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VocalTec Expands Telephony Gateway Product Line With New Eight-Line Solution for Corporate Intranets and Internet Service Providers

Delivers Next Step in Strategy to Enable Cost-Effective, Real-Time
 Business Communications


HERZLIYA, Israel, Nov. 25 /PRNewswire/ -- VocalTec Ltd. (Nasdaq: VOCLF), the Internet Telephony Company, today announced shipment of the VocalTec Telephony Gateway Server Software eight-port (line) system, which can provide combined intranet and traditional calling to the corporate market, Internet service providers and other organizations that wish to take advantage of the low-cost calling features of the Internet and the benefits of a secure, reliable, user-controlled communications system.

VocalTec Telephony Gateway Server Software Release 2.1 delivers a robust system architecture that is designed for decentralized companies that want to save considerably on long distance calls, have more hands-on monitoring and control of when and how calls are made, and augment system security. The system integrates VocalTec's market-leading Internet Phone technology with Dialogic Corp.'s voice processing board which enables interconnection of Private Branch Exchanges (PBXs) or regular phone lines, using the Internet as the connection link. With the eight-line capacity of Release 2.1, each telephony board supports two lines and each gateway holds up to four cards.

"By offering simultaneous eight-line support, VocalTec delivers a viable, powerful and cost-effective business communications solution to companies with multiple sites and to telephony or Internet service providers that want to provide scaleable telephony service," said Dr. Elon Ganor, VocalTec chairman and chief executive officer. "The Telephony Gateway Server Software is a cornerstone of our strategy to deliver a comprehensive server-based Internet telephony solution which is based on a seamlessly integrated architecture of servers, clients, and software elements such as plug-ins."

"We are pleased that Dialogic's platform is helping VocalTec to rapidly enhance and evolve its Internet gateway solutions. With this new server, VocalTec is extending the scalability of its solution for larger enterprises and even to service providers," said Laurence Fromm, vice president, new business development, Dialogic Corp.

VocalTec Telephony Gateway Server Software Targets Corporate Applications

The VocalTec Telephony Gateway Server Software is an attractive communications solution for companies using it in their corporate intranets and for value-added service providers. For example, Delta Three, an Israel/U.S.-based pioneer in telecommunications services, is integrating the VocalTec Telephony Gateway Server Software into its system. Delta Three provides voice service over the Internet or intranet between Israel, the United States and Russia, and is launching additional sites in Europe, Eastern Europe and South America. Delta Three's service is distinguished from other applications of Internet telephony technology in that it brings the benefits of Internet telephony to the mass market. In the past, consumers of Internet telephony technology required a computer and Internet access to reap the benefits of low-cost calling over the Internet. With Delta Three's service, all consumers need is their existing telephone. Delta Three enables the consumer to make Internet telephone calls just as they would any other telephone calls.

"Our experience in international telecom has shown that there is a tremendous demand for low-cost international voice communications," said Lee V. Kaplan, president of Delta Three. "Our commercial service to St. Petersburg, Russia shows that as we lowered the price of calling, call volume per user increased. This is a win-win situation for everyone, including the telcos who place the local calls -- now the most expensive link of the service."

Kaplan continued, "VocalTec's system is truly the first commercial system to automate the whole procedure of bridging the Internet with the Public Switched Telephone Network (PSTN). In integrating VocalTec's Telephony Gateway Server Software into our systems, we have achieved a high-quality and convenient service which we are offering to corporations and consumers. We are working with local partners in many countries now to bring the benefits of this technology worldwide."

The VocalTec Telephony Gateway Server Software presents a cost-efficient way to maximize existing investments in computers, networks and telecommunications systems. A scaleable, open platform enables users to incorporate other communications tools such as PBX systems and voice mail into the Gateway Server Software to enable full telecommunications connectivity.

Additional value-added features include:

-- New delay management system offered in Release 2.1 lets users select

the setting for the best performance depending on the type of network

connection;

-- Network monitoring alerts administrators of points of failure on the

telephone network and the Internet, and may provide alternate routing

to the PSTN when the Internet is congested;

-- System security restricts access to the Gateway server only to

authorized incoming or outgoing callers, to authorized extensions on

the company's phone system or to telephone users with a valid

authorization or PIN number. Administrators also can specify which

countries or area codes can be called and service hours for each

Gateway;

-- System monitoring and call tracking via a graphical user interface

communicates call status in real-time for billing, troubleshooting and

maintenance purposes. The system provides a range of useful

information including the date, time, duration, the source and

destination, the call originator's name and the reason for the end of

the call;

-- Volume level control, also new with Release 2.1, allows users to set

the audio rate from the line to the telephony board;

-- Automatic routing algorithms and traffic balancing send calls to the

best available Gateway over the least congested routes depending on the

destination; and

-- Web links enable access to the Gateway network directly from a Web

browser for immediate communication with customers, technical support,

or sales call centers.

VocalTec Telephony Gateway Server Software System

VocalTec Telephony Gateway Server Software, combined with Dialogic's voice processing hardware, creates an advanced, open system that bridges the Internet to the public phone network. Companies connect one or more Telephony Gateway servers to their computer networks, the telephone network or business phone system and establish an Internet connection. To place a call, users simply dial the phone number or extension of a Gateway server and are prompted by an automated greeting to key in the desired number. The system announces "Internet Phone call, please hold," while the call is being connected. Delays are minimal and full duplex echo canceling algorithms provide clean voice quality.

A choice of state-of-the-art data compression schemes are implemented by the Telephony Gateway Server Software, including VocalTec Sound Compression (VSC) and TrueSpeech(TM) international standards. These can be specified by the system administrator or the system will automatically select the optimal method for each call.

Distribution, Pricing, and Availability

VocalTec is developing new channels and expanding established channels to address the corporate business market and to build an extensive network of value added resellers (VARs). Pricing for the Telephony Gateway Server Software is $1,250 per line. It is available now and can be ordered from VocalTec or from the CTI Authority (908-931-1221) in the United States.

System Requirements

The Telephony Gateway Server Software Release 2.1 supports up to eight simultaneous calls. The hardware requirements for an eight line system are a Pentium 200Mhz PC or higher running Windows NT Workstation Release 4.0 or 3.51 operating system and offering at least 40Mb of RAM (48Mb is recommended). Four ISA expansion slots are required for four Dialogic voice processing boards, each supporting two lines. The telephony cards are linked to the telephone network, or directly to the company PBX system, and an Internet connection may be established through a standard network card.

Delta Three, Inc. is a U.S. company with operational and development subsidiaries in Israel and Russia. Delta Three is a telecommunications provider, utilizing the Internet to provide global calling services at discounts to standard rates. For more information on Delta Three Global Network call 972-2-649-0680, fax 972-2-649-0612, visit http://www.deltathree.com, e-mail to lee@pioneercorp.co.il, or in the U.S. call 516-455-0279.

VocalTec Ltd., develops and markets software that enables voice and multimedia communications over packetized networks, the Internet and intranets. The company also is developing open systems to bridge the Internet to the public switched telephone network. VocalTec's core products include Internet Phone(TM) software introduced in February 1995 and the Internet Phone Telephony Gateway Server Software.

Based in Herzliya, Israel, VocalTec's North American subsidiary is located at 35 Industrial Parkway, Northvale, N.J., 07647. For more information on the VocalTec product line, call 201-768-9400, fax 201-768-8893, http://www.vocaltec.com on the World Wide Web, or e-mail to info@vocaltec.com.

NOTE: VocalTec and Internet Phone are trademarks of VocalTec, Inc. Other trademarks are the property of their respective holders.

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate" "project" "intend" "expect" "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to establish and maintain market acceptance to the Company's products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for the Company's products, loss of market share and pressure on prices resulting from

competition, introduction of competing products and implementation of industry standards by other companies, lack of development and system failure of the Internet, generally, and the market for voice, audio and multimedia communications over the Internet, specifically, regulatory obstacles to the use of the Internet for communications, inability to manage growth, inability to develop direct distribution network and loss of major distributors, dealers and OEM partners, inability to attract and retain qualified personnel, inability to protect the Company's proprietary technology and risks associated with the Company's international operations and its location in Israel. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the Securities and Exchange Commission.

SOURCE VocalTec Ltd.
 -0- 11/25/96


/CONTACT: Simona Wilrich of VocalTec Ltd., 201-768-9400 or simona_wilrich@vocaltec.com, or Cynthia Wheeler, cwheeler@lnscom.com, or Leigh Dally, ldally@lnscom.com, both of LNS Communications, 617-577-9777/

(VOCLF)

CO: VocalTec Ltd. ST: New Jersey IN: CPR TLS SU: PDT

SR-GW -- NYM022 -- 3483 11/25/96 08:30 EST http://www.prnewswire.com
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