Taqua Named Market Leader in Class 5 Packet Switching.

Business Editors/High-Tech Writers

RICHARDSON, Texas--(BUSINESS WIRE)--July 7, 2003

Taqua, Inc., a leading provider of next-generation voice switching systems and technologies, has been named the Class 5 packet switching leader by Infonetics Research for calendar year 2002 and for the first quarter of 2003. Class 5 Packet Switching, which is one of eight product categories tracked within Infonetics' Next Generation Voice Products Report, is expected to exceed $390 million worldwide aggregate revenue from calendar year 2003 through 2005.

"Taqua has captured 39% worldwide market share during the first quarter, continuing their leadership from 2002," said Kevin Mitchell, directing analyst for Service Provider Networks at Infonetics Research. "Taqua's strong traction within the North American competitive and rural local exchange carrier markets has fueled their quarterly growth and established the company as the market leader for both the worldwide and North American Class 5 Packet Switching market."

"Over the last 18 months, Taqua has successfully transitioned from a product-driven company to a mature, operationally focused company," said Charlie Vogt, president and CEO of Taqua, Inc. "Performance can be measured in many ways, though none more important than customer validation which directly impacts revenue and earnings. With more than 60 customers and over 90 switches in the field, we are pleased with our performance and growth, though a long ways from achieving the benchmark we have established."

Taqua's OCX(TM) next-generation Class 5 switch provides a "switch-on-a-card" design, through which each interface card (or "circuit pack") in the OCX performs all of the functions required of a Class 5 switch. Each card provides all the dedicated resources for call processing, service logic, switch fabric, media processing, and signaling. By eliminating common equipment and providing all the functions of a Class 5 switch on each card, the OCX greatly improves service margins and gives carriers pinpoint control over network costs. A fully functional system can be deployed with a single card, with additional expansions added as markets develop. Capable of scaling from 40 to over 40,000 subscribers, Taqua's OCX is being used by local exchange carriers for capping or replacing legacy voice switching equipment or out of region greenfield applications. The OCX is also used by a variety of competitive service providers including CLECs, Cable companies, and ISPs.

In May, Taqua set a new precedent in voice switching, by introducing a standard five-year warranty for its OCX next-generation Class 5 switch. In June, at Supercom, Taqua unveiled the EFX(TM), a central office feature server that works in conjunction with Taqua's next-generation Class 5 Switch. The EFX(TM) offers a suite of new business and residential applications enabling service providers to deliver new services including web control of business Centrex, voice mail, and personal telephony applications.

About Taqua, Inc.

Founded in 1998, Taqua is a market leader in next-generation telephony systems and technologies. The Company focuses on improving local (ILEC) and competitive (CLEC) exchange carrier deployment and operational costs, while delivering new and differentiated revenue generating services. Taqua offers a complete line of switching products and services, including a full-featured next-generation class 5 switch, application servers, line and trunk testing system, and an element management system. In addition, the Company offers a full suite of professional services including network design, capacity planning, as well as installation and cutover services.

Taqua, OCX, and EFX are Trademarks of Taqua, Inc.