals.

"With a population of over a billion, the People's Republic of China is the largest single market for communications services in the world," said Michael Yan, senior analyst, telecom research for IDC China, an industry analyst firm. "It is critical that service providers develop broadband-based services that provide total solutions for business sectors and expand services to provide next-generation options across the fixed and mobile networks."

The joint solution allows China Unicom to offer a wide variety of bundled service offerings for small- to medium-size businesses and enterprise users with a full complement of advanced IP communication features. Business users will have an advanced VoIP service along with the ability to manage call screening, simultaneous ringing, and other advanced services. Users will be able to control who reaches them, where and when; select multiple on- and off-net devices as their communications interface; and much more. Enterprises will have flexibility to run the services on an all-IP network.

"We are pleased that China Unicom has chosen our IMS-conformant applications feature server as the foundation for their new service offerings for business customers," said Pete Bonee, president and CEO of Sylantro Systems. "China Unicom has shown great initiative and foresight in developing new services and concepts such as the consumer-oriented 3G media portal called Uni. Now their business customers will have access to the leading-edge communications applications that provide a competitive advantage in the global marketplace."

About China Unicom

China United Telecommunication Corporation Ltd. (China Unicom) was established in 1994 and became a listed company on Hong Kong and New York Stock Exchanges on June 21 and 22, 2000. Currently, it is the only fixed and mobile telecom service provider in China. Its business scope has been extended from cellular, paging to toll, long distance as well as data/Internet services. China Unicom is the only CDMA service provider in China. On the web: www.chinaunicom.com.cn.

About Alcatel

Alcatel provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EURO 12.3 billion in 2004, Alcatel operates in more than 130 countries.

About Alcatel Shanghai Bell

Alcatel Shanghai Bell is the first foreign-invested company limited by shares in the telecommunications sector in China, with Alcatel holding 50%+1 shares and Chinese shareholders holding the remainder. The multi-billion dollar telecom technology leader delivers end-to-end telecommunications solutions and high-quality services, covering the fixed, mobile networking, broadband access, intelligent optical networking, multimedia solutions and network applications. It also has a key international R&D center with full access to Alcatel's global technology pool, developing original technology for use in China and export to Alcatel's customers worldwide. With 6,500 employees, an advanced manufacturing center, and the most extensive sales and support network in China, it is the only company capable of meeting the global needs of Chinese customers. For more information, visit Alcatel Shanghai Bell on the Internet at http://www.alcatel-sbell.com.cn.

About Sylantro Systems Corp.

Sylantro Systems provides the premier software platform for advanced IP Centrex and hosted communications services for business, residential, wireless and other applications. The company leads the market in deployments, with carriers such as SBC, PTTs such as Swisscom and China Unicom, and next-generation service providers such as Bandwidth.com and Covad using the Sylantro platform. With a unique combination of advanced applications, a carrier-class platform, and proven go-to-market services, Sylantro allows service providers to rapidly deliver high-value, high-margin managed telephony services. These award-winning solutions offer business users sophisticated communications services without the cost and complexity of today's in-house PBX and key systems, and give consumers new flexibility in their communications services. Sylantro is a privately held company backed by premier investors. On the Web: www.sylantro.com.

Sylantro is a registered trademark of Sylantro Systems Corporation. All rights reserved. All other products and brands mentioned are trademarks and/or service marks of their respective owners.