POPstar Selects Xten Softphones For People Line Broadband Phone Service

Vancouver, BC, Canada — August 20, 2004 —

POPstar Communications Canada, an IP Telephony solutions provider, selects Xten Networks (OTCBB: XNWK) Softphones and Xtunnels for People Line broadband telephony services. People Line services launched in Vancouver, Canada, earlier this month and will roll out in other cities later in 2004/2005.

Russ McDermott, Director of People Line states, "We're excited about Xten's softphones. When they're combined with our desktop email/fax services, we can offer customers an affordable, full-featured, 'virtual' phone/fax call center on a PC, without requiring dedicated phone lines or hardware such as adapters, phones, or fax machines." Xten's Xtunnels allows customers to use the softphones behind firewalls.

Xten softphones can be installed on laptops and Pocket PCs, while People Line's email/fax services only require an Email or browser interface to use. This makes each solution portable, mobile and accessible from any broadband connection, including Wi-Fi, and gives people anytime, anywhere access to local and long distance services.

People Line provides alternative local voice/fax calling, voice mail, call display, integrated email/web/fax services and more, combined with competitive pay-as-you-go long distance calling plans.

"VoIP services that replace traditional local circuit-switch primary line services are growing in communities worldwide and People Line, with its VoIP and FoIP services, reflect this trend," said Erik Lagerway, co-founder and Chief Operating Officer of Xten Networks, Inc. "Xten is very pleased to have People Line as a new customer."

About POPstar and People Line

People Line retails broadband VoIP/FoIP using POPstar's IP products and network services. POPstar develops IP telephony software and provides wholesale VoIP/FoIP services; corporate customers have used its FoIP products for the past 10 years. POPstar is a publicly listed OTC company. For further information please visit www.peopleline.net and www.pop-star.net.

About Xten Networks, Inc.

Xten is a provider of award-winning, high-quality SIP (Session Initiation Protocol) Voice over Internet Protocol (VoIP) software and SIP softphones. It is Xten's goal to be the primary choice in softphones and client-side IP communications software for telephony software consumers the world over. For Xten product information, please visit sales.xten.com. On the Web: www.xten.com. Erik Lagerway's Blog: www.sipthat.com.