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Ecuity Selects Xten as Its Preferred VoIP Softphone Client for Its V-Tone Smart Call Service

V-Tone Smart Call Integrates with Traditional Telephone Networks Making it Easy to Leverage the Advantages of VoIP

Bellevue, WA — May 31, 2005 —

Ecuity, Inc., (OTC BB: ECUI.OB), a leading Voice-over-Internet Protocol (VoIP) communications company delivering solutions for the small-to-medium-sized business and residential markets, today announced it has selected Xten Networks, Inc. (OTCBB: XNWK), as Ecuity's the preferred softphone client for V-Tone Smart Call, Ecuity's global Public Switched Telephone Network (PSTN) service. Xten Networks is a software provider of combining award-winning VoIP, Video over IP, Instant Messaging (IM), and Presence SIP softphones for laptops, desktops and Pocket PC hand held PDA's.

V-Tone Smart Call is a service from Ecuity which integrates traditional telephone networks with VoIP, enabling customers to turn their PC or Pocket PC into an enhanced telephone system. The combination of Ecuity's VoIP service and Xten's softphones allows people to place and receive phone calls conveniently and affordably over any private Wi-Fi network, public HotSpot or broadband network.

"It's like having your office phone with you everywhere," explained Jon Schnelz, vice president of technology for Ecuity, Inc. "Voice communications are at the core of most businesses' success. If you can't communicate with co-workers and customers, business just doesn't get done. And with more workers becoming mobile, extending voice becomes vital. That's why we are so enthusiastic about Xten."

Xten softphones enable delivery of the highest quality voice communications on laptops, PCs, and Pocket PC mobile devices over any broadband IP network. Xten also supports Session Initiation Protocol (SIP) open standards, a critical factor in Ecuity's selection of the company as its the preferred softphone client for V-Tone Smart Call.

"We are very pleased to have been selected as the Ecuity's preferred softphone client for V-Tone Smart Call," said Erik Lagerway, COO and president of Xten. "We aim to deliver innovative products and according to a number of our customers we build the best VoIP Softphone on the market. It is important to us that we offer consumers, road-warriors and enterprise customers excellent sound quality, comfort and convenience for IP-based communications."

Shane Smith, Ecuity's CEO added, "The ability for our customers to add Smart Call soft IP phones to their laptops provides another level of flexibility to our hosted offerings. This mobile service saves businesses money and is an extremely productive tool for single user or multi-user PBX environments."

About V-Tone Smart Call

V-Tone Smart Call delivers call quality that is equal to or superior to fixed phone service, with a range of service plans that include numerous features as well as fixed minute or unlimited long distance for local, national or worldwide calling. Features of the service include voice mail, caller ID, Unified Messaging, Simultaneous Ring and click-to-dial integration with Microsoft Outlook.

Introductory calling plans begin as low as $15.00 (U.S.) per month, with unlimited domestic long distance available for $30.00 (U.S.) per month at rates as low as 3.9 cents per minute. V-Tone Smart Call is available virtually anywhere in the United States and in international markets. Customers can call 1 866-41 VTONE (1 866-418-8663) to arrange installation of service or secure a custom solution quotation.

About Ecuity, Inc.

Ecuity is a n award winning VoIP communications service provider for, ISP's, Internet Telephony Service Providers, SMB and residential markets. Ecuity's carrier network and SIP based infrastructure provide for the delivery of full featured PBX, IP trunking and individual residential services over broadband and fixed wireless networks. As a facilities-based carrier, Ecuity has operated operates as both an Internet and traditional telephone company providing for 17 years, providing competitive Internet and long distance services to tens of thousands of customers across the country. Ecuity has offices in Bellevue, Washington. For more information please call 1 866-41 VTONE (1 866-418-8663visit www.ecuity.net.

About Xten Networks, Inc.

Xten is a developer of award-winning, high-quality, carrier-grade SIP softphones for service providers, cable operators, Internet telephony service providers, IP PBX manufacturers and OEMs. Xten's SIP softphones are available either pre-configured or as a software development kit (SDK), and provide VoIP (Voice over IP), Video over IP, IM (Instant Messaging), and Presence functionality. Xten has a feature-rich FREE SIP softphone dubbed X-Lite, in addition to the fully featured X-PRO commercial softphone and eyeBeam, a SIP Video over IP softphone with IM and Presence. Through its deployments with leading service providers, Xten has more than 700,000 IP endpoints deployed worldwide.

For more information please visit www.xten.com.