Fusion Telecommunications Licenses Global IP Sound's Market-Leading Technology to Power Its VoIP Softphone

Market Wire, April, 2006

Global IP Sound (GIPS), the leading provider of embedded voice-processing solutions for the Voice over IP (VoIP) market, today announced that Fusion Telecommunications International, Inc. (AMEX: FSN), a provider of advanced VoIP services, will license GIPS' VoiceEngine PC to ensure voice quality in its new softphone, which will be available worldwide in the second quarter of 2006. A softphone is a downloadable software application that transforms a personal computer into a telephone. Fusion's new softphone will allow both dial-up and broadband connected customers to make calls over its high-quality VoIP network.

"Fusion's broad customer base is concentrated in emerging markets around the globe, and thus faces challenges regarding voice quality, especially when compared to the US. Fusion will now be able to overcome these obstacles by offering its PC-based customers leading-edge voice quality on its VoIP applications," said Gary P. Hermansen, President and CEO of GIPS. "GIPS VoiceEngine will ensure that Fusion's softphone delivers an unbeatable user experience to each and every customer around the globe, regardless of location. Our partnership further demonstrates the broad range of applications for GIPS patented technology, and the unique scenarios that demand such cutting-edge capabilities."

Fusion will provide its powerful VoIP softphone under its "efonica" brand, enhancing the level of service and quality available to its PC-based customers. By integrating GIPS' technology into Fusion's new efonica softphone, which is supported by Fusion's proprietary Directed SIP Peer-to-Peer technology, its carrier-class infrastructure and a range of custom-developed components, Fusion expects to create a new level of high-quality, secure, and flexible communications for VoIP PC users.

"Adding GIPS VoiceEngine to our efonica softphone represents another example of the way we are positioning Fusion's VoIP services to provide a premium customer experience," said Matthew Rosen, Fusion's President and CEO. "By including GIPS VoiceEngine in our already robust offering, Fusion is now able to offer its customers, whether using broadband or dial up Internet connections, the same voice quality as our customers who utilize our VoIP services with no PC at all. We are confident that GIPS' field-proven technology will allow Fusion to continue its innovation and leadership in the VoIP space. Improving this important feature of voice quality should strengthen our foundation of flexible consumer offerings ranging from free, prepaid and subscription-based services accessible from almost any PC, regular phone connected to the Internet through an adapter, IP Phone, or SIP-based device."

Good voice quality, easy integration, and support for multiple features are all key components of the successful adoption of VoIP applications, a market that promises explosive growth over the next several years. In the consumer market alone, the total number of VoIP subscribers worldwide reached 16 million in 2005, according to market research firm In-Stat. That figure is projected to grow to over 55 million in 2009. Juniper Research, meanwhile, predicts that revenues for VoIP services will grow tenfold over the next five years.

GIPS' comprehensive packaged solution, which has become the de facto industry standard, provides superior speech processing capabilities even under the most adverse network conditions. "We believe that adding GIPS VoiceEngine PC to Fusion's carrier-class infrastructure and proprietary Directed SIP Peer-to-Peer technology will allow Fusion to deploy a powerful premium-quality, feature-rich, worldwide service offering that is not currently available in the market today," said Mr. Rosen.

About Global IP Sound

Founded in 1999, Global IP Sound develops embedded voice processing technologies for real-time communications over packet networks. GIPS SoundWare(TM) provides better than PSTN voice quality and fidelity in end-to-end IP communications with robustness against packet loss. Global IP Sound's world-renowned speech processing and IP telephony experts deliver these solutions to applications developers, gateway and chip manufacturers. Companies using GIPS SoundWare(TM) products include Nortel Networks, Skype, IBM, Yahoo!, AOL, EarthLink and other key players in the VoIP market. Global IP Sound is a member of the Intel® PCA Developer Network, the Motorola Design Alliance, Symbian Platinum Partners and Texas Instruments' third-party developer network. Global IP Sound has headquarters in San Francisco and offices in Stockholm, Hong Kong and Boston. More information is available at http://www.globalipsound.com .

About Fusion

Fusion provides its efonica branded VoIP (Voice over Internet Protocol) products, Internet access, and other Internet services to, from, in and between emerging markets in Asia, the Middle East, Africa, Latin America and the Caribbean. Fusion currently provides services to corporations, consumers, international carriers, government entities, and Internet service providers in over 45 countries. For more information please go to: http://www.fusiontel.com or http://www.efonica.com .