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From The Sip Trunking Experts

[August 16, 2004]

Pingtel Completes Strategic Transition with Sale of Its Award-Winning xpressa Desktop Phone Product Line

WOBURN, Mass. --(Business Wire)-- Aug. 16, 2004 -- Move supports Pingtel's open source subscription business model for software-based SIPxchange(TM) IP PBX and softphone

Pingtel Corp., the leading provider of open source-based, business-grade, enterprise communications solutions, today announced that it has completed the sale of its xpressa(TM) desktop phone product line. Details were not disclosed. The sale of the only hardware component in Pingtel's innovative, native SIP-based communications portfolio completes the Company's transition to a software-only business, which Pingtel announced in February. Pingtel's business model enables enterprise customers to select best-of-breed, off-the-shelf phones and components for use with the SIPxchange family of PBX and application routing engines. This approach allows end users to customize telephony solutions for their specific price and performance requirements and eliminates vendor lock-in, and also enables SIP component vendors and solution providers to increase market share in the burgeoning VoIP marketplace.


"This transaction completes Pingtel's transition to a software only business and recognizes the significant value of the xpressa phones and brand. Open source IP telephony will transform enterprise communications away from proprietary systems and hardware to a model based on standards-compliant software-based architectures," said Bill Rich, President and CEO of Pingtel. "The inherent value of a standards-based architecture is that it frees enterprise customers, resellers and system integrators to build best-of-breed solutions with SIP-based components, allowing customers to get the performance they need, while leading to substantially lower prices for enterprise telephony solutions."

Pingtel delivers a certified, supported version of open source SIPxchange IP PBX and softphones similar to the existing Linux-based subscription model. Pingtel's award-winning SIPxchange and softphones provide a cost-effective, low-risk IP telephony solution. Customers can select one of two levels of support, choosing a plan that's right for their company based on specific Service Level Agreement (SLA) parameters. As a result of this transaction, Pingtel will no longer market the xpressa desktop IP phone. Pingtel will continue to sell its industry leading SIP softphone, and will continue to support existing xpressa desktop phone customers.

Pingtel's enterprise communications suite includes the SIPxchange PBX, including unified messaging, SIPxchange CallManager, providing enterprise level application routing, and SIP softphones. SIPxchange software runs on standard PC server hardware and uses the Linux operating system.

About Pingtel Corporation

Pingtel's open source business model will prove to be a fundamentally disruptive force in the $5 billion per year enterprise PBX market. By offering enterprise-class, all SIP-based, open source IP PBX software under a Linux-style subscription license, Pingtel is combining the best attributes of open source development - low cost, adaptability and flexibility - with the reliable solutions and support enterprises require for voice applications. Pingtel's open source IP PBX software is the linchpin technology that will catalyze the movement of enterprise communications into the data center and away from purpose-built hardware. Like enterprise-grade Linux, this approach will drive commoditization of traditional telephony hardware and software and eliminate technology lock-ins that have plagued the industry for decades. This new business model will lead to pervasive adoption and shift significant market share away from vertically integrated, proprietary solution vendors. For more information, visit www.pingtel.com.

Note to Editors: Pingtel, SIPxchange, etc. are trademarks of Pingtel Corp. All other trademarks are the property of their respective owners.

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