Intel Licenses Software to Itxc to Improve Quality of Pc-to-phone Internet Telephony - Company Business and Marketing

Cambridge Telcom Report, June 5, 2000

Intel Corporation announced it is licensing its Internet telephony software technology to ITXC (NASDAQ: ITXC), a leading service provider of Internet telephony. Intel's technology improves the quality of voice communication when making a call from a PC to a phone, achieving nearly the same quality as when making a phone-to-phone call. This is part of Intel's ongoing effort to develop technologies to improve consumer experiences over the Internet.

The licensing agreement allows ITXC to incorporate Intel's Internet telephony software technology into its ITXC webtalkNOW! ServiceSM. ITXC offers the service to Web portal and Internet telephony device customers, who can easily integrate it into their existing Web pages and other applications. These companies can then offer Web-to-phone capabilities right from a user's Web browser.

"As Intel's Internet telephony technology is integrated into ITXC's products, consumers and businesses can experience high quality, interoperable IP telephony services," said Abel Weinrib, director of communications and Internet architecture at the Intel Architecture Labs. "Our work with ITXC is part of Intel's continuing commitment to greatly accelerate the Internet voice-call experience."

ITXC is combining the capabilities of the Intel telephony software with BestValue RoutingTM, ITXC's patent-pending voice traffic management technology, to deliver carrier-grade voice quality over the Internet to Web-based callers.

"ITXC's new wholesale Web-based customers will benefit from the ability to serve their customers using this advanced Intel technology over ITXC.netTM, the world's largest Internet telephony network," said ITXC chairman and CEO Tom Evslin. "We are working with Intel and other industry leaders to accelerate the growth of Internet telephony by offering better quality and features that the traditional telephone network simply can't deliver."

How the Technology Works

Intel's Internet telephony software technology improves voice quality by implementing features such as acoustic echo cancellation, decreased audio breakup, noise reduction and bandwidth conservation. These improvements result in clear, crisp voice communications when making calls from a PC to a phone. The software also integrates audio and configuration "wizards" designed to make it easier to integrate the software into Web pages.

Supporting Open Standards

One of the barriers that has slowed wider deployment of Internet telephony has been a lack of interoperability across networks. Both Intel and ITXC are members of the International Multimedia Teleconferencing Consortium (IMTC), an industry group comprised of more than 150 companies working on establishing open interoperability industry specifications. The Intel Internet telephony software is compliant with iNOW!, an Internet telephony interoperability standard developed by IMTC.

Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.> ITXC Corp (www.itxc.com) is the service providers' service provider for voice on the Internet. ITXC WWeXchange Service provides phone-to-phone wholesale call completion for carriers and resellers and has been chosen by ten of the top twelve U.S. facilities-based carriers, leading European competitive carriers, and twelve PTTs worldwide to complete their customers' calls. ITXC webtalkNOW! ServiceSM enables portals, ISPs, and communications web sites to offer PC-to-phone calling to their customers under their own brands. Both services provide high quality over the public Internet by routing calls on ITXC.net, which is the largest Internet telephony network in the world with 250 points of presence in over 145 cities and 59 countries. Announced carrier affiliates include Ameritech, Bell Atlantic, China Telecom, Gambia Telecommunications Company, Interoute, Justice, and Korea Telecom. Web-based customers include American Internet Communications, Dialpad.com, MediaRing.com, Onebox.com, and WowRing.com.