Audiocodes Ltd. — Regulatory Filings 2004

Oct 18, 2004

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FOR IMMEDIATE RELEASE

Contacts Shirley Nakar Kristy Needham Jennifer Deitsch AudioCodes Alan Weinkrantz And Company BayPackets, Inc. Tel: +972-3-976-4072 Tel: 210-861-9875 Tel: 925-831-2092 shirley.nakar@audiocodes.com kristyn@weinkrantz.com jennifer.deitsch@baypackets.com

AudioCodes and BayPackets Partner for Voice over Broadband

Comprehensive solution enables cable MSOs and DSL providers to rapidly deploy bundled applications across converged networks

Lod, Israel and Fremont, CA – October 18, 2004 – AudioCodes (NASDAQ: AUDC), a leading provider of Voice over Packet (VoP) technologies and Voice Network products, and BayPackets, a provider of enhanced voice and data solutions for wireless, wireline and broadband operators, today announced that the two companies have joined forces to deliver comprehensive Voice over IP routing and messaging solutions to the Cable MSO and DSL market. These solutions, which include Single Number Service (find-me follow-me), integrated Visual Voicemail, Personal Communications Manager, and Advanced Toll-Free, enable broadband operators to deploy advanced telephony services across IP, TDM or hybrid networks.

AudioCodes IPmedia™ Media Server product line offers service providers a robust and scalable media processing solution that supports a rich variety of VoIP voice vocoders, media processing capabilities and standards-compliant signaling and call control. The IPmedia™ 2000 and 3000 are deployed at leading ILEC, Cable MSO and PTT operators globally. BayPackets offers the Agility SIP Application Server for carriers that already have deployed packet voice infrastructure. For service providers that are migrating from TDM to IP, BayPackets offers the Agility Network Services Platform (NSP). AudioCodes and BayPackets have completed integration of the IPmedia™ Media Server and the BayPackets Agility SIP Application Server. The joint solution is now available to cable MSOs, DSL providers and Mobile Virtual Network Operators (MVNOs) who want to create, manage and deploy converged services on a single, common platform.

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According to Leichtman Research Group, only 16% of the over 81 million US cable subscribers currently have cable telephony services available and only 14.6% of subscribers who have cable telephony available are currently signed up for cable telephony services. AudioCodes and BayPackets’ combined offering in this market is designed to enable broadband operators to rapidly and profitably deploy advanced telephony services and achieve significantly higher levels of service penetration.

“Consumers are increasingly aware of the benefits of Voice over IP, and demanding the flexibility and costsavings of using their existing broadband connection for phone service. Incumbent and new entrant broadband operators alike are looking for differentiated services to help them compete for these customers,” said BayPackets CEO Ken Epps. “The AudioCodes/BayPackets solution gives cable MSOs and DSL providers a cost-effective, scalable solution for quickly deploying IP-powered bundled voice services, such as integrated wireless-wireline voicemail, to complement their existing high speed internet offering. These services are a natural up-sell for broadband operators.”

“By collaborating with one of the leading application vendors in the industry, we are able to deliver highly scalable solutions that address the market's need for rich voice features and quick deployment,” said Ben Rabinowitz, AudioCodes VP of Marketing and Sales for North America. “Customers will reap the benefits of AudioCodes’ robust media processing engines, BayPackets’ specialized applications, and operational simplicity via intuitive configuration and management tools. This pre-tested and bundled solution enables customers to focus on the most important aspects of growing their business – increasing revenue and reducing expenditures.”

AudioCodes will be displaying its media gateways and media servers at VON FALL conference and expo in Boston, MA. from October 18 through 21st in Booth #312. BayPackets will be exhibiting its solutions in Booth #829.

AudioCodes Media Server:

AudioCodes IPmedia™ Media Server product line provides scalable media processing platform solutions for enabling application developers and Network Equipment Vendors to offer value add services to wireline, wireless and converged networks. The IPmedia™ can be used to provide centralized announcements, conferencing, Interactive Voice Response (IVR), media transcoding, IP multicasting / IP forking, record & playback, Web-based playback and other media server functions.

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BayPackets SIP Application Server:

BayPackets' Agility SIP Application Server provides a carrier-grade, SIP Servlet platform with a full suite of ready-to-deploy consumer and business applications. In addition to applications such as Unified Messaging, Conferencing, Prepaid, Voice VPN, Advanced Toll Free, and others, BayPackets provides a complete Software Development Kit (SDK) with tools and resources to quickly develop and deploy new services. The Agility SIP Application Server conforms to the 3GPP IMS (IP Multimedia Subsystem) standard and includes a complete Element Management System (EMS) and Service Management System (SMS).

About BayPackets

BayPackets’ Agility SIP Application Server, Agility Network Services Platform and applications enable wireless, wireline and cable operators to rapidly bundle and deliver enhanced voice and data services tailored to the needs of their business and consumer customers. Local, long-distance and broadband carriers rely on BayPackets’ solutions to profitably expand their business by efficiently operating new and existing network infrastructure via a flexible and open standards-based platform. Founded in February 2000, BayPackets is a privately held company that has received funding from industry-leading venture capital firms. The company is headquartered in Fremont, CA, with a subsidiary in Noida UP, India. For more information, visit BayPackets at www.baypackets.com.

About AudioCodes

AudioCodes Ltd. (NASDAQ: AUDC) enables the new voice infrastructure by providing innovative, reliable and cost-effective Voice over Packet technology and Voice Network products to OEMs, network equipment providers and system integrators. AudioCodes provides its customers and partners with a diverse range of flexible, comprehensive media gateway and media processing technologies, based on VoIPerfect™ – AudioCodes’ underlying, best-of-breed, core media gateway architecture. The company is a market leader in voice compression technology and is a key originator of the ITU G.723.1 standard for the emerging Voice over IP market. AudioCodes voice network products feature media gateway and media server platforms for packetbased applications in the wireline, wireless, broadband access, and enhanced voice services markets. AudioCodes enabling technology products include VoIP and CTI communication boards, VoIP media gateway processors and modules, and CPE devices. Its customers include the leading telecom and data network equipment providers globally. AudioCodes’ international headquarters and R&D facilities are located in Israel,

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with U.S. headquarters in San Jose, California. Additional offices are in Boston (MA), Chicago (IL), Research

Triangle Park (NC), Somerset (NJ), Beijing, London, Paris and Tokyo. For more information on AudioCodes, visit www.audiocodes.com or call +1 (408) 577-0488.

Statements concerning AudioCodes' business outlook or future economic performance; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements'' as that term is defined under U.S. Federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets in particular; shifts in supply and demand; market acceptance of new products and continuing products' demand; the impact of competitive products and pricing on AudioCodes' and its customers' products and markets; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed; and other factors detailed in AudioCodes' filings with the Securities and Exchange Commission. AudioCodes assumes no obligation to update the information in this release.

AudioCodes, AC, Ardito, AudioCoded, NetCoder, TrunkPack, VoicePacketizer, MediaPack, Stretto, Mediant, VoIPerfect and IPmedia are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners.

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