Etelos and BT Establish Partnership to Distribute and Deploy Telephony-Enabled, Web-Based Applications

Business Wire, March 18, 2008

Etelos Marketplace[TM] to Promote and Distribute BT's Web Services to Give Developers the Ability to Create Innovative Voice 2.0 Applications

SAN MATEO, Calif. -- Etelos, Incorporated announced that it has partnered with BT to bring BT's 21st century messaging and telephony web services into the Etelos Marketplace.

This joint partnership makes it easy for application developers to integrate BT's web services into a variety of applications on the Etelos platform.

Simplicity and innovation are the driving forces behind BT's web services which include voice and messaging, allowing for the rapid development of communications enabled applications. BT has also recently added a new service called CallFlow, an intuitive Interactive Voice Response (IVR) capability which allows voice and data to be combined dynamically and easily, free of heavyweight IVR platforms.

To make access to the services as easy as possible, BT has provided a number of Software Development Kits (SDKs) for developers that encapsulate service functionality and security. These SDKs abstract web services into a simple user interface and fit naturally into development environments that are commonly used, such as Java, .Net, PHP and Python.

The Etelos[TM] Ecosystem gives Web developers an easy way to develop and distribute applications through the Etelos Marketplace. Businesses come to the Etelos Marketplace in search of browser-based and downloadable applications such as customer relationship management, content management, ecommerce and others. Developers can now rapidly integrate additional functionality into their applications such as SMS alerts and Click to Call.

"Having BT's web services as part of the Etelos Ecosystem will give application developers a way to build innovative BT powered voiceware applications," said Joe Black, BT's Director of Business Development for Emerging Technologies. "We feel that the Etelos Ecosystem provides a complementary platform and distribution channel for our services that allows developers to quickly monetize their work."

Unlike other platforms, the Etelos Ecosystem does not lock a business in to a particular technology. By supporting multiple frameworks and programming languages, businesses will be able to operate without the worry of an application no longer being supported.

"Joining forces with BT not only gives our current customers access to great communications enabled applications based on BT's telephony services platform, but it also gives existing BT customers an opportunity to access the many business solutions available in the Etelos Marketplace," said Jeff Garon, Etelos' President and CEO.

For more information, please visit http://www.etelos.com/marketplace and http://web21c.bt.com/

About Etelos, Incorporated

Etelos provides on-demand, customizable browser-based applications on the hosting environment that you choose. Etelos[TM] technology for developing and deploying on-demand applications is revolutionizing the world of software distribution. The Etelos Marketplace[TM] gives developers an easy way to license, distribute and host their applications and provides businesses access to a wide selection of fully customizable, on-demand applications. Etelos[TM], Etelos CRM[TM], Etelos Projects[TM], and Etelos Marketplace[TM] are trademarks of Etelos, Incorporated; other trademarks are the property of their respective owners. For more information about Etelos, please visit www.etelos.com.

About BT

BT is one of the world's leading providers of communications solutions and services operating in 170 countries. Its principal activities include the provision of local, national and international telecommunications services to our customers for use at home, at work and on the move; higher-value broadband and internet products and services and converged fixed/mobile products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2007, BT Group plc's revenue was PS20,223 million with profit before taxation of PS2,484 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.

For more information, visit www.bt.com/aboutbt

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Etelos' business which are not historical facts may be "forward-looking statements" that involve risks and uncertainties. Forward-looking statements include, among other things, statements concerning the company's partnership with BT, the future financial performance of our company, the acceptance of our products and services, the success and timeliness of our product and platform roll-out and other statements qualified by words such as "anticipate," "believe," "intend," "may" and other words of similar import. These statements are neither promises nor guarantees, but involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including, without limitation: For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's reports that Etelos files from time to time with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and Etelos undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.