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Phonzo Licenses New Audio-Only VoIP Softphone from Xten

Xten's new VoIP softphone eyeBeam Audio-only has been licensed by broadband telephony company Phonzo in Norway

Santa Clara, CA — May 10, 2005 —

Xten Networks, Inc. (OTCBB: XNWK), a provider of VoIP (Voice over Internet Protocol), Video over IP, Instant Messaging (IM), and Presence SIP softphones, announced today that Xten's newly released VoIP softphone "eyeBeam Audio-only" has been licensed by Phonzo of Norway for distribution into their VoIP network.

"Phonzo is a valued customer and we are pleased to announce this new partnership in conjunction with our newest softphone offering," commented Erik Lagerway, COO and President for Xten. "eyeBeam Audio-only is an excellent product for Phonzo as it allows them to deploy an initial voice-only softphone offering and still leave the doors open for video and IM upgrades down the road."

Features included in the eyeBeam Audio-only SIP softphone for Windows; Narrow And Wide band codecs, AEC (Acoustic Echo Cancellation), AGC (Automatic Gain Control), VAD (Voice Activity Detection), Audio Concealment (enhances quality), Adaptive Jitter Buffer, 10 Party Conferencing (conference server not required), Audio Tuning Wizard, MWI (Message Waiting Indicator), Record Audio Mix to a file, Transfer calls, Phone Book, Drag and Drop Dialing, UDP & TCP Support, Multiple 6 Lines, NAT Traversal using STUN, ICE & Xtunnels (v1 & 2), Auto-Detect IP Address, Manual IP Address, Manual DNS Settings, Received Calls, Dialed Calls, Missed Calls, Last Caller-ID and more.

"We are impressed by the high performance of Xten's technology, their robust quality of service and feature set that is required to serve our customers," says Paal-Vidar Lundquist, CEO of Phonzo. "Our partnership with Xten has given us the technology to make softphones for mobile VoIP and we are delighted to work with one of the world's leading softphone provider."

Xten's softphones for Windows, MAC OS X, Pocket PC and now Linux are software applications, which run on devices such as personal computers (PCs) or personal digital assistants (PDAs) or can be integrated into set-top boxes, embedded devices, instant messenger applications and alike. When an Xten softphone is connected to a service provider's network, the user can make and receive calls to and from other "on-net" callers (IP-to-IP) and/or "off-net" callers (IP-to-PSTN/Cellular) with the same quality of service they would expect from an IP handset. However, at a fraction of the cost, while providing more features and functionality than an IP handset.

About Phonzo

Phonzo is a provider of mobile VoIP services to business and residential marked in Europe. The service includes well known fixed and mobile telecommunications services as well as value added services. Phonzo will primarily support services for nomadic use from handheld phones, PDA's and lap-tops. With state of the art technology and a unique business model, Phonzo aims to be a leading telecommunication operator of the Internet.

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.