Audiocodes Ltd. — Regulatory Filings 2005

Mar 8, 2005

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PRESS RELEASE

Contacts Shirley Nakar Kristy Needham Megan Atiyeh AudioCodes Alan Weinkrantz And Company Engage PR for NexTone Tel: +972-3-976-4072 Tel: 210-861-9875 Tel: 510-748-8200 ext. 228 shirley.nakar@audiocodes.com kristyn@weinkrantz.com matiyeh@engagepr.com

NexTone and AudioCodes Partner for Transcoding Media Firewall Solution

Transcoding Media Firewall Enables Carriers to Simplify VoIP Interconnects by Cost Effectively Normalizing Voice and Fax Traffic

VON – San Jose, CA and Lod, Israel – March 8, 2005 - NexTone Communications® , a market leader in scalable session management of real-time IP services, and AudioCodes (NASDAQ: AUDC) a leading provider of Voice over Packet (VoP) technologies and voice network products, today announced that NexTone has selected AudioCodes to enable a media transcoding solution for scalable and secure Voice over Internet Protocol (VoIP) network interconnects. NexTone’s Transcoding Media Firewall (TMF) option for its session controller platforms, enhanced with AudioCodes’ leading edge IPmedia™ Media Server blades and platforms, is now available. The solution enables NexTone’s carrier customers to simplify their VoIP networks with a robust, highly scalable, and cost-effective interconnect solution. Interconnecting today’s VoIP network domains and crossing network borders requires special peering functions for real-time communication such as transparent signaling, protocol mediation, and transcoding of media streams for voice, fax, and video that may have incompatible encoding.

“Routinely the Yankee Group interviews the world’s largest carriers, and carrier inter-connect is one area that is frequently discussed as a concern for Tier 1 carriers,” said Danny Klein, senior analyst with The Yankee Group. “NexTone and AudioCodes are joining forces and expertise to provide a marketready solution to this very real problem."

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The NexTone TMF option enables NexTone’s Session Controller to dynamically utilize AudioCodes’ media server blades and platforms with the Multimedia Services Control Protocol (MSCP) to achieve seamless transcoding of voice and fax streams.

“This solution gives carriers more control of their real-time traffic. Carriers can now standardize their VoIP networks without making expensive investments in media gateway upgrades, or sacrificing connectivity to their carrier partners or enterprise customers that use different VoIP standards,” said Dan Dearing, vice president of marketing at NexTone. “We selected AudioCodes because they provide best of breed media processing capabilities, densities, and a variety of supported vocoders all packaged and optimized for today’s evolving networks.”

AudioCodes platforms recently achieved outstanding Voice Quality results at the European Telecommunications Standards Institute (ETSI) third Speech Quality Test Event. Voice quality is essential for VoIP to continue expanding and being deployed in the most demanding networks and is particularly important at the edge of the network for inter-connection functions.

“We believe that NexTone’s best of breed session border controller integrated with AudioCodes’ transcoding capabilities provides carriers with the most cost effective and robust way to interconnect and scale their networks,” said Lior Aldema, vice president of marketing at AudioCodes. “We are pleased to be part of a solution that provides carriers with a means to facilitate the exchange of carrier traffic and also enables the wide-spread deployment of VoIP services to the enterprise and consumer markets.”

NexTone will be exhibiting the joint solution in its booth #515 at the VON Spring Conference and Expo in San Jose, CA from March 7[th] through 10[th] . In addition, AudioCodes will be displaying its media gateways and media server boards and platforms in Booth #909.

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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.

NexTone Session Controller:

NexTone's Multiprotocol Session Border Controller (MSC) removes interoperability barriers and provides the intelligent VoIP routing, signaling, and security capabilities that are crucial for the delivery of real-time IP services. The MSC's unique FlexPeer capabilities, including dynamic call admission control, SIP/H.323 interworking, network address translation (NAT), and VoIP firewalling functionality, enable carriers to flexibly and securely interconnect with other IP-based carriers.

About NexTone Communications

NexTone Communications develops carrier-grade products that deliver scalable control of real-time IP services, such as voice over IP (VoIP). NexTone solutions enable carriers, service providers and enterprises to interconnect networks securely, simply, and cost-effectively for end-to-end control and management of IP traffic. NexTone's real-time IP technology has been installed by more than 200 service providers to reduce capital expenditures dramatically and deliver ongoing operational efficiencies, such as reduced interconnect “turn-up” time and simplified network operations. For its ability to anticipate the growing need for multiprotocol session control and its impressive market traction, NexTone was awarded the 2004 Frost and Sullivan Market Penetration Leadership Award. The company is headquartered in Gaithersburg, Maryland USA with domestic and international sales offices worldwide. For more information, visit www.nextone.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 packet-based applications in the wireline, wireless, broadband access, and enhanced voice services markets. AudioCodes enabling technology products

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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, Mexico City, 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. NexTone Communication is a registered trademark of NexTone Communications, Inc. All other products or trademarks are property of their respective owners.

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