Telecom New Zealand International Selects Veraz's VoIP Solution for US and UK Deployments; Veraz Wins Contract and Preferred Vendor Status.

SAN JOSE, Calif. -- Veraz Networks, Inc., a leading global provider of VoIP softswitch solutions, announced today that Telecom New Zealand International (TNZI) selected Veraz's VoIP softswitch to be the preferred solution for TNZI's telecom switches.

Initially, TNZI will deploy Veraz's ControlSwitch(TM) softswitch, service delivery platform and I-Gate 4000 family of media gateways in key US and UK cities. This initial deployment will be a phased rollout that will be completed in early 2006 and will include installations in Los Angeles, New York, Miami and London.

Before selecting Veraz, TNZI engaged in a thorough assessment of six vendor proposals, the products themselves, and each company's ability to deliver upon TNZI's business requirements. Following this detailed and competitive vendor selection process spanning several months, TNZI selected Veraz as its chosen vendor.

"The strength of Veraz's offering is its open and flexible architecture, and in particular the flexibility of their system's voice traffic routing that can adapt to TNZI's business agreements now and in the future," said Anthony Briscoe, General Manager of Telecom New Zealand International. "Veraz's open architecture paves the way for TNZI to build new business models using best of breed application servers where appropriate, and fits with TNZI's strategy of building its business on voice application wholesale rather than transactional minutes based revenue."

"TNZI wanted a new switching and operational model in order to scale its business and meet future demands," said Doug Sabella, CEO of Veraz Networks. "This is a great win for Veraz in a major market and demonstrates the strength and flexibility of our solutions as well as our ability to deliver what is required in the market of today and tomorrow."

About Veraz Networks, Inc.

Veraz (www.veraznetworks.com) is a leading global provider of voice over IP (VoIP) softswitches, media gateways and digital compression products to wireline, broadband and wireless service providers. Veraz compression and switching solutions optimize voice quality and network efficiency. When combined with Veraz programmable service platforms the result is a service infrastructure responsive to changing demands of end users, regulators and competitors. Veraz solutions enable service providers to profitably migrate from traditional voice networks to all-IP fixed-mobile and multi-media networks consistent with the emerging IMS standards. Veraz is a trusted supplier to 700 service providers in 140 countries including VoIP deployments in over 50 countries.

About Telecom New Zealand International

TNZL is a major supplier of telecommunications services in New Zealand and Australia. TNZL provides a full range of telecommunications products and services in New Zealand including local, national, international and value-added telephone services, cellular and other mobile services, data and Internet services, equipment sales and installation services, leased services and directories. TNZL's Australian subsidiary, AAPT, offers a wide variety of fixed-line, data, internet and mobile services to consumer, business and wholesale customers in Australia.

Telecom New Zealand International (TNZI) is TNZL's international division and manages TNZL's international assets outside of NZ and Australia including the international calling for AAPT and TNZL, a Global IP transit network, Managed Data for corporate clients and the wholesale voice calling business.

TNZI are renowned innovators in the international wholesale minutes trading business. TNZI operate Global "Points of Presence" in Europe, USA, Asia, Australia and New Zealand. TNZI has international offices based the USA, UK and Japan.