VocalTec's Surf&Call Network Services Begins Commercial Operation; New ASP to Help Online Businesses Improve Customer Acquisition and Retention.

High Tech & Business Editors

Internet Commerce Expo San Jose 2000

Booth No. 226

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 12, 2000

At Internet Commerce Exposition (ICe) in San Jose today, Surf&Call Network Services(TM), a business unit of VocalTec Communications Ltd. (Nasdaq:VOCL), announced the first commercial availability of its online customer care service. (Booth No. 226)

Surf&Call Network Services (Surf&Call) is an Application Service Provider (ASP), enabling businesses with e-commerce storefronts to provide integrated voice (Internet telephony), co-browsing, text chat and form completion assistance directly to customers via the web. With Surf&Call, online businesses and retailers are expected to improve customer acquisition and retention, thereby increasing revenues. The service also bypasses the complexity and cost of on-site technology installation and maintenance.

Having recently completed its controlled beta phase, Surf&Call is in full commercial operation offering businesses and retailers two levels of service:

-- Professional - Surf&Call offers a full suite of capabilities including
real-time voice connectivity from an e-commerce storefront to a call center,
guided web browsing, joint online form handling between call center agents and
customers and real-time text chat.

-- Basic - Customers can dial a retailer's toll-free number - via PC - directly
from the company web page.

"Many online retailers neglect a critical ingredient to closing sales - the human touch," said Elon Ganor, Chairman and Chief Executive Officer of VocalTec. "By providing a fully-hosted, fully-managed, scalable service with no capital equipment investments or maintenance costs, Surf&Call can immediately help online retailers turn e-shoppers into satisfied, repeat-customers."

Market Research Confirms Need

Market research confirms that consumers are more likely to complete online shopping transactions on websites that offer reliable and easy access to customer service. A Boston Consulting Group study shows that a satisfied first-time purchaser will return to a site 11 times and average $500 in purchases, whereas 23% of dissatisfied first-time purchasers will never return, or, if they do, average only four visits and $140 in purchases.

"E-tailers need a way to interface easily and quickly with customers online," said Mark Winther, Group Vice President of IDC's Worldwide Telecommunications research. "Web-talk service providers like Surf&Call enable e-retailers to put a human voice behind their e-commerce storefront. Further, the ASP model allows businesses to significantly improve their online customer service without extensive cost or risk."

Easy to Use

Surf&Call installs automatically into most web browsers, and because it is powered by VocalTec technology, end-users experience excellent voice quality without having to log off and place a separate call. All that is needed is a multi-media PC. For e-commerce providers, Surf&Call provides additional customer call flow directly to existing call centers with no change to the equipment infrastructure, and without requiring costly agent re-tooling and training.

"Surf&Call provides immediate and reliable communication with our customers via the web," said Tim McLaughlin, president of Internet Vacations Inc., a full-service online travel site based in Orlando, FL. "We've added a new channel in which our agents can answer questions, explain options and close sales."

Superior Technology

To ensure the most advanced and reliable service, Surf&Call has selected best-of-breed technology partners and is hosted at GlobalCenter, the leading Internet services company. Surf&Call features four-tiered architecture, and its scalable, load-balanced infrastructure includes technologies from Compaq Computer Corporation, BEA Systems, TIBCO Software Inc. and AudioCodes Ltd.

To learn more about Surf&Call or for a live demonstration, please visit us at www.surfandcall.net.

About VocalTec

VocalTec Communications Ltd. (NASDAQ:VOCL) is a leading supplier of Internet telephony solutions, credited with launching the voice-over-the-Internet industry in 1995. The Company has three business units: IP Telephony, which provides turnkey solutions to service providers; Surf&Call Network Services, which offers services to web-enabled call centers; and TrulyGlobal Inc., which delivers web-based telephony service directly to the consumer. VocalTec is a founding shareholder of ITXC Corp. (NASDAQ:ITXC), a leading exchange carrier for Internet telephony services established in 1997. Visit us at www.vocaltec.com.

NOTE: VocalTec, VocalTec Surf&Call and TrulyGlobal are trademarks or registered trademarks of VocalTec Communications Ltd. Other trademarks are the property of their respective holders. Certain statements contained in this release may contain forward-looking information with respect to plans, projections or the future performance of VocalTec Communications or any of its subsidiaries or businesses, the occurrence of which involves certain risks and uncertainties, including, but not limited to, product and market acceptance risks, the impact of competitive pricing, competitive products, product development, commercialization and technological difficulties, and other risks detailed in the Company's reports filed from time to time with the Securities and Exchange Commission.