Audiocodes Ltd. — Regulatory Filings 2004

Oct 18, 2004

AudioCodes

NEWS RELEASE

Contacts

Shirley Nakar AudioCodes Tel: +972-3-976-4072 shirley.nakar@audiocodes.com

Kristy Needham Alan Weinkrantz And Company Tel: 210-861-9875 kristyn@weinkrantz.com

AudioCodes Introduces High-Density Wireline-Wireless Converged Media Servers

New platforms enable revenue generating enhanced voice services applications for wireline, wireless, cable and converged networks

Lod, Israel October 18, 2004 – AudioCodes (NASDAQ: AUDC), a leading provider of Voice over Packet (VoP) technologies and Voice Network products, today announced the addition of two high density converged (wireless/wireline) media server platforms to its existing IPmedia™ Media Server product line. The IPmedia 8000 and IPmedia 5000 are the latest members of AudioCodes’ scalable media servers product line that addresses carrier requirements for mid and high-density, reliable media servers that enable a wide range of applications, such as business communications, wireless personal communications, fixed-mobile-convergence applications and residential broadband services.

"The time is right for high-density media server deployments," said Matthias Machowinski, Directing Analyst at Infonetics Research. "In the last few years, lower density media servers have been deployed as the building blocks of emerging voice services, such as residential VoIP and IP Centrex. Increased adoption of these services is driving the need for higher density media servers. The IPmedia™ 8000 and 5000 round out AudioCodes' portfolio of media servers to address this segment of the market, and will provide carriers with the necessary infrastructure to support the growing subscriber base for these new revenue-generating applications and services."

The IPmedia 8000 media server provides support for up to 18,000 low-bit-rate VoIP/VoATM channels of media processing whereas the IPmedia 5000 media server offers up to 8,000 low-bit-rate channels. Those media processing channels can be used to provide centralized announcements, conferencing,

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Interactive Voice Response (IVR), media transcoding, IP multicasting / IP forking, record & playback, Web-based playback and other media server functions. Both platforms are carrier-grade platforms which are targeting high available, high reliable, mission critical applications and services. They are planned to be released in the first quarter of 2005.

The IPmedia 8000 and 5000 platforms are also designed and optimized to serve as a Multimedia Resource Function Processor (MRFP), supporting both Wireline and 3G (UMTS & CDMA) Wireless networks that have adopted the IP Multimedia Subsystem (IMS) architecture. As part of an IMS architecture, they serve as a robust, scalable MRFP to provide application developers and service providers with the necessary capabilities to deploy and offer enhanced services. The IPmedia servers allow mixing wireline and wireless subscribers on the same platform. Therefore, they are ideally suited for service providers seeking to deploy harmonized core networks and advanced applications.

"We are seeing an increased adoption of the 3GPP IMS architecture in both wireline and wireless network deployments. This architecture drives some of the density requirements we are seeing in the market place. These media servers can be used as a shared, aggregated resource across multiple applications," said Lior Weiss, Director of Product Marketing at AudioCodes. "The scalability and feature richness of the IPmedia 8000 and IPmedia 5000 make them ideal solutions for carriers seeking to increase revenue-generating applications and services."

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.

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

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IP market. AudioCodes voice network products feature media gateway and media server platforms for packet-based 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, 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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