Netcentrex Confirms Success in Eastern Europe

PARIS (FRANCE) January 25 (PROTEXT/PRNewswire) - As SalesContracts Double, VoIP Business Shows No Sign of Slowing

Netcentrex(TM), the leading enabler of next generationconverged voice and video solutions, confirms its businesssuccess in Central and Eastern Europe signing 10 new customersand 6 new partners in the last 12 months.

"And the best is yet to come," states Olivier Hersent,Chairman and CTO of Netcentrex. "As the market moves from basicvoice to advanced IP services, thanks to broadband, opportunitiesfor video and fixed-mobile convergent solutions will grow.Netcentrex is well positioned in this field as illustrated by ourrecent sales of solutions for triple play services,videotelephony and FMC."

This growth confirms CEE operators' increasing commitment toIP-based networks and services. The number of Voice over IP(VoIP) minutes in the region more than quintupled in 2005compared to 2004, and will more than triple in 2006 when spendingis projected to grow by 80%(1).

Although VoIP market growth is still heavily influenced bylocal loop deregulation and the need to upgrade legacy networks,there is a significant demand for advanced communication servicesin countries with growing broadband penetration, such as Poland,Croatia or Slovenia.

Recent Netcentrex deployments include MobilTel AD inBulgaria, Optima, Telekom and Portus d.o.o. in Croatia. Thecompany will announce two new deployments this week in Slovenia.Five more deployments are underway in Russia, Poland, Croatia,Bulgaria and the Czech Republic and include 2 incumbentoperators. They bring the total number of Netcentrex customers inthe region to 21, with deployments ranging from NextGen POTs, toFMC and video communication services for cable, fiber and xDSLnetworks.

To ensure customer relations and business growth, Netcentrexhas a direct sales presence in Russia, Poland, Czech Republic andSlovakia, and an extensive partner network that includes AMTGroup in Russia, ANECT in the Czech Republic, Lirex BG inBulgaria, Solidex in Poland, Smart Com in Slovenia and Verso inCroatia. Several new partner announcements are scheduled. To meetincreasing demand and support partners, Netcentrex recentlyappointed a sales manager for countries where Netcentrex has notyet established a direct presence.

"Besides the traditional prepaid and softphone basedservices,VoIP growth in Central and Eastern Europe has been mostevident in the business services sector with deployments forBusiness Trunking, IP Centrex, VoIP VPN, and Peering, providingstrong results for Netcentrex," comments Boris Dezier, GeneralManager for Central and Eastern Europe at Netcentrex. "Incountries where broadband is reasonably available, the structureof small and medium enterprises enables them to adapt and migrateto network-based communication solutions more easily than largebusinesses. In addition to significant cost savings, theseenterprises benefit from rich communication features andadvanced services such as FMC and video applications. However,Netcentrex has also deployed a number of residentialcommunication solutions in the region that deliver services fordouble and triple play offerings. Netcentrex is delighted withour success on the CEE market and we will continue to addresslocal needs with high performance solutions that enable theservice providers to meet the tremendous growth they areexperiencing."(1) Source: IDC press announcement dated 10 November 2005 basedon an IDC study of 11 CEE country markets (not including Russia).About Netcentrex(TM) (www.Netcentrex.net)

Netcentrex develops unique next generation network (NGN)voice and video solutions that enable telecom operators andservice providers to deliver voice-video-data and fixed-mobileconverged services for both the consumer and enterprise markets.

Netcentrex has over 2.5 million VoIP lines in commercialservice and has been recognized as the worldwide leader for Class5 application servers.

Press Contacts

Netcentrex EMEA

Madeleine Jeavons / Tel.: +33-(0)1-58-71-33-28

E-mail: pr@netcentrex.net

Netcentrex US / Latin America

Susan Stearman / Tel.: +1-408-521-7421

E-mail: susan.stearman@netcentrex.net

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