Level 3 Signs VoIP Deal

January 27, 2005
January 27, 2005 – (HOSTSEARCH.COM) – deltathree, Inc. announced today that it has signed an agreement with an operating subsidiary of Level 3 Communications, Inc. to purchase wholesale Voice-over-IP (VoIP) services. The Level 3 services will support the growth of deltathree's Service Provider and Reseller VoIP offerings as well as iConnectHere, deltathree's retail VoIP service.

Shimmy Zimels, deltathree's President and Chief Executive Officer, stated, "We are pleased to be working with Level 3, one of the leading Internet backbone operators worldwide, to tap their proven capabilities to support the global deployment of our VoIP solutions. This agreement supports deltathree as we continue to expand the breadth of our value added VoIP solutions to service providers, resellers and consumers with a diverse range of VoIP offerings. Level 3's geographic reach allows deltathree to scale our VoIP network backbone quickly and efficiently while ensuring that we maintain the high level of network quality and dependability on which our customers rely."

Deltathree purchased Level 3's (3)VoIP EnhancedSM Local service to expand the geographic reach of its VoIP solutions and accommodate current and future growth of its reseller, service provider and consumer groups. deltathree provides a full range of VoIP solutions, supporting major telecommunications and broadband service providers through its Outsourced Platform Solution as well as offering programs for resellers worldwide. The Reseller Program is ideal for a broad range of customers, including: calling centers/shops, Internet Cafes, local hardware and software distributors, local ISPs, calling card and callback companies, telecom consultants, Web portal and entrepreneurs. deltathree's consumer division, iConnectHere, provides award-winning VoIP products directly to end users around the world.

"We are pleased to be working with deltathree, one of the leading providers of VoIP solutions, to effectively expand their deployment of high-quality VoIP services," said Shirish Lal, Senior Vice President of Consumer Voice Services for Level 3. "deltathree's selection of Level 3 demonstrates the power and flexibility of Level 3's wholesale VoIP solutions and will provide deltathree the ability to expand their network to accommodate rising VoIP call traffic on a global basis without costly buildouts."

Level 3's (3)VoIP Enhanced Local service is a wholesale VoIP solution that enables companies who operate their own switching infrastructures to launch IP-based local and long-distance communications services to residential and business customers via any broadband connection. (3)VoIP Enhanced Local provides the essential components required to offer high-quality VoIP service. These components include network trunking, local numbers, local number portability, E911, operator assistance, directory listings, and directory assistance. At the same time, the (3)VoIP Enhanced Local solution allows Level 3 customers to retain the flexibility to manage and control end-user features without the need to implement complex interconnection arrangements.

(3)VoIP Enhanced Local service was honored as a recipient of the 2004 Product of the Year Award by Technology Marketing Corporation's (TMC(R)) INTERNET TELEPHONY(R) magazine.
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