GLOBAL IP SOUND AND NORTEL NETWORKS TO DELIVER ENHANCED IP VOICE QUALITY

Nortel Networks licensed Global IP Sound (GIPS) SoundWare(TM) solutions to enhance the voice quality of their IMS and Multimedia Xchange product portfolios. GIPS SoundWare will enable these products to provide better than PSTN voice quality, even under extreme network conditions, of up to 30% packet loss.

San Francisco, CA -- June 17, 2002 -- Global IP Sound (GIPS) today announced that it has signed an agreement with Nortel Networks* to provide enhanced audio quality for IP (Internet Protocol) networks. Nortel Networks will integrate the GIPS SoundWare suite within its SIP enabled multimedia communications systems for enterprises and carriers, including Nortel Networks Succession* Communications Server for Enterprise -- Multimedia Xchange (CSE MX) and the carrier grade Interactive Multimedia Server (IMS) portfolios.
Nortel Networks delivers best-in-class Quality of Service (QOS) enabled VoIP networks. By engaging with Global IP Sound we will further enhance our ability to provide superior end-to-end voice quality, even when less predictable conditions of greater than desirable loss or delay may exist at the edges of a network," said Sue Spradley, president, Voice over IP, Nortel Networks. Our focus is to provide our customers with high-quality, highly-reliable, cost-effective multimedia solutions that are deployable today."

Working with Nortel Networks, a leader in the convergence of voice and data networks, we will continue to deliver innovative technologies and will raise the bar for VoIP applications while providing solutions that can be cost-effectively deployed today," said Roar Hagen, Chief Technical Officer, Global IP Sound.

Joining Nortel Networks VoIP solutions with the GIPS sound-processing suite will position customers to benefit from IP communications of quality equal to or better than traditional PSTN voice systems, even in adverse network conditions of up to 30 per cent packet loss. Additionally, the GIPS SoundWare technology combines jitter-buffer and error concealment algorithms designed to reduce the effects of packet loss and delay inherent in many IP networks.

The GIPS Professional Services team will work closely with Nortel Networks in the integration and optimization of sound quality for these products, starting first with the Nortel Networks PC and web SIP Clients and the i2004 IP phone as used in Nortel Networks multimedia communications solutions. GIPS SoundWare software provides significant measured improvements in fidelity under real-world operating conditions, achieving enhanced audio quality without significant increase in demands on the IP network, including bandwidth requirements.

Nortel Networks Interactive Multimedia Server platform is a suite of multimedia applications designed to run on open computing platforms. Built with Nortels extensive expertise in developing mission-critical systems, the Interactive Multimedia Server supports true carrier-grade reliability, scalability, and manageability. The Succession CSE MX further enhances Nortel Networks customer-centric model of offering new and existing customers a choice in voice over IP deployment. The Succession CSE MX was named winner in the Convergence Technology" category of the Best of Interop Awards competition for NetWorld+Interop 2002 in Las Vegas.

About Global IP Sound
Global IP Sound (GIPS), founded in 1999, has a team of world leading speech processing and IP telephony experts focused on delivering speech and audio processing software solutions for real-time, interactive communications over packet networks. GIPS enhanced standard implementations and new speech processing technology are specifically designed for voice over IP. They provide dramatically increased robustness to degraded network conditions, as well as better than PSTN sound quality and fidelity in end-to-end IP communications. More information on GIPS is available at www.globalipsound.com.

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Global IP Sound, GIPS, SoundWare, NetEQ, and associated design marks and logos are trademarks owned or used under license by Global IP Sound, Inc., and may be registered in the United States and other countries.

*Nortel Networks and Succession are trademarks of Nortel Networks.