Global IP Sound Announces Major Inroads in the Voice-over-IP (VoIP) Hardware Market

Solid Market Share and Proven Performance with VoIP Applications and ISPs Results in Rapid Adoption of GIPS Solutions in VoIP-Enabled Hardware

San Francisco, CA – October 12, 2005 – Global IP Sound (GIPS), the leading provider of embedded voice-processing solutions for the Voice over IP (VoIP) market, today announced that it has made major inroads in the VoIP hardware market, specifying Q3 licensing deals with three leading chip manufacturers and a major handset manufacturer.

“We are currently on the cusp of unprecedented growth in the VoIP hardware market. If semiconductor companies and ODMs are to succeed in capturing the early market share, they must deliver products that not only provide the highest and most consistent call quality available, but also exceed the expectations of end users. GIPS is positioned to be the vendor of choice for these companies for whom quality will be the hallmark of their offerings,” said Gary P. Hermansen, President and CEO of Global IP Sound. “We look forward to supporting our new customers in their efforts to move aggressively in the VoIP market and provide revolutionary products and services.”

The three semiconductor companies, which include Waveplus Technology Corp. and Marvell Semiconductor, have set their sights on the rapidly growing IP phone, mobile handset, ATA and gateway segments of the VoIP market, all of which are expanding at unprecedented rates.  According to recent statistics from market research firm In-Stat, the number of consumer VoIP subscribers using wireless IP phones will grow from the current 2 percent usage rates worldwide to 73 percent in 2009, Meanwhile, the global service provider VoIP gateway market reached revenues of $165.3 million in 2003 and is expected to grow to $985.7 million annually by the year 2009.

These announcements come on the heels of the launch of GIPS Voice Quality Enhancement (VQE) for ATA, which solves many of the network echo and noise related issues within consumer-oriented gateways.  The news also follows the opening of a now fully operational office in Hong Kong, which is poised to service the needs of the Asia Pacific region.  These recent developments confirm that GIPS, which has become the de facto standard for voice processing in the application and ISP space, is committed to gaining the same leadership position in the VoIP-enabled hardware market. Global IP Sound is strongly positioned as the only company capable of providing unmatched call quality across all VoIP platforms enabling software, hardware and semiconductor vendors to bring their solutions to market quickly while maintaining consistent quality across all IP-enabled communications.

About Global IP Sound

Founded in 1999, Global IP Sound develops embedded voice processing technologies for real-time communications over packet networks. GIPS SoundWare™ 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™ products include Nortel Networks, Skype, WebEx, MSN, 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 www.globalipsound.com.