GVT Launches VoIP Services Powered by Xten

GVT is the first large Brazilian carrier to offer Voice over IP services to the market, which integrates Internet with the conventional telephony network

Santa Clara, CA — October 28, 2004 —

Xten (OTCBB: XNWK), a provider of VoIP (Voice over IP) and Video over IP SIP softphones, and GVT, a foreign capital fixed Brazilian carrier, today announced that GVT is offering a complete range of VoIP services powered by Xten softphones.

For the residential market, GVT created WebFone and WebFone Virtual. Webfone will be exclusive to those who own a local GVT line. With the service, the GVT telephone installed at a client's home or office could be accessed from anywhere in the country or from the world via the Internet, as if it were a virtual domestic extension. For the corporate market, GVT has developed the OmniGVT family of solutions. The client can contract several telephone numbers from one or more available cities according to his need.

GVT's launching of VoIP services marks the first incursion of a Brazilian fixed telephone carrier fully established in the VoIP world. Migration to the new technology is considered as an inevitable direction that will deeply change the business model of all carriers within a few years.

"This is the reinvention of telephony - both in terms of service providing as in the way to utilize it - the concept of distance is eliminated with VoIP, the same way that interurban email or local email does not exist, soon interurban or international telephone calls will not exist - the world will start being in fact a large and single global village" said Amos Genish, president of GVT. In the second phase, GVT plans to adopt applications such as videoconferencing and online collaboration. "We consulted many software suppliers all over the world until reaching Xten which has the solution we needed to offer, a simple and quick installation in any computer to our final customer with high-quality. Xten softphones are flexible, user-friendly and compact. The software even supports dial-up access with quality, which was a critical point in our decision," states Rodrigo Dienstmann, Marketing vice president of GVT.

Xten's softphones are carrier-grade IP telephony SIP endpoints, delivering the quality of service and features that large providers require to serve their customer base. 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. Xten's softphones are fully RFC3261 (SIP), RTP/RTCP (RFC 1889) and SDP (RFC 3264) compliant. They are available for Windows (Windows 98SE/ME/NT 4/2000/XP/CE), macOS and Pocket PC operating systems.

"Xten's customer-base spans the globe and our new relationship with GVT will provide us with some great exposure in South America," said Erik Lagerway, president and chief operating officer of Xten. "We are very happy to have been chosen by GVT as the primary SIP softphone for their network and we look forward to building on this new relationship."

About GVT

GVT is the foreign capital fixed Brazilian carrier that grows 40% a year as a complete integrated voice services for local, long distance (25), data and Internet. With 1,800 employees and a growing operational profit margin next to 30%, the company has invested approximately US$1.4 billion in four years in its operations across the national territory. In the regions South, Middle-Western and North of the country, it services small and medium size companies, residential market and large corporations. In São Paulo, Rio de Janeiro and Belo Horizonte, it mostly services corporate solutions. GVT's progressive growth is based on innovation in products and services, service quality and intelligent expansion. The company is ahead of the largest innovation ever seen in the Telecom sector since the invention of telephone - the commercialization of products based on voice over IP technology adopted to establish voice communication between any Internet user and any telephone conventional network user. For more information please visit www.gbt.com.br.

About Xten Networks, Inc.

Xten is a developer of award-winning, high-quality, carrier-grade VoIP (Voice over IP) and Video over IP softphones for service providers, cable operators, Internet telephony service providers, IP PBX manufacturers and OEMs. 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. Through its deployments with leading service providers, Xten has more than 500,000 IP endpoints deployed worldwide. For more information please visit www.xten.com. You may also visit Xten COO, Erik Lagerway's blog at www.sipthat.com.