Telkom South Africa and ITXC Enter into IP Telephony Exchange Agreement; Largest African Carrier Is Connected to World's Largest VoIP Network

Business Wire, August 8, 2001

Business Editors/Hi-Tech Writers

PRINCETON, N.J. & PRETORIA, South Africa--(BUSINESS WIRE)--Aug. 8, 2001

ITXC Corp (NASDAQ:ITXC), the leading provider of worldwide Internet Protocol voice services, and Telkom South Africa (Telkom SA), the premiere telecommunications company on the African continent, announced today that Telkom SA and ITXC have signed an agreement to exchange Voice over Internet Protocol (VOIP) traffic.

Voice and fax calls from ITXC's customers around the world are already flowing into South Africa under the agreement. Telkom is paid for completing these calls in South Africa.

The calls carried under this agreement are from any ordinary phone to phone and are of carrier quality. Callers are usually completely unaware that these calls are being routed with Internet Protocol (IP) since ITXC provides carrier quality with IP economics.

"Telkom SA has advanced to a higher level by incorporating the latest technological development in the telecommunications industry, which will serve them well in the long run," said Tom Evslin, ITXC Chairman and CEO. "ITXC is pleased to have a major role in bringing these advantages to developing countries around the world."

"In this age of increasing competition in the global telecommunications market, connecting to ITXC.net(SM) makes it possible for Telkom SA to capture more traffic," stated Roger Chiume, Executive, and International Carrier Relations & Business of Telkom SA.

ITXC.net has a global footprint of 559 PoPs (Points of Presence) in more than 117 countries and since 1998 has carried more than 2 billion minutes of voice traffic over the public Internet. ITXC uses its patented BestValue Routing(TM) technology to provide carrier-grade voice quality to carriers by routing calls with Internet Protocol.

About Telkom SA:

Telkom is the licensed communications operator in South Africa and has further solidified its market position in recent years by rapidly modernizing and expanding its national and international network.

In its quest to become an internationally competitive, world-class communications company, Telkom is transforming itself to deliver excellent services to its customers, while meeting world-class telecommunications performance standards and achieving an acceptable return for its shareholders. For more information, visit www.telkom.co.za.

About ITXC:

ITXC Corp (NASDAQ:ITXC) established and operates ITXC.net(SM), the largest global network for voice over the Internet with 559 points of presence in more than 318 cities and 117 countries, as of June 30, 2001. The company is the leading provider of worldwide Internet voice services with more than 2 billion minutes of use since the inception of ITXC.net in 1998.

ITXC's patented BestValue Routing(TM) technology provides such high voice quality over the Internet that tier one carriers use ITXC for worldwide phone-to-phone traffic without indicating that the calls are actually going over the Internet.

Customers include major traditional carriers and RBOCs who achieve lower costs for phone-to-phone calls while maintaining carrier quality, Web merchants who increase sales with ITXC Push to Talk(SM) buttons on Web sites and e-mail, as well as Internet-based Web-to-phone providers and voice portals. For more information, visit www.itxc.com.

Forward looking statements: ITXC has included in this press release certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" consist of all non-historical information and include the analysis of historical data in this release.

Actual results could differ materially from those projected in the Company's forward-looking statements due to numerous known and unknown risks and uncertainties including, among other things, unanticipated technological difficulties, the volatile and competitive environment for Internet telephony, changes in domestic and foreign economic, market, and regulatory conditions, the creditworthiness of our customers and other considerations described as "Risk Factors" in Exhibit 99 to the Company's Annual Report on Form 10-K for the year ended December 31, 2000 and in other filings by the Company with the SEC.

ITXC is a registered trademark of ITXC Corp. ITXC.net, Push to Talk, and BestValue Routing are service marks and trademarks of ITXC Corp. All other trademarks mentioned in this document are the property of their respective owners.