VocalTec selects Acumen in Mexico and M13 in Brazil to expand VoIP services

October 19, 2004--VocalTec Communications Ltd. (Nasdaq: VOCL), a leading VoIP telecom equipment provider, announced that it has selected Acumen Telecomunicaciones in Mexico and M13 in Brazil to bring VoIP services to a vast and growing Latin American market.

The new channels are part of VocalTec's strategy to expand sales of its Essentra(TM) product suite through indirect sales channels and local representation in high-growth markets. The two new distributors give VocalTec strong channels to the distributors' existing customer bases, as well as local technical support and marketing expertise. The new channels allow VocalTec to target a sizable market, as Brazil and Mexico combined account for approximately 75 percent of the Latin American telecommunications market.

M13 is introducing VocalTec's versatile Essentra product set to Brazilian telecommunications service providers, who can take advantage of the modular set of open and highly focused VoIP products to quickly roll out voice-over-broadband and long distance VoIP services. Founded in 1994, M13 is a leading Brazilian solutions integrator of IP networks, specializing in innovative, state-of-the-art technology. M13 provides VocalTec with local expertise servicing telecommunications carriers and service providers in Brazil. M13's addition of the VocalTec Essentra product suite including the BAX voice-over-broadband (VoBB) platform, CX core control softswitch, EX peering manager and other key VoIP network gear will complement M13's existing portfolio of data IP networking and enterprise IP PBX products.

Acumen Telecomunicaciones, a leading system integrator in Mexico, is reselling the VocalTec Essentra suite to its telecommunications service provider customers, enabling them to rapidly roll-out voice-over-broadband and IP-based long distance services. Acumen will be rounding out its VoIP portfolio with the carrier-grade VocalTec Essentra suite, adding to its enterprise IP PBX offerings.

"VocalTec and Acumen are now addressing the new broadband and IP telecom opportunities arising throughout Mexico," said Carlos Shapiro, President of Acumen Telecomunicaciones. "VocalTec's Essentra solutions are ideal for both greenfield competitive carriers who require strong scalability at an affordable entry point and incumbents who require robust carrier-tested and proven equipment that will seamlessly interoperate with their previous PSTN and IP network investments."

"The Brazilian market is ripe for innovative solutions for voice over broadband and core VoIP network control and peering," said Paulo Garcia, Director at M13. "M13's local service expertise and VocalTec's broad service-provider portfolio are well positioned to take advantage of the growth of the VoIP market in Brazil."

"VocalTec continues to execute on our strategy for bringing the Essentra suite and BAX VoBB platform to market with these two new channels," said Dr. Ramesh Ratan, President VocalTec Americas and Senior Vice President of VocalTec Communications Ltd. "This will allow Brazilian and Mexican network operators to quickly establish a new class of telecom services that satisfy Latin America's increasingly sophisticated telecommunications demands, and to build a solid revenue base."

VocalTec's Essentra products provide global and local service providers and carriers a cost-effective means to incrementally support tailored VoIP-based service offerings with near-term revenue potential. The flexible set of products support a wide variety of applications -- including broadband VoIP access, long distance trunking, wholesale international long distance, pre-paid and post-paid calling card, transport of GSM roaming and SMS traffic, and hosted enterprise VoIP services -- providing carriers immediate revenue opportunities in a broad range of markets. Products can be deployed individually, "mixed and matched," or as part of a best-of-breed network solution, giving both flexible entry points and high scalability options for service deployments.

About Acumen Telecomunicaciones

Acumen Telecomunicaciones holds a preferred position in the market as a solution integrator, with a very well developed capacity of analysis and understanding of client needs. Acumen brings together high-end software, infrastructure and professional services, with experience and knowledge in communications technology management, that generate solutions to help customers achieve their objectives, increase profitability and improve processes, supported by service schemes that generate value and high investment returns. The company holds prime clients in the finance, government, construction, carriers and services sectors, deploying high speed voice and data networks, telephony, contact centers, applications, security and broad band wireless communications. Look for Acumen Telecomunicaciones at: www.acumen.com.mx or at 5255-10843600 ext. 1306

About M13

M13 is a solution integrator specialized in state-of-the-art technology and leader in innovation and integration of IP networks. It is an innovative corporation, constantly aligned to its clients' interests, searching for cost reduction and agility in services delivery. Between its past projects, it's participating in the construction of one of the first access networks to the Internet in Brazil. The company works in high technological complexity data communication infrastructure, voice, image, security and converging networks. M13 has a distinct position between the biggest integrators in the country due its expertise. For more information, visit: www.m13.com.br

About VocalTec

VocalTec Communications Ltd. (VocalTec) is a leading telecom equipment provider offering next generation network (NGN) VoIP products for global carriers and local service providers. Our customer base spans more than 100 countries and includes Deutsche Telekom, Data Access, Intelcom San Marino (subsidiary of Telecom Italia Sparkle), RomTelecom and Hanoi Telecom. The company's flagship Essentra(TM) Product Suite is a set of modular, open and highly focused access and core VoIP network products, supporting a wide variety of VoIP-based NGN applications, including voice access, network peering and control, Class-4 long distance, prepaid calling card, rural telephony and hosted enterprise VoIP applications. VocalTec also provides VoIP solutions over fixed wireless broadband infrastructure.

Learn more about our products and solutions at www.vocaltec.com.